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Touchstone Exploration Inc (TSE:TXP)
TSX:TXP
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Touchstone Exploration (TXP) AI Stock Analysis

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TSE:TXP

Touchstone Exploration

(TSX:TXP)

Rating:47Neutral
Price Target:
C$0.50
▲(85.19% Upside)
The overall stock score is primarily influenced by financial performance challenges, including low profitability and negative cash flow. Technical analysis suggests bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts the valuation negatively.

Touchstone Exploration (TXP) vs. iShares MSCI Canada ETF (EWC)

Touchstone Exploration Business Overview & Revenue Model

Company DescriptionTouchstone Exploration Inc., an upstream oil and gas company, engages in the exploration, development, production, and sale of petroleum and natural gas properties in the Republic of Trinidad and Tobago. The company has interests in various private exploration mineral leasing properties; and two exploration blocks. Its primary exploration focus is the Ortoire exploration block. The company was formerly known as Petrobank Energy and Resources Ltd. and changed its name to Touchstone Exploration Inc. in May 2014. Touchstone Exploration Inc. was incorporated in 2012 and is headquartered in Calgary, Canada.
How the Company Makes MoneyTouchstone Exploration generates revenue primarily through the sale of crude oil and natural gas that it extracts from its operational fields in Trinidad and Tobago. The company's revenue model is based on the production of hydrocarbons, where it sells its output to local and international markets. Key revenue streams include direct sales of oil and gas, with pricing influenced by global commodity markets. Additionally, the company may benefit from strategic partnerships with local firms and service providers, which can enhance operational efficiency and reduce costs. Factors contributing to its earnings include successful exploration activities that increase production volumes, effective cost management, and favorable pricing conditions in the energy market.

Touchstone Exploration Financial Statement Overview

Summary
Touchstone Exploration shows strong revenue growth but faces profitability and cash flow challenges. The net profit margin is low, and cash flow conversion is weak, indicating operational inefficiencies.
Income Statement
45
Neutral
Touchstone Exploration's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 53.78%, but the net profit margin is quite low at 1.30%, indicating limited profitability. Revenue growth is strong at 108.2% TTM, but the EBIT and EBITDA margins have declined significantly compared to the previous year, suggesting operational challenges.
Balance Sheet
55
Neutral
The balance sheet reflects moderate financial stability. The debt-to-equity ratio has increased to 0.75 TTM, indicating higher leverage, but it remains manageable. Return on equity is low at 0.90% TTM, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable.
Cash Flow
40
Negative
Cash flow analysis reveals concerns, with negative free cash flow and a free cash flow to net income ratio of -69.57% TTM. Although operating cash flow is positive, the operating cash flow to net income ratio is low at 20.07% TTM, indicating challenges in converting income into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue45.76M43.66M48.16M42.99M29.61M19.59M
Gross Profit25.91M33.02M29.98M24.01M16.94M10.60M
EBITDA13.90M19.94M-4.20M8.34M5.30M-680.00K
Net Income636.00K8.27M-20.60M-3.20M5.72M-11.03M
Balance Sheet
Total Assets229.01M152.27M138.95M147.88M143.02M104.55M
Cash, Cash Equivalents and Short-Term Investments6.34M6.74M8.19M16.34M17.94M24.28M
Total Debt55.39M40.66M30.86M28.34M32.16M7.51M
Total Liabilities155.09M83.44M79.18M69.50M75.46M44.19M
Stockholders Equity73.91M68.83M59.77M78.38M67.56M60.37M
Cash Flow
Free Cash Flow-7.25M-10.50M-6.21M-5.58M-26.32M-16.27M
Operating Cash Flow9.81M13.18M12.74M5.75M1.55M2.30M
Investing Cash Flow-42.31M-20.62M-21.11M-16.48M-29.39M-15.60M
Financing Cash Flow31.92M5.93M130.00K9.05M21.15M31.32M

Touchstone Exploration Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.27
Price Trends
50DMA
0.27
Negative
100DMA
0.32
Negative
200DMA
0.38
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
52.99
Neutral
STOCH
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TXP, the sentiment is Positive. The current price of 0.27 is above the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.27, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TXP.

Touchstone Exploration Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$15.46B7.353.20%5.24%4.31%-62.31%
64
Neutral
C$68.61M4.7221.10%43.81%413.13%
60
Neutral
C$101.28M5.003.50%-22.28%-54.64%
54
Neutral
C$188.78M-4.38%-29.38%93.99%
47
Neutral
$70.50M72.970.90%-21.70%
$63.57M2.178.72%7.23%
$143.48M12.534.70%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TXP
Touchstone Exploration
0.27
-0.30
-52.63%
CNNEF
Canacol Energy
1.94
-0.76
-28.15%
TSE:CVVY
Pieridae Energy
0.65
0.36
124.14%
TSE:YGR
Yangarra Resources
1.00
-0.06
-5.66%
JRNGF
Journey Energy
2.14
0.41
23.70%
TSE:AXL
Arrow Exploration Corp
0.24
-0.27
-52.94%

Touchstone Exploration Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Touchstone Exploration’s 2025 Shareholders’ Meeting Approves Key Resolutions
Positive
Jun 20, 2025

Touchstone Exploration Inc. announced that all matters presented at its 2025 annual shareholders’ meeting were approved. The meeting, held virtually, saw the election of six directors and the appointment of KPMG LLP as auditors. The approval of these resolutions reflects strong shareholder support and is expected to positively impact the company’s governance and operational oversight.

The most recent analyst rating on (TSE:TXP) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Touchstone Exploration stock, see the TSE:TXP Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Touchstone Exploration Completes Acquisition of Shell Trinidad Central Block
Positive
May 20, 2025

Touchstone Exploration Inc. has completed the acquisition of Shell Trinidad Central Block Limited for approximately $28.4 million. This acquisition gives Touchstone a 65% interest in the Central block exploration and production license in Trinidad, which includes four natural gas wells and a gas processing facility. The transaction is expected to enhance Touchstone’s production base, provide access to the liquefied natural gas market, and strengthen its operational capacity in Trinidad, offering long-term strategic value.

The most recent analyst rating on (TSE:TXP) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Touchstone Exploration stock, see the TSE:TXP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 31, 2025