Touchstone Exploration (TXP) AI Stock Analysis

• Market Cap: C$60.08M
• Dividend Yield: N/A
• Average Volume (3M): 148.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -23.68%
• EPS Growth: 75.45%
• Country: CA
• Employees: 104
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 324,733,600
• 10 Day Avg. Volume: 276,722
• 30 Day Avg. Volume: 148,863
• PEG Ratio: -0.08
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.02
• P/FCF Ratio: -8.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.60
• Price Target Upside: 326.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: C$0.21 ▲(47.14% Upside)

The score is primarily held back by weak financial performance, especially negative free cash flow, low profitability, and declining revenue growth. Technicals provide only limited support due to overbought signals and a longer-term downtrend versus the 200-day average. Valuation is also a modest headwind given the negative P/E and lack of dividend yield.

Positive Factors

High Gross Margin

A gross margin near 54% indicates the company retains a large portion of revenue after direct production costs. This structural cushion supports long-term recovery potential: as volumes or prices normalize, a high gross margin helps restore operating profits before consideration of overhead and financing.

Positive Operating Cash Flow

Sustained positive operating cash flow shows core upstream operations generate cash from producing assets. Over months this underpins reinvestment in wells and routine maintenance, and if improved, can enable deleveraging or funding of targeted development without immediate external financing.

Onshore Trinidad Focus

Concentration on onshore assets in Trinidad and Tobago provides structural advantages: generally lower development and operating costs versus offshore, simpler logistics, and established local market access for gas and oil sales, supporting more durable production economics over time.

Negative Factors

Negative Free Cash Flow

Negative free cash flow is a durable weakness: it limits the company’s ability to fund capital expenditures, repay debt, or return capital to shareholders without new financing. Prolonged negative FCF increases refinancing risk and constrains strategic flexibility over the coming quarters.

Moderate Leverage and Low ROE

Moderate leverage combined with near-zero ROE signals limited returns on shareholder capital while carrying debt servicing obligations. Structurally, this reduces financial resilience to commodity shocks and limits ability to invest in growth without worsening leverage or diluting equity.

Declining Revenue Trend

A pronounced revenue decline erodes scale economics and can pressure fixed-cost absorption across operations. Over multiple quarters, shrinking top-line reduces cash generation potential, undermines margin recovery prospects, and complicates funding of maintenance capital and long‑term development plans.

Touchstone Exploration Business Overview & Revenue Model

Company Description

Touchstone 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 Money

Touchstone Exploration generates revenue primarily through the sale of crude oil and natural gas produced from its operations in Trinidad and Tobago. The company monetizes its production by selling crude oil to various refiners and distributors, while natural gas is sold to local markets, often under long-term contracts. Key revenue streams include the sale of produced hydrocarbons and ancillary services related to well maintenance and optimization. Additionally, Touchstone may engage in joint venture partnerships or farm-in agreements to share operational costs and risks, which can enhance its financial position and operational capacity. The company's earnings are influenced by global oil and gas prices, production volumes, and operational efficiencies.

Touchstone Exploration Financial Statement Overview

Summary

Touchstone Exploration faces challenges in profitability and cash flow management, despite strong revenue growth. The income statement shows a healthy gross profit margin but limited net profitability. The balance sheet reflects moderate stability with manageable leverage, while cash flow analysis reveals concerns with negative free cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.26M	43.66M	48.16M	42.99M	29.61M	19.59M
Gross Profit	24.48M	33.02M	29.98M	24.01M	16.94M	10.60M
EBITDA	12.46M	19.94M	-4.20M	8.34M	5.30M	-680.00K
Net Income	-3.27M	8.27M	-20.60M	-3.20M	5.72M	-11.03M
Balance Sheet
Total Assets	236.40M	152.27M	138.95M	147.88M	143.02M	104.55M
Cash, Cash Equivalents and Short-Term Investments	12.69M	6.74M	8.19M	16.34M	17.94M	24.28M
Total Debt	62.85M	40.66M	32.30M	28.34M	32.16M	7.51M
Total Liabilities	164.80M	83.44M	79.18M	69.50M	75.46M	44.19M
Stockholders Equity	71.60M	68.83M	59.77M	78.38M	67.56M	60.37M
Cash Flow
Free Cash Flow	-12.59M	-10.50M	-6.21M	-5.58M	-26.32M	-16.27M
Operating Cash Flow	11.05M	13.18M	12.74M	5.75M	1.55M	2.30M
Investing Cash Flow	-45.97M	-20.62M	-21.11M	-16.48M	-29.39M	-15.60M
Financing Cash Flow	40.97M	5.93M	130.00K	9.05M	21.15M	31.32M

Touchstone Exploration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.27, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.19 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROK	67 Neutral	C$41.38M	-7.42	-5.42%	―	-13.32%	-811.11%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CNE	59 Neutral	C$52.20M	0.95	10.62%	―	-7.68%	79.37%
EOG	51 Neutral	C$163.92M	-46.43	-11.95%	―	―	86.19%
TXP	46 Neutral	C$60.08M	-10.39	-4.64%	―	-23.68%	75.45%
PPR	44 Neutral	C$30.37M	-0.92	―	―	-5.45%	-4.42%
OYL	42 Neutral	C$47.40M	-0.58	-188.43%	―	―	-1886.78%

Touchstone Exploration Corporate Events

Touchstone Exploration Adds Purebond Nominee to Board After Strategic Investment

Touchstone Exploration has appointed Bhupendra Kansagra as a non-executive director to its board, effective immediately, following the completion of a private placement with UK-based investor Purebond Limited. Purebond, which now holds 50 million Touchstone shares representing 15.4% of voting rights, exercised its contractual right to nominate a board member, installing Kansagra, a seasoned UK executive with extensive resource-sector and capital-markets experience. The move strengthens the board with both sector expertise and direct representation of a new significant shareholder, underscoring Touchstone’s efforts to bolster governance and strategic capacity as it pursues its growth strategy in Trinidad and seeks to deliver long-term value to shareholders.

The most recent analyst rating on (TSE:TXP) stock is a Hold with a C$0.21 price target. To see the full list of analyst forecasts on Touchstone Exploration stock, see the TSE:TXP Stock Forecast page.