Top Strike Resources (VENI) AI Stock Analysis

• Market Cap: C$2.79M
• Dividend Yield: N/A
• Average Volume (3M): 63.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 4
• Sector: Energy
• Sector Strength: 53
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 222,644,960
• 10 Day Avg. Volume: 49,500
• 30 Day Avg. Volume: 63,258
• PEG Ratio: -2.89
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.98
• Enterprise Value/Market Cap: 2.86
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 10.10
• Enterprise Value/Ebitda: -2.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: ―

Top Strike Resources is facing considerable financial difficulties, including declining revenues and negative cash flows, which significantly impact its overall stock score. The technical analysis shows some short-term upward momentum, but also signals overbought conditions, warranting caution. The negative P/E ratio suggests valuation concerns, with no dividend yield adding to the uncertainty. The overall stock score reflects these challenges, indicating potential risks for investors.

Top Strike Resources Business Overview & Revenue Model

Company Description

Top Strike Resources Corp., trading under the symbol VENI, is a Canadian-based company primarily involved in the exploration and development of cannabis-related investments. Operating within the cannabis sector, the company focuses on leveraging strategic partnerships and investments to capitalize on the growing demand for cannabis products and services globally.

How the Company Makes Money

Top Strike Resources makes money through its strategic investments and partnerships within the cannabis industry. By identifying and investing in promising cannabis ventures, the company aims to generate revenue through the appreciation of its investments and potential dividends from profitable partnerships. Its business model revolves around deploying capital in high-growth segments of the cannabis market, including cultivation, production, and retail, where they can gain significant returns. Key factors contributing to its earnings include the performance of its investment portfolio and market dynamics within the cannabis sector.

Top Strike Resources Financial Statement Overview

Summary

Top Strike Resources faces significant financial challenges characterized by declining revenues, negative profitability, and cash flow struggles. While the balance sheet reflects some stability, with a moderate debt-to-equity ratio, the company's ability to generate positive cash flow and return to profitability remains uncertain. Strategic initiatives may be needed to enhance operational efficiency and improve financial performance.

Income Statement

Top Strike Resources shows inconsistent revenue performance with a TTM (Trailing-Twelve-Months) revenue of $3.38 million, significantly lower than the previous annual revenue of $10.03 million. This indicates a sharp decline in sales. The gross profit margin for TTM is approximately 23.4%, but the company suffers from negative EBIT and EBITDA margins, highlighting operational inefficiencies. The net profit margin is also negative due to the net loss, reflecting struggles in achieving profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, but its equity has decreased over time. With total assets of $6.63 million and stockholders' equity of $4.55 million in TTM, the equity ratio stands at about 68.6%, indicating a reasonable level of financial stability. However, the declining equity and increase in net debt raise concerns about future financial flexibility.

Cash Flow

Operating cash flow is negative, and the company experiences negative free cash flow growth, indicating challenges in generating cash from operations. The free cash flow to net income ratio is negative due to consistent losses. These factors suggest liquidity concerns and potential difficulties in funding operations without external financing.

Breakdown	TTM	Dec 2023	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.38M	10.03M	99.47K	248.47K	369.64K	708.43K
Gross Profit	789.80K	―	98.53K	247.22K	368.58K	706.75K
EBITDA	-2.22M	―	-631.08K	-495.71K	-1.24M	506.99K
Net Income	-2.97M	―	-826.96K	-794.51K	-1.46M	2.16M
Balance Sheet
Total Assets	6.63M	11.56M	9.27M	9.75M	10.01M	9.29M
Cash, Cash Equivalents and Short-Term Investments	847.22K	2.55M	5.18M	6.64M	723.94K	3.75M
Total Debt	2.05M	2.71M	2.28M	138.15K	1.58M	0.00
Total Liabilities	3.62M	5.07M	2.81M	2.47M	2.09M	76.13K
Stockholders Equity	4.55M	7.49M	6.45M	7.28M	7.92M	9.22M
Cash Flow
Free Cash Flow	-1.13M	-938.34K	―	5.92M	-3.05M	-1.04M
Operating Cash Flow	-689.88K	-765.73K	-1.56M	5.92M	-3.05M	-1.04M
Investing Cash Flow	-332.86K	-383.10K	―	―	0.00	0.00
Financing Cash Flow	-502.72K	-126.26K	―	-4.18K	26.92K	-68.78K

Top Strike Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VENI, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VENI.

Top Strike Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	C$2.91B	-1.09	-3.26%	6.12%	5.32%	-43.41%
TRUL	51 Neutral	$1.04B	―	-12.39%	―	7.23%	64.93%
TRUL	51 Neutral	$1.04B	―	-12.39%	―	7.23%	64.93%
ACB	50 Neutral	$340.29M	103.77	3.05%	―	16.39%	-98.10%
TGIF	44 Neutral	C$2.45M	―		―	-9.20%	93.62%
WEED	43 Neutral	C$365.50M	―	-122.10%	―	-18.39%	35.21%
VENI	40 Underperform	C$2.79M	―	-21.61%	―	―	―

Top Strike Resources Corporate Events

Vencanna Ventures Reports Financial Results and Strategic Updates Post-Cannavative Acquisition

Vencanna Ventures reported its interim financial results for the three months ending January 31, 2025, highlighting a strategic shift following its acquisition of The Cannavative Group. The company has been focusing on operational efficiencies and cost reductions, including moving to a smaller facility in Nevada to better align with its product focus on pre-rolls. In New Jersey, Vencanna is advancing its presence with new cultivation and retail sites. Despite a decrease in revenue, the company achieved a higher gross profit due to reduced costs, although it reported a comprehensive loss primarily due to expenses related to the Cannavative acquisition and facility relocation.