Vertical Exploration Inc (VERT) AI Stock Analysis

• Market Cap: C$6.88M
• Dividend Yield: N/A
• Average Volume (3M): 57.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: N/A
• EPS Growth: 38.78%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 152,904,050
• 10 Day Avg. Volume: 34,347
• 30 Day Avg. Volume: 57,269
• PEG Ratio: 0.23
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$0.05 ▲(25.00% Upside)

The score is held down primarily by weak financial performance (no revenue, ongoing losses, and cash burn) despite a low-leverage balance sheet. Technicals are a relative positive with price above key moving averages and moderately positive momentum, while valuation is constrained by unprofitability and no dividend support.

Positive Factors

Conservative balance sheet / low leverage

Zero reported debt and a meaningful equity base materially lower insolvency and refinancing risk over the medium term. This structural balance-sheet strength provides optionality to fund operations or strategic initiatives without immediate reliance on costly borrowings, supporting stability.

Improving cash burn trend

A materially smaller free cash outflow year-over-year signals operational discipline and progress in cost structure or working-capital management. If sustained, this reduces ongoing financing needs and increases the likelihood of reaching positive cash generation within a multi-quarter horizon.

Narrowing net losses

Consistent narrowing of net losses indicates improved expense control or progress toward commercialization. Over several quarters this trend can translate into reduced dependency on external capital and a clearer path to sustainable margins if revenue generation follows.

Negative Factors

No reported revenue

Absence of revenue is a fundamental structural risk: it implies the business is pre-commercial or failing to monetize, necessitating continued investment to reach scale. Without revenue, profitability and margin improvements remain theoretical and funding dependency persists.

Persistent negative operating cash flow

Sustained negative operating cash flow forces reliance on external financing or equity issuance, which can dilute shareholders and constrain long-term investment. Structural cash consumption increases execution risk and limits capacity to scale or respond to market opportunities.

Eroding equity and negative returns

Declining equity and negative ROE reflect weak capital efficiency and value destruction over time. Persisting this trend can necessitate dilutive capital raises or asset sales, undermining long-term shareholder value and signaling structural issues in converting investment into profitable growth.

Vertical Exploration Inc Business Overview & Revenue Model

Company Description

Vertical Exploration Inc., a junior mining company, engages in the exploration and evaluation of mineral properties in Canada. Its flagship project is the 100% owned St-Onge Wollastonite project consists of 26 map-designated cells covering an area of approximately 1,465 hectares located at St-Onge township in the Saguenay-Lac-St-Jean region of Quebec. The company was formerly known as Cavan Ventures Inc. and changed its name to Vertical Exploration Inc. in January 2018. Vertical Exploration Inc. was incorporated in 2006 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Vertical Exploration Inc generates revenue primarily through the sale of wollastonite extracted from its mineral properties. The company targets industries that utilize wollastonite for its functional benefits, including as a soil conditioner in agriculture, as a filler in construction materials, and as a performance enhancer in manufacturing processes. Key revenue streams include direct sales to industrial clients and distribution through partnerships with industry-specific distributors. The company's earnings are influenced by the demand for wollastonite in these sectors, as well as the efficiency of its mining operations and supply chain management.

Vertical Exploration Inc Financial Statement Overview

Summary

Vertical Exploration Inc faces significant financial challenges with no revenue generation and persistent losses. Despite a strong equity position and no debt, the lack of operational cash flow and reliance on external financing highlight sustainability risks. Urgent strategic actions are required to establish revenue streams and improve operational efficiency.

Income Statement

Vertical Exploration Inc has reported no revenue over the past several periods, which is a significant concern for growth and sustainability. Operating losses are evident with consistently negative EBIT and net income figures, indicating ongoing financial challenges without income to offset expenses.

Balance Sheet

The company maintains a healthy balance sheet with no debt and a substantial equity base relative to total assets, resulting in a high equity ratio. However, continued operating losses could erode equity over time if not addressed.

Cash Flow

The cash flow situation is weak, with negative operating and free cash flow, reflecting the company's inability to generate cash from operations. While financing activities have provided cash inflow, reliance on external financing is not sustainable in the long term.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-52.13K	-58.52K	-54.19K	0.00	0.00	0.00
EBITDA	-391.42K	-621.70K	-377.50K	-533.54K	-983.76K	-354.60K
Net Income	-443.60K	-955.64K	-431.69K	-563.41K	-983.89K	-356.86K
Balance Sheet
Total Assets	6.14M	6.11M	6.03M	5.62M	5.65M	1.90M
Cash, Cash Equivalents and Short-Term Investments	130.88K	293.25K	24.38K	5.74K	1.65M	3.40K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	892.64K	665.81K	973.28K	610.61K	187.63K	479.23K
Stockholders Equity	5.24M	5.44M	5.06M	5.00M	5.46M	1.42M
Cash Flow
Free Cash Flow	-310.32K	-858.23K	-268.88K	-1.65M	-2.06M	-421.45K
Operating Cash Flow	-206.61K	-398.39K	-221.66K	-265.92K	-688.50K	-161.77K
Investing Cash Flow	-103.71K	-459.85K	-47.22K	-1.38M	-1.37M	-259.69K
Financing Cash Flow	276.00K	1.15M	0.00	0.00	3.62M	10.00K

Vertical Exploration Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 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:VERT, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VERT.

Vertical Exploration Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GLM	52 Neutral	C$6.99M	-12.73	-5.30%	―	―	―
VERT	50 Neutral	C$6.88M	-15.00	-8.37%	―	―	38.78%
LMR	46 Neutral	C$8.77M	-1.80	-11.09%	―	―	-84.65%
STU	46 Neutral	C$7.91M	-5.06	-13.20%	―	―	-96.27%
TMAS	45 Neutral	C$7.63M	-2.52	-48.40%	―	―	65.30%
CC	41 Neutral	C$9.28M	-4.64	-15.17%	―	―	-105.62%