Vertical Exploration Inc (VERT) AI Stock Analysis

• Market Cap: C$4.59M
• Dividend Yield: N/A
• Average Volume (3M): 57.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• 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: -0.12
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.07
• 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: 45 Neutral
• Price Target: C$0.03 ▼(-27.50% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held down primarily by weak financial performance (no revenue, ongoing losses, and continued cash burn) despite a low-leverage balance sheet. Technicals also weigh on the score with price below major moving averages and negative MACD, partially offset by oversold readings. Valuation offers limited support due to a negative P/E and no dividend yield data.

Positive Factors

Zero debt / conservative balance sheet

Zero reported debt and a modest equity cushion reduce fixed financing obligations and lower insolvency risk, giving management structural flexibility to execute restructuring or product development. Over 2–6 months this improves survival odds and bargaining power in capital raises despite losses.

Improving cash burn

Material reduction in free cash outflow shows management has begun to curb cash consumption through cost controls or efficiency gains. This extends runway, lowers near-term financing pressure, and provides a clearer path to stabilize operations over the coming months if the trend continues.

Narrowing net losses / improving profitability trend

Sequential reduction in net losses signals operational progress toward break-even, reflecting either lower expenses or progress in commercialization. If sustained, this trend supports longer-term viability by demonstrating management execution and reducing future capital needs.

Negative Factors

No revenue / lack of commercial scale

Absence of reported revenue means the company has not yet proven a commercial product or market fit, leaving the business model unvalidated. Without revenue, dependence on financing persists and the firm cannot demonstrate sustainable unit economics within a multi-month horizon.

Persistent negative operating cash flow

Consistent negative operating cash flow indicates structural cash consumption from core activities. This creates ongoing financing needs; absent a durable shift to positive operating cash generation, the company will remain dependent on external capital, pressuring strategy and dilution risks over time.

Equity erosion and negative returns

Declining equity and a negative ROE indicate the company is eroding shareholder value rather than compounding it. This signals poor capital efficiency and raises the likelihood of future dilution or restructuring, impairing long-term investor confidence and access to favorable financing.

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

Financials are weak overall: the company reports no revenue, continues to post operating/net losses, and has persistent negative operating and free cash flow. Positives are a conservative balance sheet with zero debt and improved loss and cash burn versus 2024, but the business is still not self-sustaining.

Income Statement

The company reports no revenue across the provided annual periods, while posting consistent operating and net losses each year. Losses have narrowed versus the 2022–2024 trough (net loss improved to about -$0.43M in 2025 from about -$0.96M in 2024), but profitability remains structurally negative and gross profit is also negative in the most recent years—indicating the business is still in a heavy investment/overhead phase without meaningful commercial scale.

Balance Sheet

The balance sheet is conservatively positioned with zero reported debt and a sizable equity base (about $5.1M in 2025) supporting total assets of about $6.0M. That said, recurring losses are weighing on returns (negative return on equity around -8% in the latest year) and equity has drifted down from 2024 to 2025, reflecting ongoing value dilution/consumption despite low leverage risk.

Cash Flow

Cash generation remains weak, with negative operating cash flow in every period shown and negative free cash flow continuing in 2025 (about -$0.27M). While free cash burn improved materially versus 2024 (when free cash flow was about -$0.86M), the overall profile is still cash-consuming and dependent on external funding over time if the pattern persists.

Breakdown	TTM	May 2024	May 2022	May 2021	May 2020	Feb 2019
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-38.78K	-54.19K	0.00	0.00	0.00	0.00
EBITDA	-288.51K	-377.50K	-533.54K	-983.76K	-281.59K	-483.22K
Net Income	-327.29K	-431.69K	-563.41K	-983.89K	-281.75K	-555.02K
Balance Sheet
Total Assets	6.02M	6.03M	5.62M	5.65M	2.23M	2.16M
Cash, Cash Equivalents and Short-Term Investments	69.53K	24.38K	5.74K	1.65M	85.92K	414.85K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	980.38K	973.28K	610.61K	187.63K	334.68K	631.28K
Stockholders Equity	5.04M	5.06M	5.00M	5.46M	1.90M	1.53M
Cash Flow
Free Cash Flow	-346.35K	-268.88K	-1.65M	-2.06M	-643.43K	-960.40K
Operating Cash Flow	-242.64K	-221.66K	-265.92K	-688.50K	-309.41K	-507.45K
Investing Cash Flow	2.07K	-47.22K	-1.38M	-1.37M	-334.02K	-442.94K
Financing Cash Flow	276.00K	0.00	0.00	3.62M	725.96K	1.20M

Vertical Exploration Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 29.93 is Positive, 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: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$13.23M	-23.64	-5.30%	―	―	―
LMR	48 Neutral	C$9.86M	-1.95	-11.09%	―	―	-84.65%
CC	47 Neutral	C$24.69M	-7.37	-15.17%	―	―	-105.62%
VERT	45 Neutral	C$4.59M	-10.34	-8.37%	―	―	38.78%
TMAS	45 Neutral	C$8.01M	-1.42	-48.40%	―	―	65.30%