Wescan Energy (WCE) AI Stock Analysis

• Market Cap: C$2.01M
• Dividend Yield: N/A
• Average Volume (3M): 34.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 6.92%
• EPS Growth: -1094.44%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 59
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 44,662,956
• 10 Day Avg. Volume: 25,257
• 30 Day Avg. Volume: 34,454
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Wescan Energy's overall stock score is primarily impacted by its financial performance and valuation challenges. The company's high leverage and negative profitability metrics pose significant risks. While technical analysis suggests the stock may be oversold, the lack of positive valuation metrics and absence of earnings call data limit the stock's attractiveness.

Wescan Energy Business Overview & Revenue Model

Company Description

WesCan Energy Corp., a junior public resource company, explores for, develops, and produces oil and gas properties in Alberta, Canada; and Texas, the United States. It holds interests in petroleum and natural gas assets located in east-central Alberta. The company was formerly known as Great Pacific International Inc. and changed its name to WesCan Energy Corp. in October 2012. WesCan Energy Corp. was incorporated in 1993 and is headquartered in Calgary, Canada.

How the Company Makes Money

Wescan Energy generates revenue through multiple key streams. The primary source is the exploration and production of oil and gas, where the company sells raw hydrocarbons to refineries and distributors. Additionally, WCE earns income from its investments in renewable energy projects, which may include power purchase agreements (PPAs) with utility companies that provide a steady income stream over the life of the contracts. The company may also engage in joint ventures or partnerships with other energy firms, allowing for shared resources and risks in large projects, further contributing to its revenue. Furthermore, WCE may benefit from government incentives and subsidies for renewable energy initiatives, enhancing its profitability.

Wescan Energy Financial Statement Overview

Summary

Wescan Energy's financial statements reflect a company facing profitability challenges and high leverage. While there is revenue growth and improvement in free cash flow, the negative net income and high debt levels pose significant risks. The company needs to focus on improving profitability and reducing leverage to enhance financial stability.

Income Statement

Wescan Energy's income statement shows a mixed performance. The company has experienced revenue growth of 5.997% in the most recent year, which is a positive sign. However, profitability metrics such as the net profit margin (-19.83%) and EBIT margin (-13.67%) are negative, indicating challenges in achieving profitability. The gross profit margin is relatively strong at 65.30%, suggesting efficient cost management at the gross level, but the negative net income highlights issues further down the income statement.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.52, indicating significant leverage and potential financial risk. The return on equity is negative at -61.69%, reflecting the company's inability to generate positive returns for shareholders. The equity ratio stands at 22.18%, suggesting a moderate level of equity financing relative to total assets. Overall, the balance sheet indicates financial instability and high leverage.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 166.87%, which is a positive development. The operating cash flow to net income ratio is 0.44, indicating that operating cash flows are not fully covering net income. The free cash flow to net income ratio is 0.74, suggesting that free cash flow is not sufficient to cover net losses. While there is improvement in cash flow generation, the company still faces challenges in achieving sustainable cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.03M	4.03M	2.55M	3.50M	1.50M	8.83M
Gross Profit	2.63M	2.63M	583.96K	2.31M	1.03M	8.47M
EBITDA	364.52K	364.52K	890.95K	586.18K	400.37K	703.57K
Net Income	-799.97K	-799.97K	233.91K	-187.15K	60.46K	432.81K
Balance Sheet
Total Assets	5.84M	5.84M	6.06M	7.04M	5.83M	5.33M
Cash, Cash Equivalents and Short-Term Investments	19.20K	19.20K	19.81K	440.57K	468.30K	376.01K
Total Debt	1.97M	1.97M	1.77M	1.62M	1.04M	754.50K
Total Liabilities	4.55M	4.55M	4.38M	5.60M	4.43M	4.17M
Stockholders Equity	1.30M	1.30M	1.67M	1.44M	1.40M	1.15M
Cash Flow
Free Cash Flow	436.48K	436.48K	-421.50K	-1.26M	-88.24K	-260.31K
Operating Cash Flow	587.16K	587.16K	-270.54K	550.88K	-88.24K	-260.31K
Investing Cash Flow	-163.05K	-163.05K	-539.53K	-1.40M	0.00	0.00
Financing Cash Flow	-424.72K	-424.72K	389.31K	826.04K	180.53K	219.32K

Wescan Energy 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:WCE, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.88 is Positive, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WCE.

Wescan Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.01B	7.39	3.19%	5.33%	4.10%	-61.80%
WCE	45 Neutral	C$2.01M	―	-59.72%	―	6.92%	-1094.44%
OIL	41 Neutral	C$2.48M	―	-152.21%	―	172.92%	-92.61%
SQX	31 Underperform	C$3.10M	―	14.86%	―	―	-22.58%
SHP	24 Underperform	C$1.27M	―	94.60%	―	-76.55%	58.66%
JBR	23 Underperform	C$810.76K	―	56.97%	―	―	-20.88%
JEC	―	C$1.73M	―	-85.49%	―	―	―

Wescan Energy Corporate Events

WesCan Energy Secures $2 Million Loan for Oil Development

WesCan Energy Corp. has secured a $2 million loan from a related party to fund the drilling of a multilateral horizontal oil well in Alberta as part of its 2025 capital program. This financial move is aimed at enhancing the company’s oil development operations in the Mannville Group, with the loan secured against the company’s assets and subject to TSX Venture Exchange approval.

Wescan Energy Initiates Drilling of Multilateral Well in Alberta

Wescan Energy Corp. has commenced drilling a multilateral horizontal oil well in the Provost area of east-central Alberta, as part of its 2025 capital program. This initiative aims to enhance recovery factors while minimizing costs and surface footprint, reflecting the company’s strategy to maximize capital efficiency and production growth. The well is expected to be completed in the coming weeks, with production anticipated by September 2025, marking a significant step in Wescan’s commitment to unlocking the full potential of its asset base.

WesCan Energy Corp. Issues Stock Options to Leadership

WesCan Energy Corp. has announced the issuance of 1,000,000 stock options to its CEO and Chairman at a price of $0.08 per share. These options will vest in stages over a year and are set to expire in 2030, pending any necessary approvals from the TSX Venture Exchange. This move is part of the company’s strategic initiatives to align leadership incentives with shareholder interests, potentially impacting its market positioning and stakeholder confidence.