Wescan Energy (WCE) AI Stock Analysis

• Market Cap: C$2.23M
• Dividend Yield: N/A
• Average Volume (3M): 31.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 27.40%
• EPS Growth: -259.09%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 44,622,960
• 10 Day Avg. Volume: 11,400
• 30 Day Avg. Volume: 31,536
• PEG Ratio: 0.08
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.64
• 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

• Rating: 49 Neutral
• Price Target: ―

Wescan Energy's overall stock score is primarily affected by its financial performance and technical analysis. While there are strengths in operational efficiency and cash flow, the negative net income and high debt pose significant risks. The bearish technical indicators further suggest caution. The company's valuation remains poor due to a negative P/E ratio and lack of dividend yield.

Wescan Energy Business Overview & Revenue Model

Company Description

Wescan Energy (WCE) is a dynamic energy company operating primarily in the oil and gas sector. It focuses on the exploration, development, and production of energy resources, leveraging advanced technologies to optimize extraction and ensure sustainable practices. WCE is committed to delivering reliable energy solutions while adhering to environmental and safety standards.

How the Company Makes Money

Wescan Energy makes money through a diversified revenue model centered on the exploration and production of oil and gas. The company's primary revenue streams include the sale of crude oil and natural gas extracted from its operated fields. WCE also engages in strategic partnerships with other energy firms to enhance its operational capabilities and expand its market reach. Additionally, the company may invest in technology to improve extraction efficiency and reduce operational costs, thereby maximizing profit margins. Key factors contributing to its earnings include fluctuations in global oil and gas prices, operational efficiency, and regulatory compliance.

Wescan Energy Financial Statement Overview

Summary

Wescan Energy demonstrates strengths in gross profit margins and operational cash flow, yet faces challenges with profitability and leverage. Revenue growth is positive, but the company must address its negative net income and high debt levels to enhance financial stability.

Income Statement

Wescan Energy's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue of $3,806,595 reflects a revenue growth from the previous annual data. However, the company is struggling with negative EBIT and net income, leading to a negative net profit margin. The gross profit margin is strong at 59.6%, indicating efficient cost management. The EBITDA margin is positive at 14.7%, suggesting operational efficiency despite negative EBIT.

Balance Sheet

The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 1.50, indicating a higher reliance on debt. The equity ratio stands at 24.7%, reflecting a less equity-financed asset base. The return on equity is negative due to net losses, signaling a challenge in generating shareholder returns. Overall, the balance sheet shows potential liquidity risks with high debt levels.

Cash Flow

Wescan Energy's cash flow statement highlights positive developments with a TTM free cash flow of $163,554. The operating cash flow to net income ratio is favorable, indicating efficient cash earnings despite net losses. The company has improved its free cash flow position, although historical volatility in cash flows suggests continuing challenges in sustaining consistent cash generation.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	3.81M	2.55M	3.50M	1.50M	8.83M	1.41M
Gross Profit	2.27M	583.96K	2.31M	1.03M	8.47M	855.45K
EBITDA	768.19K	890.95K	586.18K	400.37K	703.57K	-2.52M
Net Income	-461.93K	233.91K	-187.15K	60.46K	432.81K	-2.95M
Balance Sheet
Total Assets	5.69M	6.06M	7.04M	5.83M	5.33M	4.40M
Cash, Cash Equivalents and Short-Term Investments	99.16K	19.81K	440.57K	468.30K	376.01K	417.00K
Total Debt	2.10M	1.77M	1.62M	1.04M	754.50K	693.14K
Total Liabilities	4.29M	4.38M	5.60M	4.43M	4.17M	3.86M
Stockholders Equity	1.40M	1.67M	1.44M	1.40M	1.15M	547.95K
Cash Flow
Free Cash Flow	163.55K	-421.50K	-1.26M	-88.24K	-260.31K	-33.52K
Operating Cash Flow	364.25K	-270.54K	550.88K	-88.24K	-260.31K	-30.27K
Investing Cash Flow	-589.26K	-539.53K	-1.40M	0.00	0.00	-3.25K
Financing Cash Flow	188.10K	389.31K	826.04K	180.53K	219.32K	-77.94K

Wescan Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.05 is below the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.22 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:WCE.

Wescan Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATH	80 Outperform	$2.81B	5.96	30.45%	―	15.99%	1134.34%
BIR	68 Neutral	$2.03B	14.72	6.10%	1.61%	-18.20%	260.40%
SGY	52 Neutral	$612.84M	―	-5.48%	11.45%	-2.37%	-421.59%
Sector *	52 Neutral	C$2.91B	-0.88	-3.26%	6.30%	2.20%	-43.43%
WCE	49 Neutral	C$2.23M	―	-28.96%	―	27.40%	-259.09%

Wescan Energy Corporate Events

WesCan Energy Strengthens Board with New Appointment

WesCan Energy Corp. has appointed Sarshar Ahmad to its Board of Directors, effective December 30, 2024. Ahmad brings over two decades of geoscience experience, particularly in the Western Canadian Sedimentary Basin, which is expected to benefit the company’s development strategies. The company also announced the resignation of Sohaib Abbas from the Board, who is leaving for personal reasons. These changes in the board are seen as key steps in guiding WesCan towards its next growth phase, potentially impacting its strategic operations and stakeholder relations positively.