Wescan Energy (WCE) AI Stock Analysis

• Market Cap: C$2.81M
• Dividend Yield: N/A
• Average Volume (3M): 30.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: -8.71%
• EPS Growth: -1376.92%
• Country: CA
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 44,662,956
• 10 Day Avg. Volume: 28,000
• 30 Day Avg. Volume: 30,685
• PEG Ratio: -0.04
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -4.92
• 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: 46 Neutral
• Price Target: C$0.06 ▼(-1.67% Downside)

The score is primarily constrained by weak financial performance (losses, declining revenue, high leverage, and negative free cash flow). Technicals provide some support with moderately positive momentum, but overbought signals temper it. Valuation is hindered by a negative P/E and no dividend yield data.

Positive Factors

Diversified revenue streams including renewables

Multiple revenue sources (E&P sales, long-term utility/industrial contracts, and renewable projects backed by PPAs and incentives) reduce cash-flow cyclicality and provide more predictable, contract-backed revenue over the medium term, supporting resilience during commodity cycles.

Positive operating cash flow and solid underlying margins

Despite net losses, positive operating cash flow and healthy gross and EBITDA margins indicate fundamentally profitable operations at the production level, suggesting core assets generate cash and can support operations or investment when commodity conditions normalize.

Strategic focus on energy transition and partnerships

A strategic emphasis on renewable projects, efficiency technologies, and partnerships helps the company access expertise, share capital intensity and enter growth markets tied to decarbonization—structural trends likely to support longer-term demand and project pipelines.

Negative Factors

Declining revenue and loss-making

Sustained revenue decline and materially negative net margins weaken retained earnings and operational resilience; continued losses impair reinvestment capacity, raise financing needs, and make the business more sensitive to prolonged commodity or demand weakness.

Elevated leverage (debt-to-equity ~3.7x)

High debt relative to equity increases refinancing and liquidity risk, limits strategic flexibility, and amplifies downside in prolonged downturns; with negative ROE, leverage hinders the firm's capacity to absorb shocks or fund growth without external capital.

Negative free cash flow and volatile cash generation

Meaningful negative FCF and volatile cash conversion suggest capital spending or working-capital needs consume operating cash, necessitating ongoing external funding or asset sales; this undermines sustainable reinvestment and raises dilution or leverage risk over months.

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 streams, primarily from the sale of oil and gas products extracted from its exploration and production operations. A significant portion of its income also comes from long-term contracts with utility providers and industrial clients for the supply of energy. Additionally, the company invests in renewable energy projects, such as solar and wind, which provide supplemental revenue through government incentives and power purchase agreements. Strategic partnerships with other energy firms and technology companies further enhance its earning potential by facilitating joint ventures and shared resources, enabling WCE to optimize its operations and expand its market reach.

Wescan Energy Financial Statement Overview

Summary

Overall financials are pressured: TTM revenue fell (-10.7%) and the company is loss-making (net margin ~-26.9%) with negative operating profit. Leverage is high (debt-to-equity ~3.7x) and ROE is negative, raising balance-sheet risk. Operating cash flow is positive, but free cash flow is meaningfully negative and cash generation has been volatile.

Income Statement

TTM (Trailing-Twelve-Months) results show weakening performance: revenue declined (-10.7%) and the company is loss-making (net margin about -26.9%) with negative operating profit, despite a still-solid gross margin (~49%) and positive EBITDA margin (~8.9%). Prior annual periods were mixed (profits in some years, losses in others), pointing to an inconsistent earnings profile and higher sensitivity to cost structure/commodity conditions.

Balance Sheet

Leverage is elevated in TTM (Trailing-Twelve-Months), with debt-to-equity around 3.7x and negative return on equity due to losses. While total assets exceed debt, the relatively thin equity base versus debt increases financial risk and reduces flexibility, especially if earnings remain pressured.

Cash Flow

TTM (Trailing-Twelve-Months) operating cash flow is positive, which is a near-term strength, but free cash flow is meaningfully negative and deteriorated sharply, suggesting cash is being consumed by capital spending and/or working-capital needs. Cash generation has also been volatile across annual periods (including negative operating cash flow in some years), which raises funding and liquidity execution risk.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.17M	2.55M	4.03M	3.00M	1.50M	742.15K
Gross Profit	1.55M	1.14M	2.63M	363.83K	1.03M	8.47M
EBITDA	283.36K	890.95K	364.52K	586.18K	400.37K	703.57K
Net Income	-852.56K	233.91K	-799.97K	-187.15K	60.46K	432.81K
Balance Sheet
Total Assets	7.19M	6.06M	5.84M	7.04M	5.83M	5.33M
Cash, Cash Equivalents and Short-Term Investments	123.53K	19.81K	19.20K	440.57K	468.30K	376.01K
Total Debt	3.58M	1.77M	1.97M	1.62M	1.04M	754.50K
Total Liabilities	6.22M	4.38M	4.55M	5.60M	4.43M	4.17M
Stockholders Equity	970.65K	1.67M	1.30M	1.44M	1.40M	1.15M
Cash Flow
Free Cash Flow	-1.01M	-421.50K	436.48K	-1.26M	-88.24K	-260.31K
Operating Cash Flow	524.84K	-270.54K	587.16K	550.88K	-88.24K	-260.31K
Investing Cash Flow	-1.55M	-539.53K	-163.05K	-1.40M	0.00	0.00
Financing Cash Flow	1.04M	389.31K	-424.72K	826.04K	180.53K	219.32K

Wescan Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.06 is below the 20-day moving average (MA) of 0.06, 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 41.30 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:WCE.

Wescan Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
WCE	46 Neutral	C$2.81M	-3.28	-65.85%	―	-8.71%	-1376.92%
OIL	44 Neutral	C$2.10M	-0.27	-152.21%	―	172.92%	-92.61%
SQX	40 Underperform	C$3.10M	-5.68	―	―	―	-29.41%
PNN	27 Underperform	C$3.34M	-0.88	―	―	―	―