Wescan Energy (WCE) AI Stock Analysis

• Market Cap: C$3.71M
• Dividend Yield: N/A
• Average Volume (3M): 15.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 39.24%
• EPS Growth: -425.00%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 44,662,956
• 10 Day Avg. Volume: 23,085
• 30 Day Avg. Volume: 15,470
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 51 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Wescan Energy's overall stock score reflects a company with significant financial challenges, particularly in profitability and leverage. The technical analysis shows some positive short-term trends, but valuation remains a concern due to negative earnings. Recent corporate events are a positive development, indicating strategic efforts to improve production and efficiency.

Wescan Energy Business Overview & Revenue Model

Company Description

Wescan Energy (WCE) is a diversified energy company focused on providing innovative solutions in the renewable and conventional energy sectors. The company engages in the exploration, production, and distribution of energy resources, including oil and gas, as well as investments in renewable energy projects such as solar and wind. WCE is committed to sustainability and seeks to meet the growing energy demands while minimizing environmental impact through advanced technologies and efficient practices.

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 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	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: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WCE, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.79 is Negative, neither overbought nor oversold. The STOCH value of 90.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WCE.

Wescan Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	C$4.17B	2.02	16.25%	5.63%	10.63%	-51.09%
WCE	51 Neutral	C$3.71M	―	-53.86%	―	39.24%	-425.00%
OIL	47 Neutral	C$2.81M	―	-152.21%	―	172.92%	-92.61%
SQX	31 Underperform	C$3.72M	―	14.86%	―	―	-51.85%
SHP	24 Underperform	C$1.27M	―	94.60%	―	-76.55%	58.66%
JBR	23 Underperform	C$810.76K	―	56.97%	―	―	-20.88%

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.