Wescan Energy (WCE) AI Stock Analysis

• Market Cap: C$3.35M
• Dividend Yield: N/A
• Average Volume (3M): 30.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -8.71%
• EPS Growth: -1376.92%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Wescan Energy's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant profitability challenges and high leverage, which are major risks. The technical indicators suggest bearish momentum, further weighing down the score. Valuation concerns due to negative earnings also contribute to the low score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and product demand, which supports long-term business sustainability.

Cash Flow Improvement

Improved free cash flow enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction.

Gross Profit Margin

A strong gross profit margin reflects effective cost control, providing a buffer against market volatility and supporting profitability.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Negative Profitability Metrics

Negative profitability metrics highlight challenges in cost management and revenue generation, impacting long-term financial health.

Negative Return on Equity

A negative return on equity indicates inefficiency in using shareholder funds, which can deter investment and affect growth prospects.

Wescan Energy Business Overview & Revenue Model

Company Description

Wescan Energy (WCE) is a dynamic energy company focused on delivering innovative and sustainable energy solutions. Engaged primarily in the oil and gas sector, WCE specializes in the exploration, production, and distribution of energy resources, alongside offering renewable energy solutions. The company is committed to advancing technologies that enhance energy efficiency and reduce environmental impact, positioning itself as a leader in the transition towards greener energy practices.

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

Wescan Energy's financial performance is challenged by negative profitability metrics and high leverage. Despite revenue growth and improved free cash flow, the negative net income and high debt levels indicate significant financial risks.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.55M	2.55M	4.03M	3.00M	1.50M	742.15K
Gross Profit	2.24M	1.14M	2.63M	363.83K	1.03M	8.47M
EBITDA	301.46K	890.95K	364.52K	586.18K	400.37K	703.57K
Net Income	-795.33K	233.91K	-799.97K	-187.15K	60.46K	432.81K
Balance Sheet
Total Assets	5.64M	6.06M	5.84M	7.04M	5.83M	5.33M
Cash, Cash Equivalents and Short-Term Investments	318.00	19.81K	19.20K	440.57K	468.30K	376.01K
Total Debt	1.82M	1.77M	1.97M	1.62M	1.04M	754.50K
Total Liabilities	4.50M	4.38M	4.55M	5.60M	4.43M	4.17M
Stockholders Equity	1.15M	1.67M	1.30M	1.44M	1.40M	1.15M
Cash Flow
Free Cash Flow	443.39K	-421.50K	436.48K	-1.26M	-88.24K	-260.31K
Operating Cash Flow	532.15K	-270.54K	587.16K	550.88K	-88.24K	-260.31K
Investing Cash Flow	-101.12K	-539.53K	-163.05K	-1.40M	0.00	0.00
Financing Cash Flow	-630.82K	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: Positive
• 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 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 27.87 is Positive, neither overbought nor oversold. The STOCH value of 77.78 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 *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OIL	44 Neutral	C$2.43M	-0.31	-152.21%	―	172.92%	-92.61%
WCE	41 Neutral	C$3.35M	-4.19	-65.85%	―	-8.71%	-1376.92%
SQX	31 Underperform	C$2.48M	―	―	―	―	-29.41%
SHP	24 Underperform	C$1.27M	-2.40	―	―	―	―
JBR	23 Underperform	C$810.76K	-0.91	―	―	―	-101.11%

Wescan Energy Corporate Events

WesCan Energy Reports Successful Startup and Growth at Provost Well

WesCan Energy Corp. has announced the successful startup and steady production growth at its Provost well, marking a significant milestone in its development strategy. The well has transitioned to consistent oil and gas output, with production volumes showing a steady upward trend, enhancing the company’s production base and growth trajectory.

Wescan Energy Completes Multilateral Oil Well Drilling in Alberta

Wescan Energy Corp. has successfully completed the drilling of a multilateral horizontal oil well in the Provost area of Alberta, achieving this milestone under budget as part of its 2025 capital program targeting oil development in the Mannville Group. The well, designed to enhance reservoir contact and improve recovery, is expected to commence production by late August to early September 2025, marking a significant step in Wescan’s strategy for capital-efficient growth.