Wescan Energy (WCE) AI Stock Analysis

• Market Cap: C$3.04M
• Dividend Yield: N/A
• Average Volume (3M): 30.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• 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$0.07 ▲(11.67% Upside)

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

A mix of E&P sales, long-term utility/industrial contracts and renewable projects provides structural revenue diversification. Long-term contracts and PPAs improve cash visibility, while renewables align the company with the energy transition and reduce single-commodity exposure.

Strong gross and EBITDA margins

Sustained gross margin near 49% and positive EBITDA imply underlying operational efficiency and pricing power in core operations. This margin buffer supports fixed-cost coverage, investment capacity and resilience to commodity swings, aiding recovery if top-line stabilizes.

Positive operating cash flow

Positive trailing operating cash flow shows the business can generate cash from core operations, supporting near-term liquidity and debt servicing. Durable OCF reduces immediate financing needs and provides a foundation for capex or strategic investments when sustained.

Negative Factors

Declining revenue and net losses

Year-over-year revenue decline and persistent net losses indicate weakening demand or asset performance. Negative operating profit erodes equity and limits reinvestment, making it harder to execute growth or transition plans without achieving sustainable revenue recovery or margin improvements.

Elevated leverage

High debt-to-equity and a thin equity cushion materially increase financial risk. In a commodity-exposed industry, leverage magnifies cash-flow stress during downturns, constrains strategic flexibility, and raises refinancing or covenant default risks absent stronger earnings or deleveraging.

Negative free cash flow and volatility

Meaningful negative free cash flow combined with volatile cash generation suggests the firm consumes cash for capex or working capital and lacks reliable surplus. This raises the likelihood of external financing, limits organic investment, and increases liquidity and execution 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

Wescan Energy's financial statements reflect a company facing profitability challenges and high leverage. Despite revenue growth and improvement in free cash flow, 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 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: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 0.06 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 bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 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 *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
WCE	46 Neutral	C$3.04M	-3.54	-65.85%	―	-8.71%	-1376.92%
OIL	44 Neutral	C$2.65M	-0.33	-152.21%	―	172.92%	-92.61%
SQX	40 Underperform	C$2.48M	-4.55	―	―	―	-29.41%
PNN	27 Underperform	C$3.34M	-0.88	―	―	―	―