Wescan Energy (WCE) AI Stock Analysis

• Market Cap: C$3.57M
• Dividend Yield: N/A
• Average Volume (3M): 30.68K
• Price to Earnings (P/E): 67.7
• Beta (1Y): 1.76
• 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): 0.00
• 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: 47 Neutral
• Price Target: C$0.08 ▲(40.00% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by weak financial performance (losses, higher leverage, and negative free cash flow). Technicals provide some support with price trending above major moving averages and moderately positive momentum, but valuation remains a headwind given the high P/E and no dividend yield data.

Positive Factors

Solid gross margin

A ~49% gross margin indicates the company’s core production economics are favorable; that structural profitability at the gross line gives room to absorb SG&A and financing costs and supports a feasible path to operating leverage if overheads are controlled.

Positive operating cash flow

Positive operating cash flow (~$0.67M TTM) shows the business can generate cash from core activities, a durable sign of operational viability. Sustained OCF reduces short-term liquidity strain and can fund working capital or some capex without immediate external financing.

Modest revenue growth

Consistent TTM revenue growth (+5.9%) signals continuing market demand and incremental scale. When combined with solid gross margins, this trend supports the potential for margin expansion and improved operating leverage over a multi-quarter horizon if cost structure stabilizes.

Negative Factors

Rising leverage

Debt rising to ~3.7x equity from ~1.1x materially increases financial risk and reduces flexibility. Higher leverage amplifies earnings volatility, raises refinancing and interest burden, and constrains strategic choices if margins and cash flows do not consistently improve.

Weak profitability

A substantially negative net margin (-26.9%) and negative operating profit reflect structural profitability shortfalls. Persistent operating losses erode equity, impede reinvestment, and mean the firm must rely on financing or cost restructuring to reach sustainable earnings.

Negative free cash flow

Negative free cash flow (~-$0.88M TTM) despite positive OCF shows capex or working capital needs exceed internal cash generation. This structural cash deficit increases dependence on external funding and elevates dilution or refinancing risk while the company works toward profitable free cash generation.

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

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Wescan Energy Financial Statement Overview

Summary

Despite modest TTM revenue growth (+5.9%) and a solid gross margin (~49%), profitability is weak (TTM net margin -26.9% with negative operating profit). Leverage has risen sharply (~3.7x debt-to-equity) alongside a strongly negative ROE (~-71% TTM), and free cash flow is negative (~-$0.88M) despite positive operating cash flow (~$0.67M), increasing funding and balance sheet risk.

Income Statement

TTM (Trailing-Twelve-Months) results show modest revenue growth (+5.9%), but profitability is weak: net margin is negative (-26.9%) and operating profit is also negative. Gross margin is solid (~49%), suggesting the core economics can work, yet costs below the gross line are pressuring earnings. Annual results have been volatile (a profitable year in 2024 followed by losses in 2025 and TTM), which lowers confidence in earnings stability.

Balance Sheet

Leverage has increased materially in TTM (Trailing-Twelve-Months): debt is ~3.7x equity, up from ~1.1x in the most recent annual period provided. Equity remains positive, but the current loss profile translates into a strongly negative return on equity (about -71% TTM), highlighting strain on the capital base. Overall, the balance sheet looks more risky today due to higher reliance on debt and weaker profitability support.

Cash Flow

Operating cash flow is positive in TTM (Trailing-Twelve-Months) (~$0.67M), but free cash flow is negative (~-$0.88M), implying reinvestment/capital spending is exceeding internally generated cash. Cash generation has also been inconsistent across years (including periods of negative operating cash flow), and recent free cash flow growth is negative, which increases funding risk if losses persist.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Mar 2020
Income Statement
Total Revenue	3.36M	4.03M	3.00M	1.50M	742.15K	1.41M
Gross Profit	1.16M	2.63M	363.83K	1.03M	8.47M	855.45K
EBITDA	687.56K	364.52K	586.18K	400.37K	703.57K	-2.52M
Net Income	-628.23K	-799.97K	-187.15K	60.46K	432.81K	-2.95M
Balance Sheet
Total Assets	6.86M	5.84M	7.04M	5.83M	5.33M	4.40M
Cash, Cash Equivalents and Short-Term Investments	97.10K	19.20K	440.57K	468.30K	376.01K	417.00K
Total Debt	3.30M	1.97M	1.62M	1.04M	754.50K	693.14K
Total Liabilities	5.86M	4.55M	5.60M	4.43M	4.17M	3.86M
Stockholders Equity	997.31K	1.30M	1.44M	1.40M	1.15M	547.95K
Cash Flow
Free Cash Flow	-875.04K	436.48K	-1.26M	-88.24K	-260.31K	-33.52K
Operating Cash Flow	667.46K	587.16K	550.88K	-88.24K	-260.31K	-30.27K
Investing Cash Flow	-1.55M	-163.05K	-1.40M	0.00	0.00	-3.25K
Financing Cash Flow	885.35K	-424.72K	826.04K	180.53K	219.32K	-77.94K

Wescan Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. 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 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, 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	47 Neutral	C$3.57M	67.67	-65.85%	―	-8.71%	-1376.92%
SQX	45 Neutral	C$3.10M	-3.01	―	―	―	-29.41%
OIL	44 Neutral	C$2.10M	-0.73	-152.21%	―	172.92%	-92.61%
PNN	27 Underperform	C$3.34M	-0.88	―	―	―	―