Yangarra Resources (YGR) AI Stock Analysis

• Market Cap: C$91.62M
• Dividend Yield: N/A
• Average Volume (3M): 72.85K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.94
• Revenue Growth: -18.10%
• EPS Growth: -46.79%
• Country: CA
• Employees: 62
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.27
• Shares Outstanding: 100,684,000
• 10 Day Avg. Volume: 88,757
• 30 Day Avg. Volume: 72,854
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.75
• Price to Cash Flow (P/CF): 1.60
• P/FCF Ratio: 5.40
• 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

Yangarra Resources' stock score is mainly driven by its undervaluation, as reflected by a low P/E ratio. While financial performance shows strengths in cash flow and balance sheet management, revenue growth challenges weigh on the outlook. Technical analysis indicates a lack of momentum, with the stock trading near oversold levels.

Yangarra Resources Business Overview & Revenue Model

Company Description

Yangarra Resources Ltd. is a Canadian oil and gas exploration and production company. It operates in the energy sector, with a primary focus on the development of conventional and unconventional oil and natural gas resources. The company's core operations are situated in the Western Canadian Sedimentary Basin, particularly in Central Alberta, where it engages in the exploration, development, and production of oil and natural gas reserves.

How the Company Makes Money

Yangarra Resources Ltd. generates revenue primarily through the exploration, development, and production of oil and natural gas. The company sells the extracted hydrocarbons, including crude oil, natural gas, and natural gas liquids, to various markets and refineries. Revenue is influenced by the production volume, commodity prices, and operational efficiencies. The company's earnings are also impacted by its ability to effectively manage costs and optimize production processes. Additionally, Yangarra may engage in partnerships or joint ventures to expand its operational capabilities and access new resources, thereby potentially enhancing its revenue streams.

Yangarra Resources Financial Statement Overview

Summary

Yangarra Resources presents a mixed financial picture with strengths in cost management and cash flow generation. The balance sheet is solid, supported by low leverage and a strong equity base. However, the company faces challenges in revenue growth, which impacts its income statement performance. Continued focus on enhancing revenue streams and optimizing cash conversion will be key to future financial success.

Income Statement

Yangarra Resources has shown fluctuating revenue trends with a decline in recent years. The Gross Profit Margin for the latest year is 48.7%, and the Net Profit Margin stands at 19.7%, indicating moderate profitability. However, the company experienced a negative revenue growth rate of -12.4% from 2023 to 2024, suggesting potential challenges in revenue generation. The EBIT and EBITDA margins are healthy at 24.4% and 59.1%, respectively, highlighting effective cost management.

Balance Sheet

The company maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.21, indicating low leverage. The Return on Equity (ROE) is 4.6%, which is modest and suggests average profitability on shareholder investments. The Equity Ratio is 66.2%, reflecting a strong equity base, providing stability. Overall, the balance sheet is robust with a healthy mix of debt and equity.

Cash Flow

Yangarra Resources demonstrates a positive Free Cash Flow Growth Rate of 141.2%, which is a strong indicator of improving cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.71, signifying efficient cash management. The Free Cash Flow to Net Income Ratio is 0.43, suggesting room for improvement in generating free cash flow relative to net income. Overall, the cash flow position is strengthening, but there are areas to enhance cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
133.36M	152.26M	223.89M	140.29M	85.70M
	Gross Profit
64.96M	76.42M	156.57M	86.13M	32.19M
	EBIT
32.59M	68.96M	151.87M	77.63M	23.04M
	EBITDA
78.90M	115.52M	187.02M	104.57M	49.34M
	Net Income Common Stockholders
26.23M	46.66M	106.36M	50.01M	4.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	0.00	-8.81M	-4.72M	-5.13M
	Total Assets
860.38M	835.22M	768.06M	683.47M	609.99M
	Total Debt
117.94M	123.44M	142.50M	200.15M	205.40M
	Net Debt
117.94M	123.44M	142.50M	204.87M	210.53M
	Total Liabilities
290.75M	298.62M	294.48M	318.51M	297.73M
	Stockholders Equity
569.63M	536.60M	473.57M	364.96M	312.26M
Cash Flow		Free Cash Flow
11.41M	4.73M	56.42M	2.73M	-7.65M
	Operating Cash Flow
71.04M	99.03M	169.66M	91.27M	43.87M
	Investing Cash Flow
-65.82M	-94.30M	-112.42M	-85.50M	-51.88M
	Financing Cash Flow
-5.22M	-4.74M	-57.25M	-5.77M	8.00M

Yangarra Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:YGR, the sentiment is Negative. The current price of 0.91 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 1.01, and below the 200-day MA of 1.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 50.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:YGR.

Yangarra Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEG	73 Outperform	$5.44B	11.21	11.22%	1.44%	-8.92%	-5.46%
ARX	71 Outperform	C$14.84B	13.40	14.67%	2.85%	-9.83%	-27.76%
YGR	67 Neutral	C$91.62M	3.39	4.74%	―	-18.10%	-46.79%
BTE	63 Neutral	$1.96B	8.62	5.99%	3.65%	22.71%	―
VET	63 Neutral	$1.43B	―	-1.59%	5.43%	-1.72%	79.87%
Sector *	57 Neutral	$7.72B	4.32	-3.75%	6.33%	-0.11%	-64.75%

Yangarra Resources Corporate Events

Yangarra Resources Reports 2024 Financial Results Amid Production Challenges

Yangarra Resources Ltd. reported its 2024 financial and operating results, highlighting a challenging year with a 12% decrease in average production and a 20% drop in oil and gas sales compared to 2023. Despite these setbacks, the company plans to maintain production levels in 2025 with a capital budget of $55-$60 million, anticipating cash flow generation of $85-$90 million, supported by strategic decisions such as a farm-in on 11 sections in the Chambers area.