Yangarra Resources (YGR) AI Stock Analysis

• Market Cap: C$127.77M
• Dividend Yield: N/A
• Average Volume (3M): 67.91K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.75
• Revenue Growth: -12.46%
• EPS Growth: -49.29%
• Country: CA
• Employees: 62
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 105,595,210
• 10 Day Avg. Volume: 73,351
• 30 Day Avg. Volume: 67,907
• PEG Ratio: -0.16
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 93.95
• 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): 0.16
• Revenue Forecast (FY): C$139.00M

• Rating: 66 Neutral
• Price Target: C$1.00 ▼(-1.96% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven mainly by mixed financial performance—solid margins and improving leverage, but weakening revenue/profit momentum and very thin recent free cash flow. Technicals are supportive with an uptrend, though near-overbought signals add caution. Valuation helps due to a low P/E.

Positive Factors

High profitability margins

Sustained high EBITDA and solid net margins indicate resilient field-level economics and pricing capture. Durable margins provide a structural cushion through commodity cycles, supporting reinvestment, debt servicing and operational cash generation even if volumes or prices dip in the near term.

Improving leverage and balance-sheet flexibility

Material reduction in leverage versus earlier years strengthens financial flexibility, lowering interest burdens and improving access to capital. This structural improvement supports disciplined capital allocation, ability to fund drilling programs, and resilience to commodity-driven cash flow volatility.

High-quality operating cash flow

Operating cash flow materially exceeding accounting earnings signals high cash quality from production operations. Over the medium term this supports funding of maintenance and growth capex, reduces reliance on external financing, and helps stabilize liquidity through commodity swings.

Negative Factors

Weaker revenue and earnings momentum

Declining revenue and step-down in net income versus 2022–2023 indicate a softer operational trajectory or pricing/volume pressure. Persistent top-line weakness undermines growth prospects and may compress margins and reinvestment capacity if not reversed over the coming quarters.

Very thin free cash flow

Near‑breakeven free cash flow after capex reduces the company's ability to self-fund expansion, pay distributions, or build cash buffers. Structurally thin FCF heightens sensitivity to capex overruns or commodity setbacks and limits strategic optionality over the medium term.

Cooling returns on equity

Substantial decline in ROE points to weakening capital efficiency and lower shareholder earnings generation. If ROE remains depressed, it constrains the company’s ability to justify reinvestment, attract capital, or restore past profitability levels over the next several quarters.

Yangarra Resources Business Overview & Revenue Model

Company Description

Yangarra Resources Ltd., a junior oil and gas company, engages in the exploration, development, and production of oil and natural gas properties in Western Canada. As of February 1, 2022, it had proved plus probable reserves of 141.2 million barrels of oil equivalent. The company is headquartered in Calgary, Canada.

How the Company Makes Money

Yangarra Resources generates revenue through the extraction and sale of oil and natural gas products. The company's primary revenue streams come from the production and sale of crude oil, natural gas, and natural gas liquids. Yangarra utilizes advanced drilling and completion techniques to maximize production efficiency and reduce operational costs. Revenue is influenced by commodity prices, production volumes, and the company's ability to manage and optimize its asset portfolio. The company may also enter into joint ventures or strategic partnerships to enhance its operational capabilities and expand its market reach.

Yangarra Resources Financial Statement Overview

Summary

Financials are mixed: profitability remains solid (TTM net margin ~14% and EBITDA margin above 60%) and leverage is moderate/improving (debt-to-equity ~0.22). Offsetting this, revenue and net income have stepped down from 2022–2023 levels, and free cash flow has compressed to near breakeven despite strong operating cash flow, indicating weaker recent cash conversion.

Income Statement

Profitability remains solid, with TTM net margin around 14% and healthy EBITDA margin above 60%. However, the growth profile has weakened: revenue declined in the most recent year (TTM down ~8%) and has fallen meaningfully from the 2022 peak, alongside a step-down in net income versus 2022–2023. Overall, the company is still profitable, but earnings power appears more cyclical and currently in a downtrend.

Balance Sheet

Leverage is moderate and improving versus earlier years, with debt-to-equity around 0.22 in TTM (Trailing-Twelve-Months) after being notably higher in 2020–2021. Equity has grown over time, supporting the asset base and providing balance-sheet flexibility. The main drawback is that returns on equity have cooled substantially from the 2022 high, consistent with softer profitability recently.

Cash Flow

Operating cash flow is strong relative to accounting earnings in TTM (operating cash flow is roughly 2.7x net income), which is a positive quality signal. That said, free cash flow is very thin in TTM (near breakeven and only a small fraction of net income) and has fallen sharply versus the prior year, indicating weaker cash conversion after capital spending. Cash generation looks more volatile than reported profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	108.12M	133.36M	152.26M	223.89M	140.29M
Gross Profit	37.95M	64.96M	76.42M	156.57M	86.13M
EBITDA	66.85M	78.90M	115.52M	187.02M	104.57M
Net Income	15.02M	26.23M	46.66M	106.36M	50.01M
Balance Sheet
Total Assets	894.40M	860.38M	835.22M	768.06M	683.47M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-8.81M	-4.72M
Total Debt	130.71M	117.94M	123.44M	142.50M	200.15M
Total Liabilities	303.94M	290.75M	298.62M	294.48M	318.51M
Stockholders Equity	590.47M	569.63M	536.60M	473.57M	364.96M
Cash Flow
Free Cash Flow	1.13M	11.41M	4.73M	56.42M	2.73M
Operating Cash Flow	59.08M	71.04M	99.03M	169.66M	91.27M
Investing Cash Flow	-69.45M	-65.82M	-94.30M	-112.42M	-85.50M
Financing Cash Flow	10.37M	-5.22M	-4.74M	-57.25M	-5.77M

Yangarra Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:YGR, the sentiment is Positive. The current price of 1.02 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.08, and below the 200-day MA of 1.03, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 72.05 is Negative, 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 Positive sentiment for TSE:YGR.

Yangarra Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HME	71 Outperform	C$232.06M	7.63	39.64%	8.04%	2.27%	3.61%
YGR	66 Neutral	C$127.77M	7.07	3.18%	―	-12.46%	-49.29%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KEI	64 Neutral	C$226.29M	13.84	9.49%	―	12.17%	6.99%
BNE	59 Neutral	C$210.31M	-9.29	-2.67%	―	-9.55%	-154.04%
JOY	58 Neutral	C$301.31M	12.28	5.81%	―	-1.47%	267.04%
IPO	53 Neutral	C$478.50M	-38.65	-2.61%	12.70%	53.79%	-126.63%

Yangarra Resources Corporate Events

Yangarra Balances Lower 2025 Results With Strategic Spend and Steady 2026 Plan

Yangarra reported 2025 average production of 10,003 boe/d, down 5% from 2024, with oil and gas sales falling 14% to $115.3 million and funds flow from operations down 17% to $62.8 million. Despite softer results and a mid‑year drilling pause driven by weaker commodity prices, margins remained robust, with an operating netback of $21.27/boe and a 67% operating margin.

The company invested heavily in strategic infrastructure, spending $8.5 million to connect new core areas, reduce long‑term operating costs and support future drilling, while allocating $6.1 million to land targeting Cardium and Belly River locations. For 2026, Yangarra’s board approved a $60 million capital budget aimed at holding production around 10,000 boe/d, with a steadier, drill‑weighted program expected to smooth production growth and potentially benefit from an improved natural gas price outlook and the company’s hedge position.

The most recent analyst rating on (TSE:YGR) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Yangarra Resources stock, see the TSE:YGR Stock Forecast page.