Southern Energy Corp. (SOU) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rubellite Energy, Inc.

Petrus Resources Ltd.

ShaMaran Petroleum Corp.

TAG Oil Ltd.

Southern Energy Corp.

Condor Energies, Inc.

Forza Petroleum Ltd.

NG Energy International Corp.

Prairie Provident Resources, Inc.

Africa Energy Corp.

New Stratus Energy, Inc.

Why is Southern Energy Corp. ?

Poor Management Efficiency with a low ROCE of 6.47%

The company has been able to generate a Return on Capital Employed (avg) of 6.47% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.14% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD -0.18 MM
DEBT-EQUITY RATIO (HY) Highest at 170.75 %
EPS(Q) Lowest at CAD -0.03

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -16.67%, its profits have risen by 14.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.67% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Southern Energy Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Southern Energy Corp.

-100.0%

-0.65

102.69%

S&P/TSX 60

19.1%

1.23

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.71%

EBIT Growth (5y)

-13.71%

EBIT to Interest (avg)

1.13

Debt to EBITDA (avg)

7.23

Net Debt to Equity (avg)

1.68

Sales to Capital Employed (avg)

0.37

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

6.47%

ROE (avg)

5.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.55

EV to EBIT

-4.52

EV to EBITDA

11.19

EV to Capital Employed

0.76

EV to Sales

1.55

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.81%

ROE (Latest)

-44.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NET PROFIT(HY)

Higher at CAD -3.99 MM

RAW MATERIAL COST(Y)

Fallen by -189.17% (YoY

NET SALES(Q)

Highest at CAD 5.86 MM

OPERATING PROFIT(Q)

Highest at CAD 1.62 MM

OPERATING PROFIT MARGIN(Q)

Highest at 27.56 %

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD -0.18 MM

DEBT-EQUITY RATIO (HY)

Highest at 170.75 %

EPS(Q)

Lowest at CAD -0.03

Here's what is working for Southern Energy Corp.

Net Profit

Higher at CAD -3.99 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CAD MM)

Net Sales

Highest at CAD 5.86 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 5.86 MM has Grown at 32.9%

over average net sales of the previous four periods of CAD 4.41 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 1.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 27.56 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -189.17% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Southern Energy Corp.

Operating Cash Flow

Lowest at CAD -0.18 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Highest at 170.75 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

EPS

Lowest at CAD -0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)