Touchstone Exploration, Inc. (TXP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Pine Cliff Energy Ltd.

Trillion Energy International, Inc.

Touchstone Exploration, Inc.

CGX Energy, Inc.

Why is Touchstone Exploration, Inc. ?

Poor Management Efficiency with a low ROCE of 6.64%

The company has been able to generate a Return on Capital Employed (avg) of 6.64% signifying low profitability per unit of total capital (equity and debt)

With a fall in Net Sales of -19.62%, the company declared Very Negative results in Jun 25

The company has declared negative results in Jan 70 after 6 consecutive negative quarters
DEBT-EQUITY RATIO (HY) Highest at 81.42 %
INTEREST COVERAGE RATIO(Q) Lowest at 196.46
PRE-TAX PROFIT(Q) Lowest at CAD -1.77 MM

With ROE of 5.19%, it has a fair valuation with a 0.62 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -56.67%, its profits have fallen by -59.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -56.67% 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 Touchstone Exploration, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Touchstone Exploration, Inc.

-53.05%

0.66

66.92%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.52%

EBIT Growth (5y)

19.14%

EBIT to Interest (avg)

2.03

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

0.36

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

6.64%

ROE (avg)

3.91%

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

0.65

EV to EBIT

111.37

EV to EBITDA

8.00

EV to Capital Employed

0.81

EV to Sales

2.88

PEG Ratio

Dividend Yield

ROCE (Latest)

0.73%

ROE (Latest)

-0.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

4What is working for the Company

CASH AND EQV(HY)

Highest at CAD 26.3 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 256.84 times

-36What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 157.94

PRE-TAX PROFIT(Q)

Lowest at CAD -4.13 MM

RAW MATERIAL COST(Y)

Grown by 64.33% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 88.24 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.11 times

INTEREST(Q)

Highest at CAD 2.32 MM

OPERATING PROFIT(Q)

Lowest at CAD 3.67 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 26.89 %

NET PROFIT(Q)

Lowest at CAD -2.61 MM

EPS(Q)

Lowest at CAD -0.01

Here's what is working for Touchstone Exploration, Inc.

Cash and Eqv

Highest at CAD 26.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 256.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at CAD 5.67 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Depreciation

At CAD 5.67 MM has Grown at 49.57%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CAD MM)

Here's what is not working for Touchstone Exploration, Inc.

Pre-Tax Profit

At CAD -4.13 MM has Fallen at -347.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -2.61 MM has Fallen at -174.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 2.32 MM has Grown at 18.97%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 157.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at CAD -4.13 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Interest

Highest at CAD 2.32 MM

in the last five periods and Increased by 18.97% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit

Lowest at CAD 3.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 26.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CAD -2.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 88.24 %

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

Debtors Turnover Ratio

Lowest at 2.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 64.33% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales