TOUCHSTONE EXPLORATION INC (TXP.CA) Stock Fundamental Analysis
TSX:TXP - Toronto Stock Exchange - CA89156L1085 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to TXP. TXP was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of TXP while its profitability can be described as average. TXP is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year TXP was profitable.
TXP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TXP reported negative net income in multiple years.
Each year in the past 5 years TXP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.02%, TXP is doing good in the industry, outperforming 67.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.78%, TXP is in the better half of the industry, outperforming 60.48% of the companies in the same industry.
TXP has a Return On Invested Capital of 3.06%. This is comparable to the rest of the industry: TXP outperforms 50.48% of its industry peers.
TXP had an Average Return On Invested Capital over the past 3 years of 4.96%. This is below the industry average of 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 6.78% | ||
| ROIC | 3.06% |
ROA(3y)-3.85%
ROA(5y)-3.62%
ROE(3y)-8.84%
ROE(5y)-7.26%
ROIC(3y)4.96%
ROIC(5y)N/A
1.3 Margins
TXP has a better Profit Margin (12.00%) than 73.33% of its industry peers.
In the last couple of years the Profit Margin of TXP has declined.
TXP's Operating Margin of 13.80% is in line compared to the rest of the industry. TXP outperforms 56.19% of its industry peers.
TXP's Operating Margin has been stable in the last couple of years.
TXP has a better Gross Margin (73.35%) than 90.00% of its industry peers.
In the last couple of years the Gross Margin of TXP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.8% | ||
| PM (TTM) | 12% | ||
| GM | 73.35% |
OM growth 3Y20.83%
OM growth 5Y-1.39%
PM growth 3Y-12.14%
PM growth 5YN/A
GM growth 3Y4.55%
GM growth 5Y3.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TXP is destroying value.
TXP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TXP has been increased compared to 5 years ago.
Compared to 1 year ago, TXP has a worse debt to assets ratio.
2.2 Solvency
TXP has an Altman-Z score of 0.39. This is a bad value and indicates that TXP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TXP (0.39) is comparable to the rest of the industry.
TXP has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TXP (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACC0.4
WACC7.61%
2.3 Liquidity
TXP has a Current Ratio of 0.73. This is a bad value and indicates that TXP is not financially healthy enough and could expect problems in meeting its short term obligations.
TXP has a Current ratio of 0.73. This is comparable to the rest of the industry: TXP outperforms 44.29% of its industry peers.
A Quick Ratio of 0.72 indicates that TXP may have some problems paying its short term obligations.
TXP has a Quick ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
TXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 126.26%, which is quite impressive.
Measured over the past 5 years, TXP shows a small growth in Earnings Per Share. The EPS has been growing by 5.27% on average per year.
Looking at the last year, TXP shows a decrease in Revenue. The Revenue has decreased by -9.14% in the last year.
The Revenue has been growing by 9.60% on average over the past years. This is quite good.
EPS 1Y (TTM)126.26%
EPS 3Y5.27%
EPS 5YN/A
EPS Q2Q%-98.69%
Revenue 1Y (TTM)-9.14%
Revenue growth 3Y28.87%
Revenue growth 5Y9.6%
Sales Q2Q%-14.02%
3.2 Future
Based on estimates for the next years, TXP will show a very strong growth in Earnings Per Share. The EPS will grow by 53.39% on average per year.
TXP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.97% yearly.
EPS Next Y2.94%
EPS Next 2Y53.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.55%
Revenue Next 2Y36.01%
Revenue Next 3Y13.97%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TXP is valuated correctly with a Price/Earnings ratio of 12.17.
Based on the Price/Earnings ratio, TXP is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.15. TXP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 3.31, the valuation of TXP can be described as very cheap.
Based on the Price/Forward Earnings ratio, TXP is valued cheaper than 95.24% of the companies in the same industry.
TXP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 3.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXP is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXP does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as TXP's earnings are expected to grow with 53.39% in the coming years.
PEG (NY)4.14
PEG (5Y)N/A
EPS Next 2Y53.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TXP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:TXP (6/26/2025, 7:00:00 PM)
0.365
-0.01 (-1.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners13.14%
Inst Owner ChangeN/A
Ins Owners5.36%
Ins Owner ChangeN/A
Market Cap86.31M
Analysts80
Price Target0.87 (138.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-8.11%
PT rev (3m)-28.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-12.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 3.31 | ||
| P/S | 1.62 | ||
| P/FCF | N/A | ||
| P/OCF | 4.71 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)0.03
EY8.22%
EPS(NY)0.11
Fwd EY30.22%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.08
OCFY21.23%
SpS0.23
BVpS0.4
TBVpS0.4
PEG (NY)4.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 6.78% | ||
| ROCE | 4.24% | ||
| ROIC | 3.06% | ||
| ROICexc | 3.2% | ||
| ROICexgc | 3.2% | ||
| OM | 13.8% | ||
| PM (TTM) | 12% | ||
| GM | 73.35% | ||
| FCFM | N/A |
ROA(3y)-3.85%
ROA(5y)-3.62%
ROE(3y)-8.84%
ROE(5y)-7.26%
ROIC(3y)4.96%
ROIC(5y)N/A
ROICexc(3y)5.38%
ROICexc(5y)N/A
ROICexgc(3y)5.38%
ROICexgc(5y)N/A
ROCE(3y)6.89%
ROCE(5y)N/A
ROICexcg growth 3Y47.73%
ROICexcg growth 5Y-5.16%
ROICexc growth 3Y47.73%
ROICexc growth 5Y-5.16%
OM growth 3Y20.83%
OM growth 5Y-1.39%
PM growth 3Y-12.14%
PM growth 5YN/A
GM growth 3Y4.55%
GM growth 5Y3.47%
F-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 190.08% | ||
| Cap/Sales | 47.11% | ||
| Interest Coverage | 2.13 | ||
| Cash Conversion | 89.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.39 |
F-Score5
WACC7.61%
ROIC/WACC0.4
Cap/Depr(3y)275.79%
Cap/Depr(5y)435.88%
Cap/Sales(3y)48.94%
Cap/Sales(5y)82.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)126.26%
EPS 3Y5.27%
EPS 5YN/A
EPS Q2Q%-98.69%
EPS Next Y2.94%
EPS Next 2Y53.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.14%
Revenue growth 3Y28.87%
Revenue growth 5Y9.6%
Sales Q2Q%-14.02%
Revenue Next Year15.55%
Revenue Next 2Y36.01%
Revenue Next 3Y13.97%
Revenue Next 5YN/A
EBIT growth 1Y-64.58%
EBIT growth 3Y55.71%
EBIT growth 5Y8.08%
EBIT Next Year109.38%
EBIT Next 3Y52.17%
EBIT Next 5YN/A
FCF growth 1Y56.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y109.73%
OCF growth 3Y106.36%
OCF growth 5Y19.1%