TOUCHSTONE EXPLORATION INC (TXP.CA) Stock Fundamental Analysis
TSX:TXP - Toronto Stock Exchange - CA89156L1085 - Common Stock - Currency: CAD
Overall TXP gets a fundamental rating of 4 out of 10. We evaluated TXP against 208 industry peers in the Oil, Gas & Consumable Fuels industry. While TXP is still in line with the averages on profitability rating, there are concerns on its financial health. TXP is showing excellent growth while it is valued at reasonable prices. 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.
TXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TXP's Return On Assets of 3.02% is fine compared to the rest of the industry. TXP outperforms 67.13% of its industry peers.
TXP has a better Return On Equity (6.78%) than 60.19% of its industry peers.
With a Return On Invested Capital value of 3.06%, TXP perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
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 Profit Margin of 12.00%. This is in the better half of the industry: TXP outperforms 73.15% of its industry peers.
In the last couple of years the Profit Margin of TXP has declined.
TXP has a Operating Margin of 13.80%. This is comparable to the rest of the industry: TXP outperforms 58.33% of its industry peers.
TXP's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 73.35%, TXP belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
TXP's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, TXP has more shares outstanding
Compared to 5 years ago, TXP has more shares outstanding
The debt/assets ratio for TXP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.27, we must say that TXP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.27, TXP is not doing good in the industry: 65.74% of the companies in the same industry are doing better.
TXP has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
TXP has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.27 |
ROIC/WACC0.38
WACC8.13%
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.
With a Current ratio value of 0.73, TXP perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
TXP has a Quick 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 Quick ratio (0.72) which is in line with its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 5.27% on average over the past years.
TXP shows a decrease in Revenue. In the last year, the revenue decreased by -9.14%.
TXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.60% yearly.
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
TXP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.39% yearly.
Based on estimates for the next years, TXP will show a quite strong growth in Revenue. The Revenue will grow by 13.97% on average per year.
EPS Next Y2.94%
EPS Next 2Y53.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.44%
Revenue Next 2Y25.76%
Revenue Next 3Y13.97%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.17, the valuation of TXP can be described as reasonable.
77.78% of the companies in the same industry are more expensive than TXP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TXP to the average of the S&P500 Index (26.51), we can say TXP is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.21, the valuation of TXP can be described as very cheap.
Based on the Price/Forward Earnings ratio, TXP is valued cheaper than 96.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.09. TXP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 2.21 |
4.2 Price Multiples
81.48% of the companies in the same industry are more expensive than TXP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.2 |
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.
TXP's earnings are expected to grow with 53.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.78
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 (8/8/2025, 7:00:00 PM)
0.245
0 (0%)
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 Cap63.97M
Analysts80
Price Target0.71 (189.8%)
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)-17.65%
PT rev (3m)-24.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)-100%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-7.02%
Revenue NQ rev (3m)-39.43%
Revenue NY rev (1m)-7.89%
Revenue NY rev (3m)-7.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 2.21 | ||
| P/S | 1.19 | ||
| P/FCF | N/A | ||
| P/OCF | 3.47 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)0.03
EY12.24%
EPS(NY)0.11
Fwd EY45.31%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.07
OCFY28.83%
SpS0.21
BVpS0.36
TBVpS0.36
PEG (NY)2.78
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 | 0.27 |
F-Score5
WACC8.13%
ROIC/WACC0.38
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 Year6.44%
Revenue Next 2Y25.76%
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%