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
TXP had positive earnings in the past year.
In the past year TXP had a positive cash flow from operations.
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
With a decent Return On Assets value of 3.02%, TXP is doing good in the industry, outperforming 67.13% of the companies in the same industry.
TXP has a Return On Equity of 6.78%. This is in the better half of the industry: TXP outperforms 60.19% of its industry peers.
TXP has a Return On Invested Capital of 3.06%. This is comparable to the rest of the industry: TXP outperforms 52.31% 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 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.
The Operating Margin of TXP (13.80%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TXP has remained more or less at the same level.
The Gross Margin of TXP (73.35%) is better than 90.74% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TXP is destroying value.
Compared to 1 year ago, TXP has more shares outstanding
Compared to 5 years ago, TXP has more shares outstanding
Compared to 1 year ago, TXP has a worse debt to assets ratio.
2.2 Solvency
TXP has an Altman-Z score of 0.27. This is a bad value and indicates that TXP is not financially healthy and even has some risk of bankruptcy.
TXP has a worse Altman-Z score (0.27) than 65.74% of its industry peers.
TXP has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, TXP is in line with its industry, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.27 |
ROIC/WACC0.38
WACC8.09%
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's Current ratio of 0.73 is in line compared to the rest of the industry. TXP outperforms 44.44% of its industry peers.
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 of 0.72. This is comparable to the rest of the industry: TXP outperforms 56.48% of 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.
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.
Measured over the past years, TXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.60% on average per year.
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 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.
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 reasonably with a Price/Earnings ratio of 8.17.
Based on the Price/Earnings ratio, TXP is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TXP is valued rather cheaply.
TXP is valuated cheaply with a Price/Forward Earnings ratio of 2.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TXP indicates a rather cheap valuation: TXP is cheaper than 96.76% of the companies listed 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 34.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 2.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXP indicates a rather cheap valuation: TXP is cheaper than 81.48% of the companies listed in the same industry.
| 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.
A more expensive valuation may be justified as TXP's earnings are expected to grow with 53.39% in the coming years.
PEG (NY)2.78
PEG (5Y)N/A
EPS Next 2Y53.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TXP!.
| 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
WACC8.09%
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%