Sky Quarry Inc. (NASDAQ: SKYQ)

Sector: Energy Industry: Oil & Gas Integrated CIK: 0001812447
Market Cap 7.10 Mn
P/B 1.30
P/E -0.52
P/S 0.43
ROIC (Qtr) -63.01
Div Yield % 0.00
Rev 1y % (Qtr) -72.42
Total Debt (Qtr) 10.62 Mn
Debt/Equity (Qtr) 1.94
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About

Investment thesis

Bull case

  • Operating cash flow of (4.86M) provides exceptional 654.38x coverage of minority interest expenses (7423), showing strong core operations.
  • Tangible assets of 17.64M provide robust 52.14x coverage of other current liabilities 338381, indicating strong asset backing.
  • Operating cash flow of (4.86M) provides strong 4.37x coverage of operating expenses (1.11M), showing operational efficiency.
  • Strong cash position of 1.18M provides 3.49x coverage of other current liabilities 338381, indicating excellent liquidity.
  • Free cash flow of (4.91M) provides solid 4.42x coverage of operating expenses (1.11M), showing operational efficiency.

Bear case

  • The company's operating cash flow of (4.86M) shows concerning coverage of stock compensation expenses of 644050, with a -7.54 ratio indicating potential earnings quality issues.
  • Free cash flow of (4.91M) provides weak coverage of capital expenditures of 47632, with a -102.98 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (9.51M) show weak coverage of depreciation charges of 1.20M, with a -7.94 ratio indicating high capital intensity and potential reinvestment needs.
  • Cash position of 1.18M provides weak coverage of payables of 4.43M, which is 0.27x, indicating potential working capital stress and supplier relationship risks.
  • Operating cash flow of (4.86M) is outpaced by equity issuance of 6.55M (-0.74 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Oil & Gas Integrated
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 XOM Exxon Mobil Corp 630.73 Bn 18.39 1.45 42.04 Bn
2 CVX Chevron Corp 360.16 Bn 29.26 2.14 41.54 Bn
3 TTE TotalEnergies SE 172.29 Bn 13.13 0.94 61.42 Bn
4 IMO Imperial Oil Ltd 99.73 Bn 51.19 4.54 2.90 Bn
5 BP Bp Plc 98.37 Bn 1,788.57 0.51 72.53 Bn
6 SU Suncor Energy Inc 67.22 Bn 15.56 1.87 10.59 Bn
7 CVE Cenovus Energy Inc. 38.97 Bn 17.12 1.04 7.27 Bn
8 NFG National Fuel Gas Co 7.90 Bn 12.06 3.32 2.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.79 1.02
EV to Cash from Ops. EV/CFO -3.39 11.79
EV to Debt EV to Debt 1.55 7.40
EV to EBIT EV/EBIT -1.73 19.95
EV to EBITDA EV/EBITDA -1.71 7.85
EV to Free Cash Flow [EV/FCF] EV/FCF -3.35 46.96
EV to Market Cap EV to Market Cap 2.32 1.30
EV to Revenue EV/Rev 1.00 2.01
Price to Book Value [P/B] P/B 1.30 2.14
Price to Earnings [P/E] P/E -0.52 168.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 786.52
Dividend per Basic Share Div per Share (Qtr) 0.00 1.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 37.80
Interest Coverage Int. cover (Qtr) -2.36 42.88
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 96.40 -10.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -62.88 32.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.73 142.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -58.68 22.56
EBIT Growth (1y) % EBIT 1y % (Qtr) -5.44 35.32
EBT Growth (1y) % EBT 1y % (Qtr) 13.10 190.68
EPS Growth (1y) % EPS 1y % (Qtr) 33.70 511.78
FCF Growth (1y) % FCF 1y % (Qtr) 44.55 4.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -26.13 16.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.79 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.13
Cash Ratio Cash Ratio (Qtr) 0.09 0.27
Current Ratio Curr Ratio (Qtr) 0.21 1.06
Debt to Equity Ratio Debt/Equity (Qtr) 1.94 0.88
Interest Cover Ratio Int Coverage (Qtr) -2.36 42.88
Times Interest Earned Times Interest Earned (Qtr) -2.36 42.88
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -50.70 18.39
EBIT Margin % EBIT Margin % (Qtr) -57.97 6.19
EBT Margin % EBT Margin % (Qtr) -82.49 1.30
Gross Margin % Gross Margin % (Qtr) -24.70 30.31
Net Profit Margin % Net Margin % (Qtr) -82.50 -1.26