Touchstone Exploration Inc.

TSX:TXP Stock Report

Market Cap: CA$95.8m

Touchstone Exploration Valuation

Is TXP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TXP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TXP (CA$0.41) is trading below our estimate of fair value (CA$13.96)

Significantly Below Fair Value: TXP is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TXP?

Key metric: As TXP is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TXP. This is calculated by dividing TXP's market cap by their current revenue.
What is TXP's PS Ratio?
PS Ratio1.3x
SalesUS$49.75m
Market CapUS$66.54m

Price to Sales Ratio vs Peers

How does TXP's PS Ratio compare to its peers?

The above table shows the PS ratio for TXP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
FORZ Forza Petroleum
0.9xn/aCA$90.9m
JOY Journey Energy
0.7xn/aCA$117.4m
QEC Questerre Energy
2.9xn/aCA$98.6m
YGR Yangarra Resources
0.7x4.2%CA$92.8m
TXP Touchstone Exploration
1.3x31.5%CA$95.8m

Price-To-Sales vs Peers: TXP is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does TXP's PS Ratio compare vs other companies in the CA Oil and Gas Industry?

20 CompaniesPrice / SalesEstimated GrowthMarket Cap
PKI Parkland
0.2x2.3%US$4.08b
GEI Gibson Energy
0.3x-5.6%US$2.74b
SES Secure Energy Services
0.4x-54.2%US$2.61b
FEC Frontera Energy
0.4xn/aUS$428.33m
TXP 1.3xIndustry Avg. 1.8xNo. of Companies26PS0246810+
20 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TXP is good value based on its Price-To-Sales Ratio (1.3x) compared to the Canadian Oil and Gas industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is TXP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TXP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio2.8x

Price-To-Sales vs Fair Ratio: TXP is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (2.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TXP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$0.41
CA$0.97
+140.7%
17.9%CA$1.15CA$0.80n/a2
Aug ’25CA$0.61
CA$1.65
+170.5%
21.2%CA$2.00CA$1.30n/a2
Jul ’25CA$0.55
CA$1.65
+200.0%
21.2%CA$2.00CA$1.30n/a2
Jun ’25CA$0.58
CA$1.63
+181.0%
16.0%CA$2.00CA$1.30n/a4
May ’25CA$0.70
CA$1.63
+132.9%
16.0%CA$2.00CA$1.30n/a4
Apr ’25CA$0.90
CA$1.63
+81.1%
16.0%CA$2.00CA$1.30n/a4
Mar ’25CA$0.87
CA$1.51
+73.9%
27.9%CA$2.00CA$0.85n/a4
Feb ’25CA$0.70
CA$1.54
+119.6%
28.3%CA$2.00CA$0.85n/a4
Jan ’25CA$0.72
CA$1.60
+122.2%
27.7%CA$2.00CA$0.85n/a4
Dec ’24CA$0.83
CA$2.22
+167.1%
14.8%CA$2.60CA$1.80CA$0.533
Nov ’24CA$0.93
CA$2.22
+138.4%
14.8%CA$2.60CA$1.80CA$0.573
Oct ’24CA$1.02
CA$2.47
+141.8%
20.2%CA$3.00CA$1.80CA$0.593
Sep ’24CA$1.27
CA$2.80
+120.5%
7.1%CA$3.00CA$2.60CA$0.572
Aug ’24CA$1.34
CA$2.93
+118.3%
2.6%CA$3.00CA$2.85CA$0.612
Jul ’24CA$1.06
CA$2.93
+175.9%
2.6%CA$3.00CA$2.85CA$0.552
Jun ’24CA$0.99
CA$2.93
+195.5%
2.6%CA$3.00CA$2.85CA$0.582
May ’24CA$1.08
CA$2.88
+167.0%
2.9%CA$3.00CA$2.80CA$0.703
Apr ’24CA$1.10
CA$2.91
+164.8%
3.1%CA$3.00CA$2.80CA$0.904
Mar ’24CA$1.14
CA$2.91
+155.5%
3.1%CA$3.00CA$2.80CA$0.874
Feb ’24CA$1.20
CA$2.91
+142.7%
3.1%CA$3.00CA$2.80CA$0.704
Jan ’24CA$0.92
CA$2.91
+216.6%
3.1%CA$3.00CA$2.80CA$0.724
Dec ’23CA$1.09
CA$3.00
+175.2%
3.5%CA$3.15CA$2.85CA$0.834

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 08:20
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Touchstone Exploration Inc. is covered by 25 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Grant HoferBarclays
Kirk WilsonBeacon Securities Limited
Andrew FairbanksBofA Global Research