Investment Thesis
Trillion Energy is fundamentally unprofitable with a -77% operating margin and negative $1.2M free cash flow, indicating severe operational dysfunction. With only $1.1M in stockholders' equity against ongoing operating losses of $2.2M and cash burn, the company faces critical financial distress with limited runway, compounded by extremely outdated financial data from September 2021.
Strengths
- Current ratio of 1.65x provides near-term liquidity buffer
- Low debt-to-equity ratio of 0.03x minimizes leverage obligations
- Oil & gas sector exposure offers potential upside if commodity prices rise significantly
Risks
- Deeply unprofitable with -77% operating margin and -$1.1M operating loss on just $2.8M revenue
- Negative free cash flow of -$1.2M indicates unsustainable cash burn with only $1.5M total cash on hand
- Financial data is critically outdated (September 2021, 4.5+ years old) with unknown current status
- Minimal $1.1M equity base provides almost no financial cushion or flexibility
- Catastrophic negative returns: -191% ROE and -25.3% ROA indicate severe shareholder value destruction
- OTC listing reflects illiquidity, limited institutional scrutiny, and potential going concern risks
- Capital-intensive oil & gas industry with inadequate asset base ($8.5M) to support operations
Key Metrics to Watch
- Current cash balance and updated burn rate given 2021 financial data age
- Path to operating profitability and revenue trajectory
- Operating cash flow trend and going concern status
Financial Metrics
Revenue
2.8M
Net Income
-2.2M
EPS (Diluted)
$-0.01
Free Cash Flow
-1.2M
Total Assets
8.5M
Cash
1.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-77.1%
Net Margin
-76.2%
ROE
-191.0%
ROA
-25.3%
FCF Margin
-42.4%
Balance Sheet & Liquidity
Current Ratio
1.65x
Quick Ratio
1.65x
Debt/Equity
0.03x
Debt/Assets
86.7%
Interest Coverage
-18.25x
Long-term Debt
34.3K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-17T19:18:18.099198 |
Data as of: 2021-09-30 |
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