Sky Quarry Inc. (SKYQ) Analysis

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] Sky Quarry Inc (SKYQ) 3-Minute Overview > **💡 One-Sentence Summary** > > Simply put, Sky Quarry is a tiny, newly listed energy company trying to build value around refining and supply opportunities, but right now it looks much more like a speculative turnaround story than a proven operating business. > **📍 Basic Profile** > > Market Cap **$0.01 billion** · Energy · NASDAQ NMS - GLOBAL MARKET · Price **$5.10** > **⚡ 3 Things You Should Know** > > 1. ⚠️ **Still not economically working:** Revenue has grown fast from a small base, but gross margin is **negative (-17.6%)** and net margin is deeply negative (**-84.9%**), which basically means the company is not yet making money even before you get to overhead. > > 2. 📈 **The stock is trading on headlines, not fundamentals:** The latest surge came after news about possible Nevada crude supply discussions and higher oil prices, so the market is reacting to future potential rather than current earnings power. > > 3. 🧡 **Liquidity is the big near-term watchout:** A current ratio of **0.21** and quick ratio of **0.12** suggest very tight short-term finances, so even if the business opportunity is real, funding and execution risk matter a lot here. > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Weak👎 | Net margin -84.89%, gross margin negative | > | Growth Rate | Fast🚀 | Revenue growth 3Y 626.63%, likely from a very small base | > | Financial Health | Tight🧡 | Debt/equity 94.16%, current ratio 0.21 | > | Valuation | Fair | PE unavailable; PS 0.45x, but low multiple reflects high risk | --- ### 📋 Layer 2: 2-Minute Deep Dive #### 📊 How Does This Company Make Money? **Business Model in One Sentence:** Energy-related products/services sold into refining and crude supply chains, making money through processing and supply agreements, though detailed segment disclosure is **[Data unavailable]** in the provided dataset. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Refining / energy operations | [Data unavailable] | ↑ | Recent news suggests the Foreland Refinery is central to the story | | Supply-related opportunities | [Data unavailable] | ↑ | Nevada crude supply talks could matter if they convert into actual contracts | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | -17.6% | Below Average | This is the biggest red flag: the core business is currently losing money on what it sells | | Net Margin | -84.89% | Below Average | Losses are extremely heavy relative to revenue | | ROE | -209.7% | Below Average | Shareholder capital is not being used profitably right now | --- #### 📈 How's the Growth? **Growth Assessment:** High Growth | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Quality:** > What's interesting is that the headline 3-year revenue growth of **626.63%** looks huge, but without annual breakdowns it’s hard to know how durable that is. In other words, this may be genuine scaling from a tiny base, but it does **not** look like healthy growth yet because margins remain sharply negative. --- #### 💰 Financial Health Check **One Sentence:** This looks like a company with a big idea but very little cash cushion—more like someone chasing a business expansion while short on working capital. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | 94.16% | <60% safe | ⚠️High | | Current Ratio | 0.21 | >1.5 healthy | 🚨Dangerous | | Cash Flow | [Data unavailable] | >0 | [Data unavailable] | --- #### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: $1.66 - 52-Week High: $15.52 - Current: $5.10, In the lower-middle part of the range | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | ●(24.8% position) | | | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE [Data unavailable] | 5-year avg [Data unavailable] | [Data unavailable] | | vs Peers | PE [Data unavailable] | Industry avg [Data unavailable] | [Data unavailable] | **What the Current Valuation is Betting On:** > Basically, the market is betting that Sky Quarry can turn operational announcements—especially around refinery feedstock supply—into a real business ramp. The low **0.45x sales** multiple may look cheap on paper, but that discount likely reflects the fact that the company is losing money, has weak liquidity, and is still far from proving its model. --- #### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-04-02 | Company said it is in talks with Nevada crude producers to supply Foreland Refinery | Positive — this is strategically important because reliable local supply could improve utilization and make the operating story more credible | | 2026-04-02 | SKYQ surged sharply amid oil above $110 and energy-sector strength | Neutral to Positive — good for sentiment, but worth noting the move seems tied partly to macro/oil-price momentum rather than company fundamentals alone | --- ### 📊 Layer 3: Want More? 3-Minute Complete Analysis #### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | -17.6% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | -84.89% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | ROE | -209.7% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | ↑ | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | EPS Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | --- #### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Earnings Trend Interpretation:** There isn’t enough earnings history in the provided dataset to judge whether management is consistently beating or missing expectations. That matters here, because for a speculative small-cap, execution consistency is a big part of the thesis. --- #### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 0 firms | 0% | | Hold | 0 firms | 0% | | Sell | 0 firms | 0% | **Target Price:** [Data unavailable] ~ [Data unavailable] (Median [Data unavailable]) **vs Current Price:** [Data unavailable] **Insider Activity:** Net [Data unavailable] in past 3 months > There’s no insider transaction data in the provided set. For a company this small and early, insider buying or selling would actually be quite useful because it can hint at management confidence—or caution. --- #### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Liquidity Risk:** Very low current and quick ratios suggest near-term funding pressure → If this happens, it could lead to dilution, expensive financing, or operational strain. 2. **Execution Risk:** The investment story depends heavily on converting supply talks and refinery plans into actual throughput and margins → If this happens slowly or fails, the stock could give back recent gains quickly. 3. **Commodity/Sentiment Risk:** Recent share moves appear linked to oil-price spikes and speculative trading interest → If oil cools or momentum traders leave, the stock could be very volatile. --- ### 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** Sky Quarry is a very small energy company with a developing refinery/supply story and a stock that currently trades more on future potential than present-day fundamentals. > > **Key strength:** The upside case is that revenue has been scaling fast and recent Nevada supply discussions could help make its operating model more real. > > **Key risk:** The biggest concern is simple: margins are deeply negative and liquidity looks tight, so this is a high-risk execution story. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? Want to calculate if it's worth the bet? → Try【Musk Mode】for analysis