Tourmaline Oil Corp. (TOU.TO) stock analysis

In our weekly check, Tourmaline Oil Corp. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.

About Tourmaline Oil Corp.

Tourmaline Oil Corp. is an Energy company (Oil & Gas Exploration & Production) based in Canada, listed on TSX as TOU.TO.

What our checks show for TOU.TO

Red flags

• Operating profit does not cover the interest bill (0.8x): interest is paid from cash or new debt.
• The net margin fell by 36 points over 5 years, to 6.5%: the company keeps less of each sale as profit.
• The gross margin fell by 66.7 points, to 5.2%: costs are rising faster than prices.
• Revenue fell 6.5% a year over the last 3 years.
• The dividend takes 267% of profit: little cushion if profit falls.
• The stock has fallen as much as 88% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.3%.

Warning signs

• Earnings per share fell 58.3% a year over the last 3 years.
• Net profit fell 56.2% a year over the last 3 years.
• The net margin is only 6.5%: little room if costs rise.
• Free cash flow is only 3.6% of revenue.
• Recovering from its deepest fall took about 2 years.
• The share count grew by 11.9% in 2 years: each shareholder owns a smaller slice.

Strengths

• Net debt is only 0.4x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 8.32x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 94.2% a year over the next years.
• Analysts expect the net margin to improve by 21 points from today's 6.5%.
• A large company: market value $18.46 billion.
• Beta 0.24: the stock usually moves less than the market.

Next earnings report: 2026-11-04

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Questions

What grade does Tourmaline Oil Corp. (TOU.TO) have?

In our weekly check, Tourmaline Oil Corp. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TOU.TO stock?

This week's biggest flags for Tourmaline Oil Corp.: Weak interest cover, Margins falling, Gross margin falling. In total 13 of 25 checks show a warning or a red flag.

What does Tourmaline Oil Corp. do?

Tourmaline Oil Corp. is an Energy company (Oil & Gas Exploration & Production) based in Canada, listed on TSX as TOU.TO.

When does Tourmaline Oil Corp. report earnings next?

The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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