Company Overview
New Concept Energy, Inc. operates within the real estate sector, specifically focusing on real estate services, where it engages in the real estate rental business while also providing advisory and management services to an independent oil and gas company. The firm holds land assets located in Parkersburg, West Virginia, and has a corporate history that includes operating formerly as CabelTel International Corporation before changing its name. As of the latest data available, the company is a small-cap entity with a market capitalization of $4.76 million and an annual revenue of $153,000 over the trailing twelve months. The organization maintains a very lean operational scale with only two employees, a headcount that suggests a highly focused management structure rather than a large-scale corporate entity. These valuation and revenue figures indicate that the company functions as a micro-cap business with limited market presence and a niche operational footprint within the broader real estate services industry. The combination of its specific geographic asset holdings in West Virginia and its advisory services positions it as a specialized player rather than a diversified real estate conglomerate.
Financial Health
The company reported a revenue of $153,000 for the trailing twelve months, yet it recorded a net income of $-77,000 and an EBITDA of $-246,000, revealing a significant negative gap between top-line generation and bottom-line profitability. This substantial disparity between revenue and net income indicates a cost structure where operating expenses and losses far exceed the gross income generated from rentals and advisory services. The free cash flow stands at $-167,875, which implies that the company is currently burning cash rather than generating liquidity, thereby limiting its financial flexibility for capital expenditures or debt repayment without external financing. Regarding profitability margins, the gross margin is reported at 67.3%, suggesting that the core cost of goods sold for rental properties is relatively low compared to total revenue, while the operating margin is -161.5% and the profit margin is -50.3%, indicating severe inefficiencies or one-time charges that are eroding overall profitability. On the balance sheet, the company holds $307,000 in cash but has no listed debt figures, resulting in a debt-to-equity ratio that is listed as N/A, which suggests a conservative leverage position despite the negative earnings. The current ratio is 5.30, a metric that indicates strong short-term liquidity and the ability to cover current liabilities with current assets more than five times over. Return on equity is -1.7% and return on assets is -3.5%, metrics that reveal that management effectiveness is currently negative as the company generates losses on both shareholder equity and its total asset base.
Valuation Assessment
The trailing twelve months P/E ratio and forward P/E ratio are both listed as N/A due to the lack of positive earnings, which implies that traditional earnings-based valuation multiples are currently inapplicable for assessing the stock's value. The price-to-book ratio is 1.06, a figure that indicates the market is pricing the company at a slight premium over its net book value, suggesting investors are willing to pay slightly more than the accounting value of its assets. Alternative valuation metrics include a price-to-sales ratio of 31.13 and an EV/EBITDA of -18.12, which suggests the market is valuing the company based on revenue multiples rather than profitability, likely due to the expectation of future turnaround or asset appreciation. The stock price has fluctuated between a 52-week high of $1.78 and a 52-week low of $0.67, meaning the current trading price sits somewhere within this range, reflecting high volatility typical of micro-cap stocks. The beta value is 1.05, which explains that the stock's price volatility is slightly higher than the broader market, moving approximately 5% more aggressively than the S&P 500 index. These valuation characteristics highlight the speculative nature of the security, where valuation is driven by asset ownership and potential future earnings rather than current profitability or stable cash flows.
Growth & Income
Revenue growth over the last year stands at 5.4%, while earnings growth is listed as N/A because the company has not yet achieved positive earnings in the recent period. Since the earnings growth rate cannot be calculated against a positive baseline, the implication is that the company is still in a growth phase regarding revenue expansion but has not yet translated that growth into profitability. The company does not pay a dividend, as indicated by a dividend yield of N/A and a payout ratio of 0.0%, meaning the firm reinvests all available resources, including its cash reserves, back into the business operations rather than distributing income to shareholders. The overall growth and income profile is characterized by modest top-line expansion without current earnings generation or dividend distributions, relying entirely on asset management and potential future operational improvements to generate shareholder value.