Sky Quarry Inc. Common Stock (SKYQ)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business and the numbers. Sky Quarry is a 26-employee oil production, refining, and environmental remediation company trying to turn waste asphalt shingles and oil-saturated sands into products. That is hard, capital-intensive work, and the filed figures show it has not yet proven earning power. In fiscal 2023 it lost $4.4 million; in fiscal 2024 it lost $14.7 million; in fiscal 2025 it lost $12.2 million. The losses continued in fiscal Q1 2026, the quarter ended 2026-03-31, with a $2.3 million net loss, and in fiscal Q2 2026, the quarter ended 2026-06-30, with a $4.1 million net loss. The filed revenue fields for fiscal Q1 2026 and fiscal Q2 2026 are n/a, and the latest-quarter data shows only $383 of revenue, which is not a meaningful operating base. Trailing free cash flow was negative $8.4 million, a negative 41.7% free cash flow yield on a $20.1 million market cap. The balance sheet has debt-to-equity of 1.03. Return on equity is negative 132.79%, and return on capital employed is negative 22.06%. The Piotroski F-Score is 3 out of 9, and the Altman Z-Score of -1.71 falls in the distress zone. The FairStock P/B is 1.70, and the FairStock Graham Number is $3.15 versus the $2.28 close on 2026-10-13, suggesting possible asset value. But asset value without profits is often a mirage. There is no clear competitive moat; commodity prices, scale, and financing needs control the outcome. Any profit improvement may reflect narrowing losses, not durable earnings. I would need evidence of real revenue, positive cash flow, and a stronger balance sheet before calling this a sound value proposition.

In plain English: Sky Quarry is a small energy company that recycles old asphalt shingles and cleans up oil-soaked sands and soils, and it also refines heavy crude. The business looks weak right now because it has lost money in each of the last three fiscal years and has been using cash. At $2.28 a share on 2026-10-13, the stock looks inexpensive against some balance-sheet measures, but the losses and cash use make that cheapness uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer