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Desert Mountain Energy

DME.V
20
Oil & Gas Exploration & Production · Energy
Price
C$0.18
+0.01 (+2.78%)
Market Cap
C$19.2M
Exchange
Toronto Stock Exchange Ventures
Winston Score
20
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Weak
Growth
Good
Cash Flow
Weak
Stability
Data not available
Valuation
Data not available

Share count rising — dilution

+44.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 63.8M (2021) → 92.4M (2025)

Winston Score History

The full picture

Desert Mountain Energy Corp. is a small Canadian exploration company focused on finding and producing helium gas in the southwestern United States, primarily in Arizona. Helium is a rare gas used in medical equipment like MRI machines, semiconductor manufacturing, and scientific research. The company holds exploration licenses across a large land package in the region, which it believes sits above naturally occurring helium deposits.

The company is in an early exploration stage and currently generates little to no meaningful revenue, which explains its deeply negative margins. It operates almost entirely in Arizona and is listed on the TSX Venture Exchange, reflecting its small, speculative nature. Helium has attracted investor interest because global supplies are limited and demand from high-tech industries is growing, but the main risk Desert Mountain faces is the significant capital required to move from exploration to actual commercial production — with no guarantee that recoverable helium will be found in sufficient quantities.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.2% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+58.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

C$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

5.2%ownership

Insiders own a meaningful stake in the company

Cash Runway

~12 months

C$2M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Growth context

Desert Mountain Energy is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
-3.7%
Thin — -3.7% gross margin
Profit after running costs
Operating Margin
-273.7%
Losing money on operations — -273.7%
Return on the money invested
ROCE
-4.2%
Weak — -4.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
-12.1%
Shrinking sales (-12.1% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-533.1%
Burning cash (-533.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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