Karbon-X (KARX) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 12.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 6.29
• Revenue Growth: 7124.92%
• EPS Growth: -169.23%
• Country: US
• Employees: 25
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -0.02
• Shares Outstanding: 88,018,940
• 10 Day Avg. Volume: 26,180
• 30 Day Avg. Volume: 12,032
• PEG Ratio: 0.00
• Price to Book (P/B): -65.26
• Price to Sales (P/S): 28.26
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 10.62
• Enterprise Value/Ebitda: -3.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $0.35 ▼(-9.21% Downside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is held down primarily by weak financial quality: heavy losses, ongoing cash burn, and negative equity despite strong revenue growth. Technicals are moderately supportive in the near term (above 20/50-DMA with positive MACD), but longer-term trend remains weak (below 100/200-DMA) and momentum appears stretched. Valuation is constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Revenue Growth

Sustained TTM revenue growth (~50.8% to ~$58.4M) indicates robust underlying customer demand and successful market penetration. Over a 2-6 month horizon, strong top-line momentum supports scale economics potential and provides a foundation to improve unit economics if cost structure is managed.

Growing Asset Base

An expanding asset base implies the company is investing in capacity, platforms, or capabilities to support higher revenue. Durable asset growth can underpin future service delivery, enable incremental sales, and reduce marginal costs as revenue scales, improving long-term structural capacity.

Lean Headcount / Scalability

A small workforce (25 employees) supporting substantial TTM revenue suggests a scalable, capital-light delivery model or high revenue per employee. This structural efficiency can enable rapid margin improvement as revenue rises, provided investments are disciplined and operational leverage is preserved.

Negative Factors

Negative Equity

Negative shareholders' equity is a persistent structural weakness that constrains financial flexibility, raises refinancing and covenant risk, and increases the likelihood of dilutive financing. Over months, this limits strategic options and heightens vulnerability to funding shocks.

Cash Burn

Consistent negative operating and free cash flow (~-$6.0M TTM) shows the business consumes cash to sustain growth. This structural cash burn requires recurring external financing or rapid margin improvement, both of which pose execution and dilution risks in the medium term.

Thin Margins and Losses

Very thin gross margins (~2.8%) and sustained net losses (~-22.9% margin) indicate the company is not converting revenue into profits. This structural profitability gap suggests pricing, cost, or mix challenges that must be resolved to achieve durable earnings and self-funded growth.

Karbon-X Business Overview & Revenue Model

Company Description

Karbon-X Corp. operates as a carbon marketing company focused on the technology-based greenhouse gas builds. The company is involved in reduction of greenhouse gas emissions through sale of carbon credits. It also invests in CO2 reduction projects such as direct air capture, green hydroelectric energy production, and reforestation. The company serves mining, forestry, civic earthworks, transportation, oil, and gas sectors. Karbon-X Corp. was formerly known as Cocoluv, Inc. and changed its name to Karbon-X Corp. in April 2022. The company was incorporated in 2017 and is based in Calgary, Canada.

How the Company Makes Money

Karbon-X makes money primarily through the sale of carbon offsets. Users, both individual and corporate, pay for offsets that are then invested in certified environmental projects. The company partners with organizations and projects that have a measurable impact on reducing carbon emissions. Revenue is generated from transactions on their platform, where Karbon-X takes a percentage of each sale as a service fee. Additionally, the company may have partnerships with businesses seeking to enhance their sustainability profiles, thus opening another revenue stream through consultancy services related to carbon footprint management.

Karbon-X Financial Statement Overview

Summary

Despite ~50.8% TTM revenue growth, profitability and cash generation are weak (thin ~2.8% gross margin, net margin ~-22.9%, negative operating cash flow and free cash flow around -$6.0M). Negative stockholders’ equity (~-$2.37M) further increases financial risk and reduces flexibility.

Income Statement

TTM (Trailing-Twelve-Months) shows very strong top-line momentum (revenue up ~50.8% to ~$58.4M), but profitability remains weak. Gross margin is thin (~2.8%), and losses are heavy with negative operating and net margins (net margin ~-22.9%), indicating the company is not converting growth into earnings power yet. The prior annual period also reflects meaningful net losses, reinforcing an ongoing profitability challenge.

Balance Sheet

Balance sheet strength is a key concern: stockholders’ equity is negative (TTM equity about -$2.37M), which limits financial flexibility and increases refinancing/dilution risk. Debt is moderate in absolute dollars (~$5.3M TTM), but leverage ratios are distorted by negative equity and point to an elevated risk profile. Asset base has grown versus earlier periods, but the capital structure is currently stressed.

Cash Flow

Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow is negative (~-$6.0M) and free cash flow is also negative (~-$6.0M), with free cash flow declining ~24% versus the prior comparable period. While cash burn is broadly in line with reported losses (free cash flow roughly tracks net income), the business is still consuming cash, which can pressure liquidity and increase reliance on external funding.

Breakdown	TTM	Aug 2024	Aug 2022
Income Statement
Total Revenue	58.38M	3.16M	0.00
Gross Profit	2.54M	801.47K	0.00
EBITDA	-7.68M	-6.62M	-238.75K
Net Income	-9.13M	-7.05M	-238.75K
Balance Sheet
Total Assets	18.44M	6.78M	671.60K
Cash, Cash Equivalents and Short-Term Investments	6.52M	704.35K	477.34K
Total Debt	5.30M	3.00M	0.00
Total Liabilities	20.81M	8.15M	33.73K
Stockholders Equity	-2.37M	-1.37M	637.87K
Cash Flow
Free Cash Flow	-5.98M	0.00	-3.25K
Operating Cash Flow	-5.97M	0.00	0.00
Investing Cash Flow	-425.18K	-7.85K	-3.25K
Financing Cash Flow	12.11M	4.56M	855.00K

Karbon-X Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KARX, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.41, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 14.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KARX.

Karbon-X Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCIG	73 Outperform	$10.31M	―	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KARX	47 Neutral	―	-2.89	-980.69%	―	7124.92%	-169.23%
EPOW	41 Neutral	$24.50M	-2.50	-234.48%	―	44.28%	52.17%
AERT	41 Neutral	$14.36M	-4.77	―	―	-3.87%	-104.63%