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): -0.39
• 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: 0.34
• Enterprise Value/Gross Profit: 7.84
• Enterprise Value/Ebitda: -2.59
• 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: 42 Neutral
• Price Target: $0.23 ▼(-39.47% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is primarily held down by weak financial quality (losses, cash burn, and negative equity). Technicals also detract due to a clear downtrend and negative MACD, despite oversold readings. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Revenue Growth

Sustained ~50.8% TTM revenue growth to ~$58.4M indicates durable demand expansion and successful scaling of services. Over 2–6 months this trend supports capacity utilization and provides a path to leverage fixed costs, creating the potential for future margin improvement if maintained.

Asset Base Expansion

A growing asset base versus prior periods signals reinvestment in the business and increased delivery capacity. This structural expansion can support higher revenue throughput and client servicing ability, underpinning medium-term growth potential if cash and operations are stabilized.

Lean Operating Footprint

A small employee base (25) relative to reported revenue suggests a lean, potentially scalable operating model common in consulting. If revenue growth continues, the firm can exhibit operating leverage, improving profitability over months as fixed overhead is spread across higher billings.

Negative Factors

Very Thin Gross Margin

A gross margin near 2.8% indicates limited pricing power or high direct costs, constraining the firm's ability to generate operating profit even with strong top-line growth. Persistently thin gross margins make sustainable profitability challenging without structural cost reduction or pricing improvements.

Negative Cash Generation

Negative operating and free cash flow around -$6.0M TTM represents ongoing cash burn that will pressure liquidity over the medium term. Continued negative cash generation increases reliance on external financing and heightens dilution or refinancing risk, limiting strategic flexibility.

Negative Shareholders' Equity

Negative shareholders' equity (~-$2.37M) signals a stressed capital structure and reduced financial flexibility. This structural weakness amplifies refinancing and dilution risk, distorts leverage metrics, and can impede the company’s ability to fund growth or secure favorable financing terms over months.

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 strong TTM revenue growth (~50.8% to ~$58.4M), profitability and cash generation are weak (thin gross margin ~2.8%, net margin ~-22.9%, negative operating and free cash flow around -$6.0M). Balance sheet risk is elevated with negative equity (~-$2.37M), increasing dilution/refinancing risk.

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: Neutral

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 above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.37, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.67 is Neutral, neither overbought nor oversold. The STOCH value of 45.72 is Neutral, 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	$2.08M	―	―	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KARX	42 Neutral	―	-7.53	-980.69%	―	7124.92%	-169.23%
EPOW	41 Neutral	$27.11M	-4.72	80.87%	―	44.28%	52.17%
AERT	41 Neutral	$17.87M	5.84	―	―	-3.87%	-104.63%