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Armada Mercantile (TSE:ARM)
:ARM
Canadian Market

Armada Mercantile (ARM) AI Stock Analysis

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TS

Armada Mercantile

(ARM)

Rating:54Neutral
Price Target:
Armada Mercantile's overall stock score reflects its strong balance sheet and cash position, which are offset by significant challenges in profitability and valuation concerns. While technical analysis shows some positive momentum, it is not sufficient to overcome the financial and valuation hurdles. Investors should be cautious about operational inefficiencies and inconsistent revenue growth.

Armada Mercantile (ARM) vs. iShares MSCI Canada ETF (EWC)

Armada Mercantile Business Overview & Revenue Model

Company DescriptionArmada Mercantile (ARM) is a financial services company that operates within the investment banking and advisory sectors. The company specializes in facilitating capital formation, providing advisory services, and offering access to funding for small to medium-sized enterprises (SMEs). Armada Mercantile caters to a broad range of industries, assisting in mergers and acquisitions, corporate restructuring, and strategic partnerships.
How the Company Makes MoneyArmada Mercantile makes money primarily through fees and commissions earned from its financial advisory services. The company charges clients for its expertise in raising capital, structuring deals, and providing strategic advice. Revenue streams include advisory fees for mergers and acquisitions, consulting fees for corporate restructuring, and commissions on capital raised. Significant partnerships with financial institutions and private investors also support Armada's ability to offer comprehensive services to its clients, contributing to its earnings.

Armada Mercantile Financial Statement Overview

Summary
Armada Mercantile is in a stable financial position with strong equity and cash reserves, but faces challenges in achieving consistent profitability and revenue growth. The company needs to address operational inefficiencies to improve margins and stabilize cash flows to enhance overall financial performance.
Income Statement
45
Neutral
Armada Mercantile's income statement reveals mixed performance. The Gross Profit Margin is excellent at 100% for TTM, indicating effective cost management, but the company is struggling with profitability as evidenced by a negative Net Profit Margin of -24% TTM. Revenue growth is highly volatile, with significant fluctuations year-over-year, which poses a risk. Margins such as EBIT and EBITDA are negative, highlighting operational challenges.
Balance Sheet
75
Positive
The balance sheet of Armada Mercantile is robust with a strong Equity Ratio of 93% TTM, indicating financial stability and low leverage. The Debt-to-Equity ratio is minimal at 0.001, and the company has a solid Return on Equity of -0.7% TTM, though this reflects the current net losses. The high cash reserves provide a cushion against liabilities.
Cash Flow
65
Positive
Cash flow analysis shows a positive trend with a significant Operating Cash Flow to Net Income Ratio of -6.7 TTM, indicating strong cash conversion despite net losses. Free Cash Flow is positive, showing effective cash generation and capital management, though the growth rate is inconsistent, reflecting operational variability.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
186.67K206.57K51.25K2.72K8.81K3.31K
Gross Profit
186.67K206.57K51.25K2.72K8.81K3.31K
EBIT
-91.75K-35.29K274.73K-177.45K-147.76K-202.13K
EBITDA
-138.49K-18.30K268.95K134.16K185.54K-39.52K
Net Income Common Stockholders
-44.81K-15.93K242.45K49.16K5.53M-267.89K
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.87M5.86M5.82M5.63M5.56M21.72K
Total Assets
6.68M6.35M6.38M5.64M5.56M22.10K
Total Debt
7.15K7.15K7.15K7.15K8.70K13.06K
Net Debt
-443.91K-433.95K-392.41K-195.68K-120.04K1.64K
Total Liabilities
472.40K516.25K528.66K126.34K102.42K89.77K
Stockholders Equity
6.20M5.83M5.85M5.52M5.46M-67.67K
Cash FlowFree Cash Flow
299.99K285.70K671.76K99.49K93.88K-53.54K
Operating Cash Flow
299.99K285.70K671.76K99.49K93.88K-53.54K
Investing Cash Flow
-345.99K-346.37K-366.55K0.00-2.57K44.80K
Financing Cash Flow
395.61K102.22K-108.49K-25.40K26.01K-2.30K

Armada Mercantile Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.40
Price Trends
50DMA
0.34
Positive
100DMA
0.34
Positive
200DMA
0.34
Positive
Market Momentum
MACD
0.02
Negative
RSI
83.10
Negative
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARM, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and above the 200-day MA of 0.34, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 83.10 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARM.

Armada Mercantile Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSGSY
74
Outperform
$2.48B9.9423.56%3.60%18.04%2.48%
TSGCG
70
Neutral
C$1.04B14.275.62%3.71%35.78%-24.67%
TSGFL
67
Neutral
C$25.21B9.57-10.02%0.12%1.37%-9742.41%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
TSARM
54
Neutral
C$8.39M-0.74%-37.08%-1100.00%
52
Neutral
$43.32M-27.51%5.92%-54.25%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ARM
Armada Mercantile
0.40
-0.07
-14.89%
TSE:MOGO
Mogo Finance Technology
1.73
-0.37
-17.62%
TSE:GSY
goeasy
154.06
-30.03
-16.31%
TSE:GFL
GFL Environmental
68.18
16.82
32.75%
TSE:GCG
Guardian Capital
42.75
1.53
3.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.