Armada Mercantile (ARM) AI Stock Analysis

• Market Cap: C$6.30M
• Dividend Yield: N/A
• Average Volume (3M): 870.00
• Price to Earnings (P/E): ―
• Beta (1Y): -1.57
• Revenue Growth: -50.48%
• EPS Growth: -40083.33%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): >-0.01
• Shares Outstanding: 21,007,845
• 10 Day Avg. Volume: 2,440
• 30 Day Avg. Volume: 870
• PEG Ratio: 3.90
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 32.00
• P/FCF Ratio: 23.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 54 Neutral
• 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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with high equity ratio and minimal debt enhances financial stability, providing resilience against economic fluctuations.

Cash Flow Management

Positive free cash flow indicates effective cash management, supporting operational needs and potential for reinvestment in growth opportunities.

Gross Profit Margin

A high gross profit margin reflects strong cost management and pricing power, which can lead to better profitability as operational efficiencies improve.

Negative Factors

Revenue Growth Volatility

Volatile revenue growth can create uncertainty in financial planning and investor confidence, impacting long-term strategic initiatives.

Profitability Challenges

Sustained profitability challenges may hinder the company's ability to reinvest in growth and compete effectively in the market.

Operational Inefficiencies

Operational inefficiencies can lead to higher costs and reduced margins, affecting overall financial health and competitiveness.

Armada Mercantile Business Overview & Revenue Model

Company Description

Armada Mercantile Ltd., a financial services company, provides merchant banking services worldwide. The company provides specialized merchant banking, broker-dealer, venture lending, and corporate finance services, as well as advises clients on corporate structure, strategy, mergers and acquisitions, and raising capital. It also offers various services for public and private equity, factoring, equipment leasing, private placements, corporate debt securities, corporate finance, mezzanine financing, direct public offerings, and mergers and acquisitions; and commercial finance services, including account receivables factoring, supply chain, revenue lines of credit, and other types of specialized finance, as well as assists investors and corporations in planning investment strategies and raising capital in the public and private equity markets. The company serves investors, entrepreneurs, and businesses. Armada Mercantile Ltd. was incorporated in 1987 and is based in Roseville, California.

How the Company Makes Money

Armada 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	206.57K	402.54K	311.61K	0.00	0.00
Gross Profit	-133.00	206.57K	401.90K	310.82K	-7.83K	-9.77K
EBITDA	-5.04M	-18.30K	268.95K	74.20K	5.54M	-258.12K
Net Income	-5.04M	-15.93K	242.45K	49.16K	5.53M	-267.89K
Balance Sheet
Total Assets	1.67M	6.35M	6.38M	5.64M	5.56M	22.10K
Cash, Cash Equivalents and Short-Term Investments	858.93K	5.86M	5.82M	5.63M	5.56M	21.72K
Total Debt	7.15K	7.15K	7.15K	7.15K	8.70K	13.06K
Total Liabilities	61.35K	516.25K	528.66K	120.34K	102.42K	89.77K
Stockholders Equity	1.61M	5.83M	5.85M	5.52M	5.46M	-67.67K
Cash Flow
Free Cash Flow	-34.98K	285.70K	671.76K	99.49K	93.88K	-53.54K
Operating Cash Flow	-34.98K	285.70K	671.76K	99.49K	93.88K	-53.54K
Investing Cash Flow	10.53K	-346.37K	-366.55K	0.00	-2.57K	44.80K
Financing Cash Flow	54.84K	102.22K	-108.49K	-25.40K	26.01K	-2.30K

Armada Mercantile Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARM, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.33, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 27.76 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ARM.

Armada Mercantile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ARM	54 Neutral	C$6.30M	―	-130.70%	―	-50.48%	-40083.33%
SIX	54 Neutral	$17.42M	2.04	42.11%	―	―	33.33%
CSTR	39 Underperform	C$4.24M	―	-108.07%	―	-90.58%	-43.16%
BTC	39 Underperform	C$5.42M	-0.87	-345.56%	―	-7.93%	15.88%