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Armada Mercantile (TSE:ARM)
:ARM
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Armada Mercantile
(ARM)
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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)
Market Cap
C$6.51M
Dividend YieldN/A
Average Volume (3M)86.00
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-38.80%
EPS GrowthN/A
CountryCA
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)N/A
Shares Outstanding21,007,845
10 Day Avg. Volume110
30 Day Avg. Volume86
Financial Highlights & Ratios
PEG Ratio3.90
Price to Book (P/B)1.13
Price to Sales (P/S)32.00
P/FCF Ratio23.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Armada Mercantile Business Overview & Revenue Model
Company DescriptionArmada 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 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
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.45
Neutral
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.75
Positive
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 87.37K | 206.57K | 51.25K | 2.72K | 8.81K | 16.74K |
| Gross Profit | 87.24K | 206.57K | 51.25K | 2.72K | 8.81K | 16.74K |
| EBITDA | -5.09M | -18.30K | 268.95K | 134.16K | 185.54K | -14.87K |
| Net Income | -5.04M | -15.93K | 242.45K | 49.16K | 5.53M | -19.37K |
Balance Sheet | ||||||
| Total Assets | 1.67M | 6.35M | 6.38M | 5.64M | 5.56M | 285.36K |
| Cash, Cash Equivalents and Short-Term Investments | 858.93K | 5.86M | 5.82M | 5.63M | 5.56M | 284.86K |
| Total Debt | 7.15K | 7.15K | 7.15K | 7.15K | 8.70K | 14.41K |
| Total Liabilities | 61.35K | 516.25K | 528.66K | 126.34K | 102.42K | 87.56K |
| Stockholders Equity | 1.61M | 5.83M | 5.85M | 5.52M | 5.46M | 197.80K |
Cash Flow | ||||||
| Free Cash Flow | -34.98K | 285.70K | 671.76K | 99.49K | 93.88K | -59.64K |
| Operating Cash Flow | -34.98K | 285.70K | 671.76K | 99.49K | 93.88K | -59.64K |
| Investing Cash Flow | 10.53K | -346.37K | -366.55K | 0.00 | -2.57K | 76.29K |
| Financing Cash Flow | 54.84K | 102.22K | -108.49K | -25.40K | 26.01K | 330.00 |
Armada Mercantile Technical Analysis
Negative
0.31
Price Trends
0.32
Negative
0.33
Negative
0.33
Negative
Market Momentum
<0.01
Positive
33.78
Neutral
33.33
Neutral
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 0.31 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.32, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ARM.
Armada Mercantile Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $13.83M | 3.09 | 38.55% | ― | ― | 3.72% | |
54 Neutral | C$6.51M | ― | -129.85% | ― | -38.80% | ― | |
44 Neutral | C$8.47M | ― | -88.13% | ― | -84.15% | -5.79% | |
39 Underperform | C$5.58M | ― | -345.56% | ― | -7.93% | 15.88% |
* Financial Sector Average
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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.