Acceleware (AXE) AI Stock Analysis

• Market Cap: C$10.08M
• Dividend Yield: N/A
• Average Volume (3M): 30.34K
• Price to Earnings (P/E): 3.7
• Beta (1Y): -0.71
• Revenue Growth: 1775.57%
• EPS Growth: N/A
• Country: CA
• Employees: 15
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 118,573,540
• 10 Day Avg. Volume: 58,880
• 30 Day Avg. Volume: 30,345
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 59 Neutral
• Price Target: ―

Acceleware's overall score reflects strong revenue growth and a shift to profitability in 2024, counterbalanced by significant financial instability and weak cash flow. The technical analysis suggests potential upside but with caution due to recent overbought signals. Valuation appears favorable with a low P/E ratio, yet the lack of a dividend yield may deter income-focused investors. Recent corporate developments are promising but do not significantly alter the risk profile.

Acceleware Business Overview & Revenue Model

Company Description

Acceleware Ltd. (AXE) is a Canadian-based technology company specializing in the development of innovative software and technology solutions primarily for the energy sector. The company is known for its expertise in high-performance computing applications, particularly in seismic imaging and simulations for oil and gas exploration. Acceleware also focuses on radio frequency (RF) heating technology, aimed at enhancing oil extraction processes with minimal environmental impact.

How the Company Makes Money

Acceleware generates revenue through the sale and licensing of its proprietary software solutions and technology services to companies in the oil and gas industry. The company offers products that enable faster and more efficient seismic data processing, which is critical for exploration activities. Acceleware's RF heating technology represents a significant growth opportunity by providing a more sustainable method for heavy oil and oil sands extraction. Additionally, the company may engage in partnerships or collaborations with industry players to expand its market reach and drive adoption of its technologies. Revenue is primarily driven by direct sales, software licensing agreements, and potential collaborations or joint ventures with energy companies.

Acceleware Financial Statement Overview

Summary

Acceleware has shown remarkable improvement in revenue and profitability in 2024 compared to previous years, transitioning to positive net income. However, the company's financial position remains precarious with high leverage, negative equity, and weak cash flows. The growth trajectory is promising, but financial stability and cash generation capabilities are significant areas of concern.

Income Statement

Acceleware demonstrated a significant turnaround with a positive net income of $2,001,685 in 2024 compared to a loss of $2,045,373 in 2023. Revenue increased substantially by 1774% from 2023 to 2024. The gross profit margin remained high at 100%, indicating efficient cost management. However, the company has historically experienced volatility in earnings, as shown by previous negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows negative stockholders' equity of $-5,402,361 in 2024, indicating financial distress. The debt-to-equity ratio is not useful here due to negative equity, and the equity ratio is also negative. The company has high leverage with total debt significantly exceeding total assets. Despite the improved net income, financial stability is a concern due to high liabilities.

Cash Flow

Acceleware reported a negative free cash flow of $-650,446 in 2024, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative due to negative operating cash flow. Although there's a slight improvement in operating cash flow compared to previous years, the cash flow position remains weak.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.23M	279.01K	328.29K	752.77K	899.28K
Gross Profit	5.20M	279.01K	309.55K	711.24K	899.28K
EBITDA	2.68M	-1.41M	-4.73M	-4.02M	-1.96M
Net Income	2.00M	-2.05M	-5.14M	-4.08M	-2.10M
Balance Sheet
Total Assets	340.45K	1.51M	2.53M	5.35M	3.86M
Cash, Cash Equivalents and Short-Term Investments	271.78K	951.57K	1.15M	1.95M	1.94M
Total Debt	2.84M	2.40M	1.35M	344.42K	173.93K
Total Liabilities	5.74M	9.49M	9.69M	9.48M	4.52M
Stockholders Equity	-5.40M	-7.98M	-7.16M	-4.12M	-667.35K
Cash Flow
Free Cash Flow	-650.45K	-743.26K	-4.58M	-337.86K	-2.37M
Operating Cash Flow	-650.45K	-743.26K	-4.58M	-305.03K	-2.37M
Investing Cash Flow	0.00	0.00	0.00	-32.84K	0.00
Financing Cash Flow	-29.35K	548.36K	3.78M	343.36K	-65.47K

Acceleware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 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 TSE:AXE, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.40 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AXE.

Acceleware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYZ	68 Neutral	C$216.35M	―	-3.13%	0.43%	-13.99%	-421.95%
IMP	65 Neutral	C$188.94M	50.73	59.35%	―	253.50%	―
CMG	64 Neutral	C$648.31M	29.77	27.95%	3.12%	19.11%	-15.97%
AXE	59 Neutral	C$10.08M	3.65	-27.82%	―	1775.57%	―
LSPK	52 Neutral	$18.92M	―	-549.30%	―	-8.04%	4.04%
Sector *	50 Neutral	C$3.26B	5.35	-49.37%	9.08%	2.10%	-13.02%
ABXX	49 Neutral	C$61.56M	―	-90.88%	―	349.56%	-928.83%

Acceleware Corporate Events

Acceleware Reports Strong 2024 Financial Results and Advances RF XL Pilot

Acceleware Ltd. reported significant financial growth for the year ended December 31, 2024, with revenues increasing substantially compared to the previous year. The company is advancing its RF XL pilot project in Marwayne, Alberta, which aims to decarbonize heavy oil and oil sands production. Despite a temporary shutdown for component upgrades, Acceleware remains confident in the technology’s potential. The company has secured partial funding for the next phase of the project and is actively seeking additional financial support to enhance the commercial viability of its RF XL technology.

Acceleware Grants Stock Options to Propel Decarbonization Efforts

Acceleware has announced the grant of stock options for 1,634,000 common shares to select employees, consultants, officers, and directors. The stock options, expiring in 2030 with an exercise price of $0.09 per share, are part of a strategic move to incentivize its team as the company advances its decarbonization technologies across key industrial sectors, subject to regulatory approval.