Acceleware (AXE) AI Stock Analysis

• Market Cap: C$10.44M
• Dividend Yield: N/A
• Average Volume (3M): 21.52K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.94
• Revenue Growth: -22.45%
• EPS Growth: -144.97%
• Country: CA
• Employees: 15
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 130,440,260
• 10 Day Avg. Volume: 29,850
• 30 Day Avg. Volume: 21,525
• PEG Ratio: -0.03
• Price to Book (P/B): -2.52
• Price to Sales (P/S): 2.60
• P/FCF Ratio: -20.93
• 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: 48 Neutral
• Price Target: C$0.09 ▲(11.25% Upside)

The score is held down primarily by weak financial fundamentals (TTM revenue decline, net losses, negative equity, and ongoing cash burn). Technicals are mixed with only modest momentum, and valuation is constrained by a negative P/E. Positive corporate developments (commercialization and feasibility studies) provide some upside support but do not outweigh current financial stress.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand for Acceleware's solutions, enhancing its market position and potential for future profitability.

Technological Advancement

Progress in the RF XL project showcases Acceleware's commitment to innovation, potentially transforming oil extraction processes and offering a competitive edge.

Profitability Shift

Transitioning to profitability reflects improved operational efficiency and cost management, strengthening Acceleware's financial health.

Negative Factors

Financial Instability

Negative equity indicates financial distress, posing risks to Acceleware's long-term sustainability and ability to fund growth initiatives.

Weak Cash Flow

Persistent negative cash flow highlights challenges in generating cash from operations, potentially limiting Acceleware's investment capacity.

High Leverage

Excessive leverage can strain financial resources, increasing vulnerability to economic downturns and impacting future growth opportunities.

Acceleware Business Overview & Revenue Model

Company Description

Acceleware Ltd. operates as an oil and gas technology company in Canada and the United States. The company operates through two segments, RF Heating and High-Performance Computing. It develops an enhanced heavy oil and oil sands production technology based on radio frequency (RF) heating; and develops and markets computational software products for the oil and gas, and other markets. The company's solutions include AxFDTD, an electromagnetic modeling software to measure RF energy absorption; AxHeat RF heating simulation software; AxRTM, a graphics processing unit accelerated Kirchhoff time migration solution; AxWAVE, a solution that allows customers to model seismic acquisition and perform data characterization; AxFWI, a revolutionary modular full waveform inversion application for providing subsurface velocity models. It also sells computing software and related consulting services, and training programs primarily to the oil and gas industry. The company was founded in 2004 and is headquartered in Calgary, Canada.

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

Financial performance is weak: TTM revenue fell 31.64% and the company swung to a net loss (net margin -31.6%). The balance sheet is stressed with deeply negative equity and rising debt, while operating and free cash flow remain negative in TTM (~-1.03M), indicating ongoing funding dependence despite exceptionally high gross margin (~99%).

Income Statement

Results deteriorated sharply in TTM (Trailing-Twelve-Months): revenue fell 31.64% and the company swung to a net loss (net margin -31.6%). While gross margin remains exceptionally high (~99%), profitability is unstable—2024 showed very strong reported profitability (net margin ~38%), but that strength did not carry into the most recent period, raising questions around earnings durability and operating leverage.

Balance Sheet

The balance sheet is the key weak point: stockholders’ equity is deeply negative in both 2024 and TTM (Trailing-Twelve-Months), which materially reduces financial flexibility. Total debt rose to ~3.13M in TTM (Trailing-Twelve-Months) (from ~2.84M in 2024), and with negative equity the capital structure is stressed, increasing refinancing/solvency risk despite the small absolute asset base.

Cash Flow

Cash generation remains pressured: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months) (~-1.03M) and were also negative in 2024 (~-0.65M). While the cash burn improved versus earlier years (notably 2022), the business is still not self-funding, and negative operating cash flow alongside net losses in TTM (Trailing-Twelve-Months) points to continued funding dependence.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.60M	5.23M	279.01K	328.29K	752.77K	899.28K
Gross Profit	2.59M	5.23M	279.01K	309.55K	711.24K	899.28K
EBITDA	73.95K	2.68M	-1.41M	-4.73M	-4.02M	-1.96M
Net Income	-823.59K	2.00M	-2.05M	-5.14M	-4.08M	-2.10M
Balance Sheet
Total Assets	562.94K	340.45K	1.51M	2.53M	5.35M	3.86M
Cash, Cash Equivalents and Short-Term Investments	461.12K	271.78K	951.57K	1.15M	1.95M	1.94M
Total Debt	3.13M	2.84M	2.40M	2.32M	344.42K	173.93K
Total Liabilities	6.37M	5.74M	9.49M	9.69M	9.48M	4.52M
Stockholders Equity	-5.80M	-5.40M	-7.98M	-7.16M	-4.12M	-667.35K
Cash Flow
Free Cash Flow	-1.03M	-650.45K	-743.26K	-4.58M	-337.86K	-2.37M
Operating Cash Flow	-1.03M	-650.45K	-743.26K	-4.58M	-305.03K	-2.37M
Investing Cash Flow	0.00	0.00	0.00	0.00	-32.84K	0.00
Financing Cash Flow	969.76K	-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: Neutral

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 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, 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
CTZ	79 Outperform	C$33.67M	13.83	27.13%	―	18.05%	22.83%
CMG	69 Neutral	C$399.59M	19.32	25.64%	2.32%	3.19%	-1.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONE	53 Neutral	C$60.66M	-51.35	-144.12%	―	-10.57%	-117.50%
XTRA	52 Neutral	C$146.67M	-10.77	-108.12%	―	-12.14%	4.41%
AXE	48 Neutral	C$10.44M	-11.94	―	―	-22.45%	-144.97%

Acceleware Corporate Events

Acceleware Advances RF XL 2.0 Commercialization with Saskatchewan Farm-In Agreement

Acceleware Ltd. has entered into a farm-in agreement to demonstrate its RF XL 2.0 technology on a section of land in Saskatchewan’s Mannville Stack. This agreement is part of Acceleware’s strategy to commercialize RF XL 2.0 by targeting heavy oil resources that are not economically viable through other methods. The project aims to showcase the technology’s ability to enhance production, reduce costs, and utilize the Saskatchewan Petroleum Innovation Incentive transferrable royalty credit.

Acceleware Launches Feasibility Studies for BHP’s Mineral Processing Innovations

Acceleware Ltd. announced two feasibility studies for BHP to assess the viability of using its EM Powered Heat technology in mineral processing and drying applications. These studies aim to demonstrate the technology’s potential to transform minerals processing, focusing on reducing moisture in iron ore in Australia and improving copper production efficiency in Chile. The initiative aligns with Acceleware’s strategy to deliver cost-efficient solutions and unlock growth opportunities in the mining sector.

Acceleware to Showcase EM Powered Heat at MICA 2025

Acceleware Ltd. announced its participation in the MICA Conference & Innovation Showcase 2025, where COO Mike Tourigny will present their EM Powered Heat solutions. These solutions aim to revolutionize the mining industry by enhancing mineral processing efficiency and sustainability. The conference is a key event for mining innovation, gathering industry leaders and investors to explore advancements in productivity and safety. Acceleware’s involvement in such events reflects its growing influence in the mining sector, building on its engagements at other major industry conferences over the past year.