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Arrow Exploration Corp (TSE:AXL)
:AXL
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Arrow Exploration Corp (AXL) AI Stock Analysis

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TSE:AXL

Arrow Exploration Corp

(AXL)

Rating:64Neutral
Price Target:
C$0.50
▲(108.33% Upside)
Arrow Exploration Corp's strong financial performance is the primary driver of its stock score, supported by robust revenue and profit growth, and efficient cash flow management. However, technical indicators suggest a bearish trend, which weighs down the overall score. The stock's low P/E ratio indicates potential undervaluation, but the lack of a dividend yield and bearish technical signals present risks.

Arrow Exploration Corp (AXL) vs. iShares MSCI Canada ETF (EWC)

Arrow Exploration Corp Business Overview & Revenue Model

Company DescriptionArrow Exploration Corp (AXL) is a publicly traded energy company engaged in the exploration, development, and production of oil and natural gas resources. The company operates primarily in North and South America, focusing on maximizing the value of its hydrocarbon assets through efficient and sustainable extraction processes. With a strategic emphasis on growth and operational excellence, Arrow Exploration Corp aims to enhance shareholder value by optimizing its asset base and exploring new opportunities in the energy sector.
How the Company Makes MoneyArrow Exploration Corp generates revenue through the production and sale of crude oil and natural gas. The company explores and develops oil and gas fields, extracting these resources to sell them in the open market. Revenue is primarily derived from the sale of produced hydrocarbons, which are priced based on prevailing market rates. Additionally, Arrow Exploration Corp may engage in strategic partnerships or joint ventures to enhance its exploration and production capabilities, contributing to its revenue generation. The company’s financial performance is influenced by factors such as commodity prices, production volumes, and operational efficiency.

Arrow Exploration Corp Financial Statement Overview

Summary
Arrow Exploration Corp exhibits strong financial health with impressive revenue and profit growth, robust margins, and solid cash flow management. The company's low leverage and high ROE are commendable, though attention to asset growth relative to revenue and careful management of capital expenditures will be crucial to sustaining this trajectory.
Income Statement
85
Very Positive
Arrow Exploration Corp has shown impressive revenue growth from 2023 to 2024, with a revenue growth rate of 61.23%. The gross profit margin stands at a strong 68.90%, and the company has a net profit margin of 16.15%, indicating solid profitability. The EBIT and EBITDA margins are also robust at 36.34% and 57.41%, respectively, reflecting efficient operations and strong earnings before interest, taxes, depreciation, and amortization. The company has successfully turned around from a net loss in 2023 to a net income in 2024, showcasing significant improvement in financial performance.
Balance Sheet
78
Positive
The company's balance sheet is sound with a low debt-to-equity ratio of 0.004, indicating minimal leverage and financial risk. The return on equity (ROE) is 24.85%, highlighting effective utilization of equity to generate profits. The equity ratio is 65.23%, demonstrating a strong capital structure with a significant proportion of assets financed by equity. However, the total assets growth is modest compared to revenue growth, which could be a potential area for improvement.
Cash Flow
80
Positive
Arrow Exploration Corp has shown a commendable free cash flow growth rate of 179.25% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 3.00, reflecting a good conversion of earnings into cash. Additionally, the free cash flow to net income ratio is 0.64, underscoring efficient cash management. However, the capital expenditure is significant, which could impact future cash reserves if not managed carefully.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue81.56M50.60M28.14M7.17M5.59M
Gross Profit56.19M32.48M19.45M4.89M3.27M
EBITDA46.82M15.36M14.43M6.80M-31.70M
Net Income13.18M-1.11M346.52K5.69M-32.23M
Balance Sheet
Total Assets81.27M62.28M53.19M41.20M33.53M
Cash, Cash Equivalents and Short-Term Investments18.84M12.33M13.06M10.88M11.47M
Total Debt219.41K320.59K1.96M3.41M5.87M
Total Liabilities28.25M20.77M27.29M17.24M20.74M
Stockholders Equity53.02M41.51M25.90M23.96M12.79M
Cash Flow
Free Cash Flow8.40M-10.61M4.37M-6.22M-3.19M
Operating Cash Flow39.52M16.48M12.04M-4.51M-2.30M
Investing Cash Flow-32.65M-22.58M-8.38M-4.05M12.78M
Financing Cash Flow-57.81K5.39M-1.44M8.10M-29.05K

Arrow Exploration Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.24
Price Trends
50DMA
0.30
Negative
100DMA
0.31
Negative
200DMA
0.35
Negative
Market Momentum
MACD
-0.01
Positive
RSI
32.56
Neutral
STOCH
20.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AXL, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.30, and below the 200-day MA of 0.35, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 32.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AXL.

Arrow Exploration Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.47B7.313.20%5.32%4.22%-60.66%
64
Neutral
C$68.61M4.8221.10%43.81%413.13%
$63.52M2.178.72%7.23%
$51.27M67.140.90%
60
Neutral
C$101.28M5.003.50%-22.28%-54.64%
54
Neutral
C$188.78M-4.38%-29.38%93.99%
$146.85M12.654.70%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AXL
Arrow Exploration Corp
0.24
-0.28
-53.85%
CNNEF
Canacol Energy
1.74
-0.91
-34.34%
PBEGF
Touchstone Exploration
0.19
-0.25
-56.82%
TSE:CVVY
Pieridae Energy
0.68
0.38
126.67%
TSE:YGR
Yangarra Resources
1.02
-0.03
-2.86%
JRNGF
Journey Energy
2.16
0.46
27.06%
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.Date of analysis: Aug 29, 2025