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Arrow Exploration Corp (TSE:AXL)
:AXL

Arrow Exploration Corp (AXL) AI Stock Analysis

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TSE:AXL

Arrow Exploration Corp

(AXL)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
C$0.39
▼(-7.14% Downside)
Action:ReiteratedDate:01/22/26
The score is driven primarily by solid financial quality (strong margins and extremely low leverage) but is held back by steep TTM revenue contraction and negative free cash flow. Technicals are supportive with price above major moving averages and a positive MACD, while valuation appears reasonable on a sub-10 P/E.
Positive Factors
Very Low Leverage
Extremely low debt-to-equity provides structural resilience for an E&P firm exposed to commodity cycles. Minimal leverage preserves financial flexibility to fund exploration, absorb price shocks, and pursue opportunistic acreage or partnerships without risking solvency.
Negative Factors
Steep Revenue Contraction
A sustained ~38% TTM revenue drop reduces scale, undercuts operating leverage, and weakens the firm's ability to cover fixed costs and fund development. Unless production or commercial trends reverse, revenue shrinkage threatens long-term reinvestment and growth optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Extremely low debt-to-equity provides structural resilience for an E&P firm exposed to commodity cycles. Minimal leverage preserves financial flexibility to fund exploration, absorb price shocks, and pursue opportunistic acreage or partnerships without risking solvency.
Read all positive factors

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

Arrow Exploration Corp Business Overview & Revenue Model

Company Description
Arrow Exploration Corp., a junior oil and gas company, engages in the acquisition, exploration, development, and production of oil and gas properties in Colombia and Western Canada. As of December 31, 2021, it holds interests in six oil blocks in ...
How the Company Makes Money
Arrow Exploration Corp generates revenue primarily through the sale of crude oil and natural gas. The company's revenue model is built on the exploration of oil and gas reserves, production of hydrocarbons, and subsequent sales in the energy marke...

Arrow Exploration Corp Financial Statement Overview

Summary
Strong profitability metrics and operational efficiency (gross margins consistently above 68% and robust EBIT/EBITDA margins) plus a very low leverage balance sheet. Offsetting this are a sharp revenue decline (TTM revenue growth -38.4%) and negative free cash flow, which raise durability and reinvestment/liquidity concerns.
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Dec 2020
Income Statement
Total Revenue85.02M81.56M50.60M28.14M7.17M5.59M
Gross Profit55.33M56.19M32.48M19.45M4.89M3.27M
EBITDA42.71M46.82M15.36M14.43M6.80M-31.70M
Net Income6.90M13.18M-1.11M346.52K5.69M-32.23M
Balance Sheet
Total Assets93.68M81.27M62.28M53.19M41.20M33.53M
Cash, Cash Equivalents and Short-Term Investments6.37M18.84M12.33M13.06M10.88M11.47M
Total Debt194.32K219.41K320.59K1.96M3.41M5.87M
Total Liabilities35.80M28.25M20.77M27.29M17.24M20.74M
Stockholders Equity57.88M53.02M41.51M25.90M23.96M12.79M
Cash Flow
Free Cash Flow-8.99M8.40M-10.61M4.37M-6.22M-3.19M
Operating Cash Flow35.37M39.52M16.48M12.04M-4.51M-2.30M
Investing Cash Flow-45.47M-32.65M-22.58M-8.38M-4.05M12.78M
Financing Cash Flow-62.21K-57.81K5.39M-1.44M8.10M-29.05K

Arrow Exploration Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.42
Price Trends
50DMA
0.35
Positive
100DMA
0.29
Positive
200DMA
0.28
Positive
Market Momentum
MACD
0.02
Positive
RSI
62.30
Neutral
STOCH
58.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AXL, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.35, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AXL.

Arrow Exploration Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$118.63M4.2312.47%22.88%2321.43%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
C$58.45M2.36-4.64%-23.68%75.45%
50
Neutral
C$119.79M-6.84-6.17%98.92%
49
Neutral
C$85.90M-4.99365.94%-63.05%
41
Neutral
C$72.79M-0.41-188.43%-1886.78%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AXL
Arrow Exploration Corp
0.42
0.10
31.75%
TSE:TXP
Touchstone Exploration
0.18
-0.18
-49.30%
TSE:AFE
Africa Energy
0.25
0.08
42.86%
TSE:OYL
CGX Energy
0.22
0.13
152.94%
TSE:NSE
New Stratus Energy
0.64
0.44
212.20%
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: Jan 22, 2026