Arrow Exploration Corp (AXL) AI Stock Analysis

• Market Cap: C$75.75M
• Dividend Yield: N/A
• Average Volume (3M): 203.09K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.28
• Revenue Growth: 43.81%
• EPS Growth: 413.13%
• Country: CA
• Employees: 35
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 285,864,350
• 10 Day Avg. Volume: 164,304
• 30 Day Avg. Volume: 203,089
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$0.50
• Price Target Upside: 92.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Neutral
• Price Target: C$0.50 ▲(92.31% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and operational margins. However, negative free cash flow poses a risk that needs addressing. The stock's undervaluation based on the P/E ratio is a positive factor, but bearish technical indicators suggest caution. The absence of earnings call and corporate events data limits the assessment to these factors.

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 Colombia that covers an area of approximately 227,005 net acres; and oil and natural gas leases in seven areas in Canada covering an area of approximately 254,003 net acres. Arrow Exploration Corp. is headquartered in Calgary, Canada.

How the Company Makes Money

Arrow 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.35M	81.56M	50.60M	28.14M	7.17M	5.59M
Gross Profit	59.11M	56.19M	32.48M	19.45M	4.89M	3.27M
EBITDA	48.15M	46.82M	15.36M	14.43M	6.80M	-31.70M
Net Income	10.48M	13.18M	-1.11M	346.52K	5.69M	-32.23M
Balance Sheet
Total Assets	92.73M	81.27M	62.28M	53.19M	41.20M	33.53M
Cash, Cash Equivalents and Short-Term Investments	13.21M	18.84M	12.33M	13.06M	10.88M	11.47M
Total Debt	214.46K	219.41K	320.59K	1.96M	3.41M	5.87M
Total Liabilities	38.00M	28.25M	20.77M	27.29M	17.24M	20.74M
Stockholders Equity	54.73M	53.02M	41.51M	25.90M	23.96M	12.79M
Cash Flow
Free Cash Flow	-4.26M	8.40M	-10.61M	4.37M	-6.22M	-3.19M
Operating Cash Flow	37.77M	39.52M	16.48M	12.04M	-4.51M	-2.30M
Investing Cash Flow	-35.83M	-32.65M	-22.58M	-8.38M	-4.05M	12.78M
Financing Cash Flow	-33.49K	-57.81K	5.39M	-1.44M	8.10M	-29.05K

Arrow Exploration Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AXL, the sentiment is Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.27, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 50.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AXL.

Arrow Exploration Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXL	70 Neutral	C$75.75M	5.22	21.10%	―	43.81%	413.13%
JOY	69 Neutral	C$225.48M	13.95	4.71%	―	-7.70%	21.79%
YGR	60 Neutral	C$100.26M	4.95	―	―	-22.28%	-54.64%
CNE	54 Neutral	C$83.59M	1.93	8.33%	―	3.24%	174.21%
CVVY	54 Neutral	C$206.26M	-60.68	-23.10%	―	-29.38%	93.99%
TXP	49 Neutral	C$67.89M	70.27	0.86%	―	-21.70%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%