Arrow Exploration Corp (AXL) AI Stock Analysis

• Market Cap: C$102.91M
• Dividend Yield: N/A
• Average Volume (3M): 66.64K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.65
• Revenue Growth: 56.21%
• EPS Growth: N/A
• Country: CA
• Employees: 35
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 285,864,350
• 10 Day Avg. Volume: 66,419
• 30 Day Avg. Volume: 66,641
• PEG Ratio: -1.77
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.68
• Enterprise Value/Market Cap: 0.16
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.28
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: C$0.52
• Price Target Upside: 23.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: C$0.50 ▲(19.05%Upside)

Arrow Exploration Corp's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust revenue and profit growth, combined with low leverage and high ROE, position it well in the oil and gas exploration and production industry. However, technical analysis suggests caution due to overbought conditions, and the lack of dividend yield may be a drawback for income-focused investors.

Arrow Exploration Corp Business Overview & Revenue Model

Company Description

Arrow Exploration Corp (AXL) is a publicly traded oil and gas exploration and production company. The company focuses on identifying, acquiring, and developing oil and natural gas properties, primarily in Colombia and Canada. With an emphasis on onshore operations, Arrow Exploration leverages its technical expertise and strategic partnerships to optimize resource extraction and deliver energy solutions.

How the Company Makes Money

Arrow Exploration Corp makes money through the exploration, development, and production of oil and natural gas. The company's revenue model is centered around the sale of crude oil and natural gas extracted from its properties. Key revenue streams include the production of hydrocarbons from operated and non-operated assets, as well as potential joint ventures and partnerships that enhance field development and operational efficiency. The company's earnings are influenced by market prices for oil and gas, production volumes, and operational costs. Strategic partnerships and technological advancements also play a significant role in maximizing resource recovery and profitability.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
81.56M	50.60M	28.14M	7.17M	5.59M
	Gross Profit
56.19M	32.48M	19.45M	4.89M	3.27M
	EBIT
29.64M	13.72M	6.61M	-2.97M	-4.96M
	EBITDA
46.82M	15.36M	14.43M	6.80M	-31.70M
	Net Income Common Stockholders
13.18M	-1.11M	346.52K	5.69M	-32.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.84M	12.33M	13.06M	10.88M	11.47M
	Total Assets
81.27M	62.28M	53.19M	41.20M	33.53M
	Total Debt
219.41K	320.59K	1.96M	3.41M	5.87M
	Net Debt
-18.62M	-11.81M	-11.10M	-7.47M	-5.60M
	Total Liabilities
28.25M	20.77M	27.29M	17.24M	20.74M
	Stockholders Equity
53.02M	41.51M	25.90M	23.96M	12.79M
Cash Flow		Free Cash Flow
8.40M	-10.61M	4.37M	-6.22M	-3.19M
	Operating Cash Flow
39.52M	16.48M	12.04M	-4.51M	-2.30M
	Investing Cash Flow
-32.65M	-22.58M	-8.38M	-4.05M	12.78M
	Financing Cash Flow
-57.81K	5.39M	-1.44M	8.10M	-29.05K

Arrow Exploration Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.32, above the 50-day MA of 0.31, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 80.05 is Negative, neither overbought nor oversold. The STOCH value of 88.55 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXL	73 Outperform	C$102.91M	6.92	24.95%	―	56.21%	―
JOY	64 Neutral	$140.25M	14.40	2.85%	―	-9.43%	-31.07%
YGR	60 Neutral	C$99.68M	4.22	4.01%	―	-18.67%	-46.91%
CNE	59 Neutral	$90.08M	4.40	-1.29%	6.77%	17.52%	-105.04%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%
TXP	52 Neutral	$89.86M	14.21	7.06%	―	90.46%	-763.10%
CVVY	48 Neutral	C$107.44M	―	-21.67%	―	-42.15%	-117.23%