tiprankstipranks
Trending News
More News >
Arrow Exploration Corp (TSE:AXL)
:AXL

Arrow Exploration Corp (AXL) AI Stock Analysis

Compare
27 Followers

Top Page

TS

Arrow Exploration Corp

(AXL)

Rating:73Outperform
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 (AXL) vs. iShares MSCI Canada ETF (EWC)

Arrow Exploration Corp Business Overview & Revenue Model

Company DescriptionArrow 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 MoneyArrow 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
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
81.56M50.60M28.14M7.17M5.59M
Gross Profit
56.19M32.48M19.45M4.89M3.27M
EBIT
29.64M13.72M6.61M-2.97M-4.96M
EBITDA
46.82M15.36M14.43M6.80M-31.70M
Net Income Common Stockholders
13.18M-1.11M346.52K5.69M-32.23M
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.84M12.33M13.06M10.88M11.47M
Total Assets
81.27M62.28M53.19M41.20M33.53M
Total Debt
219.41K320.59K1.96M3.41M5.87M
Net Debt
-18.62M-11.81M-11.10M-7.47M-5.60M
Total Liabilities
28.25M20.77M27.29M17.24M20.74M
Stockholders Equity
53.02M41.51M25.90M23.96M12.79M
Cash FlowFree Cash Flow
8.40M-10.61M4.37M-6.22M-3.19M
Operating Cash Flow
39.52M16.48M12.04M-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
Positive
Last Price0.42
Price Trends
50DMA
0.31
Positive
100DMA
0.34
Positive
200DMA
0.40
Positive
Market Momentum
MACD
0.02
Negative
RSI
80.05
Negative
STOCH
88.55
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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSAXL
73
Outperform
C$102.91M6.9224.95%56.21%
TSJOY
64
Neutral
$140.25M14.402.85%-9.43%-31.07%
TSYGR
60
Neutral
C$99.68M4.224.01%-18.67%-46.91%
TSCNE
59
Neutral
$90.08M4.40-1.29%6.77%17.52%-105.04%
58
Neutral
$7.47B3.50-4.45%10.05%0.81%-49.42%
TSTXP
52
Neutral
$89.86M14.217.06%90.46%-763.10%
48
Neutral
C$107.44M-21.67%-42.15%-117.23%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AXL
Arrow Exploration Corp
0.42
0.07
20.00%
TSE:CNE
Canacol Energy
2.65
-1.39
-34.41%
TSE:JOY
Journey Energy
2.11
-0.93
-30.59%
TSE:TXP
Touchstone Exploration
0.39
-0.16
-28.70%
TSE:CVVY
Pieridae Energy
0.37
0.01
2.78%
TSE:YGR
Yangarra Resources
0.98
-0.09
-8.41%
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.