Arrow Exploration Corp (AXL) AI Stock Analysis

• Market Cap: C$71.47M
• Dividend Yield: N/A
• Average Volume (3M): 205.91K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.16
• Revenue Growth: 22.88%
• EPS Growth: 2321.43%
• Country: CA
• Employees: 35
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 285,864,350
• 10 Day Avg. Volume: 204,526
• 30 Day Avg. Volume: 205,915
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 10.76
• 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$0.47
• Price Target Upside: 88.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$0.27 ▲(9.20% Upside)

The overall stock score is primarily driven by strong valuation metrics, indicating the stock is undervalued. Financial performance shows operational efficiency but is hindered by declining revenue growth and negative free cash flow. Technical analysis suggests short-term bullish momentum, though longer-term trends remain bearish.

Positive Factors

Operational Efficiency

The company's strong operational efficiency and minimal leverage indicate effective management and a stable financial structure, supporting long-term sustainability.

Gross Profit Margins

High gross profit margins reflect efficient cost management, which can enhance profitability and provide a competitive edge in the industry.

Balance Sheet Health

A low debt-to-equity ratio indicates minimal financial risk and a strong capital structure, providing resilience against market volatility.

Negative Factors

Revenue Decline

A significant drop in sales suggests challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Negative Free Cash Flow

Negative free cash flow indicates difficulties in converting earnings into cash, potentially affecting the company's ability to fund operations and growth initiatives.

Declining Net Profit Margin

A declining net profit margin reflects reduced profitability, which could hinder the company's ability to reinvest in growth and maintain competitive positioning.

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 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 markets. Key revenue streams include the sale of produced oil and natural gas, which is influenced by global commodity prices. Additionally, the company may benefit from strategic partnerships that enhance its operational capabilities and market reach. Factors contributing to its earnings include production volume, operational efficiencies, and the ability to navigate regulatory environments effectively.

Arrow Exploration Corp Financial Statement Overview

Summary

Arrow Exploration Corp shows strong revenue growth and robust operational margins, indicating a healthy income statement. The balance sheet is stable with low leverage, although there is a slight decline in return on equity. Cash flow presents a concern with negative free cash flow, which could pose risks if not addressed.

Income Statement

Arrow Exploration Corp has demonstrated strong revenue growth with a TTM increase of 92.5%, reflecting robust expansion. The company maintains healthy margins, with a gross profit margin of 69.25% and an EBIT margin of 32.47% in the TTM period. However, the net profit margin has decreased to 12.28% from 16.15% in the previous year, indicating some pressure on net profitability.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.0039, indicating minimal leverage. The return on equity has decreased to 19.36% from 24.85%, suggesting a slight decline in efficiency in generating profits from shareholders' equity. The equity ratio remains stable, reflecting a strong capital structure.

Cash Flow

Cash flow performance is mixed. Operating cash flow remains strong, with a coverage ratio of 1.91, but free cash flow has turned negative, with a significant decline of 146.53% in the TTM period. This indicates potential challenges in generating free cash flow, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.02M	81.56M	50.60M	28.14M	7.17M	5.59M
Gross Profit	55.33M	56.19M	32.48M	19.45M	4.89M	3.27M
EBITDA	42.71M	46.82M	15.36M	14.43M	6.80M	-31.70M
Net Income	6.90M	13.18M	-1.11M	346.52K	5.69M	-32.23M
Balance Sheet
Total Assets	93.68M	81.27M	62.28M	53.19M	41.20M	33.53M
Cash, Cash Equivalents and Short-Term Investments	6.37M	18.84M	12.33M	13.06M	10.88M	11.47M
Total Debt	194.32K	219.41K	320.59K	1.96M	3.41M	5.87M
Total Liabilities	35.80M	28.25M	20.77M	27.29M	17.24M	20.74M
Stockholders Equity	57.88M	53.02M	41.51M	25.90M	23.96M	12.79M
Cash Flow
Free Cash Flow	-8.99M	8.40M	-10.61M	4.37M	-6.22M	-3.19M
Operating Cash Flow	35.37M	39.52M	16.48M	12.04M	-4.51M	-2.30M
Investing Cash Flow	-45.47M	-32.65M	-22.58M	-8.38M	-4.05M	12.78M
Financing Cash Flow	-62.21K	-57.81K	5.39M	-1.44M	8.10M	-29.05K

Arrow Exploration Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 0.25 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.23, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 28.79 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	73 Outperform	C$71.47M	7.37	12.74%	―	22.88%	2321.43%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CNE	59 Neutral	C$52.20M	0.95	10.62%	―	-7.68%	79.37%
NSE	49 Neutral	C$65.10M	-4.68	-467.35%	―	―	-63.05%
TXP	46 Neutral	C$60.08M	-10.39	-4.64%	―	-23.68%	75.45%
AFE	45 Neutral	C$64.69M	-12.05	-6.81%	―	―	98.92%
OYL	42 Neutral	C$47.40M	-0.58	-188.43%	―	―	-1886.78%