Banxa Holdings (BNXA) AI Stock Analysis

• Market Cap: C$32.86M
• Dividend Yield: N/A
• Average Volume (3M): 22.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 29.35%
• EPS Growth: 42.96%
• Country: CA
• Employees: 158
• Sector: Financial
• Sector Strength: 78
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 42,131,485
• 10 Day Avg. Volume: 31,865
• 30 Day Avg. Volume: 22,781
• PEG Ratio: 0.51
• Price to Book (P/B): -5.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 93.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: C$1.00 ▲(26.58%Upside)

The overall stock score reflects significant financial challenges, including negative equity and operational inefficiencies, despite strong revenue growth. Technical indicators show short-term positive momentum, but valuation concerns with a negative P/E ratio and lack of dividends weigh down the score. The recent loan enhances operational capabilities, yet market challenges persist.

Positive Factors

EBITDA Improvement

Adjusted EBITDA losses have decreased significantly with a 2024 full-year loss of A$1.1M compared to A$13.4M for the 2023 fiscal year.

Revenue Growth

Sequential increase in September revenue, which rose to A$96.5M, showing a 77% increase from A$54.5M in the June quarter.

Service Integration

Recent crypto-focused discussions suggest more service integration, which should benefit Banxa.

Negative Factors

Management Confidence

A loss of confidence in management's handling and communication of Banxa's business strategy has negatively impacted the company's capital structure.

Revenue Decline

Revenues fell to A$91.6M in December from A$96.5M in September, marking a 5% decline.

Transaction Volume Drop

Banxa experienced a 14% sequential drop in total transaction volume.

Banxa Holdings Business Overview & Revenue Model

Company Description

Banxa Holdings Inc. operates as a payments service provider for the cryptocurrency exchanges. The company offers a conversion widget/API product to third parties who require fiat on-and off-ramps that allows to embed its product into the crypto ecosystem. The company is headquartered in Melbourne, Australia.

How the Company Makes Money

Banxa Holdings, Inc. generates revenue primarily through transaction fees charged on its fiat-to-crypto gateway services. Users who convert their traditional currencies to cryptocurrencies via Banxa's platform are charged a fee, which constitutes a significant portion of the company's income. Additionally, Banxa collaborates with various cryptocurrency exchanges, wallets, and service providers, integrating its gateway solutions to facilitate smooth transactions. These partnerships can contribute to additional revenue streams in the form of service fees or shared revenue agreements. The company's focus on regulatory compliance and security also enhances its appeal to institutional clients, potentially leading to higher transaction volumes and, consequently, increased revenue.

Banxa Holdings Financial Statement Overview

Summary

Banxa Holdings, Inc. demonstrates significant revenue growth but struggles with profitability and financial stability. Persistent net losses, negative equity, and high leverage indicate substantial financial risk despite some improvement in cash flow.

Income Statement

Banxa Holdings, Inc. shows considerable revenue growth with a substantial increase from $6.8M in 2020 to $347.4M in TTM, indicating strong top-line expansion. However, profitability remains a concern with persistent net losses, and negative EBIT and EBITDA across most periods, reflecting operational inefficiencies. The gross profit margin is declining, from 39.5% in 2020 to 8.7% in TTM, further highlighting cost management challenges.

Balance Sheet

The company's balance sheet shows significant financial strain, with negative stockholders' equity and increasing total debt, reaching $14.5M in TTM. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative, indicating insolvency risk. There is a downward trajectory in equity, contributing to financial instability.

Cash Flow

Cash flow from operations has improved to a positive $341K in TTM from significant negative figures in previous years. However, free cash flow remains weak, and the free cash flow to net income ratio is not favorable due to ongoing net losses. The operating cash flow to net income ratio is improving, but overall cash flow management remains a concern.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
347.39M	321.21M	80.35M	60.72M	45.97M	6.79M
	Gross Profit
30.13M	28.76M	17.23M	20.84M	16.85M	2.68M
	EBIT
940.77K	-8.55K	-10.24M	-13.89M	1.65M	-1.19M
	EBITDA
613.27K	-792.79K	-7.33M	-16.30M	-5.29M	-559.17K
	Net Income Common Stockholders
-2.73M	-4.26M	-9.36M	-17.27M	-5.83M	-4.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.49M	2.03M	8.30M	9.36M	18.62M	2.07M
	Total Assets
28.75M	14.43M	16.52M	15.39M	24.90M	4.05M
	Total Debt
1.39M	11.84M	9.57M	1.18M	444.87K	460.81K
	Net Debt
-12.11M	9.81M	1.31M	-8.19M	-18.17M	-1.61M
	Total Liabilities
9.04M	20.24M	18.74M	7.95M	5.96M	2.83M
	Stockholders Equity
19.71M	-5.81M	-2.21M	7.45M	18.93M	1.23M
Cash Flow		Free Cash Flow
340.61K	-7.96M	-11.33M	-8.23M	-1.18M	-2.56M
	Operating Cash Flow
341.47K	-7.95M	-11.33M	-8.03M	-1.11M	-2.48M
	Investing Cash Flow
554.54K	379.31K	2.59M	-198.31K	-39.82K	-721.47K
	Financing Cash Flow
-33.16K	1.16M	7.50M	-578.01K	16.83M	4.14M

Banxa Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNXA, the sentiment is Positive. The current price of 0.79 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.77, and above the 200-day MA of 0.76, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BNXA.

Banxa Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.93B	9.70	7.85%	78.03%	12.07%	-7.83%
KNR	58 Neutral	C$104.58M	13.71	124.21%	―	-52.43%	941.71%
PVT	51 Neutral	C$31.67M	―	-18.24%	―	-10.76%	-19.28%
BNXA	47 Neutral	C$32.86M	―	73.33%	―	29.35%	42.96%
SPOFF		$24.34M	―	-18.22%	―	―	―
POSAF		$10.62M	―	-299.37%	―	―	―
PAID	38 Underperform	C$11.53M	―	99.64%	―	34.05%	-58.84%

Banxa Holdings Corporate Events

Banxa Holdings Reports Q3 Financial Results Amid Market Challenges

Banxa Holdings Inc. reported a challenging third quarter for fiscal year 2025, with a 28% decrease in Total Transaction Volume and a 32% decline in Gross Profit compared to the same period last year. The company attributed these declines to increased competition, partner churn, and low exposure to certain cryptocurrencies, alongside a volatile crypto market and reduced user trading activity. Despite these setbacks, Banxa continues to focus on its core business of facilitating crypto integration for global commerce.

Banxa Secures US$5 Million Loan to Enhance Operational Capabilities

Banxa Holdings Inc. has announced the completion of a secured loan transaction, issuing a promissory note for up to US$5.0 million to an arm’s length third party. The loan will be disbursed in tranches, with an initial US$2.0 million followed by three monthly tranches of US$1.0 million each, and will mature in six months with a 10% annual interest rate. The funds are intended for working capital and general corporate purposes, with the company’s obligations secured by its assets. This financial move is expected to bolster Banxa’s operational capabilities and strengthen its position in the rapidly evolving crypto economy.

Banxa Holdings Receives Unsolicited Acquisition Proposal

Banxa Holdings Inc. has received an unsolicited acquisition proposal from an investor group led by Mr. Khurram Shroff to acquire all outstanding shares at a price between C$1.00 to C$2.00 per share. The company’s board is reviewing the proposal with legal and financial advisors to determine the best course of action for shareholders. The board is also exploring various strategic and financial options to enhance shareholder value, but there is no guarantee that any agreement will be reached.