Banxa Holdings (BNXA) AI Stock Analysis

• Market Cap: C$51.40M
• Dividend Yield: N/A
• Average Volume (3M): 65.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 29.35%
• EPS Growth: 42.96%
• Country: CA
• Employees: 158
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 42,131,485
• 10 Day Avg. Volume: 67,757
• 30 Day Avg. Volume: 65,798
• 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$1.00
• Price Target Upside: -18.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: C$1.00 ▼(-18.03% Downside)

The overall stock score for Banxa Holdings, Inc. is primarily influenced by financial instability and valuation concerns. While technical analysis shows some short-term bullish trends, the negative valuation metrics and profitability issues weigh heavily. The positive corporate event of an acquisition provides a bright spot, offering potential future growth and immediate value to shareholders.

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 makes money through transaction fees charged on fiat-to-crypto conversions and payment processing services. The company partners with cryptocurrency exchanges, wallets, and other digital asset platforms to integrate its payment gateway, allowing users to purchase cryptocurrencies using traditional payment methods such as credit cards, bank transfers, and other local payment options. Banxa earns a percentage fee from each transaction processed through its platform. Additionally, the company benefits from strategic partnerships with digital asset platforms that drive transaction volume and expand its market reach. Regulatory compliance services also contribute to its revenue by offering solutions that help partners navigate the complex legal landscape of the cryptocurrency industry.

Banxa Holdings Financial Statement Overview

Summary

Banxa Holdings, Inc. demonstrates rapid revenue growth but suffers from profitability issues and financial instability. The company has negative equity and high leverage, which pose significant financial risks despite improvements 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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	364.90M	321.21M	80.35M	60.72M	45.97M	6.79M
Gross Profit	27.49M	28.76M	17.23M	20.84M	16.85M	2.68M
EBITDA	-3.07M	-792.79K	-7.33M	-16.30M	-5.29M	-559.17K
Net Income	-5.47M	-4.26M	-9.36M	-17.27M	-5.83M	-4.14M
Balance Sheet
Total Assets	14.13M	14.43M	16.52M	15.39M	24.90M	4.05M
Cash, Cash Equivalents and Short-Term Investments	2.86M	2.03M	8.30M	9.36M	18.62M	2.07M
Total Debt	14.88M	11.84M	9.57M	1.18M	444.87K	460.81K
Total Liabilities	23.37M	20.24M	18.74M	7.95M	5.96M	2.83M
Stockholders Equity	-9.24M	-5.81M	-2.21M	7.45M	18.93M	1.23M
Cash Flow
Free Cash Flow	968.59K	-7.96M	-11.33M	-8.23M	-1.18M	-2.56M
Operating Cash Flow	971.79K	-7.95M	-11.33M	-8.03M	-1.11M	-2.48M
Investing Cash Flow	552.20K	379.31K	2.59M	-198.31K	-39.82K	-721.47K
Financing Cash Flow	-749.49K	1.16M	7.50M	-578.01K	16.83M	4.14M

Banxa Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1.22 is below the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.22, and above the 200-day MA of 0.95, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 34.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BNXA.

Banxa Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.55B	8.88	-11.05%	1.87%	8.55%	-8.14%
PVT	54 Neutral	C$44.89M	―	-4.98%	―	-11.75%	74.20%
BNXA	50 Neutral	C$51.40M	―	73.33%	―	29.35%	42.96%
KNR	45 Neutral	C$104.58M	13.71	-10.74%	―	-63.58%	-112.17%
SPOFF	―	$21.07M	―	-0.82%	―	―	―
POSAF	―	$10.46M	―	-295.25%	―	―	―
PAID	41 Neutral	C$8.07M	―	99.64%	―	30.97%	18.42%

Banxa Holdings Corporate Events

Banxa Holdings Announces Meeting and Interim Order for Acquisition Plan

Banxa Holdings Inc. has announced the mailing of meeting materials to its security holders for an upcoming annual general and special meeting. The meeting will address annual business matters and a special resolution regarding a plan of arrangement with OSL Group Limited, where OSL BNXA Acquisition Inc. will acquire all outstanding shares for C$1.55 per share. The British Columbia Supreme Court has granted an interim order for the meeting, and the arrangement’s completion is contingent on several approvals. The board of directors recommends that security holders vote in favor of the arrangement, which is deemed fair and beneficial for the company.

Banxa Holdings to be Acquired by Hong Kong Fintech Leader OSL Group

Banxa Holdings Inc. has entered into a definitive agreement to be acquired by OSL Group Limited, a Hong Kong-listed fintech leader in the digital asset industry. The acquisition offers Banxa shareholders a significant premium on their shares, with an 80.2% and 138.5% premium to the 30-day and 60-day average trading prices, respectively. The transaction is supported by the board and major shareholders, reflecting confidence in the strategic alignment and future growth potential with OSL. This move is expected to accelerate Banxa’s platform growth on a global scale, providing immediate value and liquidity to shareholders.

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.