Maxim Power (MXG) AI Stock Analysis

• Market Cap: C$263.69M
• Dividend Yield: N/A
• Average Volume (3M): 9.70K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.91
• Revenue Growth: 2.34%
• EPS Growth: -54.54%
• Country: CA
• Employees: 46
• Sector: Utilities
• Sector Strength: 92
• Industry: Independent Power Producers
• EPS (TTM): 0.28
• Shares Outstanding: 63,693,027
• 10 Day Avg. Volume: 8,129
• 30 Day Avg. Volume: 9,702
• PEG Ratio: 0.00247
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

Maxim Power is on a positive financial trajectory with strong revenue and cash flow improvements, contributing to a solid financial base. However, technical indicators are bearish, suggesting caution. While the stock valuation is attractive with a low P/E ratio, recent corporate events highlight operational challenges that could impact future performance.

Maxim Power Business Overview & Revenue Model

Company Description

Maxim Power Corp. (MXG) is an independent power producer headquartered in Calgary, Alberta, Canada. The company is primarily engaged in the development, ownership, and operation of power generation facilities across North America. Maxim Power specializes in natural gas-fired power plants, focusing on efficient and environmentally responsible energy production to meet the region's electricity demands.

How the Company Makes Money

Maxim Power Corp. generates revenue through the production and sale of electricity from its power generation facilities. The company's primary revenue stream is derived from selling the electricity produced by its natural gas-fired plants to wholesale markets, utility companies, and large industrial customers. Maxim Power may also engage in power purchase agreements (PPAs) where it guarantees the supply of electricity at predetermined rates, providing a stable revenue source. Additionally, the company may benefit from ancillary services such as capacity payments and grid support, contributing to its earnings. Key factors influencing Maxim Power's revenue include fluctuations in electricity prices, operational efficiency, and regulatory policies impacting the energy sector.

Maxim Power Financial Statement Overview

Summary

Maxim Power presents a favorable financial profile with strong profitability metrics, efficient cash flow generation, and a stable balance sheet. While revenue growth has been inconsistent, recent improvements in profitability and cash flow indicate positive operational momentum.

Income Statement

Maxim Power exhibits a mixed performance in its income statement. The TTM data shows a significant improvement with a strong net profit margin at 36.8% and a robust gross profit margin of 45.9%. However, the revenue growth has been inconsistent over the years, with a notable decline from 2021 to 2022, followed by an increase in the TTM period. The EBIT and EBITDA margins are also strong, indicating effective cost management and operational efficiency.

Balance Sheet

The company demonstrates a solid balance sheet with a low debt-to-equity ratio of 0.25, reflecting prudent financial leverage. The return on equity is impressive at 13.1%, suggesting efficient use of equity capital. However, the equity ratio of 71.6% indicates a conservative capital structure, which may limit growth potential if not managed strategically.

Cash Flow

Maxim Power's cash flow statement is strong, with a substantial operating cash flow to net income ratio of 1.63, indicating good cash generation efficiency. The free cash flow has shown significant growth in the TTM period, reversing negative trends from prior years. The company also maintains a healthy free cash flow to net income ratio of 1.50, underscoring its ability to generate cash relative to earnings.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
38.47M	141.26M	156.01M	46.73M	28.34M
	Gross Profit
-9.94M	50.52M	77.94M	6.18M	-751.00K
	EBIT
-16.65M	58.96M	103.50M	8.20M	-4.82M
	EBITDA
55.45M	70.81M	113.48M	11.86M	-1.25M
	Net Income Common Stockholders
28.30M	42.28M	78.51M	9.26M	-5.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.26M	51.38M	13.55M	12.26M	20.92M
	Total Assets
425.84M	382.11M	312.44M	239.31M	225.27M
	Total Debt
81.31M	82.81M	53.85M	66.98M	49.10M
	Net Debt
49.06M	31.43M	40.30M	54.72M	28.18M
	Total Liabilities
128.09M	113.45M	85.25M	91.40M	86.04M
	Stockholders Equity
297.75M	268.65M	227.18M	147.91M	139.23M
Cash Flow		Free Cash Flow
-3.58M	-4.68M	16.64M	-13.21M	-99.06M
	Operating Cash Flow
23.84M	76.41M	105.22M	6.96M	5.49M
	Investing Cash Flow
-32.09M	-57.79M	-85.31M	-25.89M	-50.17M
	Financing Cash Flow
-10.86M	19.28M	-18.60M	10.35M	43.39M

Maxim Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MXG, the sentiment is Negative. The current price of 3.91 is above the 20-day moving average (MA) of 3.89, below the 50-day MA of 4.29, and below the 200-day MA of 4.48, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 74.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MXG.

Maxim Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NPI	73 Outperform	$4.77B	17.70	6.48%	6.25%	5.08%	―
CPX	72 Outperform	C$8.05B	11.37	15.24%	4.93%	-27.55%	-12.05%
INE	67 Neutral	C$2.75B	267.46	4.20%	2.65%	0.97%	―
TA	64 Neutral	$3.71B	21.52	2.97%	1.99%	-17.34%	-100.03%
Sector *	63 Neutral	$8.50B	10.80	5.35%	4.36%	3.58%	-11.46%
MXG	62 Neutral	C$263.69M	14.01	4.69%	―	2.34%	-54.54%
BLX	61 Neutral	C$3.15B	87.64	2.23%	2.10%	-16.54%	-53.85%

Maxim Power Corporate Events

Maxim Power Corp. Reports Q1 2025 Financial Results and Completes Summit Sale

Maxim Power Corp. reported a decline in its financial performance for the first quarter of 2025 compared to the same period in 2024, with net income and Adjusted EBITDA both experiencing significant decreases. This downturn was attributed to lower realized power prices and generation volumes. Additionally, the company completed the sale of its Summit Coal subsidiaries to Valory Resources Inc., which resulted in net cash proceeds of $8.0 million and a convertible note that could potentially enhance its financial position in the future.

Spark’s Take on TSE:MXG Stock

According to Spark, TipRanks’ AI Analyst, TSE:MXG is a Neutral.

Maxim Power shows strong financial performance with significant improvements in revenue growth, profitability, and cash flow management. Despite these strengths, the technical analysis indicates a bearish trend, with the stock trading below key moving averages. The stock’s valuation appears attractive due to the low P/E ratio, but the lack of a dividend yield may limit its appeal to certain investors. Overall, the company’s financial recovery is promising, but market sentiment and technical indicators suggest caution.

To see Spark’s full report on TSE:MXG stock, click here.

Maxim Power Completes Sale of Summit Coal to Valory Resources

Maxim Power Corp. has completed the sale of its interest in Summit Coal to Valory Resources Inc. for $14.2 million, comprising cash and a convertible note. This transaction includes a royalty agreement on coal production and a ground lease with Valory for a coal processing facility at the Milner site. The sale and agreements are part of Maxim’s strategic focus on power projects in Alberta, potentially impacting its financials and operational scope, though production and facility completion timelines remain uncertain.

Spark’s Take on TSE:MXG Stock

According to Spark, TipRanks’ AI Analyst, TSE:MXG is a Neutral.

Maxim Power shows strong financial performance with significant improvements in revenue growth, profitability, and cash flow management. Despite these strengths, the technical analysis indicates a bearish trend, with the stock trading below key moving averages. The stock’s valuation appears attractive due to the low P/E ratio, but the lack of a dividend yield may limit its appeal to certain investors. Overall, the company’s financial recovery is promising, but market sentiment and technical indicators suggest caution.

To see Spark’s full report on TSE:MXG stock, click here.

Maxim Power Corp. Reports 2024 Financial Results and Strategic Financial Maneuvers

Maxim Power Corp. reported its financial and operating results for 2024, highlighting a revenue of $101 million and record annual generation from its M2 facility. Despite a decrease in net income and Adjusted EBITDA compared to 2023, the company managed to increase free cash flow due to lower capital spending. The company also repaid significant debt and converted a loan into common shares, leading to a special dividend distribution. These financial maneuvers, alongside amendments to its credit facilities, reflect Maxim’s strategic efforts to enhance liquidity and operational flexibility.

Maxim Power Sells Summit Coal Assets to Valory Resources

Maxim Power Corp. has received a notice from Valory Resources Inc. to exercise its option to purchase Maxim’s subsidiaries, Summit Coal Limited Partnership and Summit Coal Inc., for $14.2 million. The sale will provide Maxim with net cash proceeds of $8.0 million, which will be used for general corporate purposes. Additionally, Maxim will receive a 3% royalty on coal produced from Summit’s leases, and there will be a ground lease for a coal processing facility at the H.R. Milner site.