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Maxim Power Corp. (TSE:MXG)
TSX:MXG
Canadian Market

Maxim Power (MXG) AI Stock Analysis

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Maxim Power

(TSX:MXG)

Rating:65Neutral
Price Target:
C$5.00
▲(12.36%Upside)
Maxim Power's overall stock score is supported by improved financial performance and positive technical indicators. However, recent corporate events and valuation present challenges, highlighting the need for cautious optimism. The absence of substantial earnings call insights leads to a focus on existing data.

Maxim Power (MXG) vs. iShares MSCI Canada ETF (EWC)

Maxim Power Business Overview & Revenue Model

Company DescriptionMaxim 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 MoneyMaxim 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's financial health has significantly improved, with strong revenue growth, improved profitability margins, and a solid balance sheet with low leverage. The company has effectively managed its cash flows, turning past deficits into positive free cash flow. While past performance showed volatility, recent financial results indicate a trajectory toward stability and growth.
Income Statement
65
Positive
Maxim Power demonstrates a strong recovery and improvement in profitability, with a notable increase in total revenue from $38.5M in 2023 to $101.5M in 2024. The net profit margin improved as net income turned positive, reaching $21.9M in 2024 from a $28.3M profit in 2023, despite a previous year of losses. The gross profit margin is robust, and EBIT and EBITDA margins have significantly improved, indicating better operational efficiency.
Balance Sheet
70
Positive
The company has a strong equity position with stockholders' equity of $316M against total liabilities of $43M in 2024, resulting in a low debt-to-equity ratio. The equity ratio is favorable, showcasing financial stability and low leverage risk. Return on equity has been improving, reflecting efficient use of equity capital. Overall, the balance sheet is solid, with high levels of cash and short-term investments.
Cash Flow
68
Positive
Maxim Power's operating cash flow has improved substantially, with a free cash flow of $76.9M in 2024, demonstrating effective cash generation. The operating cash flow to net income ratio is solid, indicating strong cash flow relative to income. The company has managed a turnaround from negative free cash flow positions in previous years, showing progress in cash management and capital allocation.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
86.97M101.48M38.47M141.26M156.01M46.73M
Gross Profit
70.07M15.90M-9.94M50.52M77.94M6.18M
EBIT
20.18M29.05M-16.65M58.96M103.50M8.20M
EBITDA
38.12M49.32M55.45M70.81M113.48M11.86M
Net Income Common Stockholders
14.72M21.95M28.30M42.28M78.51M9.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
85.21M30.07M32.26M51.38M13.55M12.26M
Total Assets
435.44M359.10M425.84M382.11M312.44M239.31M
Total Debt
80.89M77.00K81.31M82.81M53.85M66.98M
Net Debt
-4.32M-29.99M49.06M31.43M40.30M54.72M
Total Liabilities
127.59M43.08M128.09M113.45M85.25M91.40M
Stockholders Equity
307.85M316.02M297.75M268.65M227.18M147.91M
Cash FlowFree Cash Flow
21.19M76.88M-3.58M-4.68M16.64M-13.21M
Operating Cash Flow
30.53M84.07M23.84M76.41M105.22M6.96M
Investing Cash Flow
4.82M2.87M-32.09M-57.79M-85.31M-25.89M
Financing Cash Flow
-90.47M-93.64M-10.86M19.28M-18.60M10.35M

Maxim Power Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.45
Price Trends
50DMA
4.15
Positive
100DMA
4.89
Negative
200DMA
4.52
Negative
Market Momentum
MACD
0.07
Negative
RSI
62.25
Neutral
STOCH
81.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MXG, the sentiment is Positive. The current price of 4.45 is above the 20-day moving average (MA) of 4.15, above the 50-day MA of 4.15, and below the 200-day MA of 4.52, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MXG.

Maxim Power Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCPX
77
Outperform
C$8.57B11.9815.24%4.64%-27.55%-12.05%
TSINE
73
Outperform
C$2.78B69.764.20%2.63%0.97%
TSNPI
72
Outperform
$5.38B20.666.08%5.75%-5.33%
TSMXG
65
Neutral
C$274.52M15.954.69%2.34%-54.54%
TSTA
64
Neutral
$3.87B21.522.97%1.83%-17.34%-100.03%
64
Neutral
$8.56B10.354.70%4.34%4.05%-13.36%
TSBLX
63
Neutral
C$3.24B294.390.67%2.10%-16.63%-87.78%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MXG
Maxim Power
4.45
0.72
19.30%
TSE:TA
TransAlta
13.38
3.73
38.60%
TSE:NPI
Northland Power
20.53
-1.61
-7.26%
TSE:CPX
Capital Power
55.92
19.07
51.75%
TSE:BLX
Boralex Inc Cl A
31.70
-2.50
-7.31%
TSE:INE
Innergex Renewable Energy
13.72
4.52
49.13%

Maxim Power Corporate Events

M&A TransactionsFinancial Disclosures
Maxim Power Corp. Reports Q1 2025 Financial Results and Completes Summit Sale
Negative
May 8, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Maxim Power Completes Sale of Summit Coal to Valory Resources
Neutral
Apr 30, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
Maxim Power Corp. Reports 2024 Financial Results and Strategic Financial Maneuvers
Neutral
Mar 21, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.