Maxim Power (MXG) AI Stock Analysis

• Market Cap: C$242.67M
• Dividend Yield: N/A
• Average Volume (3M): 13.81K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.96
• Revenue Growth: 132.58%
• EPS Growth: -22.43%
• Country: CA
• Employees: 46
• Sector: Utilities
• Sector Strength: 93
• Industry: Independent Power Producers
• EPS (TTM): 0.43
• Shares Outstanding: 63,693,027
• 10 Day Avg. Volume: 16,659
• 30 Day Avg. Volume: 13,814
• PEG Ratio: 0.00247
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.11
• Price to Cash Flow (P/CF): 14.70
• P/FCF Ratio: 84.40
• 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: N/A
• Number of Analyst Covering: 0

Maxim Power shows strong financial performance with significant revenue growth and improved profitability, supported by a solid balance sheet. However, technical indicators suggest a bearish trend, and the absence of a dividend yield may deter some investors. Despite these challenges, the reasonable valuation and improved financial metrics position the company for potential future stability and growth.

Maxim Power Business Overview & Revenue Model

Company Description

Maxim Power Corp. (MXG) is an independent power producer engaged in the development, acquisition, and operation of power generation facilities. The company primarily focuses on the production of electricity from natural gas-fired facilities, ensuring efficient and reliable energy supply. Maxim Power operates within the energy sector and is committed to sustainable and environmentally responsible practices.

How the Company Makes Money

Maxim Power generates revenue by selling the electricity produced from its power generation facilities to wholesale markets, utilities, and other energy providers. The company's revenue model is based on long-term power purchase agreements and spot market sales, which provide a stable and predictable cash flow. Maxim Power also benefits from its strategic location in regions with high electricity demand and its ability to optimize plant operations for maximum efficiency. Additionally, the company may engage in partnerships with other energy firms and participate in government programs or incentives aimed at promoting cleaner energy solutions.

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
113.43M	38.47M	141.26M	156.01M	46.73M	28.34M
	Gross Profit
52.11M	-9.94M	50.52M	77.94M	6.18M	-751.00K
	EBIT
37.59M	-16.65M	58.96M	103.50M	8.20M	-4.82M
	EBITDA
60.58M	55.45M	70.81M	113.48M	11.86M	-1.25M
	Net Income Common Stockholders
41.76M	28.30M	42.28M	78.51M	9.26M	-5.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.80M	32.26M	51.38M	13.55M	12.26M	20.92M
	Total Assets
172.19M	425.84M	382.11M	312.44M	239.31M	225.27M
	Total Debt
0.00	81.31M	82.81M	53.85M	66.98M	49.10M
	Net Debt
-22.25M	49.06M	31.43M	40.30M	54.72M	28.18M
	Total Liabilities
23.65M	128.09M	113.45M	85.25M	91.40M	86.04M
	Stockholders Equity
148.54M	297.75M	268.65M	227.18M	147.91M	139.23M
Cash Flow		Free Cash Flow
62.80M	-3.58M	-4.68M	16.64M	-13.21M	-99.06M
	Operating Cash Flow
68.20M	23.84M	76.41M	105.22M	6.96M	5.49M
	Investing Cash Flow
-6.96M	-32.09M	-57.79M	-85.31M	-25.89M	-50.17M
	Financing Cash Flow
-8.06M	-10.86M	19.28M	-18.60M	10.35M	43.39M

Maxim Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.81 is below the 20-day moving average (MA) of 4.53, below the 50-day MA of 5.18, and below the 200-day MA of 4.45, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 33.88 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, 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
CPX	69 Neutral	C$6.17B	8.59	18.00%	5.80%	-26.31%	-14.85%
Sector *	65 Neutral	$11.67B	15.52	6.23%	4.52%	5.50%	-9.06%
BLX	64 Neutral	C$2.66B	74.02	2.23%	2.54%	-16.54%	-53.85%
TA	61 Neutral	$3.46B	19.81	14.31%	2.11%	-15.20%	-77.12%
MXG	61 Neutral	C$242.67M	8.76	7.15%	―	132.58%	-22.43%
AQN	51 Neutral	$5.29B	―	1.65%	7.19%	-6.72%	-6766.85%
BEP.UN	47 Neutral	$19.41B	―	-4.87%	6.98%	22.01%	-183.73%

Maxim Power Corporate Events

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.