Maxim Power (MXG) AI Stock Analysis

• Market Cap: C$286.62M
• Dividend Yield: N/A
• Average Volume (3M): 5.84K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.97
• Revenue Growth: 2.34%
• EPS Growth: -54.54%
• Country: CA
• Employees: 46
• Sector: Utilities
• Sector Strength: 77
• Industry: Independent Power Producers
• EPS (TTM): 0.05
• Shares Outstanding: 63,693,027
• 10 Day Avg. Volume: 9,735
• 30 Day Avg. Volume: 5,845
• PEG Ratio: -0.09
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -36.43
• 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

• Rating: 66 Neutral
• Price Target: C$5.00 ▲(11.36%Upside)

Maxim Power's stock score is primarily driven by its improved financial performance and positive technical indicators. The recent corporate event had a negative sentiment due to financial performance decline, but this was offset by the completion of a strategic sale. Valuation remains moderate, impacting the score slightly.

Maxim Power Business Overview & Revenue Model

Company Description

Maxim Power Corp., an independent power producer, engages in the development, ownership, and operation of power generation facilities in Canada. Its core asset is Milner 2 power plant, a 204 megawatt natural gas-fired turbine generator located in Grande Cache, Alberta. Maxim Power Corp. is headquartered in Calgary, Canada.

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's financial health shows significant improvement with strong revenue growth and improved profitability margins. The balance sheet is solid, with low leverage and high cash levels, and cash flow management has turned past deficits into positive outcomes.

Income Statement

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
86.97M	101.48M	38.47M	141.26M	156.01M	46.73M
	Gross Profit
56.06M	42.83M	-9.94M	53.50M	77.94M	6.18M
	EBIT
20.18M	29.05M	-16.65M	55.38M	103.50M	8.20M
	EBITDA
38.12M	49.32M	53.74M	70.81M	113.48M	11.86M
	Net Income Common Stockholders
14.72M	21.95M	28.30M	42.28M	78.51M	9.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.49M	30.07M	32.26M	51.38M	13.55M	12.26M
	Total Assets
364.00M	359.10M	425.84M	382.11M	312.44M	239.31M
	Total Debt
66.00K	77.00K	81.31M	82.81M	53.85M	66.98M
	Net Debt
-31.42M	-29.99M	49.06M	31.43M	40.30M	54.72M
	Total Liabilities
44.46M	43.08M	128.09M	113.45M	85.25M	91.40M
	Stockholders Equity
319.54M	316.02M	297.75M	268.65M	227.18M	147.91M
Cash Flow		Free Cash Flow
21.19M	76.88M	-3.58M	-4.68M	16.64M	-13.21M
	Operating Cash Flow
30.53M	84.07M	23.84M	76.41M	105.22M	6.96M
	Investing Cash Flow
4.82M	2.87M	-32.09M	-57.79M	-85.31M	-25.89M
	Financing Cash Flow
-90.47M	-93.64M	-10.86M	19.28M	-18.60M	10.35M

Maxim Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 4.49 is above the 20-day moving average (MA) of 4.44, above the 50-day MA of 4.18, and below the 200-day MA of 4.59, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 54.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MXG.

Maxim Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXG	66 Neutral	C$286.62M	16.09	4.69%	―	2.34%	-54.54%
Sector *	64 Neutral	$8.52B	10.34	4.25%	5.88%	4.06%	-12.76%
TAC		$3.29B	21.34	2.97%	1.61%	―	―
CPX	75 Outperform	C$8.72B	12.15	15.24%	4.64%	-27.55%	-12.05%
INE	67 Neutral	C$2.81B	70.37	4.20%	2.60%	0.97%	―
BLX	62 Neutral	C$3.37B	306.17	0.67%	2.01%	-16.63%	-87.78%
NPIFF		$4.16B	22.28	6.08%	5.46%	―	―

Maxim Power Corporate Events

Maxim Power Corp. Announces 2025 AGM Results and Strategic Approvals

Maxim Power Corp. announced the results of its 2025 annual general and special meeting, where directors were elected to hold office until the next meeting. The meeting also approved unallocated stock options under the Corporation’s Stock Option Plan and confirmed an amended and restated By-Law No.1. These decisions reflect Maxim’s ongoing strategic focus on power projects in Alberta and its commitment to corporate governance, potentially impacting its market positioning and stakeholder interests.

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.

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.

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.