Maxim Power (MXG) AI Stock Analysis

• Market Cap: C$285.63M
• Dividend Yield: N/A
• Average Volume (3M): 11.24K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.05
• Revenue Growth: -28.65%
• EPS Growth: -73.50%
• Country: CA
• Employees: 46
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.17
• Shares Outstanding: 63,614,063
• 10 Day Avg. Volume: 13,009
• 30 Day Avg. Volume: 11,237
• PEG Ratio: -0.80
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 3.09
• P/FCF Ratio: 4.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: C$4.50 ▲(0.90% Upside)

Maxim Power's overall stock score is driven by its improved financial performance and strategic corporate actions like the share buyback program. However, mixed technical indicators and moderate valuation limit the upside potential. The decline in recent financial results due to external market conditions also poses a risk.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strong market demand and effective business strategies, contributing to long-term growth prospects.

Balance Sheet Health

A low debt-to-equity ratio and high equity position provide financial stability and flexibility, supporting sustainable operations and growth.

Cash Generation

Strong cash flow generation enhances the company's ability to invest in growth opportunities, reduce debt, and improve shareholder value over time.

Negative Factors

Revenue Decline

A decline in revenue growth rate suggests potential challenges in maintaining sales momentum, which could impact future profitability and market position.

Earnings Volatility

Significant volatility in earnings per share growth indicates potential instability in profit generation, which may affect investor confidence and valuation.

Profitability Concerns

While profitability has improved, the recent positive net income follows a period of losses, highlighting the need for consistent profit generation to ensure long-term financial health.

Maxim Power Business Overview & Revenue Model

Company Description

Maxim Power Corp (MXG) is a Canadian power generation company primarily engaged in the development, ownership, and operation of power generation facilities. The company operates in the energy sector, focusing on natural gas and renewable energy sources. Maxim Power's core products include electricity generated from its power plants, which serve both the wholesale and retail markets in Canada and the United States.

How the Company Makes Money

Maxim Power generates revenue primarily through the sale of electricity produced by its power generation facilities. The company operates in various markets, including wholesale power markets, where it sells electricity to utilities and large industrial customers. Additionally, Maxim Power may benefit from long-term power purchase agreements (PPAs) that provide stable revenue streams. The company also explores opportunities in renewable energy, allowing it to diversify its revenue sources. Strategic partnerships with other energy companies and participation in energy trading markets can further enhance its earnings potential.

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

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	92.95M	101.48M	38.47M	141.26M	156.01M	46.73M
Gross Profit	62.64M	42.83M	-9.94M	53.50M	77.94M	6.18M
EBITDA	31.43M	51.10M	55.45M	70.81M	113.48M	11.93M
Net Income	13.93M	21.95M	28.30M	42.28M	78.51M	9.26M
Balance Sheet
Total Assets	375.28M	359.10M	425.84M	382.11M	312.44M	239.31M
Cash, Cash Equivalents and Short-Term Investments	53.03M	30.07M	32.26M	51.38M	13.55M	12.26M
Total Debt	0.00	77.00K	81.31M	82.81M	53.85M	66.98M
Total Liabilities	44.43M	43.08M	128.09M	113.45M	85.25M	91.40M
Stockholders Equity	330.85M	316.02M	297.75M	268.65M	227.18M	147.91M
Cash Flow
Free Cash Flow	14.24M	76.88M	-3.58M	-4.68M	16.64M	-13.21M
Operating Cash Flow	27.39M	84.07M	23.84M	76.41M	105.22M	6.96M
Investing Cash Flow	11.36M	7.30M	-32.09M	-57.79M	-85.31M	-25.89M
Financing Cash Flow	-84.76M	-93.64M	-10.86M	19.28M	-18.60M	10.35M

Maxim Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 4.46 is above the 20-day moving average (MA) of 4.41, below the 50-day MA of 4.47, and above the 200-day MA of 4.42, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 56.00 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
ACO.X	69 Neutral	C$5.62B	14.52	9.32%	3.62%	7.75%	11.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPX	64 Neutral	C$9.28B	21.14	9.40%	4.44%	-2.99%	-32.11%
MXG	62 Neutral	C$285.63M	20.53	4.47%	―	-28.65%	-73.50%
NPI	53 Neutral	C$4.68B	-16.45	-7.06%	6.80%	-4.86%	-86.64%
TA	49 Neutral	C$5.17B	-26.85	-8.42%	1.46%	-11.00%	-227.07%
BLX	47 Neutral	C$2.62B	-114.02	-1.47%	2.62%	-11.91%	-132.41%

Maxim Power Corporate Events

Maxim Power Corp. Reports Third Quarter 2025 Financial Results

Maxim Power Corp. reported its third-quarter financial results for 2025, showing an increase in revenue compared to 2024 due to higher realized power prices, despite a decrease in generation volumes. However, the company’s net income remained comparable to the previous year, while Adjusted EBITDA decreased due to lower net realized gains on commodity swaps. Over the first nine months of 2025, both revenue and net income saw a decline, attributed to lower power prices and generation volumes, as well as unrealized losses on commodity swaps.

Maxim Power Corp Announces TSX Approval for Share Buyback Program

Maxim Power Corp has received approval from the Toronto Stock Exchange to initiate a normal course issuer bid, allowing the company to purchase and cancel up to 3,182,528 common shares, representing approximately 5% of its outstanding shares. This move is intended to reflect the company’s belief that its share price may not fully represent its underlying value, thereby benefiting shareholders by increasing their proportional share interest.