ARROW EXPLORATION CORP (AXL.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:AXL - CA04274P1053 - Common Stock
0.295 CAD
-0.02 (-4.84%)
AXL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. AXL has an average financial health and profitability rating. AXL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes AXL very considerable for value investing!
1. Profitability
1.1 Basic Checks
- AXL had positive earnings in the past year.
- In the past year AXL had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: AXL reported negative net income in multiple years.
- The reported operating cash flow has been mixed in the past 5 years: AXL reported negative operating cash flow in multiple years.
1.2 Ratios
- AXL's Return On Assets of 7.37% is amongst the best of the industry. AXL outperforms 90.65% of its industry peers.
- Looking at the Return On Equity, with a value of 11.92%, AXL belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
- AXL's Return On Invested Capital of 17.58% is amongst the best of the industry. AXL outperforms 97.20% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AXL is significantly above the industry average of 6.53%.
- The last Return On Invested Capital (17.58%) for AXL is well below the 3 year average (21.60%), which needs to be investigated, but indicates that AXL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.37% | ||
| ROE | 11.92% | ||
| ROIC | 17.58% |
ROA(3y)5.03%
ROA(5y)-13.44%
ROE(3y)7.84%
ROE(5y)-40.93%
ROIC(3y)21.6%
ROIC(5y)N/A
1.3 Margins
- AXL has a Profit Margin of 8.99%. This is in the better half of the industry: AXL outperforms 72.43% of its industry peers.
- AXL's Profit Margin has declined in the last couple of years.
- The Operating Margin of AXL (24.36%) is better than 80.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.36% | ||
| PM (TTM) | 8.99% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-41.09%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AXL is creating value.
- Compared to 1 year ago, AXL has about the same amount of shares outstanding.
- AXL has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AXL has an improved debt to assets ratio.
2.2 Solvency
- AXL has an Altman-Z score of 2.27. This is not the best score and indicates that AXL is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.27, AXL is in the better half of the industry, outperforming 71.03% of the companies in the same industry.
- A Debt/Equity ratio of 0.00 indicates that AXL is not too dependend on debt financing.
- The Debt to Equity ratio of AXL (0.00) is better than 80.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.27 |
ROIC/WACC2.2
WACC8.01%
2.3 Liquidity
- AXL has a Current Ratio of 1.01. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
- AXL's Current ratio of 1.01 is fine compared to the rest of the industry. AXL outperforms 64.02% of its industry peers.
- AXL has a Quick Ratio of 1.01. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
- AXL has a better Quick ratio (1.01) than 66.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- AXL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3866.67%, which is quite impressive.
- The Earnings Per Share has been decreasing by -8.00% on average over the past years.
- The Revenue has grown by 19.51% in the past year. This is quite good.
- Measured over the past years, AXL shows a very strong growth in Revenue. The Revenue has been growing by 23.67% on average per year.
EPS 1Y (TTM)3866.67%
EPS 3Y-8%
EPS 5YN/A
EPS Q2Q%-53.68%
Revenue 1Y (TTM)19.51%
Revenue growth 3Y124.54%
Revenue growth 5Y23.67%
Sales Q2Q%-12.94%
3.2 Future
- Based on estimates for the next years, AXL will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.25% on average per year.
- Based on estimates for the next years, AXL will show a quite strong growth in Revenue. The Revenue will grow by 15.53% on average per year.
EPS Next Y49.77%
EPS Next 2Y-20.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year45.45%
Revenue Next 2Y15.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.83, which indicates a very decent valuation of AXL.
- Based on the Price/Earnings ratio, AXL is valued a bit cheaper than 75.23% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AXL to the average of the S&P500 Index (27.21), we can say AXL is valued rather cheaply.
- A Price/Forward Earnings ratio of 4.52 indicates a rather cheap valuation of AXL.
- AXL's Price/Forward Earnings ratio is rather cheap when compared to the industry. AXL is cheaper than 96.26% of the companies in the same industry.
- AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 4.52 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXL indicates a rather cheap valuation: AXL is cheaper than 98.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.37 |
4.3 Compensation for Growth
- AXL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AXL has a very decent profitability rating, which may justify a higher PE ratio.
- AXL's earnings are expected to decrease with -20.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y-20.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ARROW EXPLORATION CORP / AXL.CA FAQ
Can you provide the ChartMill fundamental rating for ARROW EXPLORATION CORP?
ChartMill assigns a fundamental rating of 5 / 10 to AXL.CA.
What is the valuation status for AXL stock?
ChartMill assigns a valuation rating of 7 / 10 to ARROW EXPLORATION CORP (AXL.CA). This can be considered as Undervalued.
What is the profitability of AXL stock?
ARROW EXPLORATION CORP (AXL.CA) has a profitability rating of 6 / 10.
What is the valuation of ARROW EXPLORATION CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARROW EXPLORATION CORP (AXL.CA) is 9.83 and the Price/Book (PB) ratio is 1.06.
How financially healthy is ARROW EXPLORATION CORP?
The financial health rating of ARROW EXPLORATION CORP (AXL.CA) is 5 / 10.