Arrow Exploration Corp. (AXL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gear Energy Ltd.

Orca Energy Group, Inc.

Arrow Exploration Corp.

Kolibri Global Energy, Inc.

Hemisphere Energy Corp.

Tethys Petroleum Ltd.

Yangarra Resources Ltd.

Pieridae Energy Ltd.

ROK Resources, Inc.

Questerre Energy Corp.

Falcon Oil & Gas Ltd.

Why is Arrow Exploration Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 37.96% and Operating profit at 46.99%

The company has declared Positive results for the last 12 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CAD 63.14 MM
NET SALES(HY) At CAD 59.98 MM has Grown at 59.14%
INVENTORY TURNOVER RATIO(HY) Highest at 108.46%

With ROE of 18.45%, it has a attractive valuation with a 0.80 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -38.46%, its profits have fallen by -9.5%

Below par performance in long term as well as near term

Along with generating -38.46% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Arrow Exploration Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Arrow Exploration Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arrow Exploration Corp.

-41.98%

-0.62

56.30%

S&P/TSX 60

19.1%

1.23

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

37.96%

EBIT Growth (5y)

46.99%

EBIT to Interest (avg)

13.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.45

Sales to Capital Employed (avg)

1.17

Tax Ratio

56.69%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

37.59%

ROE (avg)

13.26%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.80

EV to EBIT

1.18

EV to EBITDA

0.65

EV to Capital Employed

0.74

EV to Sales

0.38

PEG Ratio

Dividend Yield

ROCE (Latest)

62.73%

ROE (Latest)

18.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 63.14 MM

NET SALES(HY)

At CAD 59.98 MM has Grown at 59.14%

INVENTORY TURNOVER RATIO(HY)

Highest at 108.46%

CASH AND EQV(HY)

Highest at CAD 63.75 MM

DEBT-EQUITY RATIO (HY)

Lowest at -44.92 %

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 36.92% (YoY

Here's what is working for Arrow Exploration Corp.

Operating Cash Flow

Highest at CAD 63.14 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

At CAD 59.98 MM has Grown at 59.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Inventory Turnover Ratio

Highest at 108.46% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CAD 63.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -44.92 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at CAD 9.45 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Arrow Exploration Corp.

Raw Material Cost

Grown by 36.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales