Advantex Marketing International (ADX) AI Stock Analysis

• Market Cap: C$1.33M
• Dividend Yield: N/A
• Average Volume (3M): 2.10K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.67
• Revenue Growth: 29.14%
• EPS Growth: 23.53%
• Country: CA
• Employees: 52
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): >-0.01
• Shares Outstanding: 265,390,080
• 10 Day Avg. Volume: 2,097
• 30 Day Avg. Volume: 2,097
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 39 Underperform
• Price Target: ―

Advantex Marketing International's stock score is low, driven primarily by significant financial challenges, including persistent net losses and high leverage, reflected in a negative equity position. Valuation concerns are exacerbated by a negative P/E ratio and lack of dividend yield, while technical analysis indicators are lacking, further limiting the assessment. The marginal revenue increase reported in the corporate event does not offset the broader financial weaknesses.

Advantex Marketing International Business Overview & Revenue Model

Company Description

Advantex Marketing International Inc. operates as an aggregator of independent merchants in Canada. The company operates through Merchant Cash Advance, Program, and Aeroplan Program segments. It also provides merchant cash advance (MCA) and loyalty marketing services to its community of merchants. The MCA meets working capital needs of merchants; and loyalty marketing provides merchants an economic way to market their establishments through its re-seller relationship with Aeroplan loyalty program. In addition, the company provides the Aeroplan program that allows members to earn aeroplan points on purchases at merchants. Further, the company's merchant partners operate in various business segments, including restaurants; independent inns, resorts, and selected hotels; spas; retailers of men's and ladies fashion, footwear, and accessories; florists and garden centers; health and beauty centers; gift stores; and home décor. Advantex Marketing International Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.

How the Company Makes Money

Advantex Marketing International (ADX) generates revenue through a combination of service fees, transaction fees, and partnership agreements. The company charges merchants and businesses fees for implementing and managing loyalty programs. Additionally, ADX earns transaction fees from the increased sales generated through its marketing initiatives. Strategic partnerships with financial institutions and card issuers also contribute to its revenue, as these collaborations enhance the reach and effectiveness of ADX's marketing solutions, driving further engagement and sales for its clients.

Advantex Marketing International Financial Statement Overview

Summary

Advantex Marketing International faces considerable financial challenges with persistent net losses and high leverage. The company has a negative stockholders' equity and negative operating cash flow, indicating financial instability. Despite some operational efficiency evidenced by positive EBIT and EBITDA margins, the overall financial health is concerning due to significant debt and cash flow issues.

Income Statement

The company has experienced significant volatility in revenue and profitability. The TTM shows a gross profit margin of 42.0%, but a substantial negative net profit margin of -117.9% due to considerable net losses. Revenue growth is inconsistent, with recent TTM revenues higher than the previous year, but not reaching 2020 levels. EBIT and EBITDA margins are positive at 20.8% and 20.7% respectively in the TTM, indicating some operational efficiency despite net losses.

Balance Sheet

The balance sheet reveals significant financial strain with a negative stockholders' equity of -$15.3 million. The company's debt-to-equity ratio is not calculable due to negative equity, highlighting high leverage. The equity ratio is also negative. The company's financial stability is at risk with a high total debt level and declining asset base.

Cash Flow

Operating cash flow is negative in the TTM, reflecting cash flow challenges. The free cash flow growth rate is not stable, with the latest TTM showing a negative free cash flow of -$61,348. The operating cash flow to net income and free cash flow to net income ratios are negative, indicating inefficiencies in converting income to cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	870.86K	2.11M	1.74M	1.23M	2.61M
Gross Profit	-136.25K	1.65M	997.89K	861.23K	1.20M
EBITDA	559.84K	0.00	-667.87K	-477.59K	-920.79K
Net Income	-2.70M	-2.53M	-2.71M	-2.09M	-2.93M
Balance Sheet
Total Assets	5.31M	6.07M	3.53M	1.95M	4.37M
Cash, Cash Equivalents and Short-Term Investments	58.03K	340.43K	93.19K	82.61K	166.60K
Total Debt	16.23M	15.19M	11.05M	7.23M	11.17M
Total Liabilities	19.65M	18.78M	13.87M	9.96M	13.53M
Stockholders Equity	-14.33M	-12.71M	-10.34M	-8.01M	-9.17M
Cash Flow
Free Cash Flow	284.91K	-2.66M	-2.61M	1.82M	3.97M
Operating Cash Flow	284.91K	-2.66M	-2.61M	1.82M	3.97M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-567.31K	2.91M	2.62M	-1.91M	-3.93M

Advantex Marketing International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELL	73 Outperform	C$2.32M	7.83	―	―	12.99%	48.21%
SPN	47 Neutral	C$14.31M	-8.33	-15.95%	―	-2.43%	40.00%
ADX	39 Underperform	C$1.33M	―	18.87%	―	29.14%	23.53%
GKO	38 Underperform	C$2.79M	-0.71	―	―	―	-64.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Advantex Marketing International Corporate Events

Advantex Marketing International Reports Q2 2025 Financial Results

Advantex Marketing International reported a 4.2% increase in revenue for Q2 2025, driven by growth in the Aeroplan program. Despite the revenue increase, the company experienced a decrease in gross profit and EBITDA due to higher expenses and an increase in net loss attributed to non-cash interest expenses. The company is actively managing credit risk in its MCA program and has seen a significant increase in transaction credits. Advantex continues to refine its operations to maintain stable margins and address delinquent accounts effectively.