Appulse (APL) AI Stock Analysis

• Market Cap: C$2.95M
• Dividend Yield: 142.5%
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.33
• Revenue Growth: -100.00%
• EPS Growth: -122.17%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): >-0.01
• Shares Outstanding: 14,772,304
• 10 Day Avg. Volume: 770
• 30 Day Avg. Volume: 1,830
• PEG Ratio: -0.65
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.09
• 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

Appulse faces significant financial challenges, particularly in revenue and profitability, counterbalanced by a strong balance sheet. Technical analysis indicates bearish momentum, while valuation metrics show potential undervaluation due to a high dividend yield. The recent sale of a subsidiary has negatively impacted revenues, and the company needs to focus on new investments for growth.

Appulse Business Overview & Revenue Model

Company Description

Appulse Corporation, through its subsidiaries, sells new and refurbished centrifuge machines and parts in Canada, the United States, and internationally. The company is also involved in the rental of centrifuge equipment; provision of maintenance services, and consulting and design advisory services to industries, as well as machining services for equipment repairs; and manufacture of parts using machining and milling equipment. In addition, it offers value added services, including a balancing service for large equipment, such as centrifuge bowls. The company provides its products and services for food and beverage processing, and environmental applications, as well as serves other industries comprising the oil and gas service, refinery, marine processing, and pharmaceutical industries. Appulse Corporation is based in Calgary, Canada.

How the Company Makes Money

Appulse makes money primarily through a combination of software licensing, subscription services, and custom software development projects. Its revenue streams include direct sales of proprietary software products, recurring subscription fees for access to its digital platforms, and service fees for tailored software solutions developed for enterprise clients. Additionally, strategic partnerships with industry leaders and technology providers help expand its market reach and contribute to its financial growth.

Appulse Financial Statement Overview

Summary

Appulse is facing significant challenges in its income generation, reflected in declining revenues and profitability. The strong balance sheet, with no debt and high equity, offers stability, but cash flow management remains problematic, requiring improvement to ensure sustainable growth.

Income Statement

The financial performance of Appulse has shown significant volatility. The TTM indicates a profound downturn with negative total revenue and gross profit, which is concerning. Historical data shows a decline in revenue and profits, with recent periods reflecting losses. The net profit margin is notably low, and revenue growth has been negative. This suggests a challenging operating environment and competitive pressures.

Balance Sheet

Appulse maintains a strong balance sheet with no total debt and a high equity ratio, indicating financial stability and low leverage. The return on equity has been inconsistent, reflecting fluctuating profitability. Despite recent losses, the company's strong equity base provides a buffer against financial distress.

Cash Flow

The cash flow situation presents mixed signals. Operating cash flow is negative in the TTM, which is concerning, but historical free cash flow has shown some growth. The high investing cash flow in the TTM suggests substantial capital investments or asset sales. The operating cash flow to net income ratio has been variable, indicating challenges in converting income to cash.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
-8.89M	0.00	10.45M	9.23M	10.46M	11.09M
	Gross Profit
-8.89M	0.00	2.76M	2.82M	3.36M	3.34M
	EBIT
-608.11K	-173.20K	492.56K	819.60K	1.29M	968.33K
	EBITDA
-304.14K	337.47K	318.37K	964.20K	1.70M	1.53M
	Net Income Common Stockholders
209.32K	642.83K	237.54K	742.28K	1.10M	858.68K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.51K	8.14M	339.47K	374.43K	285.39K	173.19K
	Total Assets
7.50M	9.00M	10.39M	10.36M	10.00M	9.62M
	Total Debt
1.28M	0.00	1.80M	1.75M	2.29M	2.47M
	Net Debt
1.27M	-8.14M	1.46M	1.37M	2.00M	2.29M
	Total Liabilities
4.06M	639.28K	3.78M	4.11M	4.49M	5.22M
	Stockholders Equity
3.44M	8.36M	6.61M	6.25M	5.51M	4.40M
Cash Flow		Free Cash Flow
-609.60K	279.77K	-102.75K	683.46K	340.11K	627.75K
	Operating Cash Flow
-609.60K	279.77K	118.58K	916.32K	693.99K	933.35K
	Investing Cash Flow
8.84M	8.88M	-202.86K	-232.86K	-347.86K	-252.02K
	Financing Cash Flow
-5.26M	-1.35M	49.32K	-594.42K	-233.93K	-521.64K

Appulse Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:APL, the sentiment is Negative. The current price of 0.2 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.20, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 16.93 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:APL.

Appulse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%
APL	50 Neutral	C$2.95M	13.54	-2.32%	142.50%	-100.00%	-122.17%
WATR	47 Neutral	C$4.58M	―	-143.77%	―	-49.88%	-266.67%
RGEN	47 Neutral	C$3.45M	―		―	-71.89%	12.69%
ATMO	45 Neutral	C$475.25K	―	18.75%	―	-100.00%	98.22%
DST	43 Neutral	C$10.27M	―	23.34%	―	-41.98%	-123.77%
DOCT	34 Underperform	C$3.17M	―	74.38%	―	―	―

Appulse Corporate Events

Appulse Corporation Reports 2024 Fiscal Year Results Post-Subsidiary Sale

Appulse Corporation, listed on the TSX Venture Exchange, reported its financial results for the fiscal year 2024, highlighting the impact of selling its wholly-owned subsidiary, Centrifuges Unlimited Inc., on November 1, 2023. The company had no operating revenues following the sale, with the year’s revenue consisting solely of $337,000 in interest income. The financial statements also reflect a common share dividend and a reduction in stated capital, resulting in cash distributions to shareholders. Appulse ended the year with a net loss of $145,000, contrasting with the previous year’s net income of $1,688,000, which included gains from the discontinued operations of CUI. The company is actively seeking new investment opportunities to maximize shareholder value.

Spark’s Take on TSE:APL Stock

According to Spark, TipRanks’ AI Analyst, TSE:APL is a Neutral.

Appulse demonstrates a mixed outlook with significant financial challenges, particularly in revenue and profitability, offset by a strong balance sheet. The technical analysis indicates positive momentum, but potential overvaluation risks exist due to overbought signals. The high dividend yield enhances appeal, suggesting undervaluation or a strategic anomaly. Continued focus on cash flow and operational efficiency is essential for long-term stability.

To see Spark’s full report on TSE:APL stock, click here.