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Armada Mercantile
(ARM)
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Rating:47Neutral
Price Target:
C$0.21
▲(32.50% Upside)
Action:Reiterated
Date:10/07/26
The score is held back primarily by operational volatility (revenue contraction and large profit/cash-flow swings) and weak technical positioning (price below key longer-term moving averages with soft momentum). The balance sheet’s low leverage is a key offsetting strength, but the very high P/E ratio further pressures the overall rating.
Positive Factors
Very low leverage
Very low debt relative to equity indicates conservative financing and limited leverage risk. This gives Armada greater flexibility to absorb operating setbacks, preserve capital, and fund future needs without the heavy interest burden or refinancing pressure associated with a highly leveraged balance sheet.
Negative Factors
Material revenue contraction
The multi-year revenue decline signals weakening business scale and reduces confidence that the company is expanding its market opportunity. Lower revenue also makes fixed costs and operating results more sensitive to fluctuations, potentially limiting sustainable earnings growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Very low debt relative to equity indicates conservative financing and limited leverage risk. This gives Armada greater flexibility to absorb operating setbacks, preserve capital, and fund future needs without the heavy interest burden or refinancing pressure associated with a highly leveraged balance sheet.
Read all positive factors
Armada Mercantile (ARM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$6.72M
Dividend YieldN/A
Average Volume (3M)2.74K
Price to Earnings (P/E)457.1
Beta (1Y)-2.89
Revenue Growth-1.88%
EPS GrowthN/A
CountryCA
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)<0.01
Shares Outstanding21,007,845
10 Day Avg. Volume2,232
30 Day Avg. Volume2,744
Financial Highlights & Ratios
PEG Ratio-4.99
Price to Book (P/B)2.65
Price to Sales (P/S)26.85
P/FCF Ratio54.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Armada Mercantile Business Overview & Revenue Model
Company Description
Armada Mercantile Ltd. is a global financial services firm specializing in merchant banking. The company delivers a range of specialized services, including broker-dealer operations, venture lending, and corporate finance. It further offers adviso...
Armada Mercantile Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
72
Positive
Cash Flow
45
Neutral
| Breakdown | Feb 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 156.42K | 159.42K | 206.57K | 402.54K | 311.61K |
| Gross Profit | 156.42K | -2.59K | 206.57K | 401.90K | 310.82K |
| EBITDA | 42.56K | -5.03M | -18.30K | 268.95K | 74.20K |
| Net Income | 8.79K | -5.03M | -15.93K | 242.45K | 49.16K |
Balance Sheet | |||||
| Total Assets | 1.73M | 1.65M | 6.35M | 6.38M | 5.64M |
| Cash, Cash Equivalents and Short-Term Investments | 920.73K | 843.40K | 5.86M | 5.82M | 5.63M |
| Total Debt | 7.15K | 7.15K | 7.15K | 7.15K | 7.15K |
| Total Liabilities | 140.87K | 37.22K | 516.25K | 528.66K | 120.34K |
| Stockholders Equity | 1.59M | 1.61M | 5.83M | 5.85M | 5.52M |
Cash Flow | |||||
| Free Cash Flow | 76.82K | -53.65K | 285.70K | 671.76K | 99.49K |
| Operating Cash Flow | 76.82K | -53.65K | 285.70K | 671.76K | 99.49K |
| Investing Cash Flow | -42.40K | -316.39K | -346.37K | -366.55K | 0.00 |
| Financing Cash Flow | 42.91K | 356.01K | 102.22K | -108.49K | -25.40K |
Armada Mercantile Technical Analysis
Positive
0.16
Price Trends
0.24
Positive
0.24
Positive
0.24
Positive
Market Momentum
0.01
Positive
51.86
Neutral
51.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARM, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.24, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 51.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARM.
Armada Mercantile Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
48 Neutral | C$8.19M | -2.63 | -170.33% | ― | -293.45% | 68.53% | |
47 Neutral | C$6.72M | 457.14 | 0.55% | ― | -1.88% | ― | |
45 Neutral | C$1.51M | -1.35 | 71.71% | ― | -103.62% | 34.73% | |
44 Neutral | C$1.21M | -1.38 | -43.65% | ― | ― | 1.75% | |
41 Neutral | C$5.03M | -1.06 | -109.65% | ― | -31.25% | -30.36% |
* Financial Sector Average
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Armada Mercantile Corporate Events
Business Operations and StrategyFinancial Disclosures
Armada Mercantile Boosts Cash Position With Anos Holdings Distributions
Positive
Oct 1, 2026
Armada Mercantile Ltd. has received a cash distribution of US$486,410 tied to its 4.678% ownership in Anos Holdings, LLC, with three additional distributions totaling approximately US$614,000 still outstanding. The company also holds a stock equit...
Business Operations and StrategyProduct-Related Announcements
Armada Mercantile Expands U.S. Ice Cream Reach via Ace Foods and Michigan Distributor
Positive
Sep 24, 2026
Armada Mercantile Ltd., via its ownership interest in Ace Foods, participates in the U.S. premium ice cream segment through distribution of the London Dairy brand. Ace Foods serves as the master importer and distributor, bringing globally recogniz...
Business Operations and StrategyProduct-Related Announcements
Armada Mercantile’s Ace Foods Expands London Dairy Ice Cream Distribution in South Florida
Positive
Sep 18, 2026
Armada Mercantile, through its one-third ownership of Ace Foods, is deepening its presence in the U.S. frozen dessert market as Ace Foods expands distribution of London Dairy ice cream products with Viral Merchants in South Florida. The partnershi...
Business Operations and StrategyProduct-Related Announcements
Armada’s Ace Foods Expands London Dairy Ice Cream Distribution in Texas
Positive
Sep 17, 2026
Armada Mercantile Ltd., through its 33.3% ownership in Ace Foods, is positioned in the premium ice cream distribution industry via the London Dairy brand, which has a strong global footprint and institutional backing. With Ace Foods acting as the ...
Business Operations and StrategyProduct-Related Announcements
Armada Mercantile’s Ace Foods Wins Full Northgate Market Rollout for London Dairy Ice Cream
Positive
Sep 16, 2026
Armada Mercantile’s Ace Foods unit has secured placement for London Dairy ice cream and sorbet pints and multipack bars across all 46 Northgate Market supermarkets in Los Angeles. The distributor plans to support the rollout with marketing i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.