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Arrow Exploration Corp (TSE:AXL)
:AXL
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Arrow Exploration Corp (AXL) AI Stock Analysis

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TSE:AXL

Arrow Exploration Corp

(AXL)

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Neutral 68 (OpenAI - Gpt-5.6Sol)
Rating:68Neutral
Price Target:
C$0.73
▲(46.00% Upside)
Action:Downgraded
Date:08/28/26
The score is driven primarily by strong financial positioning—especially the extremely low debt level and solid TTM operating profitability—tempered by meaningful volatility in net margins and free cash flow. Technicals add modest support via longer-term trend strength but are neutral in momentum, while valuation is a mild headwind given the ~23.9 P/E without dividend support.
Positive Factors
Minimal leverage
Extremely low leverage limits debt-related financial risk and preserves flexibility for drilling, field development, and other capital needs. The substantial growth in equity also provides a stronger funding base, allowing the company to pursue opportunities with less dependence on borrowing.
Negative Factors
Volatile revenue and earnings
The uneven history indicates that reported performance is sensitive to the operating and commodity cycle rather than steadily compounding. Revenue reversals can reduce planning certainty, make earnings less predictable, and complicate decisions about drilling pace and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Minimal leverage
Extremely low leverage limits debt-related financial risk and preserves flexibility for drilling, field development, and other capital needs. The substantial growth in equity also provides a stronger funding base, allowing the company to pursue opportunities with less dependence on borrowing.
Read all positive factors

Arrow Exploration Corp (AXL) vs. iShares MSCI Canada ETF (EWC)

Arrow Exploration Corp Business Overview & Revenue Model

Company Description
Arrow Exploration Corp. operates a junior oil and gas company that engages in the acquisition, exploration, development, and production of oil and gas properties in Colombia and Western Canada. The company is based in Calgary, Canada....
How the Company Makes Money
Arrow Exploration makes money primarily by producing and selling crude oil (and, if applicable, natural gas/NGLs) from fields in which it holds working interests. Revenue is generated based on the volume of hydrocarbons produced and the realized s...

Arrow Exploration Corp Financial Statement Overview

Summary
Overall fundamentals are supported by an exceptionally low-leverage balance sheet (debt-to-equity ~0.003) and improved TTM profitability with strong operating margins (gross ~56%, EBITDA ~43%) and revenue growth (+18.6%). Offsetting this, earnings quality is less consistent: net margins are thinner in TTM (~4.8%) than prior peak levels and both earnings and free cash flow have been volatile year-to-year, with uneven cash conversion and prior periods of negative FCF.
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue97.92M71.69M81.56M50.60M28.14M7.17M
Gross Profit53.58M25.78M56.19M32.48M19.45M4.89M
EBITDA54.01M34.73M46.82M15.36M14.43M6.80M
Net Income14.97M1.47M13.18M-1.11M346.52K5.69M
Balance Sheet
Total Assets125.99M105.21M81.27M62.28M53.19M41.20M
Cash, Cash Equivalents and Short-Term Investments28.73M11.45M18.84M12.33M13.06M10.88M
Total Debt227.14K200.32K219.41K320.59K1.96M3.41M
Total Liabilities56.64M50.86M28.25M20.77M27.29M17.24M
Stockholders Equity69.35M54.35M53.02M41.51M25.90M23.96M
Cash Flow
Free Cash Flow16.42M-3.14M8.40M-10.61M4.37M-6.22M
Operating Cash Flow41.95M27.40M39.52M16.48M12.04M-4.51M
Investing Cash Flow-27.08M-35.19M-32.65M-22.58M-8.38M-4.05M
Financing Cash Flow-92.86K-77.38K-57.81K5.39M-1.44M8.10M

Arrow Exploration Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.50
Price Trends
50DMA
0.51
Positive
100DMA
0.49
Positive
200DMA
0.40
Positive
Market Momentum
MACD
0.03
Negative
RSI
71.03
Negative
STOCH
87.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AXL, the sentiment is Positive. The current price of 0.5 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.51, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 71.03 is Negative, neither overbought nor oversold. The STOCH value of 87.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AXL.

Arrow Exploration Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
C$72.79M2.5513.02%7.14%9.61%1283.78%
68
Neutral
C$172.95M8.9924.90%15.49%44.88%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
C$107.86M-14.70-11.65%90.48%
46
Neutral
C$99.23M-7.2651.43%11.80%
42
Neutral
C$62.63M-2.53177.48%957.78%-2905.77%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AXL
Arrow Exploration Corp
0.67
0.41
157.69%
TSE:TXP
Touchstone Exploration
0.16
-0.10
-37.25%
TSE:AFE
Africa Energy
0.21
0.02
10.81%
TSE:OYL
CGX Energy
0.21
0.03
16.67%
TSE:NSE
New Stratus Energy
0.78
0.39
97.47%
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.Date of analysis: Aug 28, 2026