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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 - 4o)
Rating:68Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
Arrow Exploration Corp's strong valuation due to a low P/E ratio is a significant positive factor. However, financial performance is mixed with strong revenue growth but negative free cash flow. Technical analysis indicates a bearish trend, which tempers the overall score.

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

Arrow Exploration Corp Business Overview & Revenue Model

Company DescriptionArrow Exploration Corp., a junior oil and gas company, engages in the acquisition, exploration, development, and production of oil and gas properties in Colombia and Western Canada. As of December 31, 2021, it holds interests in six oil blocks in Colombia that covers an area of approximately 227,005 net acres; and oil and natural gas leases in seven areas in Canada covering an area of approximately 254,003 net acres. Arrow Exploration Corp. is headquartered in Calgary, Canada.
How the Company Makes MoneyArrow Exploration Corp generates revenue through the production and sale of crude oil and natural gas. The company explores and develops oil and gas fields, extracting these resources to sell them in the open market. Revenue is primarily derived from the sale of produced hydrocarbons, which are priced based on prevailing market rates. Additionally, Arrow Exploration Corp may engage in strategic partnerships or joint ventures to enhance its exploration and production capabilities, contributing to its revenue generation. The company’s financial performance is influenced by factors such as commodity prices, production volumes, and operational efficiency.

Arrow Exploration Corp Financial Statement Overview

Summary
Arrow Exploration Corp shows strong revenue growth and robust operational margins, indicating a healthy income statement. The balance sheet is stable with low leverage, although there is a slight decline in return on equity. Cash flow presents a concern with negative free cash flow, which could pose risks if not addressed.
Income Statement
85
Very Positive
Arrow Exploration Corp has demonstrated strong revenue growth with a TTM increase of 92.5%, reflecting robust expansion. The company maintains healthy margins, with a gross profit margin of 69.25% and an EBIT margin of 32.47% in the TTM period. However, the net profit margin has decreased to 12.28% from 16.15% in the previous year, indicating some pressure on net profitability.
Balance Sheet
78
Positive
The balance sheet is solid with a low debt-to-equity ratio of 0.0039, indicating minimal leverage. The return on equity has decreased to 19.36% from 24.85%, suggesting a slight decline in efficiency in generating profits from shareholders' equity. The equity ratio remains stable, reflecting a strong capital structure.
Cash Flow
60
Neutral
Cash flow performance is mixed. Operating cash flow remains strong, with a coverage ratio of 1.91, but free cash flow has turned negative, with a significant decline of 146.53% in the TTM period. This indicates potential challenges in generating free cash flow, which could impact future investments and debt servicing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue85.35M81.56M50.60M28.14M7.17M5.59M
Gross Profit59.11M56.19M32.48M19.45M4.89M3.27M
EBITDA48.15M46.82M15.36M14.43M6.80M-31.70M
Net Income10.48M13.18M-1.11M346.52K5.69M-32.23M
Balance Sheet
Total Assets92.73M81.27M62.28M53.19M41.20M33.53M
Cash, Cash Equivalents and Short-Term Investments13.21M18.84M12.33M13.06M10.88M11.47M
Total Debt214.46K219.41K320.59K1.96M3.41M5.87M
Total Liabilities38.00M28.25M20.77M27.29M17.24M20.74M
Stockholders Equity54.73M53.02M41.51M25.90M23.96M12.79M
Cash Flow
Free Cash Flow-4.26M8.40M-10.61M4.37M-6.22M-3.19M
Operating Cash Flow37.77M39.52M16.48M12.04M-4.51M-2.30M
Investing Cash Flow-35.83M-32.65M-22.58M-8.38M-4.05M12.78M
Financing Cash Flow-33.49K-57.81K5.39M-1.44M8.10M-29.05K

Arrow Exploration Corp Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.22
Price Trends
50DMA
0.23
Negative
100DMA
0.27
Negative
200DMA
0.30
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
47.36
Neutral
STOCH
46.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AXL, the sentiment is Neutral. The current price of 0.22 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.23, and below the 200-day MA of 0.30, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AXL.

Arrow Exploration Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$254.34M15.735.81%-1.47%267.04%
68
Neutral
C$61.46M4.2321.10%43.81%413.13%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
60
Neutral
C$103.30M5.593.18%-12.46%-49.29%
54
Neutral
C$264.46M-9.86-15.54%-15.50%-58.23%
51
Neutral
C$70.29M1.648.72%3.24%174.21%
43
Neutral
$71.44M59.460.90%-21.70%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AXL
Arrow Exploration Corp
0.22
-0.18
-45.00%
TSE:CNE
Canacol Energy
2.00
-1.08
-35.06%
TSE:TXP
Touchstone Exploration
0.22
-0.38
-63.33%
TSE:CVVY
Pieridae Energy
0.91
0.68
295.65%
TSE:YGR
Yangarra Resources
1.04
0.05
5.05%
TSE:JOY
Journey Energy
4.19
2.12
102.42%

Arrow Exploration Corp Corporate Events

Business Operations and StrategyExecutive/Board Changes
Arrow Exploration Corp. Grants Stock Options to Key Personnel
Positive
Oct 9, 2025

Arrow Exploration Corp. has announced the grant of 6,198,334 stock options to its directors, officers, and employees under its Stock Option Plan. This move aims to attract, retain, and incentivize key personnel while aligning their interests with shareholder value. The options, which have a strike price of CAD 0.225, vest over three years and are part of a strategy to maintain consistent interest in shares under option. This announcement underscores Arrow’s commitment to enhancing stakeholder value and maintaining a motivated leadership team as it continues to develop its Colombian oil assets.

Business Operations and Strategy
Arrow Exploration Abandons Mateguafa Oeste-1 Well, Shifts Focus to New Prospects
Neutral
Oct 1, 2025

Arrow Exploration Corp. announced that its Mateguafa Oeste-1 exploration well in the Tapir Block, Llanos Basin, Colombia, was drilled but deemed uneconomic due to thin oil pay over water, leading to its abandonment. Despite this setback, the company plans to continue its exploration efforts by moving the drilling rig to the Mateguafa Attic field to drill the Mateguafa-5 well, targeting both the Ubaque and C7 zones, with further plans to explore additional prospects if successful. This strategic move reflects Arrow’s commitment to leveraging its geological insights and expanding its operations, potentially impacting its market position and offering new opportunities for stakeholders.

Business Operations and Strategy
Arrow Exploration Corp. Abandons Mateguafa Oeste-1 Well, Plans Further Drilling
Neutral
Oct 1, 2025

Arrow Exploration Corp. announced the results of its Mateguafa Oeste-1 exploration well in Colombia’s Llanos Basin, which did not yield an economic discovery and will be abandoned. Despite this setback, the company plans to continue its exploration efforts by drilling the Mateguafa-5 well in the Mateguafa Attic field, targeting both the C7 and Ubaque reservoirs. The company remains optimistic about future prospects and plans to test additional fields, supported by recent 3D seismic data.

Business Operations and StrategyShareholder Meetings
Arrow Exploration Corp. Announces AGM Voting Results
Positive
Sep 25, 2025

Arrow Exploration Corp. announced the results of its annual general meeting, where shareholders approved all proposed matters, including the appointment of directors and auditors, and amendments to the stock option plan. This outcome supports Arrow’s strategic focus on enhancing its operational capabilities and growth potential in the Colombian oil sector, which could positively impact its market positioning and stakeholder interests.

Business Operations and StrategyProduct-Related Announcements
Arrow Exploration Boosts Production with New Wells in Colombia
Positive
Sep 9, 2025

Arrow Exploration Corp. has announced the successful production of four wells in the Tapir Block of Colombia’s Llanos Basin, where it holds a 50% interest. The wells, including AB-3, CN HZ12, CN HZ13, and RCE HZ10, are contributing to a total corporate production of over 4,800 barrels of oil equivalent per day. The company maintains a strong balance sheet with no debt, allowing flexibility in its work program and exploration activities. Arrow is focusing on low-risk exploration to increase reserves and build drilling inventory, with plans to drill additional wells in the Mateguafa Oeste field. These developments are expected to enhance Arrow’s production capabilities and strengthen its position in the Colombian oil industry.

Business Operations and StrategyFinancial Disclosures
Arrow Exploration Corp. Sees Production Surge and Strategic Investments in Q2 2025
Positive
Aug 28, 2025

Arrow Exploration Corp. reported a 48% increase in average corporate production to 3,768 boe/d in Q2 2025 compared to the same period in 2024. The company achieved $15.9 million in total oil and natural gas revenue, a 5% increase from Q2 2024, and made significant investments in infrastructure and drilling programs, including a $20 million prepayment agreement and a 3D seismic program. These developments are expected to enhance production capabilities and reduce costs, positioning Arrow for future growth and exploration opportunities in the Tapir block.

Regulatory Filings and ComplianceShareholder Meetings
Arrow Exploration Corp. Files AGM Materials for Upcoming Shareholder Meeting
Positive
Aug 20, 2025

Arrow Exploration Corp. has announced the filing of materials for its Annual and Special Meeting of Shareholders, scheduled for September 24, 2025. This filing fulfills all regulatory requirements and is available to shareholders of record as of August 6, 2025. The announcement underscores Arrow’s commitment to maintaining transparency and regulatory compliance, which is crucial for its stakeholders and could positively impact its market positioning.

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: Oct 25, 2025