Arrow Exploration (LSE:AXL) Financial Strength: 9 (As of Mar. 2026) — Near Median

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LSE:AXL Arrow Exploration Corp LSE:AXL
42 GF Score
Price £0.27
GF Value £0.33
Valuation Modestly Undervalued
! 7 Warning Signs
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What is Arrow Exploration Financial Strength?

Arrow Exploration LSE:AXL +2.64% 42 Financial Strength is 9 as of Mar. 2026, which is at its 10-year median of 9.00. GuruFocus rates LSE:AXL with a GF Score™ of 42/100 and a GF Value™ of £0.33 (Modestly Undervalued). The stock has 7 warning signs investors should review.

Arrow Exploration has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Arrow Exploration's Interest Coverage for the quarter that ended in Mar. 2026 was 1,024.00. Arrow Exploration's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.00. As of today, Arrow Exploration's Altman Z-Score is 2.11.


Arrow Exploration  (LSE:AXL) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Arrow Exploration has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Arrow Exploration Financial Strength Related Terms


LSE:AXL vs COP, EOG, FANG: Financial Strength Comparison

For the Oil & Gas E&P subindustry, Arrow Exploration's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arrow Exploration Financial Strength vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Arrow Exploration's Financial Strength distribution charts can be found below:

* The bar in red indicates where Arrow Exploration's Financial Strength falls into.


LSE:AXL
42GF Score
Arrow Exploration Corp LSE:AXL
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Arrow Exploration Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Arrow Exploration's Interest Expense for the months ended in Mar. 2026 was £-0.01 Mil. Its Operating Income for the months ended in Mar. 2026 was £5.12 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was £0.08 Mil.

Arrow Exploration's Interest Coverage for the quarter that ended in Mar. 2026 is

Interest Coverage=-1*Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*5.12/-0.005
=1,024.00

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Arrow Exploration Corp has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Arrow Exploration's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.035 + 0.078) / 80.46
=0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Arrow Exploration has a Z-score of 2.11, indicating it is in Grey Zones. This implies that Arrow Exploration is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.11 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 9 mean?
Arrow Exploration (LSE:AXL) has a Financial Strength of 9 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Arrow Exploration and its competitors. This is near median its historical median of 9.00. Over the past decade, Arrow Exploration's Financial Strength has ranged from 3.00 to 10.00.
Is Arrow Exploration's Financial Strength too high?
Arrow Exploration's current Financial Strength of 9 is near median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 10.00. Overall, Arrow Exploration has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arrow Exploration's Financial Strength compare to COP and EOG?
Arrow Exploration's Financial Strength of 9 can be compared against companies in the Oil & Gas industry. Historically, Arrow Exploration's own Financial Strength has ranged from 3.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Arrow Exploration and its competitors. Arrow Exploration's current Financial Strength is 9, which is near median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arrow Exploration stock overvalued right now?
Based on GuruFocus' analysis, Arrow Exploration (LSE:AXL) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.33, compared to a current price of £0.27 — trading 17.6% below its estimated fair value. The current Financial Strength is 9, which is near median its 10-year median of 9.00. Arrow Exploration's overall GF Score™ is 42/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Arrow Exploration (LSE:AXL), the current Financial Strength is 9 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Arrow Exploration (LSE:AXL) Overvalued in 2026?

Based on GuruFocus' analysis, Arrow Exploration stock appears to be undervalued. The current stock price of £0.27 is trading 17.6% below its estimated GF Value™ of £0.33. GuruFocus considers Arrow Exploration to be Modestly Undervalued.

Key valuation signals for LSE:AXL:

  • Financial Strength: 9 (near median its 10-year median of 9.00)
  • GF Value™: £0.33 vs. price of £0.27 (17.6% below fair value)
  • GF Score™: 42/100 with 7 warning signs

No single metric tells the full story. See the LSE:AXL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arrow Exploration Business Description

Industry EnergyOil & Gas
Other Exchanges CSTPF:USAAXL:Canada
Address 1430, 333 11th Avenue SW, Calgary, AB, CAN, T2R 1L9
Arrow Exploration Corp is engaged in oil exploration, development and production, and the acquisition of oil and gas properties. The company operates in two reportable segment: Colombia and Canada. The company generates the majority of its revenue from Colombia. Some of the company's assets are Tapir Block, Capella Field, Oso Pardo, and Santa Isabel. The Canada segment of the company is referred to as the Corporate Segment. The company generates all of its revenue from oil and natural gas sales.
42GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.27
Price
£0.33
GF Value