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Avante Logixx (TSE:XX)
:XX
Canadian Market

Avante Logixx (XX) AI Stock Analysis

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Avante Logixx

(XX)

51Neutral
Avante Logixx's overall score reflects significant financial challenges, including declining revenue and persistent losses, which weigh heavily on its performance. However, positive corporate events, such as innovative product launches and strategic growth initiatives, provide a counterbalance, indicating potential for future recovery. Technical indicators suggest mixed market sentiment, and valuation remains unattractive due to negative earnings and lack of dividends.

Avante Logixx (XX) vs. S&P 500 (SPY)

Avante Logixx Business Overview & Revenue Model

Company DescriptionAvante Logixx Inc. (XX) is a publicly traded company that operates in the security and safety sector. The company provides a comprehensive suite of security services and solutions, primarily focused on residential and commercial clients. Avante Logixx specializes in offering security monitoring, electronic security systems, and integrated security solutions tailored to meet the specific needs of its customers.
How the Company Makes MoneyAvante Logixx makes money through a diversified revenue model that includes recurring monitoring fees, installation services, and sales of security systems. Key revenue streams are generated from its security monitoring services, where clients pay monthly or annual fees for continuous security surveillance and response services. Additionally, the company earns revenue from the sale and installation of electronic security systems, such as cameras, alarms, and access control systems. Avante Logixx also benefits from partnerships with technology providers and security equipment manufacturers, which enhance its service offerings and contribute to its earnings. The company's focus on integrated security solutions allows it to capture a larger share of the market by addressing both residential and commercial security needs.

Avante Logixx Financial Statement Overview

Summary
Avante Logixx is experiencing financial challenges characterized by declining revenue, persistent losses, and cash flow difficulties. While debt levels have decreased, operational inefficiencies and negative profit margins persist. The company needs to stabilize its operations and improve profitability to enhance financial health.
Income Statement
35
Negative
Avante Logixx's revenue saw a significant decline from $91.7M in 2021 to $31.7M in TTM, indicating a -65% revenue growth over this period. The company consistently reported negative net income, with a net loss of $4.1M in TTM, resulting in a negative net profit margin. Despite improvements in gross profit margin, both EBIT and EBITDA margins remained negative, highlighting ongoing operational challenges.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio improved, reflecting reduced leverage over time, with total debt decreasing significantly. However, the equity ratio dropped from 33% in 2020 to 52% in TTM, indicating better equity financing. Despite these improvements, the company remains under pressure with consistently high liabilities relative to assets.
Cash Flow
45
Neutral
Avante Logixx's free cash flow turned negative in TTM, while operating cash flow improved from negative to slightly positive. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite losses, but free cash flow remains a concern.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
31.67M24.95M19.96M18.16M91.72M55.74M
Gross Profit
9.86M2.68M8.12M7.85M20.83M13.86M
EBIT
-2.57M-2.14M-481.39K-1.48M1.03M-3.27M
EBITDA
-1.91M-1.48M-1.62M-3.90M-2.80M-623.59K
Net Income Common Stockholders
-4.10M-3.03M32.31K-4.39M-2.90M-2.65M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.04M6.03M10.11M354.08K1.62M1.34M
Total Assets
23.96M25.17M25.58M42.94M44.11M49.10M
Total Debt
1.49M1.47M2.13M9.71M13.92M15.95M
Net Debt
-3.55M-4.56M-7.98M9.35M12.30M14.61M
Total Liabilities
11.54M11.66M8.80M26.89M32.47M34.22M
Stockholders Equity
12.46M13.53M16.78M16.05M11.63M14.51M
Cash FlowFree Cash Flow
-138.29K-1.23M-4.71M1.70M2.96M-4.90M
Operating Cash Flow
905.30K-992.58K-3.76M1.82M3.97M-4.66M
Investing Cash Flow
-997.13K-1.92M23.02M-801.21K213.02K-6.84M
Financing Cash Flow
-595.00K-1.17M-9.50M-177.65K-3.90M10.67M

Avante Logixx Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.85
Price Trends
50DMA
1.13
Negative
100DMA
1.11
Negative
200DMA
0.94
Negative
Market Momentum
MACD
-0.02
Negative
RSI
42.10
Neutral
STOCH
59.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XX, the sentiment is Negative. The current price of 0.85 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.13, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of 59.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XX.

Avante Logixx Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCTS
71
Outperform
C$1.12B-37.61%0.92%-4.18%-13856.25%
TSGSI
69
Neutral
C$41.24M151.721.37%7.57%-95.03%
TSSYZ
68
Neutral
C$165.36M-1.93%0.56%-13.99%-421.95%
62
Neutral
$7.67B13.253.04%3.47%3.63%-13.99%
TSXX
51
Neutral
C$21.32M-26.97%37.38%-41.34%
TSSEV
34
Underperform
$3.95M-347.00%-82.55%-121.91%
TSDYA
28
Underperform
C$71.31M2492.91%19.47%-9.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:XX
Avante Logixx
0.80
-0.12
-13.04%
TSE:SEV
Spectra7 Micro
0.03
-0.59
-95.90%
TSE:CTS
Converge Technology Solutions Corp
5.98
0.67
12.62%
TSE:SYZ
Sylogist
8.02
-1.42
-15.04%
TSE:GSI
Gatekeeper Systems
0.44
-0.34
-43.59%
TSE:DYA
dynaCERT
0.16
0.02
14.29%

Avante Logixx Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -19.81% | Next Earnings Date: Aug 5, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant revenue growth, improved profitability, and strategic advancements in technology and services. The company is well-positioned financially and operationally, though it faces integration challenges with recent acquisitions and a temporary decline in cash balance.
Highlights
Significant Revenue Growth
Quarterly revenues increased by 52% year-over-year, reaching $8.1 million during Q2 2025 compared to $5.3 million in Q2 2024.
Gross Profit and Margin Improvement
Gross profit increased by 64% to $3.5 million in Q2 2025 from $2.1 million in Q2 2024, with gross margin improving to 43% from 39.7%.
Positive Adjusted EBITDA
Adjusted EBITDA grew by 49% in Q2 fiscal 2025, with a consistent gain from continuing operations of $338,000 compared to $277,000 in Q2 2024.
Bank Debt-Free Status
Avante is now bank debt-free, with $12 million available in undrawn credit facilities, positioning it in a strong financial state.
Expansion of Proprietary Technologies
Deployment of proprietary Halo technology in over 160 locations, with plans for further enhancements and integration of new tech-enabled products.
High Client Retention
Maintained a minimum of 98% client retention and renewal, demonstrating strong client satisfaction and trust.
Lowlights
Decline in Cash Balance
The company's cash balance declined due to onetime costs and large prepayments, alongside a settlement with a former executive impacting cash.
Integration Challenges with NSSG
The integration of NSSG faced challenges primarily due to time constraints, with full integration expected after new back-end implementation.
Company Guidance
During the earnings call for Avante's second quarter of fiscal 2025, Emmanuel Mounouchos and Raj Kapoor provided detailed guidance on the company's financial and strategic outlook. Avante achieved a 52% year-over-year increase in quarterly revenue, reaching $8.1 million, with a gross profit increase of 64% to $3.5 million, and a gross margin of 43%. The company's adjusted EBITDA grew by 49%, and recurring monthly revenue surged by 29%, driven by the successful NSSG acquisition. Avante's financial health was highlighted by being bank debt-free and having $12 million in undrawn credit facilities. The company's strategic focus is on expanding its high net worth residential services, leveraging NSSG for comprehensive offerings, and scaling its proprietary technologies like Halo and Avante Verified. Avante's future growth trajectory is supported by a strong cash position, strategic reinvestments, and a commitment to innovation.

Avante Logixx Corporate Events

Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and Strategy
Avante Corp Launches AI-Powered Security Tower WALL-E
Positive
Mar 18, 2025

Avante Corp Inc. has launched WALL-E, a mobile, AI-powered security tower designed for remote and high-risk locations. This solar-powered system uses Avante’s Halo technology for real-time threat detection, integrating AI video analytics for facial recognition and weapon detection. The company has appointed Joshua McVey as National Sales Manager to spearhead the market expansion of WALL-E across Canada. McVey’s experience in enterprise security sales and strategic partnerships is expected to accelerate the commercial deployment of WALL-E, reinforcing Avante’s position as a leader in next-generation security solutions.

Business Operations and StrategyFinancial Disclosures
Avante Corp. Reports Strong Q3 Growth with 21% Revenue Increase
Positive
Feb 26, 2025

Avante Corp. reported a 21% increase in revenue and a 74% rise in Adjusted EBITDA for Q3 fiscal 2025, reflecting strong growth and operational efficiency. The company attributes its success to the NSSG acquisition and robust demand for its security solutions, positioning it for continued expansion and innovation in the industry.

Business Operations and StrategyFinancial Disclosures
Avante Corp Schedules Fiscal Q3 Investor Webinar
Neutral
Feb 20, 2025

Avante Corp Inc. has announced an investor webinar scheduled for February 26, 2025, where they will provide a corporate update and discuss the fiscal third quarter results. Hosted by CEO Emmanuel Mounouchos and CFO Raj Kapoor, this webinar reflects Avante’s commitment to transparency and stakeholder engagement as it continues to expand its security solutions and services globally.

Product-Related AnnouncementsBusiness Operations and Strategy
Avante Corp Introduces AI-Driven School Safety Solution in the U.S.
Positive
Feb 4, 2025

Avante Corp Inc. has launched Avante Verified, a Human-in-the-Loop security service, in the United States, aimed at revolutionizing school safety through AI-powered threat detection and human intervention. The service is currently being implemented in Artesia Public Schools, New Mexico, with plans to expand to other school boards across the nation. The company also reassures stakeholders that recently announced U.S. tariffs will have minimal impact on its operations, as their business largely operates outside the United States and does not involve shipping physical goods across the U.S.-Canada border.

Product-Related AnnouncementsFinancial Disclosures
Avante Black Sales Surge Over 100%, Boosting Security Standards
Positive
Jan 21, 2025

Avante Corp Inc. has announced a significant milestone with over a 100% increase in sales of its Avante Black division for fiscal 2025 compared to the previous year. The division, which now contributes more than 10% to the company’s total revenues, provides comprehensive security solutions, including 24/7 protection and innovative technology like the untraceable Avante Black Phone, setting new standards in the security industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.