Pioneer Power Solutions (PPSI) AI Stock Analysis

• Market Cap: $49.93M
• Dividend Yield: N/A
• Average Volume (3M): 124.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 59
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.11
• Shares Outstanding: 11,095,266
• 10 Day Avg. Volume: 140,732
• 30 Day Avg. Volume: 124,334
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: -3.16
• 1Y Price Target: $10.50
• Price Target Upside: 133.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $4.50 ▲(0.00% Upside)

Pioneer Power Solutions' overall score reflects strong earnings call insights and moderate technical indicators, offset by financial performance challenges and valuation concerns. The company's strategic growth initiatives and strong balance sheet are positive, but operational inefficiencies and cash flow issues need addressing.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong demand and successful execution of strategic initiatives, positioning the company for continued expansion.

Strategic Partnerships

Partnerships like the one with SparkCharge enhance market reach and product offerings, supporting long-term growth in the EV charging sector.

Product Expansion

The launch of new products like HOMe-Boost expands market opportunities and diversifies revenue streams, fostering sustainable growth.

Negative Factors

Operational Inefficiencies

Negative EBIT and EBITDA margins suggest challenges in cost management and operational efficiency, potentially impacting profitability.

Cash Flow Challenges

Negative cash flows highlight difficulties in converting income into cash, which can strain liquidity and limit investment capabilities.

Declining Backlog

A declining backlog may indicate future revenue challenges, as fewer orders could lead to reduced sales and growth prospects.

Pioneer Power Solutions Business Overview & Revenue Model

Company Description

Pioneer Power Solutions, Inc., together with its subsidiaries, designs, manufactures, sells, and services electric power systems, distributed energy resources, used and new power generation equipment, and mobile EV charging solutions in the United States, Canada, and internationally. The company operates in two segments, Transmission & Distribution Solutions and Critical Power Solutions. The Transmission & Distribution Solutions segment provides electric power systems, including e-Bloc, and distributed energy resources that help customers effectively and efficiently protect, control, transfer, monitor, and manage their electric energy requirements. It also provides low voltage switchgears and transfer switches. The Critical Power Solutions segment provides new and used power generation equipment, and aftermarket field-services to ensure smooth and uninterrupted power to operations during times of emergency. The company serves utility, industrial, commercial, and backup power markets. The company was incorporated in 2008 and is headquartered in Fort Lee, New Jersey. Pioneer Power Solutions, Inc. is a subsidiary of Provident Pioneer Partners, L.P.

How the Company Makes Money

Pioneer Power Solutions generates revenue through multiple key streams, including the sale of power management equipment and systems, engineering services, and maintenance contracts. The company earns significant income from direct product sales, particularly in the renewable energy and energy storage markets, where demand is growing due to the global shift towards sustainable energy solutions. Additionally, PPSI has established strategic partnerships with various utility companies and energy providers, which not only expand its market reach but also create opportunities for joint projects and collaborations. The recurring revenue from service contracts and maintenance agreements further contributes to the company's financial stability.

Pioneer Power Solutions Financial Statement Overview

Summary

Pioneer Power Solutions faces significant challenges with declining revenues and negative cash flows, which are concerning for long-term sustainability. However, the company maintains a strong equity position with low leverage, providing some stability. The high return on equity is a positive indicator but is primarily driven by non-operational factors. Overall, the financial health of the company is mixed, with notable risks in operational performance and cash flow generation.

Income Statement

Pioneer Power Solutions has experienced a decline in revenue from $41.49M in 2023 to $21.03M TTM, indicating a significant revenue contraction. The gross profit margin stands at 18.7% TTM, which is relatively low. The company has a negative EBIT margin of -30.8% TTM, reflecting operational inefficiencies. Despite a positive net income of $31.96M TTM, largely due to non-operational factors, the overall profitability remains weak.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.02 TTM, indicating low leverage. The equity ratio is 72.7% TTM, suggesting a solid capital structure. However, the company's total assets have decreased, which may limit future growth opportunities. The return on equity is high at 92.6% TTM, driven by the positive net income.

Cash Flow

The company has a negative operating cash flow of -$2.76M TTM, indicating challenges in generating cash from operations. Free cash flow is also negative at -$6.90M TTM. The free cash flow to net income ratio is negative, highlighting a disconnect between reported earnings and cash generation. Despite these challenges, the company has a substantial cash reserve, which provides some financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.06M	22.88M	41.49M	27.00M	18.31M	19.49M
Gross Profit	4.59M	5.51M	8.35M	4.61M	1.39M	881.00K
EBITDA	-4.23M	-4.18M	-1.24M	-4.68M	-3.42M	-3.82M
Net Income	32.92M	31.86M	-1.90M	-3.64M	-2.17M	-2.99M
Balance Sheet
Total Assets	39.12M	65.95M	33.02M	37.17M	27.93M	21.29M
Cash, Cash Equivalents and Short-Term Investments	18.00M	41.62M	3.58M	10.30M	9.92M	7.57M
Total Debt	849.00K	775.00K	1.21M	2.27M	1.42M	1.41M
Total Liabilities	6.08M	30.52M	18.80M	20.24M	8.38M	7.43M
Stockholders Equity	33.04M	35.43M	14.22M	16.93M	19.55M	13.86M
Cash Flow
Free Cash Flow	-12.68M	-9.97M	-6.39M	-7.16M	-2.58M	-3.61M
Operating Cash Flow	-8.80M	-6.21M	-3.90M	-5.65M	-2.34M	-3.61M
Investing Cash Flow	36.55M	38.88M	-2.50M	4.72M	-237.00K	2.63M
Financing Cash Flow	-16.27M	5.38M	-323.00K	-479.00K	7.56M	337.00K

Pioneer Power Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPSI, the sentiment is Positive. The current price of 4.5 is below the 20-day moving average (MA) of 4.50, above the 50-day MA of 4.24, and above the 200-day MA of 3.39, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPSI.

Pioneer Power Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PPSI	55 Neutral	$49.93M	―	―	―	―	―
GWH	54 Neutral	$88.47M	-0.72	-207.48%	―	-16.98%	2.43%
POLA	50 Neutral	$9.72M	-2.12	-49.34%	―	0.13%	45.00%
DFLI	49 Neutral	$154.61M	―	―	―	4.80%	16.72%
IPWR	47 Neutral	$48.18M	―	-64.46%	―	-86.56%	20.19%

Pioneer Power Solutions Corporate Events

Pioneer Power Solutions: Earnings Call Highlights Growth and Strategic Advances

Pioneer Power Solutions recently held its earnings call, revealing a positive sentiment driven by significant revenue growth and strategic advancements. Despite challenges such as a reduction in backlog and ongoing operating losses, the company is poised for future growth with new product launches and strategic partnerships.

Pioneer Power Solutions Sees Strong Revenue Growth in Q2 2025

Pioneer Power Solutions, Inc. is a company specializing in the design, manufacture, and integration of distributed energy resources, power generation equipment, and mobile electric vehicle charging solutions, serving utility, industrial, and commercial markets.