Pyxus International (PYYX) AI Stock Analysis

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Pyxus International

(OTC:PYYX)

56Neutral

Pyxus International's stock score reflects a mixed financial situation with moderate valuation and technical indicators. The most significant strengths are in its recent earnings performance and forward guidance, highlighting strong revenue growth. However, high leverage and liquidity issues remain key risks. The stock's technical outlook is neutral to bearish, impacting its overall attractiveness.

Pyxus International (PYYX) vs. S&P 500 (SPY)

Market Cap

N/A

Dividend YieldN/A

Average Volume (3M)351.00

Price to Earnings (P/E)9.7

Beta (1Y)0.34

Revenue Growth16.81%

EPS GrowthN/A

CountryUS

Employees3,000

SectorIndustrials

Sector Strength83

IndustryTobacco

Share Statistics

EPS (TTM)0.74

Shares Outstanding24,607,792

10 Day Avg. Volume220

30 Day Avg. Volume351

Financial Highlights & Ratios

PEG Ratio0.03

Price to Book (P/B)0.60

Price to Sales (P/S)0.00

P/FCF Ratio-0.49

Enterprise Value/Market CapN/A

Enterprise Value/Revenue0.12

Enterprise Value/Gross Profit3.22

Enterprise Value/Ebitda1.52

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Pyxus International Business Overview & Revenue Model

Company DescriptionPyxus International, Inc. is a global agricultural company that focuses on the production and supply of high-quality, sustainable tobacco, e-liquids, and industrial hemp. The company operates through a network of subsidiaries and is dedicated to providing responsibly grown products. Pyxus is committed to innovation and diversification in its sectors, which include tobacco, e-liquids, and industrial hemp, to meet the evolving demands of consumers worldwide.

How the Company Makes MoneyPyxus International generates revenue primarily through the sale of its tobacco products, which include both leaf tobacco and processed tobacco. The company sources tobacco from a variety of global regions, which it then processes and sells to cigarette manufacturers and other tobacco product companies. In addition to its core tobacco operations, Pyxus has ventured into the production and sale of e-liquids and industrial hemp products, capitalizing on emerging markets and consumer trends. The company's revenue model benefits from its extensive supply chain, global reach, and strategic partnerships with major players in the tobacco and agricultural industries. These partnerships, along with a focus on sustainable and responsible agricultural practices, contribute significantly to its earnings.

Pyxus International Financial Statement Overview

Summary

Pyxus International shows moderate financial performance with improving net profitability and operational efficiency. However, high leverage and negative cash flows represent significant risks. Improvements in equity returns are encouraging, but liquidity and leverage issues need addressing.

Income Statement

Positive

Pyxus International shows moderate performance in its income statement. The TTM Gross Profit Margin is 19.53%, indicating reasonably efficient production. The Net Profit Margin improved to 0.60% TTM from previous negative margins, reflecting a positive turnaround. Revenue has experienced fluctuations with a recent annual decline, highlighting potential instability. EBIT and EBITDA margins are relatively stable but modest, suggesting limited operational profitability.

Balance Sheet

Neutral

The balance sheet indicates significant leverage with a Debt-to-Equity Ratio of 6.74 TTM, highlighting high financial risk. The Equity Ratio stands at 9.41% TTM, suggesting low equity financing. However, ROE improved to 6.32% TTM, showing better utilization of equity. Overall, the company faces high leverage risk, but recent improvements in equity returns are positive.

Cash Flow

Negative

Pyxus International's cash flow analysis reveals challenges, with negative Free Cash Flow and Operating Cash Flow indicating liquidity issues. The Operating Cash Flow to Net Income Ratio is negative, suggesting difficulties in translating earnings into cash. Although there's been Free Cash Flow improvement, sustained negative cash flow raises concerns about long-term sustainability.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
2.38B	2.03B	1.91B	1.64B	1.33B	1.53B
	Gross Profit
335.73M	312.33M	261.02M	227.06M	151.46M	224.68M
	EBIT
155.15M	137.19M	93.78M	65.26M	-36.10M	33.75M
	EBITDA
189.10M	160.18M	117.20M	97.57M	6.10M	24.22M
	Net Income Common Stockholders
10.24M	2.66M	-56.75M	-92.00M	-117.65M	-276.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.34M	92.57M	136.73M	198.78M	92.70M	170.21M
	Total Assets
1.72B	1.66B	1.58B	1.70B	1.54B	1.76B
	Total Debt
1.09B	1.05B	1.04B	1.10B	964.57M	1.53B
	Net Debt
987.58M	959.01M	898.62M	904.84M	871.86M	1.36B
	Total Liabilities
1.55B	1.51B	1.44B	1.52B	1.29B	1.84B
	Stockholders Equity
161.92M	142.28M	137.85M	175.28M	247.67M	-78.00M
Cash Flow		Free Cash Flow
-191.63M	-236.01M	-154.13M	-213.59M	-250.92M	-422.92M
	Operating Cash Flow
-169.82M	-214.97M	-137.82M	-198.76M	-226.54M	-358.62M
	Investing Cash Flow
173.50M	159.45M	154.94M	181.24M	133.48M	181.35M
	Financing Cash Flow
18.62M	25.56M	-83.00M	123.26M	14.35M	159.88M

Pyxus International Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price3.82

Price Trends

50DMA

4.09

Negative

100DMA

3.56

Positive

200DMA

3.16

Positive

Market Momentum

MACD

-0.05

Negative

RSI

45.38

Neutral

STOCH

16.20

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PYYX, the sentiment is Neutral. The current price of 3.82 is below the 20-day moving average (MA) of 3.88, below the 50-day MA of 4.09, and above the 200-day MA of 3.16, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PYYX.

Pyxus International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MO	73 Outperform	$95.93B	9.53	-503.31%	6.80%	-1.03%	25.20%
UVV	70 Outperform	$1.40B	11.32	8.79%	5.58%	12.88%	-5.64%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
BTI	61 Neutral	$91.26B	23.84	5.87%	7.06%	-2.51%	―
TPB	58 Neutral	$1.33B	32.54	27.53%	0.38%	3.17%	-2.23%
PYYX	56 Neutral		9.68	6.49%	―	16.81%	―
XXII	39 Underperform	$2.54M	―	-385.90%	―	-65.44%	96.80%

* Industrials Sector Average

Performance Comparison

PYYX

Pyxus International

3.85

0.35

10.00%

Altria Group

56.95

15.30

36.73%

BTI

British American Tobacco

40.98

12.48

43.79%

UVV

Universal

56.75

6.40

12.71%

XXII

22nd Century

1.07

-206.83

-99.49%

TPB

Turning Point Brands

69.97

36.06

106.34%

Pyxus International Earnings Call Summary

Earnings Call Date:Feb 12, 2025

(Q3-2025)

% Change Since: 41.48%|

Next Earnings Date:Jun 04, 2025

Earnings Call Sentiment Positive

The overall sentiment of the call is positive, highlighting strong revenue growth, increased EBITDA guidance, and effective inventory management. Although there are some challenges with gross profit margin declines and increased SG&A expenses, the positive achievements and strategic efforts outweigh the lowlights.

Q3-2025 Updates

Positive Updates

Significant Revenue Growth

Revenues for the third quarter were $778 million, a 47% increase compared to the same period last year, driven by a 20% increase in average sales price and a 24% increase in volumes sold.

Increased EBITDA Guidance

The company increased its full-year adjusted EBITDA guidance to a range of $205 million to $215 million, reflecting confidence in sustained performance.

Sustainability Achievements

Reduction of indirect emissions by 16% since fiscal 2021, equivalent to more than 155 million pounds of coal burnt.

Strong Cash Flow and Inventory Management

Generated $144 million of adjusted free cash flow and reduced total processed tobacco inventory level to $603 million from $659 million in the prior year.

Negative Updates

Gross Profit Margin Decline

Gross profit as a percentage of revenues decreased from 17.5% in Q3 FY2024 to 15% in Q3 FY2025, due to regional mix and adverse weather effects of El Nino.

SG&A Expenses Increase

SG&A expenses increased to $47 million in Q3 FY2025 from $42 million in Q3 FY2024, reflecting continued careful management of these expenses.

Company Guidance

In the Pyxus third quarter fiscal year 2025 earnings call, the company reported substantial financial growth, with third-quarter revenues reaching $778 million, marking a 47% increase from the previous year, and cumulative nine-month revenues hitting $2 billion. Adjusted EBITDA for the third quarter was $81 million, with the nine-month figure at $180 million. Consequently, Pyxus has raised its full-year adjusted EBITDA guidance to a range of $205 million to $215 million and projects full-year revenues between $2.4 billion and $2.55 billion. The company also noted a 20% increase in average sales price and a 24% rise in volumes sold, primarily due to proactive purchasing strategies and improvements in shipping logistics. Moreover, gross profit for the third quarter increased to $117 million, with an average gross profit per kilo rising to $0.91. Despite challenges from the El Nino weather phenomenon, the company effectively leveraged its global footprint to mitigate risks and drive performance improvements, which is expected to continue into fiscal 2026 with anticipated larger crop sizes and favorable market conditions.

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.