Plaintree Systems (NPT) AI Stock Analysis

Plaintree Systems

(CNQX:NPT)

Select Model

Rating:53Neutral

Price Target:CAD 0.07▼(-47.20% Downside)

Action:reiterated

Date:03/13/26

NPT receives a neutral-to-weak score driven primarily by significant financial headwinds: declining revenue, ongoing losses, and extreme leverage (5.1x debt-to-equity) create substantial business risk despite a compelling valuation multiple. The positive cash flow trend and low P/E ratio provide limited upside offset. The stock appears to be pricing in severe distress; while technical indicators are mixed and lack strong conviction, the fundamental deterioration in profitability and balance sheet instability outweigh valuation appeal. Investors should approach with caution pending evidence of sustained operational stabilization.

Positive Factors

Cash generationSustained positive operating and free cash flow indicate the business converts sales to cash reliably. Over a multi-month horizon this supports working capital, funds modest reinvestment and reduces reliance on equity raises, improving the firm's ability to operate through cyclical pressures.

Negative Factors

High leverageVery elevated debt-to-equity (~5.1x) leaves the company highly sensitive to any cash-flow or revenue setbacks. Structurally high leverage constrains strategic flexibility, increases refinancing risk and interest burden, and amplifies downside risk over the coming months.

Plaintree Systems (NPT) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 904.77K
Dividend Yield: ―
Average Volume (3M): 8,327
Price to Earnings (P/E): 1.5
Beta (1Y): 0.24
Revenue Growth: -20.38%
EPS Growth: ―
Country: Canada
Employees: 60
Sector: Industrials
Sector Strength: 63
Industry: Conglomerates

Plaintree Systems Business Overview & Revenue Model

Company Description

Plaintree Systems Inc. specializes in the engineering, fabrication, marketing, and support of both electronic and distinctive structural products, catering to clients in Canada, the United States, and internationally. The company manufactures various...

How the Company Makes Money

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Plaintree Systems Financial Statement Overview

Summary

Weak overall financial performance with declining revenue (-9.5% TTM), negative profitability ($0.4M loss), and deeply negative ROE (-100%). However, TTM operating cash flow of $2.5M and 226% free cash flow growth provide a stabilizing factor, suggesting potential operational turnaround despite balance sheet stress and profitability challenges.

Income Statement

32Negative

Balance Sheet

25Negative

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	19.66M	23.85M	24.20M	19.94M	16.19M	12.66M
Gross Profit	5.17M	4.57M	7.64M	4.14M	3.88M	3.70M
EBITDA	-103.21K	148.10K	2.89M	-300.47K	1.46M	2.08M
Net Income	-864.17K	-1.81M	1.07M	-1.94M	-201.88K	844.26K
Balance Sheet
Total Assets	9.80M	13.86M	14.98M	16.13M	18.05M	12.05M
Cash, Cash Equivalents and Short-Term Investments	0	0	0	1.91M	1.91M	2.07M
Total Debt	7.16M	5.83M	6.24M	7.21M	6.79M	2.34M
Total Liabilities	9.24M	14.78M	14.09M	16.31M	16.28M	10.08M
Stockholders Equity	557.21K	-916.67K	894.08K	-177.82K	1.77M	1.97M
Cash Flow
Free Cash Flow	2.90M	501.66K	1.01M	-1.14M	835.74K	1.07M
Operating Cash Flow	3.26M	1.06M	1.58M	-594.92K	1.29M	1.52M
Investing Cash Flow	-366.91K	-557.37K	-568.94K	-543.20K	-701.39K	-450.15K
Financing Cash Flow	-2.33M	-1.32M	-1.80M	-1.87M	-743.05K	-503.78K

Plaintree Systems Technical Analysis

Technical Analysis SentimentPositive

Last Price0.13

Price Trends

50DMA0.11Positive

100DMA0.09Positive

200DMA0.07Positive

Market Momentum

MACD-0.00Positive

RSI59.03Neutral

STOCH22.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NPT, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NPT.

Plaintree Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

TSE:NPT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TSE:DE	57Neutral	CAD 164.60M	56.00	4.86%	6.97%	5.45%	-53.31%
TSE:NPT	53Neutral	CAD 1.62M	1.46	267.48%	―	-20.38%	―
TSE:DCM	53Neutral	CAD 137.65M	28.15	10.60%	4.52%	-4.58%	-36.77%
TSE:SHRC	41Neutral	CAD 14.04M	-3.92	109.61%	―	-22.75%	5.86%
TSE:LUX	36Underperform	CAD 6.61M	-4.05	-81.72%	―	-73.73%	-88.55%

* Industrials Sector Average

Performance Comparison

TSE:NPT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:NPT	Plaintree Systems	0.13	0.04	56.25%
TSE:DCM	Data Commun Management	2.21	0.96	76.94%
TSE:DE	Decisive Dividend	7.75	0.26	3.47%
TSE:SHRC	Sharc International Systems Inc.	0.09	0.01	6.25%
TSE:LUX	Newlox Gold Ventures	0.03	-0.02	-40.00%

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: Mar 13, 2026

Plaintree Systems AI Stock Analysis