Paragon (PGN) AI Stock Analysis

• Market Cap: €7.63M
• Dividend Yield: N/A
• Average Volume (3M): 3.57K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• Revenue Growth: -22.60%
• EPS Growth: 40.38%
• Country: DE
• Employees: 685
• Sector: Services
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): -0.08
• Shares Outstanding: 4,526,266
• 10 Day Avg. Volume: 5,508
• 30 Day Avg. Volume: 3,574
• PEG Ratio: -0.02
• Price to Book (P/B): -0.88
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 1.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: €1.50 ▼(-41.63% Downside)

Paragon's overall stock score is primarily impacted by its weak financial performance and negative valuation metrics. The technical analysis further supports a bearish outlook, with the stock trading below key moving averages and showing oversold conditions. The lack of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Strategic Partnerships

These partnerships enhance PGN's value proposition by allowing it to offer bundled services, potentially driving additional sales and strengthening market position.

Gross Profit Margin

A strong gross profit margin indicates operational efficiency, which can support long-term profitability even amid revenue challenges.

Data Analytics Services

Focusing on high-demand areas like data analytics positions PGN to capitalize on industry trends towards digital transformation, supporting future growth.

Negative Factors

Revenue Decline

Continued revenue decline challenges PGN's ability to sustain operations and invest in growth, potentially impacting long-term viability.

High Leverage

High leverage and negative equity increase financial risk, limiting PGN's flexibility to navigate economic downturns or invest in new opportunities.

Cash Flow Issues

Weak cash generation limits PGN's ability to fund operations and strategic initiatives, potentially hindering long-term growth and stability.

Paragon Business Overview & Revenue Model

Company Description

Paragon (PGN) is a multifaceted company operating primarily in the technology and digital services sectors. With a focus on delivering innovative solutions, PGN specializes in software development, cloud computing, and data analytics services. The company caters to various industries, including finance, healthcare, and retail, providing tailored products designed to enhance efficiency and drive growth for its clients.

How the Company Makes Money

Paragon generates revenue through a combination of service fees, subscription models, and project-based contracts. Key revenue streams include software licensing fees from proprietary applications, ongoing support and maintenance contracts, and consulting services aimed at helping businesses integrate technology solutions. Additionally, PGN has established strategic partnerships with major cloud service providers, allowing it to offer bundled services that enhance its value proposition and drive additional sales. The company also benefits from a growing demand for digital transformation services, which has increased its client base and revenue potential.

Paragon Financial Statement Overview

Summary

Paragon faces significant financial challenges, with declining revenues and persistent net losses. High leverage and negative equity raise concerns about financial stability. While cash flow from operations provides some support, the overall financial health is weak, necessitating strategic improvements.

Income Statement

Paragon's income statement shows a declining trend in revenue with a negative revenue growth rate of -3.99% TTM. The gross profit margin remains relatively healthy at 55.11% TTM, but the net profit margin is negative at -3.93% TTM, indicating ongoing losses. EBIT and EBITDA margins are low, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio of -7.13 TTM, due to negative stockholders' equity. Return on equity is positive at 67.72% TTM, but this is skewed by the negative equity, indicating potential financial instability.

Cash Flow

Cash flow analysis shows a decline in free cash flow by -21.37% TTM, but operating cash flow remains positive. The operating cash flow to net income ratio is 0.24 TTM, suggesting some ability to cover net losses with cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.33M	139.03M	173.71M	164.96M	151.24M	150.49M
Gross Profit	54.18M	71.76M	84.57M	75.84M	86.04M	67.48M
EBITDA	17.45M	17.82M	17.62M	9.91M	12.65M	6.37M
Net Income	-5.48M	-6.11M	-3.81M	-8.68M	-5.50M	-44.67M
Balance Sheet
Total Assets	98.35M	98.32M	108.52M	172.54M	159.67M	200.50M
Cash, Cash Equivalents and Short-Term Investments	7.28M	5.38M	3.21M	18.11M	1.46M	5.66M
Total Debt	66.91M	69.35M	72.50M	120.13M	115.88M	135.62M
Total Liabilities	106.61M	108.27M	112.60M	171.88M	156.37M	187.26M
Stockholders Equity	-9.73M	-9.95M	-4.08M	662.00K	3.30M	7.44M
Cash Flow
Free Cash Flow	2.24M	5.20M	-13.76M	8.26M	-2.73M	5.94M
Operating Cash Flow	9.70M	15.96M	-6.16M	15.98M	14.81M	18.75M
Investing Cash Flow	-8.86M	-10.43M	38.14M	-3.88M	1.68M	-12.62M
Financing Cash Flow	-1.46M	-4.35M	-46.88M	4.54M	-20.53M	-9.93M

Paragon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:PGN, the sentiment is Negative. The current price of 2.57 is above the 20-day moving average (MA) of 1.94, above the 50-day MA of 2.21, and above the 200-day MA of 2.29, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 26.05 is Positive, neither overbought nor oversold. The STOCH value of 43.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:PGN.

Paragon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWO	72 Outperform	€91.25M	8.01	7.17%	5.99%	-4.01%	-10.36%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
IS7	55 Neutral	€9.12M	-2.22	-22.94%	―	-11.97%	-76.11%
SF3	45 Neutral	€20.38M	-33.98	-1.36%	1.58%	4.55%	45.49%
MSAG	43 Neutral	€37.08M	-5.05	-11.55%	―	-40.37%	-406.54%
HGEA	41 Neutral	€14.77M	-0.80	-35.15%	―	-10.38%	-19.93%
PGN	38 Underperform	€7.63M	-1.40	―	―	-22.60%	40.38%