Paragon (PGN) AI Stock Analysis

• Market Cap: €11.63M
• Dividend Yield: N/A
• Average Volume (3M): 2.08K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: -22.97%
• EPS Growth: 20.72%
• Country: DE
• Employees: 685
• Sector: Services
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): -0.13
• Shares Outstanding: 4,526,266
• 10 Day Avg. Volume: 1,905
• 30 Day Avg. Volume: 2,081
• 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: 44 Neutral
• Price Target: €2.50 ▼(-2.72% Downside)

Paragon's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, persistent net losses, and high leverage. Technical analysis provides mixed signals, with bearish momentum but no overbought conditions. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Paragon Business Overview & Revenue Model

Company Description

Paragon (PGN) is a diversified technology company specializing in innovative software solutions and digital services across various sectors, including finance, healthcare, and logistics. The company offers a range of core products such as cloud-based applications, data analytics tools, and enterprise resource planning (ERP) systems designed to enhance operational efficiency and drive digital transformation for its clients.

How the Company Makes Money

Paragon generates revenue through multiple streams, primarily by offering subscription-based software services, which provide ongoing income as clients pay for access to their platforms. Additionally, the company earns money from consulting services that help organizations implement and optimize its software solutions. Key partnerships with industry leaders in technology and service sectors further enhance its revenue potential by expanding market access and enabling joint ventures. Furthermore, the company may also derive income from licensing its intellectual property and technology to third parties, creating additional avenues for revenue generation.

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	122.48M	139.03M	173.71M	164.96M	151.24M	150.49M
Gross Profit	68.93M	71.76M	84.57M	75.84M	86.04M	67.48M
EBITDA	17.76M	17.82M	17.62M	9.91M	12.65M	6.37M
Net Income	-5.09M	-6.11M	-3.81M	-8.68M	-5.50M	-44.67M
Balance Sheet
Total Assets	101.46M	98.32M	108.52M	172.54M	159.67M	200.50M
Cash, Cash Equivalents and Short-Term Investments	9.65M	5.38M	3.21M	18.11M	1.46M	5.66M
Total Debt	68.56M	69.35M	72.50M	120.13M	115.88M	135.62M
Total Liabilities	109.36M	108.27M	112.60M	171.88M	156.37M	187.26M
Stockholders Equity	-7.90M	-9.95M	-4.08M	662.00K	3.30M	7.44M
Cash Flow
Free Cash Flow	4.01M	5.20M	-13.76M	8.26M	-2.73M	5.94M
Operating Cash Flow	15.26M	15.96M	-6.16M	15.98M	14.81M	18.75M
Investing Cash Flow	-10.90M	-10.43M	38.14M	-3.88M	1.68M	-12.62M
Financing Cash Flow	-1.83M	-4.35M	-46.88M	4.54M	-20.53M	-9.93M

Paragon Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:PGN, the sentiment is Neutral. The current price of 2.57 is above the 20-day moving average (MA) of 2.56, below the 50-day MA of 2.66, and above the 200-day MA of 2.31, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 33.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:PGN.

Paragon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWO	69 Neutral	€91.87M	8.21	7.01%	6.08%	-4.25%	-22.32%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
HGEA	46 Neutral	€19.03M	-0.97	-35.15%	―	-10.38%	-19.93%
SF3	45 Neutral	€24.12M	-40.22	-1.36%	1.36%	4.55%	45.49%
PGN	44 Neutral	€11.63M	―	―	―	-22.97%	20.72%
IS7	43 Neutral	€7.43M	-1.89	-21.88%	―	-18.91%	-171.87%
MSAG	43 Neutral	€41.27M	-5.66	-11.55%	―	-40.37%	-406.54%