PCI PAL (PCIP) AI Stock Analysis

• Market Cap: £34.20M
• Dividend Yield: N/A
• Average Volume (3M): 73.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 20.56%
• EPS Growth: 83.30%
• Country: UK
• Employees: 119
• Sector: Technology
• Sector Strength: 98
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 72,452,590
• 10 Day Avg. Volume: 111,691
• 30 Day Avg. Volume: 73,482
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £50.00
• Price Target Upside: 5.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: 50.00p ▲(5.93% Upside)

The overall stock score is primarily influenced by financial performance and corporate events. While financial instability and profitability challenges are concerning, the company's strong revenue growth and positive cash flow management are promising. The recent corporate events, including leadership confidence and new product launches, add significant positive sentiment. However, valuation and technical analysis suggest caution due to ongoing losses and lack of strong price momentum.

PCI PAL Business Overview & Revenue Model

Company Description

PCI-PAL PLC, through its subsidiaries, provides payment card industry (PCI) compliance solutions and telephony services primarily in the United Kingdom, European Union, North America, the Asia Pacific, and the Middle East. It offers data secure payment card authorizations for call center operations; and Agent Assist, a PCI compliant solution to enhance contact center customer experience. The company also provides IVR payments solution that empowers customers to make payments 24/7; Rapid Remote, a PCI compliant business continuity payment service; and PCI Pal Digital, an omnichannel secure payment solution. It serves clients in utilities, leisure, financial services, retail, logistics, and public sectors, as well as business process outsourcers and not for profit organizations. The company was formerly known as IPPlus plc and changed its name to PCI-PAL PLC in October 2016. PCI-PAL PLC was incorporated in 1999 and is headquartered in Ipswich, the United Kingdom.

How the Company Makes Money

PCI Pal generates revenue primarily through a Software as a Service (SaaS) model, whereby businesses subscribe to its secure payment solutions on a recurring basis. The company offers a suite of products that integrate with existing customer service and payment systems, charging clients based on the number of transactions processed or through fixed subscription fees. Key revenue streams include subscription fees for its cloud-based security services and transaction-based fees from the usage of its products. Additionally, PCI Pal may engage in strategic partnerships with contact center software providers and payment processors, enhancing its market reach and contributing to its revenue through collaborative offerings.

PCI PAL Financial Statement Overview

Summary

While PCI PAL exhibits strong revenue growth and improved cash flow management, persistent net losses and negative equity present significant financial instability. The company needs to address profitability and stabilize its balance sheet.

Income Statement

PCI PAL has demonstrated impressive revenue growth, notably a 20.17% increase from 2023 to 2024. The gross profit margin is robust at 89.20% in 2024, indicating strong cost management. However, the company continues to incur net losses, with a net profit margin of -6.56% in 2024, suggesting the need for improved profitability.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity of -$1.97 million in 2024, indicating financial instability. The equity ratio is negative, highlighting a potential risk of insolvency. The company has minimal debt, which is advantageous, but the negative equity presents a significant risk factor.

Cash Flow

PCI PAL has significantly improved its operating cash flow, moving from a deficit to a positive $1.83 million in 2024. The free cash flow, although negative, has improved substantially. The operating cash flow to net income ratio is positive, indicating efficient cash flow management relative to net income.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	17.96M	14.95M	11.94M	7.36M	4.40M
Gross Profit	16.02M	11.94M	9.04M	4.82M	2.50M
EBITDA	-248.00K	-3.69M	-2.12M	-3.26M	-3.68M
Net Income	-1.18M	-4.89M	-2.94M	-4.04M	-4.13M
Balance Sheet
Total Assets	15.52M	11.51M	12.95M	13.69M	9.25M
Cash, Cash Equivalents and Short-Term Investments	4.33M	1.17M	4.89M	7.52M	4.30M
Total Debt	23.00K	67.00K	109.00K	15.00K	1.32M
Total Liabilities	17.49M	15.62M	12.77M	9.76M	7.34M
Stockholders Equity	-1.97M	-4.11M	185.00K	3.93M	1.91M
Cash Flow
Free Cash Flow	-235.00K	-3.68M	-2.63M	-762.00K	-3.00M
Operating Cash Flow	1.83M	-2.02M	-1.36M	198.00K	-1.66M
Investing Cash Flow	-2.03M	-1.66M	-1.27M	-960.00K	-1.33M
Financing Cash Flow	3.37M	-42.00K	5.00K	3.98M	5.81M

PCI PAL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PCIP, the sentiment is Positive. The current price of 47.2 is above the 20-day moving average (MA) of 46.24, below the 50-day MA of 48.70, and below the 200-day MA of 56.41, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 67.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PCIP.

PCI PAL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOKU	78 Outperform	£667.54M	231.96	2.71%	―	16.77%	-64.34%
BKS	74 Outperform	£147.51M	62.39	6.33%	―	25.72%	290.00%
BGO	70 Neutral	£65.31M	―	-13.63%	―	12.63%	59.24%
Sector *	63 Neutral	S$716.39M	16.99	1.51%	4.20%	-1.14%	-27.78%
CNS	60 Neutral	£49.94M	139.29	2.72%	―	6.95%	―
PAY	60 Neutral	£509.36M	27.41	17.90%	4.30%	1.42%	-46.02%
PCIP	60 Neutral	£34.20M	―		―	20.56%	83.30%

PCI PAL Corporate Events

PCI Pal Directors Increase Shareholdings, Signaling Confidence in Future Prospects

PCI Pal PLC announced that its directors have purchased a total of 286,342 shares over the past two days, with the latest transaction involving 175,401 shares. This move indicates a strong vote of confidence from the company’s leadership in its future prospects and may positively influence stakeholder perception, potentially strengthening PCI Pal’s position in the secure payment solutions industry.

PCI Pal CEO Increases Stake, Signaling Confidence in Company’s Future

PCI Pal PLC announced that its CEO, James Barham, has increased his stake in the company by purchasing 110,941 ordinary shares at 45 pence each, raising his total interest to 0.51% of the company’s voting rights. This move could signal confidence in the company’s future prospects and may positively impact stakeholder perception, as it reflects leadership’s commitment to the company’s growth and stability.

PCI Pal PLC Reports Strong FY25 Growth and Strategic Expansion Plans

PCI Pal PLC reported a strong fiscal year 2025 with a 25% increase in annual recurring revenue (ARR) and revenues aligning with market expectations. The company plans to continue its growth trajectory by launching new products, including an AI-powered fraud risk scoring tool, and increasing investments in marketing and engineering to support long-term ARR growth of 18-20% annually through FY27. Despite facing foreign exchange headwinds, PCI Pal remains confident in its strategic plan and market positioning, aiming to capitalize on the expanding global cloud contact center solutions market.

PCI Pal Launches AI-Powered Fraud Risk Scoring Product

PCI Pal has launched an AI-powered fraud risk scoring product as part of its new Fraud Management Product Suite for contact centers, aimed at combating the rising threat of card-not-present payment fraud. Developed in partnership with Telesign, the product provides real-time fraud risk scores to guide contact center agents towards secure payment methods, reducing chargebacks and protecting revenue without disrupting the payment process. This innovation positions PCI Pal to address the increasing fraud risks associated with the growing use of conversational AI in contact centers, with plans to expand its fraud detection and prevention offerings in the future.

PCI Pal Strengthens Board with New Appointment

PCI Pal has announced a significant change to its board of directors, appointing Andrew Lockwood as a Non-Executive Director and Chair of the Remuneration Committee. With over 30 years of experience in technology, telecommunications, and healthcare, Lockwood is expected to bring substantial commercial strength and expertise to the board, supporting PCI Pal’s growth strategy. This appointment follows the retirement of Jason Starr, who has completed his nine-year term. The strategic board change is anticipated to bolster PCI Pal’s industry positioning and operational growth.

PCI Pal Expands Equity with New Share Issuance

PCI Pal, a global cloud provider of secure payment solutions, has announced the issuance of 10,000 new ordinary shares following an employee’s exercise of options. These shares will be admitted to trading on AIM, increasing the company’s total voting rights to 72,452,589. This move is part of PCI Pal’s ongoing efforts to enhance its market presence and operational capabilities, potentially impacting shareholder interests and compliance with FCA regulations.