PCI PAL (PCIP) AI Stock Analysis

• Market Cap: £42.02M
• Dividend Yield: N/A
• Average Volume (3M): 83.16K
• Price to Earnings (P/E): 966.7
• Beta (1Y): -0.15
• Revenue Growth: 25.15%
• EPS Growth: N/A
• Country: UK
• Employees: 119
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): <0.01
• Shares Outstanding: 72,452,590
• 10 Day Avg. Volume: 44,156
• 30 Day Avg. Volume: 83,162
• PEG Ratio: -8.38
• Price to Book (P/B): -30.42
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 32.13
• 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: 56 Neutral
• Price Target: 60.00p ▲(15.38% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

The overall score reflects strong corporate events and positive technical indicators, offset by financial performance challenges and high valuation concerns. The company's strategic initiatives and market momentum are promising, but profitability and valuation issues need addressing.

Positive Factors

High gross margin

An 89.45% gross margin reflects the software/security nature of PCI PAL’s business with low incremental costs to serve additional customers. This durable margin profile supports reinvestment in product development and sales, improving long-term scalability and competitive positioning.

Consistent revenue growth

Sustained top-line growth (double-digit growth reported in fundamentals and income statement) indicates ongoing market demand for payment-security solutions. Durable revenue momentum supports economies of scale, recurring revenue build, and further product adoption over the next several months.

Strategic integrations & shareholder support

Successful AGM outcomes and strategic integrations point to effective governance and partner-led distribution. These structural moves expand channel reach, accelerate deployments, and align shareholder and management incentives, improving execution capacity over the medium term.

Negative Factors

Negative equity

Negative stockholders’ equity signals accumulated losses or capital shortfalls, weakening the balance sheet. This reduces financial flexibility, may constrain access to traditional debt or equity financing, and raises solvency risk unless capital structure is repaired.

Declining free cash flow

A 41.17% drop in free cash flow materially reduces internal funding for growth and increases reliance on external financing. Persistent FCF decline undermines the company’s ability to invest, absorb shocks, and pursue strategic initiatives without raising capital.

Weak operating profitability

Very low net margin and negative EBIT/EBITDA indicate the business is not yet converting revenue into sustainable operating profits. Ongoing operating losses require funding and constrain reinvestment, making long-term margin recovery and self-sufficiency key risks.

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 through a subscription-based model, where clients pay for access to its secure payment solutions. Key revenue streams include monthly or annual fees for services, transaction fees for each payment processed, and additional charges for value-added services such as analytics and reporting. The company also benefits from partnerships with various payment service providers and telecommunications companies, which help to expand its customer base and enhance its service offerings. Furthermore, PCI PAL's focus on compliance and security in the payment processing industry positions it favorably against competitors, contributing to its revenue generation through increased demand for its services.

PCI PAL Financial Statement Overview

Summary

PCI PAL shows strong revenue growth and a high gross profit margin, but struggles with profitability due to low net profit margin and negative equity. The declining free cash flow also indicates potential cash management issues.

Income Statement

PCI PAL has shown a positive revenue growth rate of 13.53% in the latest year, indicating a strong upward trend in sales. The gross profit margin is high at 89.45%, reflecting efficient cost management. However, the net profit margin is very low at 0.18%, and EBIT and EBITDA margins are negative, indicating challenges in achieving operational profitability.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, which is a concern for financial stability. The debt-to-equity ratio is negative due to negative equity, indicating potential financial risk. However, total assets have increased, suggesting some growth in the company's asset base.

Cash Flow

Operating cash flow is positive, which is a positive sign for liquidity. However, free cash flow has decreased significantly by 41.17%, indicating potential cash management issues. The free cash flow to net income ratio is high, suggesting that the company is generating cash flow relative to its net income.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	22.48M	17.96M	14.95M	11.94M	7.36M
Gross Profit	20.11M	16.02M	11.94M	9.04M	4.82M
EBITDA	-55.00K	-248.00K	-3.69M	-2.12M	-3.26M
Net Income	41.00K	-1.18M	-4.89M	-2.94M	-4.04M
Balance Sheet
Total Assets	15.85M	15.52M	11.51M	12.95M	13.69M
Cash, Cash Equivalents and Short-Term Investments	3.92M	4.33M	1.17M	4.89M	7.52M
Total Debt	37.00K	23.00K	67.00K	109.00K	15.00K
Total Liabilities	17.02M	17.49M	15.62M	12.77M	9.76M
Stockholders Equity	-1.17M	-1.97M	-4.11M	185.00K	3.93M
Cash Flow
Free Cash Flow	1.11M	1.75M	-3.68M	-2.63M	-762.00K
Operating Cash Flow	1.16M	1.79M	-2.02M	-1.36M	198.00K
Investing Cash Flow	-1.71M	-2.03M	-1.66M	-1.27M	-960.00K
Financing Cash Flow	89.00K	3.37M	-42.00K	5.00K	3.98M

PCI PAL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.00
• 50DMA: Positive
• 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 GB:PCIP, the sentiment is Positive. The current price of 52 is below the 20-day moving average (MA) of 57.12, below the 50-day MA of 54.88, and above the 200-day MA of 50.39, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 67.69 is Neutral, neither overbought nor oversold. The STOCH value of 60.83 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
CNS	64 Neutral	£66.58M	-52.00	-9.83%	―	-5.43%	-292.31%
PAY	64 Neutral	£365.87M	23.27	16.31%	20.30%	1.58%	-57.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PCIP	56 Neutral	£42.02M	966.67	―	―	25.15%	―
SYS	51 Neutral	£11.71M	-5.47	-9.20%	―	-7.45%	78.23%
SWG	50 Neutral	£10.25M	-3.63	―	―	―	―
CLCO	41 Neutral	£776.84K	―	―	―	―	―

PCI PAL Corporate Events

PCI Pal expands global reach with new strategic reseller partnership

PCI Pal has signed a major integrated reseller partnership with a leading global vendor in business communications, AI and customer experience technology, building on prior collaboration across enterprise customers in North America, Europe and Australia. The agreement will see the partner resell PCI Pal’s secure payment and engagement solutions through its direct sales force and international partner network, expanding PCI Pal’s addressable market and reinforcing its position in the enterprise CX technology space.

Sales and marketing enablement with the new partner is already underway, with an initial pipeline of opportunities being developed and a full commercial product launch planned later in the current financial year. The partnership is intended to accelerate global growth by deepening PCI Pal’s partner ecosystem and could enhance revenue visibility and scale for the company’s cloud payment platform as it gains broader access to large enterprise customers worldwide.

The most recent analyst rating on (GB:PCIP) stock is a Hold with a £57.00 price target. To see the full list of analyst forecasts on PCI PAL stock, see the GB:PCIP Stock Forecast page.

PCI Pal Sets Date for Interim Results and Investor Briefings

PCI Pal PLC, the AIM-listed global cloud provider of secure payment solutions for business communications, will report interim results for the six months to 31 December 2025 on 3 March 2026. The company delivers SaaS-based payment security tools via AWS, supporting enterprises across multiple communication channels and regions.

Management will host an online analyst briefing at 9:30 a.m. and an investor presentation at 3:00 p.m. UK time on the day of the release. The events, run via Investor Meet Company, are intended to review results and prospects, underscoring PCI Pal’s efforts to deepen engagement with both institutional analysts and retail investors ahead of the interim update.

The most recent analyst rating on (GB:PCIP) stock is a Hold with a £56.00 price target. To see the full list of analyst forecasts on PCI PAL stock, see the GB:PCIP Stock Forecast page.

PCI Pal Posts Record ARR Growth on Strong H1 Trading and Partner-Led Expansion

PCI Pal reported a strong first half to 31 December 2025, driven by record new business wins and more efficient customer deployments that lifted annualised recurring revenue to £20.3m, up 21% year on year (25% on a constant currency basis), while contracted ARR reached £24.0m, up 18%. Revenue for the period rose 7% to £11.3m, or 14% on a normalised basis, supported by 100% cloud platform uptime, robust customer metrics with gross retention at 95% and net retention improving to 105%, and continued expansion in both SMB and enterprise segments, including deeper penetration of the US healthcare market. With £2.6m in cash, no bank debt, and growing momentum through its integrated partner ecosystem, the group enters the second half of FY26 with a strong sales pipeline and confidence in meeting its strategic objectives and board expectations.

The most recent analyst rating on (GB:PCIP) stock is a Hold with a £56.00 price target. To see the full list of analyst forecasts on PCI PAL stock, see the GB:PCIP Stock Forecast page.

PCI Pal Grants New Executive Share Options Under Long-Term Incentive Plan

PCI Pal has implemented a new long-term incentive plan by granting 1.48 million nominal-cost share options to its chief executive and chief financial officer, following shareholder approval at the company’s recent AGM. The awards, which increase total outstanding options to about 15.5% of the company’s issued share capital, will vest after three years subject to demanding share price and adjusted EBITDA targets, underlining the board’s strategy of tying executive rewards to value creation and profitability and reinforcing alignment between management and shareholders.

The most recent analyst rating on (GB:PCIP) stock is a Hold with a £53.00 price target. To see the full list of analyst forecasts on PCI PAL stock, see the GB:PCIP Stock Forecast page.