PCI PAL (PCIP) AI Stock Analysis

• Market Cap: £33.33M
• Dividend Yield: N/A
• Average Volume (3M): 47.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 20.56%
• EPS Growth: 83.30%
• Country: UK
• Employees: 119
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 72,452,590
• 10 Day Avg. Volume: 61,900
• 30 Day Avg. Volume: 47,028
• PEG Ratio: -1.07
• Price to Book (P/B): -16.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.73
• 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: £54.00
• Price Target Upside: 17.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: 49.00p ▲(6.52%Upside)

The overall stock score is primarily impacted by financial instability due to persistent net losses and negative equity. Technical analysis suggests bearish momentum, while valuation concerns arise from a negative P/E ratio and lack of dividend yield. The corporate event is positive but has less influence compared to financial and technical factors.

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: Negative
• Last Price: 46.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PCIP, the sentiment is Negative. The current price of 46 is below the 20-day moving average (MA) of 50.08, below the 50-day MA of 48.98, and below the 200-day MA of 56.71, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 25.64 is Positive, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PCIP.

PCI PAL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOKU	74 Outperform	£622.84M	216.49	2.71%	―	16.77%	-64.34%
BGO	73 Outperform	£65.69M	―	-13.63%	―	12.63%	59.24%
BKS	68 Neutral	£146.50M	61.97	6.33%	―	25.72%	290.00%
PAY	64 Neutral	£535.49M	28.73	17.90%	5.12%	1.42%	-45.88%
Sector *	63 Neutral	$34.60B	5.43	-11.64%	1.84%	5.30%	-18.55%
CNS	61 Neutral	£46.09M	128.57	2.72%	―	6.95%	―
PCIP	49 Neutral	£33.33M	―		―	20.56%	83.30%

PCI PAL Corporate Events

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.