Petards (PEG) AI Stock Analysis

• Market Cap: £5.16M
• Dividend Yield: N/A
• Average Volume (3M): 11.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 27.50%
• EPS Growth: -5.38%
• Country: UK
• Employees: 87
• Sector: Industrials
• Sector Strength: 77
• Industry: Security & Protection Services
• EPS (TTM): >-0.01
• Shares Outstanding: 60,705,040
• 10 Day Avg. Volume: 7,687
• 30 Day Avg. Volume: 11,726
• 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: £9.00
• Price Target Upside: 5.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: 9.00p ▲(5.88% Upside)

Petards' stock score is driven by strong corporate events that bolster its market position and revenue potential. However, financial performance and valuation concerns, including negative profitability and cash flow issues, weigh down the score. Technical analysis shows positive momentum, providing some optimism for future performance.

Petards Business Overview & Revenue Model

Company Description

Petards Group plc, together with its subsidiaries, develops, supplies, and maintains technologies used in advanced security, surveillance, and ruggedized electronic applications in the United Kingdom, Continental Europe, and internationally. It offers rail technology solutions, such as eyeTrain, a solution for digital on-train surveillance subsystem; and RTS, a solution that provides safety and efficiency of railways with crucial resource, asset, safety, and failure management software. The company also provides traffic technologies that include ProVida mobile speed enforcement, an in-car surveillance and speed enforcement technology solutions; and Hawk ANPR, an automatic number plate recognition (ANPR) technology camera that manages issues related to access control, parking enforcement, level cross monitoring, traffic management, and law enforcement. In addition, it offers mobile ANPR solutions comprising tablet based mobile ANPR, PC boot mounted ANPR, and intelligent mobile camera ANPR; fixed site ANPR; and ANPR software solutions, such as management servers, software, and video evidence storages. Further, the company provides defense solutions and services, such as communication systems, advanced visual surveillance, in-service supports, defensive aide systems, control systems, and real threat stimulators, as well as consultancy services. It serves customers under eyeTrain, ProVida, and QRO brand names. Petards Group plc was incorporated in 1994 and is headquartered in Guildford, the United Kingdom.

How the Company Makes Money

Petards generates revenue through the sale of its proprietary technology products, which include hardware and software solutions tailored for security and surveillance applications. The company’s revenue model is primarily based on direct sales to government and commercial clients, as well as long-term contracts for maintenance and support services. Key revenue streams include system integration services, licensing of software, and ongoing support contracts. Additionally, partnerships with government agencies and defense contractors enhance Petards' market presence and provide opportunities for project-based revenue, further contributing to its earnings.

Petards Financial Statement Overview

Summary

Petards is facing operational and profitability challenges, with consistent negative net income and cash flow issues. Despite a slight recovery in revenue and a moderate debt-to-equity ratio, the company still needs to enhance its revenue growth and operational efficiency to improve financial health.

Income Statement

The company has faced declining revenue from 2019 to 2024, with the most recent year showing a slight recovery in revenue compared to 2023. However, the net income has consistently been negative, indicating challenges in profitability. The gross profit margin has improved slightly in 2024, but EBIT and EBITDA margins remain negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the decline in stockholders' equity over the years raises concerns. The equity ratio remains strong, indicating good financial stability, but the company needs to address its negative net income to improve return on equity.

Cash Flow

The cash flow statement reveals fluctuating free cash flow, with a negative trend in recent years. Operating cash flow has seen some recovery in 2024, but free cash flow remains negative, indicating potential liquidity challenges. The company needs to improve its cash generation to support operations and reduce reliance on external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.02M	9.42M	10.87M	13.57M	13.00M
Gross Profit	5.44M	4.75M	4.96M	5.49M	3.72M
EBITDA	-77.00K	-294.00K	1.15M	1.49M	-152.00K
Net Income	-1.13M	-1.05M	524.00K	865.00K	-583.00K
Balance Sheet
Total Assets	13.25M	10.72M	11.96M	11.95M	13.93M
Cash, Cash Equivalents and Short-Term Investments	168.00K	1.24M	2.02M	2.28M	2.20M
Total Debt	2.56M	732.00K	339.00K	767.00K	1.02M
Total Liabilities	6.85M	3.53M	3.71M	4.22M	7.00M
Stockholders Equity	6.40M	7.20M	8.25M	7.72M	6.93M
Cash Flow
Free Cash Flow	-364.00K	-529.00K	253.00K	592.00K	1.81M
Operating Cash Flow	194.00K	4.00K	571.00K	727.00K	2.37M
Investing Cash Flow	-2.51M	-485.00K	-298.00K	-127.00K	-543.00K
Financing Cash Flow	-462.00K	-294.00K	-534.00K	-527.00K	-445.00K

Petards Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PEG, the sentiment is Positive. The current price of 8.5 is below the 20-day moving average (MA) of 8.53, above the 50-day MA of 8.33, and above the 200-day MA of 7.99, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 28.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PEG.

Petards Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	77 Outperform	£50.30M	11.57	10.49%	1.57%	21.43%	44.70%
Sector *	71 Outperform	¥267.79B	15.15	8.31%	2.75%	6.08%	11.04%
NWT	69 Neutral	£7.27M	56.21	-3.17%	―	10.37%	-57.83%
CSSG	68 Neutral	£10.67M	17.53	4.03%	2.20%	6.44%	-82.88%
PEG	61 Neutral	£5.16M	―	-16.58%	―	27.50%	-5.38%
IGE	58 Neutral	£1.92M	11.00	-7.14%	―	-16.19%	-600.00%
THRU	45 Neutral	£7.15M	―	-55.82%	―	-52.98%	-615.15%

Petards Corporate Events

Petards’ Subsidiary Secures Significant ANPR Contract

Petards Group PLC announced that its subsidiary, QRO Solutions, has secured a contract to support and maintain a UK police force’s ANPR camera infrastructure. The contract, starting in November, spans an initial three-year period with a potential extension to five years, valued at over £0.4 million. This win highlights QRO’s competitive edge in providing quality and cost-effective solutions, potentially strengthening Petards’ market position in the enforcement industry.

Petards Secures Multi-Year Framework Agreement Renewal

Petards Group PLC announced the multi-year renewal of a framework agreement through its subsidiary, Affini Technology, for the supply of critical communications equipment and related services. The agreement, which could extend until 2031, is expected to generate significant annual revenues, bolstering Affini’s future trading prospects and reinforcing its market position.

Petards Secures Key Contract Renewal in Rail Industry

Petards Group PLC has announced the renewal of a contract with a key rail industry customer for software licenses, maintenance, and support services, valued at over £0.3 million, effective until June 2026. This contract renewal, secured by its subsidiary RTS Solutions, strengthens Petards’ order book and supports its recurring revenue stream, following a similar contract renewal announced last month.

Petards Group PLC Releases 2024 Annual Report and AGM Notice

Petards Group PLC has announced the posting of its Annual Report and Accounts for the year ended 31 December 2024, along with the notice for its Annual General Meeting scheduled for 6 August 2025. This announcement is significant as it provides shareholders with essential financial information and details about the upcoming AGM, which is crucial for stakeholder engagement and transparency.

Petards Secures £360,000 SaaS License Renewal in Rail Sector

Petards Group PLC announced that its subsidiary, RTS Solutions (UK), has secured a renewal order for SaaS licenses from a leading supplier in the UK rail industry. This renewal, valued at £360,000 over two years, strengthens RTS’s order book and ensures a steady stream of recurring revenue, with expectations of additional supplementary orders.

Petards Group PLC Reports Strong 2024 Results and Positive Outlook for 2025

Petards Group PLC reported its final results for the year ending 31 December 2024, highlighting significant progress including the acquisition of Affini Technology, which has diversified its earnings and expanded its customer base. The company saw a growth in total revenues to £12 million, supported by strong performance in its QRO ANPR solutions and the integration of Affini. Despite challenges in the rail and defense markets, Petards maintained a robust order book and anticipates improved trading performance in 2025, driven by a full year’s contribution from Affini and new product developments.

Petards Group Sees Shift in Major Holdings with Increased Stake by Philip J Milton & Company

Petards Group PLC has announced a change in its major holdings, with Philip J Milton & Company Plc increasing its voting rights from 5.59% to 6.07%. This acquisition of voting rights signifies a strengthened position for Philip J Milton & Company Plc within Petards, potentially impacting the company’s strategic decisions and market influence.

Petards Secures £0.3 Million ANPR Systems Contract

Petards Group PLC announced that its subsidiary, QRO Solutions, has secured a contract worth nearly £0.3 million to supply and install NASBox roadside ANPR systems for a UK police force. This order, scheduled for delivery within the current financial year, highlights the continued trust and confidence in QRO’s products and services, reinforcing its position in the enforcement industry.

Petards Rail Wins Alstom CSR Award for Climate Change Efforts

Petards Rail, a division of Petards Group PLC, has been recognized with the Fighting Climate Change SME Award at the Alstom UK & Ireland Corporate Social Responsibility Awards. This accolade highlights Petards Rail’s commitment to sustainability and high operational standards, reinforcing its position as a leading supplier in the UK rail market and enhancing its reputation among stakeholders and global OEMs.