Petards (PEG) AI Stock Analysis

• Market Cap: £6.37M
• Dividend Yield: N/A
• Average Volume (3M): 31.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 63.81%
• EPS Growth: 71.62%
• Country: UK
• Employees: 87
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): >-0.01
• Shares Outstanding: 60,705,040
• 10 Day Avg. Volume: 46,284
• 30 Day Avg. Volume: 31,485
• PEG Ratio: -1.33
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -13.33
• 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: 61 Neutral
• Price Target: 10.50p ▲(2.44% Upside)

Petards' overall stock score is driven by positive corporate events and strong technical momentum, despite financial performance challenges and unattractive valuation metrics. The company's recent contract wins and strategic growth initiatives provide a positive outlook, but profitability and cash flow issues remain significant concerns.

Positive Factors

Revenue Growth

Strong revenue growth suggests increasing demand for Petards' security solutions, potentially leading to improved market position and financial stability.

Technological Advancements

Leveraging technological advancements can enhance product offerings, leading to sustained competitive advantage in the security sector.

Strategic Partnerships

Strategic partnerships with government and private clients provide stable revenue streams, supporting long-term business sustainability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder reinvestment in growth and innovation, affecting long-term business viability.

Cash Flow Concerns

Negative free cash flow suggests liquidity issues, which may limit operational flexibility and increase reliance on external financing.

Operational Inefficiencies

Negative margins highlight operational inefficiencies, which can impede profitability and competitiveness in the long term.

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 security solutions and services, which include both hardware and software components. Key revenue streams come from direct product sales, maintenance contracts, and software licensing agreements. Additionally, the company may engage in strategic partnerships with government agencies and private sector clients, providing tailored solutions that meet specific security needs. These partnerships often lead to long-term contracts that contribute to a stable revenue base. Furthermore, Petards may benefit from ongoing technological advancements and increasing demand for security solutions in a rapidly evolving global landscape.

Petards Financial Statement Overview

Summary

Petards is experiencing operational and profitability challenges, with negative net income and cash flow issues. While the balance sheet shows some financial stability, the company needs to improve its revenue growth and operational efficiency to enhance overall 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.46M	12.02M	9.42M	10.87M	13.57M	13.00M
Gross Profit	6.79M	5.44M	4.75M	4.96M	5.49M	3.72M
EBITDA	635.00K	-77.00K	-294.00K	1.15M	1.49M	-152.00K
Net Income	-511.00K	-1.13M	-1.05M	524.00K	865.00K	-583.00K
Balance Sheet
Total Assets	12.67M	13.25M	10.72M	11.96M	11.95M	13.93M
Cash, Cash Equivalents and Short-Term Investments	205.00K	168.00K	1.24M	2.02M	2.28M	2.20M
Total Debt	2.28M	2.56M	732.00K	339.00K	767.00K	1.02M
Total Liabilities	6.58M	6.85M	3.53M	3.71M	4.22M	7.00M
Stockholders Equity	6.08M	6.40M	7.20M	8.25M	7.72M	6.93M
Cash Flow
Free Cash Flow	317.00K	-364.00K	-529.00K	253.00K	592.00K	1.81M
Operating Cash Flow	569.00K	194.00K	4.00K	571.00K	727.00K	2.37M
Investing Cash Flow	-632.00K	-2.51M	-485.00K	-298.00K	-127.00K	-543.00K
Financing Cash Flow	-476.00K	-462.00K	-294.00K	-534.00K	-527.00K	-445.00K

Petards Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 10.25 is above the 20-day moving average (MA) of 10.24, above the 50-day MA of 8.90, and above the 200-day MA of 8.13, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 75.46 is Negative, neither overbought nor oversold. The STOCH value of 66.67 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
CSSG	70 Neutral	£10.40M	13.20	5.08%	3.20%	10.26%	45.18%
NWT	69 Neutral	£9.65M	14.52	7.90%	―	3.41%	393.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEG	61 Neutral	£6.37M	-12.50	-8.06%	―	63.81%	71.62%
IGE	48 Neutral	£2.87M	-9.76	-18.29%	―	-43.45%	-240.00%
THRU	42 Neutral	£4.25M	-0.52	-71.37%	―	-21.55%	10.59%

Petards Corporate Events

Petards Secures £0.65 Million Defence Order from BAE Systems

Petards Group PLC announced that its subsidiary, Petards Joyce-Loebl, has secured a £0.65 million order from BAE Systems for products that ensure electrical safety in military aerospace applications. This order highlights Petards’ longstanding relationship with BAE and its reputation for delivering robust electronic products for demanding military applications. The delivery is expected to be completed in 2026, reinforcing Petards’ position as a reliable partner in the defence sector.

The most recent analyst rating on (GB:PEG) stock is a Hold with a £10.50 price target. To see the full list of analyst forecasts on Petards stock, see the GB:PEG Stock Forecast page.

Petards Secures Major Defence Contract for Challenger 3 Upgrade

Petards Group PLC has secured a £2.2 million contract with Rheinmetall BAE Systems Land Limited for the Challenger 3 Upgrade Programme, marking its largest defense engineering services order in years. This contract highlights Petards’ strong reputation and expertise in military vehicle systems, potentially enhancing its role in future phases of the program.

The most recent analyst rating on (GB:PEG) stock is a Hold with a £8.00 price target. To see the full list of analyst forecasts on Petards stock, see the GB:PEG Stock Forecast page.

Petards Secures RAF Contract Extension Worth Over £1 Million

Petards Group PLC has secured a £0.65 million contract extension from the Ministry of Defence for supporting the Royal Air Force’s communication infrastructure, with potential revenues exceeding £1 million over the three-year term. This contract extension enhances Petards’ long-standing relationship with the RAF, supports UK jobs, and strengthens the company’s position in the defence sector.

The most recent analyst rating on (GB:PEG) stock is a Hold with a £8.00 price target. To see the full list of analyst forecasts on Petards stock, see the GB:PEG Stock Forecast page.

Petards Secures New Order for eyeTrain Hardware Retrofit

Petards Group PLC has announced a new order for its eyeTrain hardware to be retrofitted to a UK train builder’s existing fleet, increasing the project’s value to over £0.7 million. This project, which includes the use of Petards’ eyeBoS data-as-a-service solution, is expected to enhance the operational capabilities of train fleets in the UK and may lead to further orders for similar train classes.

The most recent analyst rating on (GB:PEG) stock is a Hold with a £8.00 price target. To see the full list of analyst forecasts on Petards stock, see the GB:PEG Stock Forecast page.