Pennant International (PEN) AI Stock Analysis

• Market Cap: £12.62M
• Dividend Yield: N/A
• Average Volume (3M): 61.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -11.33%
• EPS Growth: -139.92%
• Country: UK
• Employees: 121
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): -0.06
• Shares Outstanding: 43,234,135
• 10 Day Avg. Volume: 36,891
• 30 Day Avg. Volume: 61,971
• PEG Ratio: 0.28
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.23
• 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

• Rating: 46 Neutral
• Price Target: 28.00p ▼(-7.28%Downside)

Pennant International faces significant financial challenges, with weak profitability and cash flow undermining its outlook. Despite technical weakness, recent strategic initiatives could offer upside potential if executed effectively.

Pennant International Business Overview & Revenue Model

Company Description

Pennant International Group plc provides integrated training and support solutions, products, and services in the United Kingdom, rest of Europe, the Middle East, North America, and Australia. It offers generic trainers, such as generic fastener installation, hand skill, stores loading, and flying controls trainers; basic helicopter maintenance trainers; hydraulic system principles trainers; integrated avionics maintenance trainers; crew escape and safety trainers; and engine starting system trainers, as well as wiring boards. The company also provides virtual reality (VR) solutions, including virtual loadmaster and parachute training systems; virtual reality shunter trainers; and synthetic environment cargo compartment and procedural trainers. In addition, it offers engineered solutions, as well as emulation and simulation solutions comprising basic principles switching simulators, virtual aircraft training systems, and avionics and electrical system emulators. Further, the company provides technical training services and support; and studio services, including 2D and 3D design, VR media development, film and media production, E-learning and CBT, illustration, authoring, copywriting, and translation. Additionally, it offers track access portal, railway survey, signal sighting, rail simulation, and driver training products and services; and integrated product support/integrated logistic support software and services. The company serves the defense, rail, aerospace, and naval sectors, as well as government departments. Pennant International Group plc was founded in 1958 and is headquartered in Cheltenham, the United Kingdom.

How the Company Makes Money

Pennant International makes money through the sale of its training software and hardware solutions, which are tailored to the requirements of its clients in the aerospace and defense industries. The company charges for the development and implementation of these solutions, as well as for ongoing support and maintenance services. Additionally, Pennant International benefits from long-term contracts and partnerships with key industry players, which provide a stable and recurring revenue stream. The company's expertise in creating bespoke training programs also allows it to capture niche markets and expand its client base, contributing significantly to its earnings.

Pennant International Financial Statement Overview

Summary

Pennant International struggles with profitability and cash flow, despite moderate balance sheet stability. Revenue declines and net losses are concerning, alongside negative cash flow performance.

Income Statement

Pennant International has experienced fluctuating revenue growth with a recent decline from $15.54M in 2023 to $13.78M in 2024. The company has struggled with profitability, evidenced by consistent net losses and negative EBIT and EBITDA margins. Although gross profit margins have improved slightly, overall profitability remains a concern.

Balance Sheet

The balance sheet shows a moderate level of stability with a debt-to-equity ratio of 0.47, which is relatively healthy. However, the continuous decline in stockholders' equity and total assets indicates potential financial stress. The equity ratio is around 52.3%, suggesting moderate financial leverage but declining shareholder equity over the years is concerning.

Cash Flow

Cash flow analysis reveals challenges in generating positive free cash flow, with negative figures in recent years, impacting liquidity. The operating cash flow to net income ratio is positive and indicates some ability to convert net income to cash, but overall cash flow performance is weak with significant fluctuations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.78M	15.54M	13.69M	15.96M	15.06M
	Gross Profit
5.26M	7.73M	4.27M	2.99M	3.24M
	EBIT
-206.00K	56.00K	-3.51M	-4.27M	-4.28M
	EBITDA
-594.00K	1.93M	-1.43M	-2.20M	-1.16M
	Net Income Common Stockholders
-2.58M	-933.00K	-901.00K	-1.61M	-2.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04M	1.10M	1.11M	901.00K	1.44M
	Total Assets
15.94M	18.71M	19.79M	21.63M	22.76M
	Total Debt
3.94M	3.90M	2.09M	5.18M	3.81M
	Net Debt
2.89M	2.80M	985.00K	4.28M	2.37M
	Total Liabilities
7.59M	8.89M	9.10M	10.48M	10.23M
	Stockholders Equity
8.34M	9.82M	10.70M	11.14M	12.53M
Cash Flow		Free Cash Flow
-42.00K	-463.00K	1.36M	-1.23M	1.74M
	Operating Cash Flow
181.00K	1.29M	2.57M	-127.00K	3.15M
	Investing Cash Flow
-1.62M	-2.32M	357.00K	-1.63M	-2.19M
	Financing Cash Flow
1.14M	-174.00K	-239.00K	-249.00K	-232.00K

Pennant International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PEN, the sentiment is Positive. The current price of 30.2 is above the 20-day moving average (MA) of 29.41, above the 50-day MA of 29.17, and above the 200-day MA of 27.78, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 60.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PEN.

Pennant International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARC	77 Outperform	£11.37M	10.86	13.09%	4.41%	5.35%	-8.63%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
CRDL	61 Neutral	£15.46M	―	-26.44%	―	17.06%	-78.26%
CKT	55 Neutral	£17.28M	―	-28.02%	―	17.50%	20.14%
ZOO	50 Neutral	£9.83M	―	-43.12%	―	-25.63%	-202.60%
BIRD	49 Neutral	£17.42M	―	-28.72%	―	-17.02%	10.29%
PEN	46 Neutral	£12.62M	―	-28.36%	―	-11.33%	-139.92%

Pennant International Corporate Events

Pennant International Announces AGM Results with Strategic Focus on Growth

At its recent Annual General Meeting, Pennant International Group plc announced the passing of most resolutions, except for a 10% general placing authority. This decision reflects the company’s strategic focus on sustainable revenue growth and profitability, aligning with its emphasis on high-margin software and services amidst growing demand in its key markets.

Pennant International Announces 2025 AGM Date and Publishes Annual Accounts

Pennant International Group plc has announced the date for its Annual General Meeting (AGM) for 2025, which will be held on June 6 at the Leonardo Hotel in Cheltenham. The company has published the Notice of AGM and sent hard copies of the 2024 annual accounts to shareholders. This announcement is part of Pennant’s ongoing efforts to engage with its stakeholders and maintain transparency. The company’s strategic focus on high-margin software and services is expected to drive growth amid increasing defence budgets and technological advancements in military, aviation, and rail sectors.

Pennant International’s Transformative Year: Strategic Restructuring and Growth Focus

Pennant International has reported its final results for 2024, highlighting a transformative year marked by strategic restructuring and investment in its Auxilium software. The company has repositioned itself for growth, focusing on its Software and Technical Services segments to deliver more predictable revenue streams and higher margins. Despite a decrease in revenue to £13.8 million and an adjusted loss before tax, Pennant has strengthened its balance sheet and board, completed significant contracts, and launched Auxilium version 3.0. The company anticipates favorable market conditions to drive future growth and profitability, with ongoing projects and negotiations for new contracts expected to enhance its market position.

Pennant International Advances in RAF GenFly Contract Negotiations

Pennant International Group has received an ‘Invitation to Negotiate’ from the UK Ministry of Defence for a significant technology upgrade to the RAF’s GenFly training systems, valued at approximately £4.9 million. This development marks a step forward in the formal negotiation process, with the contract expected to commence in Q3 2025, potentially enhancing Pennant’s market position in the defense sector.

Pennant International to Announce 2024 Financial Results and Host Investor Events

Pennant International Group plc has announced it will release its financial results for the year ending December 31, 2024, on April 24, 2025. The company will hold an analyst briefing on the same day and an investor presentation on April 25, 2025, to discuss the results and provide a business update. These events are part of Pennant’s efforts to engage with stakeholders and provide insights into its operations and strategic direction, particularly in light of rising defense budgets and increasing technological complexity in its key markets.

Pennant International Advances Property Disposal Strategy

Pennant International Group has announced the exchange of contracts for the sale of three commercial properties at its Staverton site, expected to complete on April 25, 2025, for £1.2 million. The proceeds will reduce the company’s overdraft borrowings, providing additional borrowing headroom despite a reduced overdraft facility limit. This move is part of Pennant’s ongoing property disposal program, with marketing efforts continuing for the remaining properties.