Pennant International (PEN) AI Stock Analysis

• Market Cap: £9.64M
• Dividend Yield: N/A
• Average Volume (3M): 131.15K
• 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: 94
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 43,234,135
• 10 Day Avg. Volume: 208,977
• 30 Day Avg. Volume: 131,150
• 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: £21.50
• Price Target Upside: -3.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: 21.50p ▼(-3.59% Downside)

Pennant International's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's ongoing financial struggles and negative valuation metrics weigh heavily on the score. However, recent strategic partnerships and market expansions provide a glimmer of hope for future growth, slightly offsetting the negative aspects.

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 generates revenue through a combination of product sales, software licenses, and service contracts. Key revenue streams include the sale of proprietary software solutions for mission planning and logistics management, as well as ongoing maintenance and support services. The company also earns income from training services and consultancy provided to clients in the aerospace and defense industries. Significant partnerships with government bodies and defense contractors contribute to stable revenue, as these relationships often lead to long-term contracts and recurring business opportunities. Additionally, Pennant's focus on innovation and adapting to industry trends allows it to capture new market segments, further enhancing its earnings potential.

Pennant International Financial Statement Overview

Summary

Pennant International is facing financial challenges with fluctuating revenue, consistent net losses, and negative profitability margins. The balance sheet is moderately stable but declining shareholder equity and assets raise concerns. Cash flow performance is weak, impacting liquidity.

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
EBITDA	-594.00K	1.93M	-1.43M	-2.20M	-1.16M
Net Income	-2.58M	-933.00K	-901.00K	-1.61M	-2.63M
Balance Sheet
Total Assets	15.94M	18.71M	19.79M	21.63M	22.76M
Cash, Cash Equivalents and Short-Term Investments	1.04M	1.10M	1.11M	901.00K	1.44M
Total Debt	3.94M	3.90M	2.09M	5.18M	3.81M
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: Negative
• Last Price: 22.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PEN, the sentiment is Negative. The current price of 22.3 is below the 20-day moving average (MA) of 27.45, below the 50-day MA of 28.45, and below the 200-day MA of 28.43, indicating a bearish trend. The MACD of -1.79 indicates Positive momentum. The RSI at 26.27 is Positive, neither overbought nor oversold. The STOCH value of 25.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PEN.

Pennant International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARC	73 Outperform	£11.90M	11.37	13.09%	4.21%	5.35%	-8.63%
ZOO	50 Neutral	£13.52M	―	-33.64%	―	20.12%	64.40%
CRDL	50 Neutral	£14.10M	―	-26.44%	―	17.06%	-78.26%
Sector *	50 Neutral	C$3.52B	0.36	-5.03%	7.64%	16.99%	-2.41%
BIRD	49 Neutral	£12.60M	―	-28.72%	―	-17.02%	10.29%
CKT	46 Neutral	£14.58M	―	-28.02%	―	17.50%	20.14%
PEN	44 Neutral	£9.64M	―	-28.36%	―	-11.33%	-139.92%

Pennant International Corporate Events

Pennant International Appoints New Nominated Adviser and Sole Broker

Pennant International Group plc has announced the appointment of Cavendish Capital Markets Limited as its Nominated Adviser and Sole Broker. This strategic move is expected to enhance the company’s market positioning and operational efficiency as it continues to focus on sustainable growth and profitability in its key markets.

Pennant International Reports H1 2025 Trading Update Amid Contract Delays

Pennant International Group has announced a trading update for the first half of 2025, reporting revenues of £4.5 million, a decrease from the previous year. The company faces delays in its GenFly technology upgrade contract with the Ministry of Defence, affecting expected revenues for 2025. However, Pennant is focusing on its Auxilium software strategy, which has shown growth in annual recurring revenues. The company is actively pursuing sales opportunities and onboarding new distribution partners to support its growth strategy in software and services.

Pennant International Expands Global Reach with Siemens Partnership and New Market Entries

Pennant International Group has entered a significant agreement with Siemens Digital Industries Software, allowing Siemens to distribute Pennant’s GenS technology as part of its Teamcenter Service Lifecycle Management software solutions. This partnership, along with new sales representatives in South Korea and Japan, positions Pennant to expand its market reach. Additionally, Pennant’s collaboration with Warp IT aims to integrate software solutions for enhanced product support, indicating strategic growth in new territories and markets. These developments are part of Pennant’s ‘go-to-market’ strategy for its Auxilium suite, which has seen recent updates and improvements, further solidifying its position in the industry.

Pennant International Completes Property Disposal and Eyes Growth in 2025

Pennant International has completed its property disposal program, selling its final two units at Staverton Connection for £1.125 million, which will help reduce the Group’s overdraft borrowings. The company reports increased interest in its products and services, with a promising pipeline for 2025, including negotiations with the Ministry of Defence on the GenFly technology upgrade contract. The company’s revenue is expected to be significantly weighted towards the second half of 2025, driven by existing contracts and the anticipated GenFly contract, which is projected to contribute around 15% of the year’s revenue.

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.