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Pinewood Technologies (GB:PINE)
LSE:PINE
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Pinewood Technologies (PINE) AI Stock Analysis

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GB:PINE

Pinewood Technologies

(LSE:PINE)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
320.00 p
▲(13.27% Upside)
Action:Reiterated
Date:04/24/26
The score is driven primarily by improved financial safety from very low leverage, tempered by lower-quality/volatile earnings and inconsistent cash conversion. Valuation is supportive with a low P/E, while technicals remain weak-to-mixed due to price below longer-term moving averages and a negative MACD. Earnings-call commentary adds moderate support via reiterated long-term EBITDA guidance and contract visibility, but execution and cash-generation risks remain.
Positive Factors
Low leverage / strong balance sheet
Sharp reduction in leverage materially lowers financial risk and increases optionality for multi-year investments. With minimal net debt and solid ROE, the company can fund rollouts, absorb integration costs, and pursue inorganic opportunities without immediate refinancing pressure, supporting durable execution.
Negative Factors
Weak cash conversion / negative FCF
Operating profits have not consistently converted to free cash flow, reducing internal funding for growth and increasing dependency on external capital or equity raises. Negative FCF and low cash coverage limit flexibility to fund integrations, capex or working-capital needs over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Sharp reduction in leverage materially lowers financial risk and increases optionality for multi-year investments. With minimal net debt and solid ROE, the company can fund rollouts, absorb integration costs, and pursue inorganic opportunities without immediate refinancing pressure, supporting durable execution.
Read all positive factors

Pinewood Technologies (PINE) vs. iShares MSCI United Kingdom ETF (EWC)

Pinewood Technologies Business Overview & Revenue Model

Company Description
Pinewood Technologies Group PLC provides cloud-native dealer management software solutions to the global automotive industry, including the United Kingdom market. The company offers a comprehensive, end-to-end platform engineered to enhance the ef...
How the Company Makes Money
Pinewood Technologies primarily makes money by licensing/subscribing its Pinewood.AI dealer management software to automotive retailers and dealer groups. Revenue is generally generated from recurring software fees paid by customers to use the pla...

Pinewood Technologies Earnings Call Summary

Earnings Call Date:Apr 22, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Sep 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial momentum: strong top-line growth (+30%), improved underlying EBITDA (+17.1%), substantial commercial milestones (GBP 64.5m TCV and a $60m Lithia contract), and strategic enhancement via the Seez acquisition and embedded AI. These positives are balanced by margin compression from the Seez mix, modest operating cash generation (GBP 6.5m), increased intangible balances and one-off costs tied to buyouts and acquisitions, and notable execution risk for large-scale North America OEM integrations and rollouts. On balance the company has clear growth visibility and liquidity but faces identifiable near-term integration and implementation risks that management is actively addressing.
Positive Updates
Strong Revenue Growth
Revenue increased ~30% year-over-year to GBP 40.5m, driven by new customers, upsells and the March 2025 Seez acquisition.
Negative Updates
Compression in Gross Margin Rate
Gross margin rate fell to 85.7% (from a higher prior-year level) due primarily to lower Seez margins being blended into the legacy Pinewood business.
Read all updates
Q4-2025 Updates
Negative
Strong Revenue Growth
Revenue increased ~30% year-over-year to GBP 40.5m, driven by new customers, upsells and the March 2025 Seez acquisition.
Read all positive updates
Company Guidance
Management reiterated FY‑28 underlying EBITDA guidance of GBP 58–62m, noting roughly GBP 50m of that is already covered by existing customers and signed contracts and that a total contract value (TCV) of GBP 64.5m of incremental ARR (from signed but not yet implemented customers) will deliver the majority of the FY‑28 target; they also expect FY‑26 underlying EBITDA to be in line with analyst consensus of GBP 21.3m. On the cash side, year‑end Dec‑2025 cash was GBP 34.1m (plus an undrawn GBP 10m RCF) and management expects c. GBP 45–50m net cash conversion in FY‑28, helped by a working‑capital benefit of about GBP 12–13m in FY‑28; CapEx should tick up slightly in 2026–27 to complete North America OEM integrations (majority targeted by end‑2026) but remain broadly stable thereafter. For context, FY‑25 revenue grew ~30% to GBP 40.5m, underlying EBITDA was GBP 16.4m (up 17.1%), recurring revenue was 83.2%, net customer churn 2.5%, FY‑25 cash from operations GBP 6.5m, and FY‑25 included one‑off/non‑underlying items such as a GBP 60.8m non‑cash JV buyout gain, GBP 4.6m acquisition costs, GBP 4.2m U.S. subsidiary costs, GBP 3.6m share‑based payments and GBP 4.0m acquisition‑related amortization.

Pinewood Technologies Financial Statement Overview

Summary
Balance sheet strength is a key positive (debt-to-equity down to ~0.01x in 2025 and solid ROE in 2024–2025). However, earnings quality looks volatile with negative EBIT margin in 2025 and unusually high net margins driven by non-core items, and cash conversion is weak with negative 2025 free cash flow and modest operating-cash coverage of net income.
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
45
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue40.50M34.04M22.62M19.10M3.42B
Gross Profit22.60M24.65M20.12M387.60M362.80M
EBITDA8.60M15.93M37.57M11.30M187.00M
Net Income50.30M6.22M37.94M45.50M61.50M
Balance Sheet
Total Assets267.00M61.80M484.70M1.62B1.53B
Cash, Cash Equivalents and Short-Term Investments34.10M9.30M47.40M171.90M200.10M
Total Debt1.50M1.60M94.20M413.10M471.90M
Total Liabilities62.80M22.80M123.30M1.34B1.30B
Stockholders Equity204.20M39.00M360.40M281.00M225.60M
Cash Flow
Free Cash Flow-4.60M1.60M7.57M31.80M44.60M
Operating Cash Flow6.80M9.10M44.68M76.10M63.20M
Investing Cash Flow-14.90M374.70M-43.75M-25.10M16.20M
Financing Cash Flow32.90M-421.90M-21.23M-19.30M-97.30M

Pinewood Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price282.50
Price Trends
50DMA
266.95
Positive
100DMA
259.44
Positive
200DMA
318.00
Negative
Market Momentum
MACD
13.23
Negative
RSI
67.51
Neutral
STOCH
87.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PINE, the sentiment is Positive. The current price of 282.5 is above the 20-day moving average (MA) of 273.27, above the 50-day MA of 266.95, and below the 200-day MA of 318.00, indicating a neutral trend. The MACD of 13.23 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PINE.

Pinewood Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
£2.68B10.6323.83%3.44%-1.76%-29.67%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
£342.99M7.0535.39%
60
Neutral
£223.60M16.374.05%3.22%1.47%-15.99%
55
Neutral
£383.88M46.474.85%2.16%
48
Neutral
£278.88M-12.12-26.32%-1.15%-1047.06%
46
Neutral
£99.96M19.1722.27%1.48%8.14%81.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PINE
Pinewood Technologies
305.00
-176.00
-36.59%
GB:INCH
Inchcape
776.00
34.34
4.63%
GB:MOTR
Motorpoint
127.50
-45.50
-26.30%
GB:NCC
NCC Group plc
139.40
-0.57
-0.41%
GB:VTU
Vertu Motors
74.80
14.81
24.68%
GB:BIG
Big Technologies PLC
97.00
7.60
8.50%

Pinewood Technologies Corporate Events

Business Operations and StrategyExecutive/Board Changes
Pinewood Technologies Strengthens Board With Deputy Chair Appointment to Drive Global Expansion
Positive
Jun 25, 2026
Pinewood Technologies Group PLC has appointed veteran automotive executive Avril Palmer-Lavery as Deputy Chair and Non-Executive Director, strengthening its board as it pursues international expansion, particularly in the U.S. market. Palmer-Laver...
Business Operations and StrategyExecutive/Board Changes
Pinewood.AI Strengthens Board with Deputy Chair Appointment to Support Global Expansion
Positive
Jun 25, 2026
Pinewood Technologies Group PLC, a cloud-based automotive technology provider previously part of Pendragon and now an independent listed entity, develops a dealer-focused intelligence platform covering sales, aftersales, accounting and CRM for a g...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Pinewood Technologies Wins Strong Shareholder Backing at AGM
Positive
Jun 24, 2026
Pinewood Technologies Group PLC reported that all resolutions at its annual general meeting on 24 June 2026 were approved by shareholders, including the receipt of 2025 accounts, the remuneration report, and the re-election or re-appointment of al...
Business Operations and StrategyExecutive/Board Changes
Pinewood Technologies Refreshes Board as It Targets Growth in Key Markets
Positive
May 26, 2026
Pinewood Technologies Group PLC has announced a reshuffle of its board, with non-executive directors Brian Small and George Hines stepping down effective immediately ahead of the June 2026 AGM. Hines will move into an executive role as Chief Produ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Pinewood.AI boosts revenue and cash as North American rollout and AI integration gather pace
Positive
Apr 22, 2026
Pinewood.AI reported strong full-year 2025 results, with revenue rising nearly 30% to £40.5 million, robust margins and a sharp increase in cash following an equity raise and healthy operating cash flow. Recurring revenue remains the bulk of ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 24, 2026