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Pinewood Technologies
(LSE:PINE)
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Rating:69Neutral
Price Target:
476.00 p
▲(51.11% Upside)
Action:Reiterated
Date:07/29/26
The score is primarily supported by strong technical trend strength (price well above key moving averages) and a positive earnings-call outlook with reiterated FY-28 EBITDA targets and contract visibility. Offsetting this is mixed financial quality—volatile profitability with negative operating profit in 2025 and inconsistent cash conversion with negative free cash flow—while valuation appears modest based on the provided P/E but lacks dividend support data.
Positive Factors
High recurring revenue & low churn
A high recurring revenue mix (83.2%) and low net churn (2.5%) underpin durable revenue visibility and predictable cash flow over multiple periods. This subscription-like model supports upsell economics, smoothing revenue cycles and improving the reliability of ARR-driven EBITDA delivery over the next 2–6 months.
Negative Factors
Weak cash conversion
An earnings-to-cash disconnect—negative free cash flow in 2025 and operating cash covering a small portion of net income—signals weaker cash quality of reported profits. This limits self-funding for rollouts and integrations, raises reliance on external funding, and heightens sensitivity to working-capital swings over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue & low churn
A high recurring revenue mix (83.2%) and low net churn (2.5%) underpin durable revenue visibility and predictable cash flow over multiple periods. This subscription-like model supports upsell economics, smoothing revenue cycles and improving the reliability of ARR-driven EBITDA delivery over the next 2–6 months.
Read all positive factors
Pinewood Technologies (PINE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£480.41M
Dividend YieldN/A
Average Volume (3M)403.10K
Price to Earnings (P/E)9.9
Beta (1Y)0.61
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees398
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.43
Shares Outstanding115,099,976
10 Day Avg. Volume292,299
30 Day Avg. Volume403,101
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.84
Price to Sales (P/S)9.25
P/FCF Ratio-81.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£585.00Price Target Upside85.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.08
Revenue Forecast (FY)£56.20M
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 makes money primarily by licensing and providing access to its automotive retail software (notably its dealer management system) to dealerships and dealer groups. Revenue is typically generated through recurring software fees...
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
Positive
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
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.50M | 34.04M | 22.62M | 19.10M | 3.42B |
| Gross Profit | 22.60M | 24.65M | 20.12M | 387.60M | 362.80M |
| EBITDA | 8.60M | 15.93M | 37.57M | 11.30M | 187.00M |
| Net Income | 50.30M | 6.22M | 37.94M | 45.50M | 61.50M |
Balance Sheet | |||||
| Total Assets | 267.00M | 61.80M | 484.70M | 1.62B | 1.53B |
| Cash, Cash Equivalents and Short-Term Investments | 34.10M | 9.30M | 47.40M | 171.90M | 200.10M |
| Total Debt | 1.50M | 1.60M | 94.20M | 413.10M | 471.90M |
| Total Liabilities | 62.80M | 22.80M | 123.30M | 1.34B | 1.30B |
| Stockholders Equity | 204.20M | 39.00M | 360.40M | 281.00M | 225.60M |
Cash Flow | |||||
| Free Cash Flow | -4.60M | 1.60M | 7.57M | 31.80M | 44.60M |
| Operating Cash Flow | 6.80M | 9.10M | 44.68M | 76.10M | 63.20M |
| Investing Cash Flow | -14.90M | 374.70M | -43.75M | -25.10M | 16.20M |
| Financing Cash Flow | 32.90M | -421.90M | -21.23M | -19.30M | -97.30M |
Pinewood Technologies Technical Analysis
Positive
315.00
Price Trends
289.47
Positive
267.08
Positive
313.52
Positive
Market Momentum
12.04
Negative
67.01
Neutral
89.21
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 315 is below the 20-day moving average (MA) of 334.52, above the 50-day MA of 289.47, and above the 200-day MA of 313.52, indicating a bullish trend. The MACD of 12.04 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 89.21 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.92B | 12.90 | 19.59% | 3.91% | 7.27% | -39.82% | |
69 Neutral | £480.41M | 9.94 | 35.39% | ― | ― | ― | |
65 Neutral | £247.33M | 17.88 | 4.05% | 2.59% | 1.47% | -15.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | £389.37M | 47.00 | 4.85% | 3.30% | ― | ― | |
48 Neutral | £284.69M | -12.25 | -26.32% | ― | -1.15% | -1047.06% | |
46 Neutral | £95.20M | 18.05 | 22.27% | 1.86% | 8.14% | 81.96% |
* Technology Sector Average
GB:PINE
Pinewood Technologies
430.00
-84.00
-16.34%
GB:INCH
Inchcape
838.50
194.16
30.13%
GB:MOTR
Motorpoint
120.00
-59.88
-33.29%
GB:NCC
NCC Group plc
141.00
-1.90
-1.33%
GB:VTU
Vertu Motors
81.70
22.58
38.20%
GB:BIG
Big Technologies PLC
98.00
7.80
8.65%
Pinewood Technologies Corporate Events
M&A Transactions
Ridgeview Weighs £545m Takeover of Pinewood.AI with Cash and Rollover Option
Positive
Jul 24, 2026
Pinewood Technologies Group PLC has received a non-binding proposal from U.K. Piston Bidco Limited, a vehicle indirectly owned by Ridgeview Partners LLC, for the entire share capital of Pinewood.AI at £4.48 per share in cash. The indicative v...
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...
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.