Pipehawk (PIP) AI Stock Analysis

• Market Cap: £871.51K
• Dividend Yield: N/A
• Average Volume (3M): 58.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -59.04%
• EPS Growth: 84.76%
• Country: UK
• Employees: 108
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 36,312,824
• 10 Day Avg. Volume: 96,663
• 30 Day Avg. Volume: 58,306
• PEG Ratio: 0.03
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 6.16
• 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: 45 Neutral
• Price Target: 2.50p ▲(61.29% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held down primarily by weak financial performance (revenue decline, negative profitability, weak cash flow, and a high-risk balance sheet). Technicals are supportive with strong momentum and price above key averages, but the overbought RSI reduces confidence. Valuation is constrained by a negative P/E and lack of dividend data.

Positive Factors

High gross margins

A 95%+ gross margin signals very strong unit economics at the product level: durable product-level profitability that can absorb elevated operating costs. If SG&A is controlled, this margin supports sustainable EBITDA expansion and reinvestment capacity over months.

Specialized technology niche

Core focus on robotic and automated pipeline inspection creates high technical barriers and differentiation. Structural demand from utilities and infrastructure providers favors entrenched vendors, supporting multi-year contracts, pricing power, and reduced competition risk over the medium term.

Recurring service revenue potential

A mix of product sales plus recurring service contracts and potential government/utility partnerships provides a path to steadier, predictable revenue. Multi-year maintenance programs and grants can stabilize cash flows and raise lifetime customer value over several quarters.

Negative Factors

Severe revenue decline

Revenue down ~44% materially reduces scale, undermining fixed-cost coverage and the ability to leverage the high gross margin. Sustained contraction impairs R&D and sales investment, weakens competitive position, and risks losing long-term utility customers and contracts.

Weak cash generation

An ~81% FCF collapse and very low operating-cash-to-income ratio indicate limited internal funding for capex, service deployments, and working capital. Persistent cash weakness raises refinancing and execution risk, constraining the firm's ability to scale or capitalize on infrastructure contracts.

Balance sheet instability

Negative equity and an anomalous debt-to-equity profile signal a stressed capital structure. This reduces financial flexibility, increases refinancing and covenant risk, and can limit access to low-cost capital needed to fund growth or smooth cyclical revenue volatility.

Pipehawk Business Overview & Revenue Model

Company Description

Pipehawk (PIP) is a UK-based technology company specializing in the provision of innovative solutions for the utility and infrastructure sectors. The company focuses on developing advanced systems for pipeline inspection, monitoring, and maintenance, including robotic and automated technologies that enhance operational efficiency. Pipehawk's core products include state-of-the-art inspection equipment and software designed to ensure the integrity of underground utilities and infrastructure.

How the Company Makes Money

Pipehawk generates revenue primarily through the sale of its specialized inspection equipment and software solutions. The company also earns income from service contracts that involve the deployment of its technology for inspections and maintenance programs. Key revenue streams include direct product sales, recurring service fees from ongoing maintenance contracts, and potential revenue from partnerships with utility companies and infrastructure providers who utilize Pipehawk's technology for their operations. Additionally, Pipehawk may benefit from government contracts and grants focused on infrastructure development and maintenance.

Pipehawk Financial Statement Overview

Summary

Weak fundamentals driven by sharply declining revenue (-43.76%), negative net margin (-6.92%), and deteriorating free cash flow growth (-81.25%). Balance sheet risk is elevated with negative equity and a problematic leverage profile.

Income Statement

Pipehawk's income statement reveals significant challenges. The company has experienced a substantial decline in revenue, with a negative growth rate of -43.76% in the most recent year. Margins are under pressure, with a negative net profit margin of -6.92% and a low EBIT margin of 3.15%. Despite a high gross profit margin of 95.46%, the company's profitability is severely impacted by high operating costs and negative net income.

Balance Sheet

The balance sheet indicates financial instability, with a negative stockholders' equity and a concerning debt-to-equity ratio of -1.11. The company's return on equity is positive at 4.05%, but this is due to the negative equity base. The equity ratio is negative, highlighting a risky capital structure with high leverage.

Cash Flow

Cash flow analysis shows a challenging situation with a significant decline in free cash flow growth of -81.25%. The operating cash flow to net income ratio is low at 2.68%, indicating limited cash generation relative to net income. The free cash flow to net income ratio is relatively better at 84.62%, but overall cash flow performance remains weak.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.74M	9.14M	6.47M	6.19M	6.67M
Gross Profit	3.57M	3.90M	1.96M	2.55M	3.73M
EBITDA	288.00K	-596.00K	-2.32M	-888.00K	449.00K
Net Income	-259.00K	-1.69M	-2.48M	-868.00K	522.00K
Balance Sheet
Total Assets	1.64M	1.93M	7.74M	8.18M	5.79M
Cash, Cash Equivalents and Short-Term Investments	15.00K	95.00K	148.00K	4.00K	920.00K
Total Debt	7.06M	6.71M	7.80M	8.29M	5.36M
Total Liabilities	8.03M	8.20M	13.19M	11.14M	8.01M
Stockholders Equity	-6.39M	-6.27M	-5.45M	-2.97M	-2.22M
Cash Flow
Free Cash Flow	99.00K	-280.00K	1.20M	-1.16M	937.00K
Operating Cash Flow	117.00K	-230.00K	1.31M	-833.00K	1.07M
Investing Cash Flow	-18.00K	-50.00K	-111.00K	-325.00K	-88.00K
Financing Cash Flow	-179.00K	227.00K	-1.06M	242.00K	-309.00K

Pipehawk Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PIP, the sentiment is Positive. The current price of 1.55 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 1.99, and below the 200-day MA of 1.62, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 42.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PIP.

Pipehawk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMK	73 Outperform	£77.79M	3.57	7.39%	―	36.61%	―
SDI	70 Neutral	£78.95M	12.03	9.34%	―	7.36%	31.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LST	52 Neutral	£11.34M	-15.68	―	―	―	―
PIP	45 Neutral	£871.51K	-2.36	―	―	-59.04%	84.76%
TRAC	41 Neutral	£1.50M	-1.02	―	―	-1.05%	-8.05%
WPHO	39 Underperform	£33.25M	-21.06	-17.36%	―	-14.81%	-1362.50%

Pipehawk Corporate Events

PipeHawk to Sell Loss-Making Utsi Electronics for £1m to Leidi Global Supply

PipeHawk plc has agreed a binding conditional sale and purchase agreement to dispose of its entire shareholding in subsidiary Utsi Electronics Limited to Hong Kong-based Leidi Global Supply Limited for £1.0 million in cash. The deal, which includes a non-refundable £25,000 deposit and will see the remaining proceeds used to bolster the Group’s working capital, will leave PipeHawk’s activities concentrated on Thomson Engineering Design and Adien. Utsi, whose gross assets were about £430,000 and which made a loss before tax of roughly £464,000 in the year to 30 June 2025, represents a loss-making unit, and its sale is subject to clearance under the UK National Security and Investment Act 2021, creating uncertainty over timing and completion ahead of a long-stop date of 28 February 2026.

The most recent analyst rating on (GB:PIP) stock is a Sell with a £1.00 price target. To see the full list of analyst forecasts on Pipehawk stock, see the GB:PIP Stock Forecast page.

PipeHawk Secures Shareholder Backing as All AGM Resolutions Pass

PipeHawk plc reported that all resolutions put to shareholders at its annual general meeting on 18 December 2025 were duly passed, indicating solid shareholder support for the board’s proposals. The company will shortly publish the detailed proxy voting results and a post-AGM presentation by the chairman on its website, enhancing transparency for investors and providing further insight into its strategy and performance outlook.

The most recent analyst rating on (GB:PIP) stock is a Sell with a £1.00 price target. To see the full list of analyst forecasts on Pipehawk stock, see the GB:PIP Stock Forecast page.