Pipehawk (PIP) AI Stock Analysis

• Market Cap: £562.85K
• Dividend Yield: N/A
• Average Volume (3M): 58.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• 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: 90,661
• 30 Day Avg. Volume: 58,283
• 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: 39 Underperform
• Price Target: 1.00p ▼(-35.48% Downside)

Pipehawk's overall stock score is low due to significant financial challenges, bearish technical indicators, and a concerning valuation. The company's declining revenue, high leverage, and negative equity are major risks, compounded by bearish market momentum and a negative P/E ratio.

Positive Factors

High Gross Profit Margin

A high gross profit margin indicates strong pricing power and efficient production, which can support profitability if operating costs are controlled.

Innovative Product Offering

Pipehawk's focus on innovative solutions for utility sectors positions it well to capitalize on infrastructure needs, supporting long-term demand.

Recurring Revenue Streams

Recurring revenue from service contracts provides stability and predictability, enhancing financial resilience against market fluctuations.

Negative Factors

Declining Revenue

Significant revenue decline suggests weakening demand or competitive pressures, which could impact long-term growth and market position.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.

Negative Equity

Negative equity reflects a risky capital structure, raising concerns about solvency and the ability to withstand financial downturns.

Pipehawk Business Overview & Revenue Model

Company Description

PipeHawk plc engages in the development, assembly, and sale of test system solutions and ground probing radar (GPR) equipment primarily for civil engineering and land mine detection applications in Europe and internationally. It operates through Utility Detection and Mapping Services; Development, Assembly, and Sale of GPR Equipment; and Automation and Test System Solutions segments. The company offers service avoidance, utility mapping, and reinstatement measurement solutions, as well as accessories; provides GPR based services; and undertakes complementary research and development assignments. It also provides utility detection and mapping solutions; solutions and services for electronic system design and manufacture, test equipment, transfer systems, and automation and assembly solutions to the automotive, aerospace, rail, and other related industries; and turnkey solutions for automated assembly process. In addition, the company produces machines, attachments, and tools for railway track renewal and maintenance; manufactures and provides service for specialist equipment to test the skid resistance characteristics of vehicle and pedestrian surfaces; and offers specialist surveying services. PipeHawk plc was incorporated in 2000 and is based in Aldershot, the United Kingdom.

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

Pipehawk's financial performance is weak, with declining revenue and profitability, high leverage, and negative equity. Cash flow performance is also poor, with significant declines in free cash flow and limited cash generation.

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

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 above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.46, and above the 200-day MA of 1.52, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.23 is Neutral, neither overbought nor oversold. The STOCH value of 85.53 is Negative, 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
SDI	70 Neutral	£83.66M	18.26	9.34%	―	7.36%	31.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£80.60M	-7.21	-16.64%	―	-7.35%	-222.10%
TRAC	41 Neutral	£1.38M	-1.30	―	―	-1.05%	-8.05%
PIP	39 Underperform	£562.85K	―	―	―	-59.04%	84.76%

Pipehawk Corporate Events

PipeHawk PLC Returns to Profitability Amidst Strategic Growth and Market Challenges

PipeHawk PLC reported a return to net profitability despite a significant decrease in turnover due to the administration of QM Systems Limited. The company’s remaining subsidiaries performed well, with a strong order book and positive outlook for future projects. Thomson Engineering Design Ltd continues to strengthen its market position through strategic partnerships and international exhibitions, while Adien has secured new clients and projects, maintaining high operational capacity. Utsi Electronics Ltd anticipates a brighter future with a more stable order outlook, despite initial slowdowns. The company’s financial position is supported by deferred director fees and renewed financial support.