Peninsula Group (PEN) AI Stock Analysis

• Market Cap: 800.24M
• Dividend Yield: 5.35%
• Average Volume (3M): 72.14K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.06
• Revenue Growth: 25.73%
• EPS Growth: 45.19%
• Country: IL
• Employees: 45
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Credit Services
• EPS (TTM): 8.90
• Shares Outstanding: 223,218,300
• 10 Day Avg. Volume: 93,375
• 30 Day Avg. Volume: 72,145
• PEG Ratio: -2.19
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 2.57
• P/FCF Ratio: 4.56
• 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: 75 Outperform
• Price Target: 413.00 ▲(12.44% Upside)

Peninsula Group's stock is supported by strong technical indicators and attractive valuation metrics. While financial performance shows robust profitability, high leverage and cash flow issues need attention. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Despite a recent slowdown, Peninsula Group's revenue growth remains positive, indicating stable demand for its services.

Profitability Margins

High profitability margins demonstrate effective cost management and strong pricing power, supporting long-term financial health.

Cash Generation

A high free cash flow to net income ratio indicates efficient cash generation, providing flexibility for reinvestment and debt management.

Negative Factors

High Leverage

Significant leverage could increase financial risk, especially in adverse market conditions, potentially impacting long-term stability.

Negative Cash Flow Growth

Declining cash flow growth suggests potential liquidity issues, which may constrain operational flexibility and investment capacity.

Slowing Revenue Growth

A slowdown in revenue growth could indicate market saturation or increased competition, potentially limiting future expansion opportunities.

Peninsula Group Business Overview & Revenue Model

Company Description

Peninsula Group (PEN) is a leading provider of HR and employment law services, primarily focused on supporting small to medium-sized businesses across various sectors. The company offers a range of core services including HR consultancy, employee training, health and safety advisory, and legal support concerning employment regulations. With a mission to simplify the complexities of workforce management, Peninsula Group aims to empower businesses to navigate employment challenges effectively.

How the Company Makes Money

Peninsula Group generates revenue through a subscription-based model, offering clients various packages that include access to HR services, legal advice, and training programs. The company earns money primarily from monthly or annual fees paid by its clients for ongoing support and consultation. Additionally, Peninsula benefits from one-time fees for specific services such as training workshops and compliance audits. Strategic partnerships with legal firms and industry associations also enhance its offerings and market reach, contributing to its overall earnings. The company's focus on customer retention and expansion into new markets further bolsters its revenue streams.

Peninsula Group Financial Statement Overview

Summary

Peninsula Group demonstrates strong profitability with a consistent gross profit margin and improved net profit margin. The balance sheet is strengthened by eliminating debt, though there is a slight decrease in return on equity. Cash flow shows positive operational cash flow, but volatility remains a concern.

Income Statement

Peninsula Group demonstrates strong profitability with a consistent gross profit margin of 100% due to its revenue structure. The net profit margin improved from 44.6% in 2023 to 40.6% in 2024, showing resilience in cost management. However, revenue growth has been inconsistent, with a decrease from 2022 to 2023 but a recovery seen in 2024.

Balance Sheet

The company has significantly improved its debt position, reducing total debt from $877.7 million in 2023 to zero in 2024, enhancing its balance sheet strength. The equity ratio improved from 36% in 2023 to 31.6% in 2024, though the return on equity slightly decreased from 10.6% to 9.7%, indicating a need for better utilization of equity.

Cash Flow

Peninsula Group's cash flow shows positive operational cash flow in 2024 at $106.5 million, a recovery from negative figures in earlier years. The free cash flow to net income ratio is strong, reflecting efficient cash conversion. However, the volatility in operating cash flows poses a potential risk for future cash generation stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	215.85M	181.66M	166.28M	140.00M	152.89M	139.41M
Gross Profit	148.10M	126.49M	122.17M	114.50M	140.57M	128.83M
EBITDA	97.43M	70.99M	75.03M	68.03M	99.85M	94.73M
Net Income	70.89M	51.31M	53.80M	48.74M	68.65M	64.22M
Balance Sheet
Total Assets	1.78B	1.68B	1.41B	1.52B	1.50B	1.04B
Cash, Cash Equivalents and Short-Term Investments	2.36M	23.40M	101.38M	93.00M	111.21M	90.90M
Total Debt	1.20B	1.12B	877.71M	1.00B	962.25M	502.82M
Total Liabilities	1.23B	1.15B	901.41M	1.02B	993.89M	535.36M
Stockholders Equity	555.41M	529.58M	507.06M	505.47M	507.46M	506.15M
Cash Flow
Free Cash Flow	-1.09M	102.61M	359.01M	-21.63M	10.07M	-114.79M
Operating Cash Flow	943.00K	106.48M	359.50M	-20.86M	12.84M	-110.61M
Investing Cash Flow	-2.32M	-3.88M	-489.00K	-770.00K	-1.31M	-3.98M
Financing Cash Flow	-3.47M	-180.54M	-350.26M	3.55M	9.28M	204.03M

Peninsula Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 367.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PEN, the sentiment is Neutral. The current price of 367.3 is above the 20-day moving average (MA) of 362.70, above the 50-day MA of 333.37, and above the 200-day MA of 292.26, indicating a neutral trend. The MACD of 5.84 indicates Positive momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:PEN.

Peninsula Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JCFN	80 Outperform	796.53M	10.33	―	―	29.67%	15.36%
MNIF	78 Outperform	1.46B	8.31	―	4.19%	25.72%	21.70%
PEN	75 Outperform	800.24M	11.25	―	5.35%	25.73%	45.19%
DIFI	72 Outperform	1.77B	13.71	―	5.03%	0.10%	15.03%
MCLL	60 Neutral	710.38M	13.27	―	1.53%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%