Photomyne (PHTM) AI Stock Analysis

• Market Cap: ₪50.34M
• Dividend Yield: N/A
• Average Volume (3M): 744.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 14.39%
• EPS Growth: -1797.14%
• Country: IL
• Employees: 22
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 2,691,872
• 10 Day Avg. Volume: 1,827
• 30 Day Avg. Volume: 744
• PEG Ratio: 0.02
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -6.68
• 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: 43 Neutral
• Price Target: 1,749.00 ▼(-22.06% Downside)

Photomyne's overall stock score reflects significant financial and technical challenges. The company's profitability issues and liquidity concerns weigh heavily on its financial performance score. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The valuation is further weakened by a negative P/E ratio and lack of dividend yield, making the stock less attractive to investors.

Positive Factors

Recurring subscription model

A subscription and in‑app purchase business model creates recurring revenue streams and higher revenue visibility than one‑off sales. For a consumer photo‑digitization app this supports predictable renewal-driven cash inflows and scalable unit economics as user base and ARPU improvements compound over time.

High gross profit margin

A ~68% gross margin is characteristic of software-driven products and signals efficient delivery and low direct costs. This margin provides durable operating leverage potential: incremental subscription revenue can flow to EBITDA with limited incremental COGS, supporting long-term reinvestment in product and marketing.

Low leverage and solid equity base

A low debt load reduces financial risk and interest burden, preserving flexibility to fund product development or weather cyclical softness without heavy refinancing. A healthy capital base supports measured investments and reduces insolvency risk, improving resilience over a multi‑quarter horizon.

Negative Factors

Negative operating cash flow

Negative operating cash flow indicates the core business is not yet generating sufficient cash to fund operations and cover losses. Structurally this pressures liquidity, can force external financing or dilution, and limits the firm's ability to invest in user acquisition or product enhancements without raising capital.

Persistent unprofitability

Sustained negative net and EBIT margins show the business has not converted revenue into operating profits. Negative ROE implies shareholders' capital is not producing returns. Over months this challenges free cash flow conversion and the company's ability to reach self‑funding without margin expansion or cost restructuring.

Revenue concentration and modest growth

Heavy reliance on consumer subscriptions and in‑app purchases concentrates revenue on a single channel and market segment. Combined with modest TTM revenue growth (~6% reported), this limits diversification and makes topline sensitive to consumer retention, app marketplace dynamics, or shifts in mobile monetization trends over the next several quarters.

Photomyne Business Overview & Revenue Model

Company Description

Photomyne (PHTM) is a technology company specializing in the digitization of physical photographs and memorabilia. The company operates primarily in the consumer and software technology sectors, offering a suite of mobile applications that allow users to scan, store, and share their photo collections seamlessly. Its core products include the Photomyne app, which utilizes advanced scanning technology to quickly capture multiple images, as well as features for organization, editing, and sharing, catering to individuals looking to preserve their memories in a digital format.

How the Company Makes Money

Photomyne generates revenue through a subscription-based model, offering users access to premium features and services within its app. This includes options for enhanced storage capabilities, advanced editing tools, and additional sharing functionalities. The company may also generate revenue through partnerships with businesses in related sectors, such as photography services or photo printing companies, allowing users to order physical prints of their digitized photos directly through the app. Additionally, strategic collaborations and advertising partnerships may contribute to its earnings, though specific details on these arrangements are not publicly disclosed.

Photomyne Financial Statement Overview

Summary

Photomyne's financial performance is mixed. While there is positive revenue growth and a strong gross profit margin, the company faces significant profitability challenges with negative net profit and EBIT margins. The balance sheet shows low leverage, but the negative return on equity and liquidity issues from negative operating cash flow are concerning.

Income Statement

Photomyne's income statement shows a mixed performance. The company has achieved a positive revenue growth rate of 6.06% in the TTM period, indicating some top-line growth. However, profitability metrics such as the net profit margin and EBIT margin are negative, reflecting ongoing challenges in achieving profitability. The gross profit margin remains relatively strong at 68.42%, suggesting efficient cost management in production. Overall, while there is revenue growth, the persistent losses and negative margins highlight profitability issues.

Balance Sheet

The balance sheet of Photomyne reveals a stable financial structure with a low debt-to-equity ratio of 0.14 in the TTM period, indicating low leverage and reduced financial risk. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio stands at a healthy level, suggesting a solid capital base. While the low leverage is a positive aspect, the negative ROE points to challenges in generating returns for shareholders.

Cash Flow

Photomyne's cash flow statement indicates some concerns. The operating cash flow is negative, and the operating cash flow to net income ratio is also negative, suggesting that the company is not generating sufficient cash from its operations to cover its losses. The free cash flow growth rate is positive at 11.07% in the TTM period, but the free cash flow to net income ratio is slightly above 1, indicating that free cash flow is just covering net losses. Overall, the cash flow situation reflects liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.73M	13.04M	13.33M	16.16M	12.32M	9.30M
Gross Profit	10.08M	8.99M	9.43M	11.38M	8.34M	6.29M
EBITDA	-5.56M	-4.74M	2.06M	-68.00K	-6.28M	-2.01M
Net Income	-4.99M	-3.97M	2.50M	-1.07M	-6.35M	-2.06M
Balance Sheet
Total Assets	13.43M	14.43M	17.83M	17.16M	18.52M	3.53M
Cash, Cash Equivalents and Short-Term Investments	10.25M	12.49M	15.76M	14.52M	15.85M	1.92M
Total Debt	750.00K	20.00K	165.00K	252.00K	220.98K	30.00K
Total Liabilities	7.97M	5.92M	4.95M	6.89M	7.59M	4.83M
Stockholders Equity	5.46M	8.51M	12.88M	10.27M	10.93M	-1.30M
Cash Flow
Free Cash Flow	-4.29M	-3.44M	804.00K	-101.00K	-4.03M	-188.00K
Operating Cash Flow	-4.22M	-3.41M	814.00K	-59.00K	-3.99M	-173.00K
Investing Cash Flow	4.15M	2.60M	-11.38M	11.00M	-11.51M	-4.00K
Financing Cash Flow	-1.09M	-653.00K	-110.00K	-110.00K	17.06M	-108.00K

Photomyne Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2244.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PHTM, the sentiment is Negative. The current price of 2244 is above the 20-day moving average (MA) of 1967.80, above the 50-day MA of 2036.76, and below the 200-day MA of 2469.20, indicating a bearish trend. The MACD of -60.19 indicates Positive momentum. The RSI at 33.23 is Neutral, neither overbought nor oversold. The STOCH value of 13.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PHTM.

Photomyne Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRPD	53 Neutral	₪142.61M	-5.41	―	―	1290.36%	-214.81%
PHTM	43 Neutral	₪50.34M	-2.64	―	―	14.39%	-1797.14%
NRGN	40 Underperform	₪30.32M	-2.45	―	―	-23.68%	31.97%