Paranovus Entertainment Technology (PAVS) AI Stock Analysis

• Market Cap: $393.06K
• Dividend Yield: N/A
• Average Volume (3M): 440.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 3788.45%
• EPS Growth: 96.39%
• Country: US
• Employees: 28
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 667,246
• 10 Day Avg. Volume: 982,913
• 30 Day Avg. Volume: 440,831
• PEG Ratio: 0.15
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 1606.57
• P/FCF Ratio: -43.06
• Enterprise Value/Market Cap: 13.82
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 3.88
• Enterprise Value/Ebitda: -19.96
• 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: 41 Neutral
• Price Target: $0.45 ▼(-78.57% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by very weak financial performance (revenue collapse, sustained losses, and ongoing cash burn). Technicals also weigh on the rating, with price well below major moving averages and negative momentum indicators. Valuation offers limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Low leverage

A debt-to-equity around 0.10 provides durable financial flexibility: lower interest and refinancing burden reduce insolvency risk and give management capacity to raise capital or absorb shocks without heavy fixed-debt costs, supporting survival while pursuing restructuring.

Lean workforce

A 28-person headcount implies a lean operating model with lower fixed payroll obligations. Over the medium term this structural cost advantage can conserve runway, enable nimble pivoting of the business, and reduce incremental burn while management attempts to restore revenue.

Prior profitable operating history

Documented stronger performance in FY2020–FY2021 shows the company previously generated profits and cash, indicating the core operations had viable economics at scale. That historical track record increases the chance management can rebuild revenue or monetize assets sustainably.

Negative Factors

Severe revenue collapse

A drop from ~$65M to ~$0.07M reflects a structural loss of customers, contracts, or core business lines. Such extreme scale erosion destroys operating leverage, supplier/customer relationships, and competitive position, making revenue recovery a multi-period strategic challenge.

Persistent negative cash flow

Multi-year negative operating and free cash flow mean the company cannot self-fund operations or growth. Ongoing cash burn forces reliance on external financing or equity dilution, constraining investment, limiting strategic options, and increasing solvency risk over the medium term.

Sustained net losses and weak margins

Deep and persistent net losses erode shareholder equity and restrict reinvestment. Weak margins on a tiny revenue base indicate the current cost structure and business model are not delivering returns, making profitability recovery dependent on material operational or strategic changes.

Paranovus Entertainment Technology Business Overview & Revenue Model

Company Description

Paranovus Entertainment Technology Ltd. operates in the artificial intelligence (AI)-powered entertainment industry. The company focuses on providing AI-driven games and applications. The company was formerly known as Happiness Development Group Limited and changed its name to Paranovus Entertainment Technology Ltd. in March 2023. Paranovus Entertainment Technology Ltd. was founded in 2004 and is based in New York, New York.

How the Company Makes Money

null

Paranovus Entertainment Technology Financial Statement Overview

Summary

Financial quality is very weak: revenue collapsed (FY2024 ~65.0M to FY2025 ~0.07M), net income is deeply negative (FY2025 about -7.9M), and operating/free cash flow have been negative for multiple years (FY2025 OCF about -2.7M). Low reported leverage (debt-to-equity ~0.10) is a partial offset, but profitability and cash generation remain major concerns.

Income Statement

Operating performance has deteriorated sharply. Revenue fell from ~65.0M (FY2024) to just ~0.07M (FY2025), and profitability is deeply negative with FY2025 net income of about -7.9M and an extremely weak net margin (driven by a very small revenue base). While FY2020–FY2021 showed positive margins and profits, the last several years have been consistently loss-making, highlighting an unstable and weakening earnings profile.

Balance Sheet

Leverage appears low based on debt-to-equity (about 0.10 in FY2025), which is a balance-sheet positive. However, equity has been highly volatile (very large in FY2021–FY2022, then much lower in FY2023–FY2024, and higher again in FY2025), and returns on equity have been persistently negative in recent years due to losses. Overall, the company does not look heavily indebted, but capital stability and profitability remain key concerns.

Cash Flow

Cash generation is weak, with operating cash flow negative in FY2022–FY2025 (about -2.7M in FY2025) and free cash flow also negative across the same period. The cash burn has improved versus FY2024 (less negative), but cash flow is still not self-funding and remains dependent on external financing or balance-sheet resources. Earlier years (FY2020–FY2021) were materially stronger, but the recent trend is unfavorable.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	12.42M	71.54K	6.54M	23.33M	20.76M	71.48M
Gross Profit	1.40M	9.02K	9.14K	416.88K	3.71M	18.18M
EBITDA	-272.20K	-6.36M	-3.37M	-4.47M	-55.47M	2.64M
Net Income	-6.81M	-7.89M	-10.13M	-71.74M	-49.19M	786.36K
Balance Sheet
Total Assets	37.29M	35.56M	7.73M	36.34M	97.43M	112.74M
Cash, Cash Equivalents and Short-Term Investments	5.21M	5.02M	944.24K	2.05M	19.73M	36.56M
Total Debt	5.65M	2.35M	2.29M	2.24M	2.27M	2.24M
Total Liabilities	8.85M	6.56M	2.56M	22.47M	20.01M	15.11M
Stockholders Equity	23.60M	24.26M	5.58M	14.76M	78.13M	94.75M
Cash Flow
Free Cash Flow	-1.86M	-2.67M	-11.88M	-20.71M	-30.54M	-930.11K
Operating Cash Flow	-1.86M	-2.67M	-13.11M	-20.71M	-28.13M	2.90M
Investing Cash Flow	-180.36K	-27.05M	11.70M	89.32K	-8.48M	-13.22M
Financing Cash Flow	1.81M	29.01M	0.00	3.15M	18.83M	10.67M

Paranovus Entertainment Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.10
• 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 PAVS, the sentiment is Negative. The current price of 2.1 is above the 20-day moving average (MA) of 1.16, above the 50-day MA of 1.43, and below the 200-day MA of 51.20, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 32.24 is Neutral, neither overbought nor oversold. The STOCH value of 2.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAVS.

Paranovus Entertainment Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LSF	52 Neutral	$25.58M	-15.26	-14.36%	―	17.73%	-34.71%
NAII	44 Neutral	$15.81M	-2.11	-17.43%	―	18.19%	-35.22%
PAVS	41 Neutral	$393.06K	-32.27	-28.46%	―	3788.45%	96.39%