Paranovus Entertainment Technology (PAVS) AI Stock Analysis

• Market Cap: $1.56M
• Dividend Yield: N/A
• Average Volume (3M): 440.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• 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: 3.87
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: -22.22
• 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: 42 Neutral
• Price Target: $1.00 ▼(-52.38% Downside)

The score is held down primarily by very weak financial performance (revenue collapse, sustained losses, and negative operating/free cash flow). Technicals also reflect a strong downtrend with negative momentum, despite oversold readings. Valuation provides limited support because the negative P/E is driven by losses and no dividend yield is indicated.

Positive Factors

Low financial leverage

A debt-to-equity near 0.10 gives the company structural capacity to absorb losses and access additional financing without heavy interest burden. Over 2–6 months this balance-sheet flexibility supports liquidity management and potential investment in recovery or product initiatives.

Interim revenue and asset growth

Reported revenue growth in the six months to Sep 30, 2025 and a rising asset base indicate operational recovery momentum. Sustained revenue pickup and asset accumulation over multiple quarters can rebuild scale, improve working capital and support a durable turnaround in fundamentals.

Prior proven profitability

Historical profitable years demonstrate the underlying business model can generate margins when execution and demand align. This track record implies management and core operations may be capable of returning to profitability if revenue and cost structures are restored.

Negative Factors

Severe revenue collapse

A collapse from ~$65M to ~$0.07M is a structurally material loss of scale that undermines pricing power, distribution and fixed-cost absorption. Recovering lost customers, contracts and market position typically requires sustained execution and capital over many quarters.

Persistent negative cash flow

Multi-year negative operating and free cash flow means the business is not self-funding. Continued cash burn constrains investment, forces reliance on external financing, and elevates risk that operations cannot be sustained without repeated capital injections.

Capital stability and volatile equity

Large swings in reported equity and persistent negative ROE signal unstable capital structure and weak returns. This raises funding and execution risk, can increase cost of capital, and complicates medium-term planning and investor confidence in a multi-quarter recovery.

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

Paranovus Entertainment Technology generates revenue through multiple streams, primarily centered around the licensing and distribution of its entertainment content and technologies. The company may also engage in partnerships with other entertainment and technology firms to expand its reach and enhance its offerings. Additionally, Paranovus could earn money through direct sales of its products, subscription services, and advertising revenue on its platforms, although specific details about these revenue streams are not available.

Paranovus Entertainment Technology Financial Statement Overview

Summary

Financial quality is very weak: revenue collapsed from ~65.0M (FY2024) to ~0.07M (FY2025), profitability is deeply negative (FY2025 net income about -7.9M), and operating/free cash flow have been negative for multiple years (FY2025 operating cash flow about -2.7M). Low reported leverage (debt-to-equity ~0.10) is a partial offset, but losses and volatile equity levels raise funding and execution risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.77, below the 50-day MA of 10.13, and below the 200-day MA of 67.82, indicating a bearish trend. The MACD of -2.33 indicates Negative momentum. The RSI at 32.21 is Neutral, neither overbought nor oversold. The STOCH value of 26.94 is Neutral, 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	$29.39M	-15.30	-14.63%	―	17.73%	-34.71%
NAII	48 Neutral	$22.79M	-1.89	-15.93%	―	18.19%	-35.22%
PAVS	42 Neutral	$1.56M	-0.13	-44.18%	―	3788.45%	96.39%

Paranovus Entertainment Technology Corporate Events

Paranovus Entertainment Technology Reports Financial Growth in 2025

Paranovus Entertainment Technology Limited has released its unaudited condensed consolidated financial statements for the six months ending September 30, 2025, revealing a significant increase in revenues compared to the same period in 2024. The company’s total assets rose from $35.56 million in March 2025 to $37.29 million in September 2025, while liabilities also increased, reflecting growth in both financial and operational aspects.