Paranovus Entertainment Technology (PAVS) AI Stock Analysis

• Market Cap: $2.69M
• Dividend Yield: N/A
• Average Volume (3M): 440.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 3788.45%
• EPS Growth: 96.39%
• Country: US
• Employees: 28
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.81
• Shares Outstanding: 667,246
• 10 Day Avg. Volume: 982,913
• 30 Day Avg. Volume: 440,831
• PEG Ratio: 15.11
• Price to Book (P/B): 473.83
• Price to Sales (P/S): 160657.52
• P/FCF Ratio: -4.31K
• Enterprise Value/Market Cap: 3.27K
• Enterprise Value/Revenue: 708.32
• Enterprise Value/Gross Profit: 6.29K
• Enterprise Value/Ebitda: -32.31K
• 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: 40 Underperform
• Price Target: $2.00 ▼(-4.76% Downside)

The score is driven down primarily by severe fundamental deterioration (revenue collapse, sustained losses, and ongoing cash burn). Technical indicators also indicate a strong downtrend with weak momentum. Low leverage provides only a limited offset, and valuation is hard to justify with negative earnings and no dividend data.

Positive Factors

Low Leverage

A low debt-to-equity ratio (~0.10) materially reduces near-term default risk and interest burden, preserving financial flexibility. Over the next several months this helps the company access financing or restructure without being constrained by high mandatory debt service.

Listing Continuity

Restoring Nasdaq compliance preserves the company’s public listing, maintaining access to public capital, liquidity for shareholders, and institutional participation. This structural outcome lowers the risk of forced delisting and supports medium-term capital-raising and strategic options.

Shelf Registration for Capital Access

A $200M mixed securities shelf creates a durable mechanism to raise equity or debt as needed, offering management flexibility to fund operations, reduce cash burn, or pursue opportunistic investments. It materially improves the company’s ability to bridge funding gaps over months.

Negative Factors

Revenue Collapse

A near-total loss of revenue obliterates the company’s core economics, undermining operating leverage and long-term viability. Recovering meaningful top-line traction will require structural changes to product, distribution, or market strategy and cannot be remedied by short-term fixes alone.

Persistent Negative Cash Flow

Sustained negative operating and free cash flow indicates the business is not self-funding and must rely on external financing or equity dilution. This constrains reinvestment, increases execution risk, and elevates the chance of capital-raising that dilutes existing shareholders over the medium term.

Reverse Share Split Signaling Weak Equity Base

A 1-for-100 reverse split is a structural signal of a weakened equity base and prior price compliance issues. It typically reduces float and trading liquidity, can deter institutional holders, and reflects underlying marketability problems that can persist and complicate future capital raises or investor relations.

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

Paranovus Entertainment Technology faces significant financial challenges. The income statement reveals a steep revenue decline and persistent losses. The balance sheet shows a decrease in equity and moderate leverage, while the cash flow statement indicates negative cash flows, suggesting liquidity concerns. The company needs to address revenue generation and operational efficiency to improve its financial position.

Income Statement

Paranovus Entertainment Technology has shown a significant decline in revenue in the latest year, with revenue dropping from $98.15M to $6.54M. The net profit margin has been negative, indicating substantial losses. Gross profit margin is very low at 0.14%, and both EBIT and EBITDA margins are negative, suggesting ongoing operational challenges.

Balance Sheet

The debt-to-equity ratio stands at 0.41, indicating moderate leverage. Stockholders' equity has decreased significantly, leading to a lower equity ratio of 72.22%. The return on equity is negative due to substantial net losses, highlighting financial strain.

Cash Flow

The company has a negative free cash flow, which has deteriorated further compared to the previous year, and the operating cash flow is also negative. The ratio of operating cash flow to net income is less meaningful due to both being negative, indicating cash flow issues.

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 below the 20-day moving average (MA) of 2.13, below the 50-day MA of 27.38, and below the 200-day MA of 77.79, indicating a bearish trend. The MACD of -6.39 indicates Negative momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.75 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%
NAII	48 Neutral	$29.09M	-2.32	-15.93%	―	18.19%	-35.22%
LSF	48 Neutral	$26.72M	-15.36	-14.63%	―	17.73%	-34.71%
PAVS	40 Underperform	$2.69M	-0.22	-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.