GrabAGun Digital Holdings (PEW) AI Stock Analysis

• Market Cap: $95.15M
• Dividend Yield: N/A
• Average Volume (3M): 987.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: N/A
• EPS Growth: -116.40%
• Country: US
• Employees: 4
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.12
• Shares Outstanding: 30,015,923
• 10 Day Avg. Volume: 1,294,808
• 30 Day Avg. Volume: 987,837
• PEG Ratio: 0.03
• Price to Book (P/B): -280.55K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -108.46
• Enterprise Value/Market Cap: -0.17
• Enterprise Value/Revenue: -8.07
• Enterprise Value/Gross Profit: -29.40
• Enterprise Value/Ebitda: 1.04
• 1Y Price Target: $6.75
• Price Target Upside: 48.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): $97.30M

• Rating: 40 Underperform
• Price Target: $3.00 ▼(-34.07% Downside)

The score is primarily held back by weak financial quality—losses, negative operating/free cash flow, and higher leverage—despite strong revenue growth and high gross margin. Technicals add further pressure with the stock trading below all major moving averages and negative MACD. Valuation is difficult to support because the company is unprofitable and no dividend yield is available.

Positive Factors

Sustained Revenue Growth

Consistent ~24% top-line growth indicates durable customer demand and successful market penetration for the company’s product assortment. Over 2–6 months this supports scaling benefits, stronger merchant leverage, and the ability to reinvest in distribution and platform capabilities to sustain expansion.

Very High Gross Margin

An ~90% gross margin signals a highly profitable product mix or platform economics at the gross level, giving long-term capacity to cover fixed operating costs, fund marketing or technology, and maintain pricing power versus competitors if managed sustainably across scale.

Strategic Commercial Leadership Hire

Hiring an experienced CRO from a peer (GunBroker.com) strengthens commercial execution and channel relationships. Over months, improved sales ops, partnership development, and pricing/distribution strategies can materially lift revenue conversion and long-term monetization efficiency.

Negative Factors

Negative Profitability

Despite strong gross margins, the company posts negative EBIT and net margins, indicating operating expenses or non‑operating costs erode profitability. Persisting losses limit retained earnings, constrain reinvestment, and require structural cost control to achieve durable profitability.

Weak Cash Generation

Negative operating and free cash flow with sharply declining FCF growth signal the business struggles to convert profits into cash. Over time this undermines internal funding for growth, increases financing reliance, and heightens execution risk if operating cash conversion does not improve.

Rising Leverage & Negative ROE

A D/E above 1.0 and negative ROE show heavier reliance on debt and poor returns to shareholders. Structurally, higher leverage raises interest and refinancing risk, reducing financial flexibility and amplifying downside if cash flows remain weak over the coming months.

GrabAGun Digital Holdings Business Overview & Revenue Model

Company Description

GrabAGun Digital Holdings Inc. operates as a eCommerce retailer of firearms and ammunition, related accessories, and other outdoor enthusiast products. The company is headquartered in Coppell, Texas.

How the Company Makes Money

GrabAGun Digital Holdings generates revenue primarily through the sale of firearms, ammunition, and related outdoor products on its e-commerce platform. The company earns money by marking up product prices and charging customers for shipping and handling. Additionally, they may have partnerships with manufacturers and suppliers, allowing them to receive wholesale pricing, which further enhances their profit margins. Other revenue streams could include advertising and promotional partnerships with brands seeking to reach their consumer base, as well as potential subscription services for premium access to certain products or exclusive deals.

GrabAGun Digital Holdings Financial Statement Overview

Summary

Despite strong revenue growth (23.81%) and a very high gross margin (89.57%), overall fundamentals are weak due to negative profitability (net margin -2.49%, EBIT margin -2.39%), negative operating/free cash flow with declining free cash flow growth (-23.72%), and rising leverage (debt-to-equity 1.21) alongside negative ROE (-2.15%).

Income Statement

GrabAGun Digital Holdings shows a significant revenue growth rate of 23.81% in the latest year, indicating potential for expansion. However, the company struggles with profitability, as evidenced by negative net profit margins (-2.49%) and EBIT margins (-2.39%). The high gross profit margin (89.57%) suggests efficient cost management at the gross level, but the overall negative profitability metrics highlight challenges in managing operating expenses and other costs.

Balance Sheet

The company's debt-to-equity ratio increased to 1.21, indicating a higher reliance on debt financing, which could pose a risk if not managed properly. The return on equity is negative (-2.15%), reflecting the company's inability to generate profits from shareholders' investments. The equity ratio stands at 35.85%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, with a significant decline in free cash flow growth (-23.72%). The operating cash flow to net income ratio is negative, indicating challenges in converting income into cash. The free cash flow to net income ratio is 1.0, suggesting that the company is maintaining its free cash flow relative to net income despite overall negative cash flow figures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.03M	0.00	0.00	475.18K	0.00
Gross Profit	557.73K	0.00	0.00	-241.00K	0.00
EBITDA	-15.69M	5.76M	414.50K	-6.20M	3.73M
Net Income	-16.50M	5.76M	414.50K	-6.98M	3.73M
Balance Sheet
Total Assets	175.86M	0.00	172.59M	4.22M	1.02M
Cash, Cash Equivalents and Short-Term Investments	1.19M	0.00	1.29M	2.33M	399.40K
Total Debt	0.00	0.00	0.00	299.04K	0.00
Total Liabilities	6.11M	890.00	6.16M	814.25K	155.81K
Stockholders Equity	169.75M	-890.00	166.44M	3.40M	860.50K
Cash Flow
Free Cash Flow	-14.06M	-2.30M	-680.87K	-7.59M	-973.48K
Operating Cash Flow	-12.03M	-2.30M	-680.87K	-6.03M	-973.48K
Investing Cash Flow	-173.82M	2.00M	-170.00M	-1.55M	-172.50M
Financing Cash Flow	208.95M	-85.72K	171.97M	9.52M	174.31M

GrabAGun Digital Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEW, the sentiment is Negative. The current price of 4.55 is above the 20-day moving average (MA) of 3.25, above the 50-day MA of 3.32, and below the 200-day MA of 7.66, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEW.

GrabAGun Digital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEW	40 Underperform	$95.15M	-0.15	-1.66%	―	―	-116.40%