Paragon Technologies (PGNT) AI Stock Analysis

• Market Cap: $7.69M
• Dividend Yield: N/A
• Average Volume (3M): 556.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 11.70%
• EPS Growth: -631.21%
• Country: US
• Employees: 49
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.04
• Shares Outstanding: 1,554,000
• 10 Day Avg. Volume: 995
• 30 Day Avg. Volume: 556
• PEG Ratio: -4.62
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -10.87
• Enterprise Value/Market Cap: 3.29
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: 36.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $5.00 ▼(-0.99% Downside)

Paragon Technologies faces significant financial challenges, with profitability and cash flow issues being the most pressing concerns. Technical indicators provide some mixed signals, but the negative valuation metrics further weigh down the overall score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company's ability to maintain revenue growth amidst challenges indicates resilience and potential for future market expansion.

Business Model

A diversified revenue model with recurring income from software licensing and long-term service agreements supports stable cash flows.

Market Position

Specialization in automation solutions positions the company well in growing industries like e-commerce and manufacturing.

Negative Factors

Profitability Challenges

Sustained profitability issues can hinder reinvestment in growth and innovation, impacting long-term competitiveness.

Rising Debt Levels

Increased leverage may strain financial flexibility, limiting the company's ability to invest in strategic opportunities.

Cash Flow Issues

Negative cash flows can constrain operations and growth initiatives, necessitating improved cash management strategies.

Paragon Technologies Business Overview & Revenue Model

Company Description

Paragon Technologies, Inc., through its subsidiaries, engages in the material handling, distribution, and real estate activities in North America, Latin America, Europe, and Asia. It offers various material handling solutions, including complete order fulfillment, assembly, product advancing systems, subsystem technologies, software, and services for automated material handling and order processing applications. The company also distributes IT hardware products, including servers, workstations, storage and networking products, audio visual products, and power protection systems; notebook and desktop computers, printers, projectors, gaming products, and accessories; and offers managed services, Everything as a Service, printing outsourcing, electronic documents management and invoicing, and internet of things services, as well as high-capacity storage solutions products. In addition, it holds luxury residential condominiums in Las Vegas, Nevada, as well as provides ancillary real estate services; and invests in businesses and securities under the investment management policy. The company was formerly known as SI Handling Systems, Inc. and changed its name to Paragon Technologies, Inc. in April 2000. Paragon Technologies, Inc. was incorporated in 1958 and is based in Easton, Pennsylvania.

How the Company Makes Money

Paragon Technologies generates revenue through multiple streams, primarily from the sale of its automated material handling systems and related software solutions. The company earns income by designing, engineering, and installing customized solutions for clients, which often include long-term service agreements for maintenance and support. Additionally, Paragon may benefit from recurring revenue through software licensing fees and upgrades. Strategic partnerships with technology providers and logistics firms enhance its market reach and capabilities, contributing to its overall earnings. The company also focuses on expanding its customer base in growth sectors, which plays a significant role in driving future revenues.

Paragon Technologies Financial Statement Overview

Summary

Paragon Technologies faces financial challenges, particularly in profitability and cash flow management. Despite some revenue growth, the company struggles with maintaining margins and generating positive cash flow. Increased leverage adds to the financial risk, and improving operational efficiency and cost management will be crucial for future stability.

Income Statement

Paragon Technologies shows a mixed performance in its income statement. The TTM data reveals a slight revenue growth of 3.76%, but the company is struggling with profitability, as indicated by a negative net profit margin of -0.54%. The gross profit margin has decreased over time, and EBIT and EBITDA margins are low, suggesting challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet indicates moderate financial stability. The debt-to-equity ratio has increased to 0.84 in the TTM period, reflecting higher leverage. Return on equity is negative, highlighting profitability issues. However, the equity ratio remains reasonable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is highly negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow management issues. The free cash flow to net income ratio is positive, but this is due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.86M	126.47M	125.27M	134.24M	141.55M	108.00M
Gross Profit	11.45M	11.69M	12.03M	13.98M	12.36M	11.66M
EBITDA	687.00K	4.65M	4.47M	9.96M	7.65M	5.80M
Net Income	-1.17M	1.11M	1.14M	4.73M	3.35M	3.60M
Balance Sheet
Total Assets	64.31M	55.04M	64.38M	50.33M	54.62M	42.76M
Cash, Cash Equivalents and Short-Term Investments	7.04M	5.89M	9.10M	6.64M	3.88M	3.35M
Total Debt	18.58M	12.89M	11.84M	10.44M	6.78M	9.75M
Total Liabilities	41.30M	33.10M	41.78M	32.31M	40.01M	30.96M
Stockholders Equity	19.46M	19.06M	19.41M	15.22M	12.38M	10.20M
Cash Flow
Free Cash Flow	-9.81M	-1.44M	-1.51M	-1.62M	4.54M	1.04M
Operating Cash Flow	-9.30M	-1.06M	-1.31M	-1.42M	6.53M	1.31M
Investing Cash Flow	2.81M	-795.00K	-751.00K	54.00K	-2.76M	-187.00K
Financing Cash Flow	4.45M	769.00K	1.38M	4.69M	-2.18M	784.00K

Paragon Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGNT, the sentiment is Negative. The current price of 5.05 is below the 20-day moving average (MA) of 5.22, above the 50-day MA of 4.98, and below the 200-day MA of 6.62, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 28.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PGNT.

Paragon Technologies 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%
IZM	58 Neutral	$11.66M	10.79	7.76%	―	5.12%	―
PGNT	49 Neutral	$7.69M	-7.65	-3.97%	―	11.70%	-631.21%