Powell Max Limited Class A (PMAX) AI Stock Analysis

• Market Cap: $7.35M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.38
• Revenue Growth: -18.89%
• EPS Growth: -918.16%
• Country: US
• Employees: 53
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): -0.16
• Shares Outstanding: 2,644,418
• 10 Day Avg. Volume: 2,933,171
• 30 Day Avg. Volume: 1,037,515
• PEG Ratio: 0.03
• Price to Book (P/B): 9.63
• Price to Sales (P/S): 5.62
• P/FCF Ratio: -15.88
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: -0.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $2.50 ▼(-7.75% Downside)

Powell Max Limited Class A's overall stock score is primarily impacted by its poor financial performance, with significant declines in revenue and profitability, negative cash flows, and high liabilities. Technical analysis provides a slightly more positive outlook with some bullish momentum, but the overall trend remains bearish. Valuation metrics are unfavorable due to negative earnings and lack of dividends.

Powell Max Limited Class A Business Overview & Revenue Model

Company Description

Powell Max Limited Class A (PMAX) is a diversified technology company specializing in advanced data analytics and artificial intelligence solutions tailored for the financial services sector. The company provides cutting-edge software platforms that enable financial institutions to optimize their operations, enhance decision-making processes, and deliver superior customer experiences. PMAX operates primarily in the fintech and data analytics sectors, offering a suite of products designed to address the unique challenges faced by banks, investment firms, and insurance companies.

How the Company Makes Money

PMAX generates revenue through a combination of software licensing, subscription services, and consulting fees. The company licenses its proprietary analytics and AI-driven platforms to financial institutions, which pay either a one-time license fee or ongoing subscription fees for access to its tools and updates. Additionally, PMAX offers premium subscription packages that provide clients with advanced features, technical support, and regular software updates. Consulting services are another revenue stream, as PMAX offers expert advisory services to help clients implement and customize its solutions for maximum efficacy. Strategic partnerships with major financial institutions and technology firms also play a significant role in PMAX's revenue model, facilitating joint product development and market expansion opportunities.

Powell Max Limited Class A Financial Statement Overview

Summary

Powell Max Limited Class A faces significant financial challenges, with a sharp decline in revenue and profitability, negative cash flows, and reliance on external financing. Despite some improvements in the balance sheet, the negative return on equity and high liabilities are concerning.

Income Statement

Powell Max Limited Class A experienced a significant decline in revenue and profitability in the most recent year. The gross profit margin decreased from 48.6% to 39.4%, and the net profit margin turned negative at -49.6% from a positive 14.4% the previous year. The company also reported negative EBIT and EBITDA margins, indicating operational challenges. The revenue growth rate was negative, showing a decline of 25.8% year-over-year, highlighting a concerning trend in revenue trajectory.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio improved due to a positive stockholders' equity, but the company still has a high level of total liabilities relative to equity. The equity ratio improved to 34.0% from a negative position, indicating better asset coverage by equity. However, the return on equity is negative due to the net loss, which raises concerns about profitability and financial stability.

Cash Flow

Cash flow analysis reveals significant challenges. The operating cash flow turned negative, and free cash flow decreased substantially, indicating liquidity issues. The free cash flow to net income ratio is not meaningful due to negative values. The company relied heavily on financing activities, as shown by the large positive financing cash flow, which may not be sustainable long-term.

Breakdown	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	36.30M	49.00M	37.64M
Gross Profit	9.89M	18.82M	10.47M
EBITDA	-11.56M	12.61M	5.62M
Net Income	-17.99M	7.06M	-98.25K
Balance Sheet
Total Assets	62.57M	22.99M	19.83M
Cash, Cash Equivalents and Short-Term Investments	42.22M	3.66M	1.40M
Total Debt	20.10M	9.25M	13.29M
Total Liabilities	41.30M	38.30M	42.18M
Stockholders Equity	21.27M	-15.31M	-22.34M
Cash Flow
Free Cash Flow	-12.90M	6.83M	5.01M
Operating Cash Flow	-11.41M	7.11M	5.47M
Investing Cash Flow	-1.20M	-239.07K	-465.35K
Financing Cash Flow	51.18M	-4.61M	-4.21M

Powell Max Limited Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.71
• 50DMA: Positive
• 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 PMAX, the sentiment is Negative. The current price of 2.71 is below the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.58, and below the 200-day MA of 3.29, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 6.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PMAX.

Powell Max Limited Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
NTIP	56 Neutral	$34.30M	-15.07	-5.10%	6.71%	-92.03%	-20.56%
SGRP	45 Neutral	$25.11M	-1.93	-47.70%	―	-44.47%	-203.41%
PMAX	44 Neutral	$7.35M	―	-344.73%	―	-18.89%	-918.16%

Powell Max Limited Class A Corporate Events

Powell Max Limited Announces Reverse Stock Split Effective October 6, 2025

Powell Max Limited, a company incorporated in the British Virgin Islands, announced on September 25, 2025, its plan to implement a 1-for-8 reverse stock split effective October 6, 2025. This move, approved by the Board of Directors on September 15, 2025, aims to reduce the number of authorized shares from 100 million to 12.5 million, potentially impacting the company’s market positioning and shareholder value. The reverse split is subject to Nasdaq Operations notice requirements, with trading to commence on a split-adjusted basis under the symbol ‘PMAX.’

Powell Max Limited Reports First Half 2025 Financial Results

On September 23, 2025, Powell Max Limited announced its unaudited financial results for the first half of 2025, revealing a 5.3% increase in revenue to HK$23.9 million compared to the same period in 2024. Despite the revenue growth, the company reported a net loss of HK$20.4 million, a significant downturn from a profit of HK$0.8 million in the previous year, primarily due to increased general and administrative expenses following the acquisition of Miracle Media and heightened selling and distribution costs.

Powell Max Limited Faces Nasdaq Delisting Amid Compliance Issues

Powell Max Limited, a company listed on the Nasdaq Stock Market, has faced challenges in maintaining compliance with Nasdaq’s listing requirements. On September 2, 2025, the company received a delisting determination from Nasdaq due to its failure to meet the minimum bid price and stockholders’ equity requirements. The company plans to appeal this decision to a Nasdaq Hearings Panel, which would temporarily suspend the delisting process. This development highlights the company’s current financial difficulties and its efforts to maintain its market position.

Powell Max Limited Announces Private Placement to Raise Capital

Powell Max Limited, on August 13, 2025, entered into a securities purchase agreement with investors to sell up to 1,600,000 Class A ordinary shares and 4,800,000 common warrants in a private placement transaction. The transaction is expected to generate gross proceeds of approximately US$403,200, which will be used for general corporate purposes, including working capital. The common warrants are exercisable immediately and have a three-year validity, with certain restrictions on beneficial ownership and transfer. This move is likely to impact the company’s financial flexibility and market positioning by providing additional capital for its operations.