Primech Holdings Ltd. (PMEC) AI Stock Analysis

• Market Cap: $26.02M
• Dividend Yield: N/A
• Average Volume (3M): 60.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 2.52%
• EPS Growth: 45.76%
• Country: US
• Employees: 2,744
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.02
• Shares Outstanding: 38,417,988
• 10 Day Avg. Volume: 130,056
• 30 Day Avg. Volume: 60,440
• PEG Ratio: -0.32
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -3.53
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 8.49
• Enterprise Value/Ebitda: 17.21
• 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: 44 Neutral
• Price Target: $0.64 ▼(-34.95% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by weak financial performance (losses, high leverage, negative ROE) and bearish technicals (below major moving averages with negative MACD). Oversold indicators and improving cash flow provide only limited offset, while valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Margin and Revenue Improvement

Improving gross margin to 23.6% alongside modest 2.5% revenue growth indicates the company is enhancing unit economics. Sustained margin expansion supports longer-term operating leverage and reduces the revenue threshold needed to reach break-even and potential profitability.

Stronger Cash Generation

Material improvement in operating and free cash flow enhances financial flexibility and ability to fund operations or deleverage without constant equity raises. Durable cash generation reduces reliance on volatile capital markets for working capital and growth investments.

Strategic JV & Partnership

A structured JV with WELLE combines complementary capabilities and opens Singapore and regional markets for robotics and sustainability offerings. This partnership strengthens competitive positioning, accelerates tech development, and aligns with structural demand for automation and carbon reduction.

Negative Factors

High Leverage

A D/E of ~1.04 signals significant leverage that limits financial flexibility and increases fixed obligations. Over a multi-month horizon high leverage raises refinancing, covenant and interest-rate risks, constraining investment in R&D and slowing strategic initiatives during downturns.

Persistent Losses / Negative ROE

Ongoing negative net income and ROE indicate the business still fails to generate shareholder returns. Structural unprofitability erodes equity, necessitates external funding, and limits capacity to self-fund growth or weather demand shocks without dilutive financing.

Dilution and Interest Burden from Convertible Notes

The 7% senior unsecured convertible notes add fixed interest costs and potential equity dilution if converted at $2. Structurally this raises leverage and could dilute existing shareholders, while covenants tied to indebtedness and proceeds usage limit flexibility for broader corporate spending.

Primech Holdings Ltd. Business Overview & Revenue Model

Company Description

Primech Holdings Ltd. provides facilities and stewarding services in the public and private sectors in Singapore. Its facilities services include general cleaning and maintenance of public and private facilities, such as airports, conservancy areas, public areas, refuse disposal areas, and parks and carparks of public housing units; common areas of hotels, educational institutions, public roads, residential spaces, commercial buildings, office facilities, industrial areas, retail stores, and healthcare facilities; housekeeping services; specialized cleaning services, including marble polishing, building façade cleaning, and clean room sanitation services; and waste management and pest control services. The company also offers stewarding services comprising cleaning of the kitchen area of healthcare facilities, hotels, and restaurants, as well as supplies ad hoc customer service officers, and food and beverage service crews to healthcare facilities, hotels, and restaurants. In addition, it operates HomeHelpy, an online portal that allows individual customers to book cleaning services in homes and offices; and manufactures and sells cleaning supplies, such as hand soaps, hand soap dispensers, cleaning fluids, and garbage bags used for general, floor, carpet, restroom, or kitchen purposes, as well as treatment products used in the marine industry under the D'Bond brand name. The company was incorporated in 2020 and is based in Singapore. Primech Holdings Ltd. is a subsidiary of Sapphire Universe Holdings Limited.

How the Company Makes Money

Primech Holdings Ltd. generates revenue through multiple streams, including the sale of proprietary technology products, engineering consultancy services, and manufacturing contracts. The company capitalizes on its expertise in developing specialized equipment and software for various sectors, which are sold directly to clients or through strategic partnerships with larger corporations. Additionally, PMEC earns income from long-term contracts in engineering services, providing ongoing support and maintenance for their products. Significant partnerships with industry leaders further enhance its market reach and contribute to steady revenue growth.

Primech Holdings Ltd. Financial Statement Overview

Summary

Moderate revenue growth (+2.5%) and improving gross margin (23.6%) are positives, but ongoing losses (negative net profit/EBIT margins), high leverage (debt-to-equity 1.04), negative ROE, and a relatively low equity ratio weigh heavily despite better free cash flow trends.

Income Statement

Primech Holdings Ltd. has shown some revenue growth, with a 2.5% increase in the latest year. However, profitability remains a concern, as indicated by negative net profit and EBIT margins. The gross profit margin has improved to 23.6%, but the company is still struggling with negative net income, which impacts overall profitability.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 1.04, indicating significant leverage. Return on equity is negative, suggesting inefficiencies in generating returns from shareholders' equity. The equity ratio is relatively low, pointing to potential financial instability.

Cash Flow

Cash flow has improved, with a significant increase in free cash flow growth. The operating cash flow to net income ratio is positive, indicating some ability to convert income into cash. However, the free cash flow to net income ratio suggests that cash generation is still not fully aligned with profitability.

Breakdown	TTM	Mar 2024	Mar 2024	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	69.03M	74.35M	72.52M	54.44M	48.09M	47.78M
Gross Profit	3.69M	17.53M	12.61M	9.84M	12.42M	5.57M
EBITDA	1.82M	3.01M	1.30M	2.34M	8.45M	2.61M
Net Income	-2.53M	-1.94M	-3.24M	-1.24M	5.36M	309.76K
Balance Sheet
Total Assets	42.82M	41.20M	45.51M	33.20M	28.95M	22.85M
Cash, Cash Equivalents and Short-Term Investments	9.07M	10.14M	7.65M	5.14M	6.82M	2.97M
Total Debt	22.36M	15.47M	20.79M	12.01M	7.35M	4.84M
Total Liabilities	33.99M	26.52M	30.45M	21.96M	15.66M	10.48M
Stockholders Equity	8.78M	14.89M	14.99M	11.17M	13.28M	12.37M
Cash Flow
Free Cash Flow	-5.19M	6.28M	-9.99M	2.49M	2.51M	1.27M
Operating Cash Flow	-3.18M	7.38M	-9.08M	5.05M	3.62M	2.49M
Investing Cash Flow	-1.13M	-1.03M	-807.00K	-2.55M	-3.22M	-733.46K
Financing Cash Flow	8.01M	-4.39M	8.18M	-3.63M	2.31M	-2.96M

Primech Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 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 PMEC, the sentiment is Negative. The current price of 0.99 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.94, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.60 is Neutral, neither overbought nor oversold. The STOCH value of 27.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PMEC.

Primech Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YSXT	64 Neutral	$25.78M	5.33	18.36%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NTIP	50 Neutral	$33.32M	-13.27	-5.87%	7.58%	-92.03%	-77.99%
PMEC	44 Neutral	$26.02M	-13.07	-13.00%	―	2.52%	45.76%
SGRP	44 Neutral	$18.72M	-0.85	-93.99%	―	-35.72%	-277.39%
SST	41 Neutral	$32.79M	-0.38	-99.29%	―	-20.49%	25.95%

Primech Holdings Ltd. Corporate Events

Primech Holdings Raises Up to US$4 Million via Convertible Notes to Fund Robotics and Smart Facilities Units

On December 31, 2025, Primech Holdings Ltd. entered into a securities purchase agreement with institutional investor WELLE Environmental (Lux) S.à r.l. for up to US$4 million in senior unsecured convertible promissory notes, bearing 7% annual interest and convertible into ordinary shares at US$2.00 per share. The financing is structured in two US$2 million tranches and includes covenants that restrict certain dilutive financings, cap the investor’s beneficial ownership at 9.99%, require a maximum total indebtedness-to-assets ratio of 0.75, and mandate that at least 80% of net proceeds be directed to subsidiaries engaged in autonomous bathroom cleaning robotics and smart facilities management systems, underscoring Primech’s capital commitment to its core technology businesses and potentially strengthening its balance sheet and growth capacity.

The most recent analyst rating on (PMEC) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Primech Holdings Ltd. stock, see the PMEC Stock Forecast page.

Primech Holdings and WELLE Partner to Boost Robotics and Sustainability

On December 12, 2025, Primech Holdings Ltd. announced a strategic cooperation with WELLE Environmental Group to advance intelligent industrial robotics and sustainable operations. This partnership involves the creation of a joint venture in Singapore, combining WELLE’s expertise in environmental governance and bioenergy with Primech’s operational experience and robotics capabilities. The collaboration aims to innovate in industrial robotics for complex environments, supporting global carbon reduction goals and expanding applications in industrial, environmental, and energy sectors.

The most recent analyst rating on (PMEC) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Primech Holdings Ltd. stock, see the PMEC Stock Forecast page.