Primech Holdings Ltd. (PMEC) AI Stock Analysis

• Market Cap: $66.27M
• Dividend Yield: N/A
• Average Volume (3M): 164.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• 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: 47,941
• 30 Day Avg. Volume: 164,085
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 9.47
• Enterprise Value/Ebitda: 19.20
• 1Y Price Target: $1.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $1.50 ▼(-10.71% Downside)

Primech Holdings Ltd. faces significant challenges with profitability and financial stability, reflected in a low valuation score. However, technical indicators show a positive trend, providing some support to the overall score.

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 channels. The company primarily earns income from its investments in technology and real estate projects, where it develops and leases properties, thus creating a steady stream of rental income. Additionally, PMEC profits from the sale of advanced manufacturing technologies and consulting services to businesses seeking to optimize their operations. Strategic partnerships with industry leaders enhance PMEC's market reach and operational capabilities, further bolstering its revenue streams. The company also explores opportunities in renewable energy, tapping into government incentives and subsidies aimed at promoting sustainable practices, contributing to its overall earnings.

Primech Holdings Ltd. Financial Statement Overview

Summary

Primech Holdings Ltd. is experiencing moderate revenue growth but faces challenges in profitability and financial stability. The high leverage and negative returns on equity are concerning, although improvements in cash flow provide some optimism. The company needs to focus on enhancing profitability and reducing debt to strengthen its financial position.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.03M	74.35M	72.52M	69.03M	54.44M	48.09M
Gross Profit	3.69M	17.53M	12.61M	10.62M	9.84M	12.42M
EBITDA	1.82M	3.01M	1.30M	1.82M	2.34M	8.45M
Net Income	-2.53M	-1.94M	-3.24M	-2.53M	-1.24M	5.36M
Balance Sheet
Total Assets	42.82M	41.20M	45.51M	42.82M	33.20M	28.95M
Cash, Cash Equivalents and Short-Term Investments	9.07M	10.14M	7.65M	9.07M	5.14M	6.82M
Total Debt	22.36M	15.47M	20.79M	22.36M	12.01M	7.35M
Total Liabilities	33.99M	26.52M	30.45M	33.99M	21.96M	15.66M
Stockholders Equity	8.78M	14.89M	14.99M	8.78M	11.17M	13.28M
Cash Flow
Free Cash Flow	-5.19M	6.28M	-9.99M	-5.19M	2.49M	2.51M
Operating Cash Flow	-3.18M	7.38M	-9.08M	-3.18M	5.05M	3.62M
Investing Cash Flow	-1.13M	-1.03M	-807.00K	-1.13M	-2.55M	-3.22M
Financing Cash Flow	8.01M	-4.39M	8.18M	8.01M	-3.63M	2.31M

Primech Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 1.68 is below the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.67, and above the 200-day MA of 1.15, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 44.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PMEC.

Primech Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZ	76 Outperform	$1.80B	61.20	22.58%	―	4.19%	48.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	58 Neutral	$324.06M	7.73	-1.17%	―	62.44%	-109.84%
OMEX	55 Neutral	$120.21M	―	―	―	-18.53%	―
PMEC	51 Neutral	$66.27M	―	-13.00%	―	2.52%	45.76%
SPIR	49 Neutral	$436.95M	―	-337.63%	―	-11.82%	-2.53%
SGRP	45 Neutral	$24.87M	2.10	-47.70%	―	-44.47%	-203.41%