Perfect Moment Ltd. (PMNT) AI Stock Analysis

• Market Cap: $12.06M
• Dividend Yield: N/A
• Average Volume (3M): 259.54K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: 2.48%
• EPS Growth: -16.75%
• Country: US
• Employees: 39
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.00
• Shares Outstanding: 46,871,000
• 10 Day Avg. Volume: 281,464
• 30 Day Avg. Volume: 259,535
• PEG Ratio: 0.04
• Price to Book (P/B): 9.54
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -1.74
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 0.97
• Enterprise Value/Ebitda: -1.27
• 1Y Price Target: $1.50
• Price Target Upside: 435.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $0.27 ▼(-2.86% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held back primarily by persistent large losses and heavy cash burn despite improving gross margins, alongside bearish technical signals (price below major moving averages and negative MACD). Offsetting this somewhat, recent corporate updates include a first profitable quarter and debt repayment, but planned capital structure actions raise dilution risk. Valuation signals are limited due to a negative P/E and no dividend yield.

Positive Factors

Margin improvement and first profitable quarter

A reported first profitable quarter with gross margin rising to 64.4% and positive adjusted EBITDA signals structurally better product mix, pricing power, and cost control. If sustained across seasons, higher margins materially improve the path to durable profitability and reduce financing dependence.

Reduced reported leverage / repaid borrowings

Recent repayment of short-term borrowings and minimal reported TTM debt improve near-term balance-sheet flexibility. Lower reported leverage reduces immediate liquidity strain and gives management time to execute the margin and revenue recovery necessary for sustainable cash generation.

Strategic brand partnerships and distribution expansion

Sell-out collaborations, new flagship/pop-ups and expanded European manufacturing strengthen brand equity, broaden premium distribution and improve speed-to-market. These durable moves support a full-price strategy and can sustain higher gross margins and customer loyalty over multiple seasons.

Negative Factors

Chronic negative cash flow and cash burn

Consistently large negative operating and free cash flows (~-$10M TTM) create persistent funding needs. Ongoing cash burn undermines financial flexibility, forces reliance on external capital, and increases the risk that operational gains must be diluted or curtailed to preserve solvency.

Deep sustained unprofitability (TTM)

Despite recent quarterly improvement, TTM net and operating margins remain deeply negative, reflecting structural loss-making operations. Persistent operating losses erode equity, limit reinvestment capacity, and make consistent path to self-funded growth uncertain without sustained margin expansion and revenue leverage.

Capital restructuring increases dilution risk

Authorized reverse split, large share-authority increase, automatic preferred conversions and potential issuance of 20%+ of capital materially raise dilution potential. While improving financing flexibility, these structural actions signal continued dependence on external equity and risk long-term shareholder dilution.

Perfect Moment Ltd. Business Overview & Revenue Model

Company Description

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.

How the Company Makes Money

Perfect Moment Ltd. generates revenue primarily through the sale of its apparel and accessories. The company employs a direct-to-consumer sales model, utilizing both its e-commerce platform and physical retail locations to reach customers. Key revenue streams include seasonal collections, limited-edition collaborations, and exclusive product lines that drive consumer interest and urgency. Additionally, PMNT has established partnerships with outdoor sports events and sponsorships, enhancing brand visibility and attracting a dedicated customer base. The company's focus on sustainability and eco-friendly materials further positions it to appeal to environmentally conscious consumers, contributing positively to its earnings.

Perfect Moment Ltd. Financial Statement Overview

Summary

Gross margin has improved materially (TTM ~56% vs. ~49% FY2025), but the business remains deeply unprofitable (TTM net margin ~-56%, operating margin ~-47%) and continues to burn significant cash (TTM operating cash flow about -$10.0M; free cash flow about -$10.2M). While the latest balance sheet shows minimal reported debt, historical periods included high leverage and negative equity, keeping financing/dilution risk elevated.

Income Statement

PMNT shows improving top-line efficiency, but profitability remains a major concern. TTM (Trailing-Twelve-Months) gross margin improved to ~56% (vs. ~49% in FY2025 and ~38% in FY2024), indicating better product mix/pricing or cost control. However, the company is still deeply loss-making: TTM net margin is ~-56% (better than FY2025 ~-74%, but worse than FY2024 ~-36%), and operating losses remain heavy (TTM operating margin ~-47%). Revenue has been slightly down in TTM (~-1%) and fell in FY2025 (~-12%), which limits operating leverage and makes the path to breakeven harder.

Balance Sheet

Leverage and capitalization look mixed and somewhat volatile across periods. On the positive side, TTM shows very low reported debt (~$0.02M) versus equity (~$1.06M), implying minimal balance-sheet leverage at the latest point. However, prior periods show meaningful leverage (FY2025 debt-to-equity ~2.37x and FY2021 ~2.55x), and equity has been negative in FY2022–FY2023, highlighting past balance-sheet stress and potential dilution/financing risk. Returns on equity are also weak/unstable due to persistent net losses (TTM and FY2025 negative ROE).

Cash Flow

Cash generation remains the weakest area. Operating cash flow is consistently negative (TTM about -$10.0M; FY2025 about -$9.9M), and free cash flow is also deeply negative (TTM about -$10.2M). While free cash flow broadly tracks net losses (TTM free cash flow is roughly in line with net loss), the business is still consuming significant cash to operate. The TTM free cash flow decline versus the prior period (growth ~-25%) suggests cash burn has recently worsened, increasing funding/solvency pressure if conditions don’t improve.

Breakdown	TTM	Jun 2025	Jun 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.97M	21.50M	24.44M	23.44M	16.45M	9.74M
Gross Profit	12.86M	10.43M	9.23M	8.76M	4.95M	2.95M
EBITDA	-9.77M	-13.55M	-6.86M	-8.04M	-10.40M	-5.79M
Net Income	-12.89M	-15.94M	-8.72M	-10.30M	-12.17M	-6.14M
Balance Sheet
Total Assets	13.80M	13.34M	12.61M	9.82M	8.01M	10.01M
Cash, Cash Equivalents and Short-Term Investments	1.57M	6.16M	7.91M	4.71M	2.13M	6.08M
Total Debt	4.94M	4.39M	145.00K	11.10M	7.14M	6.00M
Total Liabilities	12.74M	11.48M	4.85M	13.96M	11.39M	7.66M
Stockholders Equity	1.06M	1.86M	7.76M	-4.14M	-3.38M	2.35M
Cash Flow
Free Cash Flow	-10.18M	-10.16M	-4.66M	-3.76M	-4.49M	-3.78M
Operating Cash Flow	-9.96M	-9.86M	-4.45M	-3.51M	-3.56M	-3.05M
Investing Cash Flow	-219.00K	-302.00K	-211.00K	-249.00K	-920.00K	-734.00K
Financing Cash Flow	7.65M	9.69M	8.16M	6.93M	226.00K	8.53M

Perfect Moment Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 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 PMNT, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.39, and below the 200-day MA of 0.45, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.89 is Neutral, neither overbought nor oversold. The STOCH value of 8.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PMNT.

Perfect Moment Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NCI	61 Neutral	$24.06M	21.57	16.17%	―	―	―
JL	55 Neutral	$17.08M	51.18	17.80%	―	30.48%	30.06%
JRSH	50 Neutral	$41.66M	23.90	0.99%	6.75%	12.25%	―
PMNT	46 Neutral	$12.06M	-0.40	-845.14%	―	2.48%	-16.75%
VNCE	46 Neutral	$38.68M	-1.96	-33.24%	―	2.58%	-502.04%
XELB	45 Neutral	$10.79M	-0.23	-78.27%	―	-46.66%	24.23%

Perfect Moment Ltd. Corporate Events

Perfect Moment Achieves First Profitable Quarter, Boosts Margins

For the fiscal third quarter ended December 31, 2025, Perfect Moment Ltd. reported its first profitable quarter, with revenue flat year-on-year at about $11.7 million but gross margin rising to 64.4% and operating expenses down nearly 10%. Net income swung to $93,000 from a $2.5 million loss, and adjusted EBITDA turned positive, while for the first nine months of fiscal 2026 revenue grew 8.7% to $17.9 million and losses narrowed amid higher-margin wholesale growth and tighter cost control.

Operationally, the company expanded European manufacturing to improve quality and speed to market, fully repaid short-term borrowings, and maintained stable inventory heading into its key fourth-quarter direct-to-consumer season, supporting liquidity. Strategic and brand initiatives during the period included a global H&M collaboration that sold out on launch day, new flagship and pop-up stores in major ski resorts, and high-profile marketing tie-ups, all reinforcing its shift toward a premium, full-price brand model and bolstering long-term competitiveness for shareholders and partners.

The most recent analyst rating on (PMNT) stock is a Hold with a $0.28 price target. To see the full list of analyst forecasts on Perfect Moment Ltd. stock, see the PMNT Stock Forecast page.

Perfect Moment Shareholders Approve Major Capital Restructuring

At its 14 January 2026 annual meeting, Perfect Moment Ltd. shareholders approved a series of capital structure and governance measures, including amendments to its charter to permit a reverse stock split at a ratio between 1-for-5 and 1-for-20, an increase in authorized common shares from 100 million to 500 million, automatic conversion of all outstanding Series AA Convertible Preferred Stock into 11,458,306 common shares at a revised conversion price of $0.46822, and the potential issuance of 20% or more of existing share capital under both an equity line of credit and a Securities Purchase Agreement with X3 Higher Moment Fund LLC. Following shareholder approval, the company filed the corresponding certificate of amendment in Delaware, completed the automatic conversion of 924,921 Series AA preferred shares into common stock as of 15 January 2026, and secured stockholder consent for large-scale issuances related to X3’s warrants, steps that significantly expand its flexibility to raise equity capital, simplify its capital structure, and address listing and financing needs while ratifying its auditor and re-electing the full slate of directors.

The most recent analyst rating on (PMNT) stock is a Hold with a $0.38 price target. To see the full list of analyst forecasts on Perfect Moment Ltd. stock, see the PMNT Stock Forecast page.