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Pioneer Power Solutions (PPSI)
NASDAQ:PPSI
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Pioneer Power Solutions
(NASDAQ:PPSI)
Rating:56Neutral
Price Target:
$3.00
▲(7.91%Upside)
Positive Factors
Market Potential
Management is positioning the company to benefit from charging infrastructure demand from electric vehicle fleet owners as well as backup and base-power demand from large residential homeowners, small businesses, and medical facilities.
Revenue Growth
The company is demonstrating strong YoY revenue growth for its on-site power offerings including e-Boost.
Stock Valuation
The current enterprise value of around $5.5M is believed to be mispriced, suggesting an undervaluation of the stock.
Negative Factors
Business Transition
The company is now positioned on a stronger growth trajectory post the sale of its E-Bloc business with primary focus on its remaining critical power and eMobility business lines.
Market Correction
The stock is trading at two-year lows after the recent market correction and being overlooked despite minimal deterioration in business fundamentals.
Pioneer Power Solutions (PPSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.97M
Dividend YieldN/A
Average Volume (3M)45.54K
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth-19.60%
EPS Growth-483.35%
CountryUS
Employees59
SectorIndustrials
Sector Strength91
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.09
Shares Outstanding11,120,266
10 Day Avg. Volume25,877
30 Day Avg. Volume45,542
Financial Highlights & Ratios
PEG Ratio3.12
Price to Book (P/B)0.97
Price to Sales (P/S)0.00
P/FCF Ratio-4.87
Enterprise Value/Market Cap0.27
Enterprise Value/Revenue0.07
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda-0.41
Forecast
1Y Price Target
$10.50Price Target Upside277.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Pioneer Power Solutions Business Overview & Revenue Model
Company DescriptionPioneer Power Solutions, Inc., together with its subsidiaries, designs, manufactures, sells, and services electric power systems, distributed energy resources, used and new power generation equipment, and mobile EV charging solutions in the United States, Canada, and internationally. The company operates in two segments, Transmission & Distribution Solutions and Critical Power Solutions. The Transmission & Distribution Solutions segment provides electric power systems, including e-Bloc, and distributed energy resources that help customers effectively and efficiently protect, control, transfer, monitor, and manage their electric energy requirements. It also provides low voltage switchgears and transfer switches. The Critical Power Solutions segment provides new and used power generation equipment, and aftermarket field-services to ensure smooth and uninterrupted power to operations during times of emergency. The company serves utility, industrial, commercial, and backup power markets. The company was incorporated in 2008 and is headquartered in Fort Lee, New Jersey. Pioneer Power Solutions, Inc. is a subsidiary of Provident Pioneer Partners, L.P.
How the Company Makes MoneyPioneer Power Solutions generates revenue primarily through the sale of its electrical equipment and solutions, including transformers, switchgear, and custom-engineered products. The company serves various sectors, including utility, industrial, and commercial markets, which require robust and reliable electrical infrastructure. Revenue streams include direct sales to end-users, contracts with utility companies, and partnerships with industrial firms. Additionally, PPSI may earn income from service agreements, maintenance contracts, and after-sales support, ensuring ongoing client relationships and potential recurring revenue. Strategic partnerships and a focus on innovation further contribute to its financial performance and market competitiveness.
Pioneer Power Solutions Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -3.47%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call depicted a company with strong revenue growth and a promising pipeline, particularly due to the e-Boost and HOMe-Boost product lines. However, the company faced challenges with reduced margins and increased operating losses, primarily due to startup costs associated with large initial orders. Despite these financial setbacks, the strategic initiatives and future growth prospects present a balanced outlook.Q1-2025 Updates
Positive Updates
Doubling of Q1 Revenue
First quarter revenue more than doubled to $6.7 million, marking a 103% increase from the prior year's first quarter, largely driven by increased sales and rentals of e-Boost solutions.
Significant Backlog and Pipeline Growth
The total backlog increased by 18% to $23.2 million compared to the prior quarter, with a growing sales pipeline involving municipalities, transit authorities, and major package delivery providers.
Introduction of HOMe-Boost
A new residential/light commercial power system, HOMe-Boost, was announced, promising to revolutionize energy resilience and fast charging with a natural gas engine and optional DC fast charging.
Strong Cash Position
As of March 31, 2025, the company had cash on hand of $25.8 million with zero bank debt.
Negative Updates
Reduced Gross Margin
First quarter gross profit was $148,000 with a gross margin of approximately 2%, down from 16% in the first quarter of the previous year due to high initial costs of e-Boost units.
Increased Operating Loss
Operating loss from continuing operations increased to $2.3 million compared to $1.7 million in the first quarter of the previous year, driven by decreased gross profit and increased SG&A expenses.
Net Loss Increase
Net loss from continuing operations increased to $2.1 million from $1.7 million in the previous year's first quarter.
Company Guidance
During the Pioneer Power first quarter 2025 earnings call, the management reaffirmed their revenue guidance for the full year 2025, projecting a range of $27 million to $29 million. The company reported first quarter revenue of $6.7 million, a 103% increase compared to the same period last year, primarily driven by the sales and rentals of their mobile EV charging solutions, e-Boost. Despite the increase in revenue, the gross margin dropped to approximately 2% from 16% the previous year, due to higher costs associated with the initial units of a large 25-unit order. Operating loss from continuing operations was $2.3 million, compared to $1.7 million in the previous year, with a non-GAAP operating loss of $989,000. The company ended the first quarter with a backlog of $23.2 million, an 18% increase over the prior quarter, and cash on hand of $25.8 million.Pioneer Power Solutions Financial Statement Overview
Summary
Pioneer Power Solutions shows financial stability with a strong equity base and low leverage. However, it faces significant profitability and cash flow challenges, with revenue fluctuations and operating losses indicating operational inefficiencies. Negative cash flows underscore liquidity risks, necessitating a focus on operational improvements and cash management.Income Statement
The company has experienced significant volatility in revenue with a decline from previous years, indicating a challenging market or operational environment. The gross profit margin is modest, highlighting efficiency issues. The net profit margin has shown improvement due to a substantial net income figure for TTM but is influenced by factors beyond core operations. EBITDA and EBIT margins reflect ongoing operational losses, pointing to fundamental profitability challenges.62
Positive
Balance Sheet
Pioneer Power Solutions maintains a strong equity base with an equity ratio of 72.7%, indicating financial stability. The company has a low debt-to-equity ratio of 0.02, reflecting minimal financial leverage, which reduces risk. However, the return on equity is skewed by the unusual net income figures, rather than operational efficiency.75
Positive
Cash Flow
Cash flow from operations is negative, indicating potential liquidity challenges. Free cash flow is also negative, reflecting significant cash outflows, particularly in capital expenditures. Despite positive investing cash flow, the reliance on this for liquidity presents sustainability concerns. The negative operating cash flow to net income ratio highlights cash generation issues relative to reported profits.48
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 21.03M | 22.88M | 41.49M | 27.00M | 18.31M | 19.49M | Gross Profit |
| 3.93M | 5.51M | 8.35M | 4.61M | 1.39M | 881.00K | EBIT |
| -6.49M | -5.25M | -2.65M | -4.03M | -3.86M | -4.28M | EBITDA |
| -5.69M | -4.18M | -1.24M | -4.68M | -3.42M | -3.82M | Net Income Common Stockholders |
| 31.96M | 31.86M | -1.90M | -3.64M | -2.17M | -2.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 25.84M | 41.62M | 3.58M | 10.30M | 9.92M | 7.57M | Total Assets |
| 47.48M | 65.95M | 33.02M | 37.17M | 27.93M | 21.29M | Total Debt |
| 691.00K | 775.00K | 1.21M | 2.27M | 1.42M | 1.41M | Net Debt |
| -25.15M | -40.85M | -2.37M | -8.02M | -8.50M | -6.15M | Total Liabilities |
| 12.96M | 30.52M | 18.80M | 20.24M | 8.38M | 7.43M | Stockholders Equity |
| 34.51M | 35.43M | 14.22M | 16.93M | 19.55M | 13.86M |
| Cash Flow | Free Cash Flow | ||||
| -6.90M | -9.97M | -6.39M | -7.16M | -2.58M | -3.61M | Operating Cash Flow |
| -2.76M | -6.21M | -3.90M | -5.65M | -2.34M | -3.61M | Investing Cash Flow |
| 38.49M | 38.88M | -2.50M | 4.72M | -237.00K | 2.63M | Financing Cash Flow |
| -16.12M | 5.38M | -323.00K | -479.00K | 7.56M | 337.00K |
Pioneer Power Solutions Technical Analysis
Positive
2.78
Price Trends
2.70
Positive
3.15
Negative
3.62
Negative
Market Momentum
>-0.01
Negative
53.40
Neutral
57.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPSI, the sentiment is Positive. The current price of 2.78 is above the 20-day moving average (MA) of 2.72, above the 50-day MA of 2.70, and below the 200-day MA of 3.62, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 57.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPSI.
Pioneer Power Solutions Risk Analysis
Pioneer Power Solutions disclosed 33 risk factors in its most recent earnings report. Pioneer Power Solutions reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pioneer Power Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.51B | 12.29 | 5.40% | 248.53% | 4.14% | -12.41% | |
56 Neutral | $30.97M | ― | -43.18% | ― | -19.60% | -483.35% | |
48 Neutral | $26.07M | ― | -1582.76% | ― | -1.45% | -15.76% | |
39 Underperform | $14.77M | ― | -172.05% | ― | -58.05% | -6.90% | |
37 Underperform | $3.55M | ― | -3420.59% | ― | -11.38% | -9.63% | |
26 Underperform | $37.68M | ― | -860.70% | ― | ― | -12310.81% | |
| $84.21M | ― | -4.77% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
PPSI
Pioneer Power Solutions
2.77
-0.19
-6.42%
FLUX
Flux Power Holdings
1.60
-1.27
-44.25%
GWH
ESS Tech
1.30
-9.25
-87.68%
SDST
Stardust Power
0.63
-10.73
-94.45%
DFLI
Dragonfly Energy Holdings Corp
0.38
-7.95
-95.44%
RAYA
Erayak Power Solution Group Incorporation Class A
1.87
0.98
110.11%
Pioneer Power Solutions Corporate Events
Executive/Board ChangesShareholder Meetings
Pioneer Power Solutions Elects Board and Ratifies Auditor
Neutral
Dec 6, 2024
At the Company’s Annual Meeting, stockholders voted on key proposals, including electing seven board directors and ratifying Marcum LLP as the independent accounting firm for 2024. Over 7.27 million shares were represented, with directors receiving significant support and the accounting firm appointment ratified. These decisions shape the company’s leadership and financial oversight moving forward.
Executive/Board ChangesM&A Transactions
Pioneer Power Solutions Awards CEO and CFO Bonuses
Positive
Nov 15, 2024
Pioneer Power Solutions, Inc. awarded substantial one-time bonuses to its CEO, Nathan Mazurek, and CFO, Walter Michalec, acknowledging their pivotal roles in the sale of the company’s Electrical Infrastructure Equipment segment. These bonuses reflect the company’s recognition of their significant contributions to this strategic transaction, with Mazurek receiving $2,000,000 and Michalec $125,000, to be paid in cash according to the payroll schedule.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.