Pioneer Power Solutions (PPSI) AI Stock Analysis

• Market Cap: $48.26M
• Dividend Yield: N/A
• Average Volume (3M): 3.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: -19.60%
• EPS Growth: -483.35%
• Country: US
• Employees: 59
• Sector: Industrials
• Sector Strength: 78
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.11
• Shares Outstanding: 11,095,266
• 10 Day Avg. Volume: 9,860,513
• 30 Day Avg. Volume: 3,335,000
• 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: 0.28
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: -2.35
• 1Y Price Target: $8.33
• Price Target Upside: 121.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $4.00 ▲(6.38% Upside)

Pioneer Power Solutions' overall stock score is primarily influenced by its mixed financial performance, with significant challenges in revenue and cash flow. Positive technical indicators and recent corporate events, such as the e-Boost expansion, provide some optimism. However, the negative valuation metrics and ongoing operational losses weigh down the score. The earnings call provided a balanced view with both positive growth prospects and existing challenges.

Positive Factors

Business Development

The company's EV charging business secured $10M in new orders from a large charging-as-a-service customer, indicating strong performance.

Financial Performance

Pioneer Power Solutions' gross margin improved significantly, rising to 15.7% from 2.2% in the previous quarter.

Negative Factors

Market Perception

The current enterprise value of around $5.5M is believed to be mispriced, suggesting an undervaluation of the stock.

Stock Valuation

The stock is trading at two-year lows after the recent market correction and is being overlooked despite minimal deterioration in business fundamentals.

Pioneer Power Solutions Business Overview & Revenue Model

Company Description

Pioneer 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 Money

Pioneer Power Solutions generates revenue through multiple key streams, including the sale of power management equipment and systems, engineering services, and maintenance contracts. The company earns significant income from direct product sales, particularly in the renewable energy and energy storage markets, where demand is growing due to the global shift towards sustainable energy solutions. Additionally, PPSI has established strategic partnerships with various utility companies and energy providers, which not only expand its market reach but also create opportunities for joint projects and collaborations. The recurring revenue from service contracts and maintenance agreements further contributes to the company's financial stability.

Pioneer Power Solutions Financial Statement Overview

Summary

Pioneer Power Solutions faces significant challenges with declining revenues and negative cash flows, which are concerning for long-term sustainability. However, the company maintains a strong equity position with low leverage, providing some stability. The high return on equity is a positive indicator but is primarily driven by non-operational factors. Overall, the financial health of the company is mixed, with notable risks in operational performance and cash flow generation.

Income Statement

Pioneer Power Solutions has experienced a decline in revenue from $41.49M in 2023 to $21.03M TTM, indicating a significant revenue contraction. The gross profit margin stands at 18.7% TTM, which is relatively low. The company has a negative EBIT margin of -30.8% TTM, reflecting operational inefficiencies. Despite a positive net income of $31.96M TTM, largely due to non-operational factors, the overall profitability remains weak.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.02 TTM, indicating low leverage. The equity ratio is 72.7% TTM, suggesting a solid capital structure. However, the company's total assets have decreased, which may limit future growth opportunities. The return on equity is high at 92.6% TTM, driven by the positive net income.

Cash Flow

The company has a negative operating cash flow of -$2.76M TTM, indicating challenges in generating cash from operations. Free cash flow is also negative at -$6.90M TTM. The free cash flow to net income ratio is negative, highlighting a disconnect between reported earnings and cash generation. Despite these challenges, the company has a substantial cash reserve, which provides some financial flexibility.

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
EBITDA	-5.69M	-4.18M	-1.24M	-4.68M	-3.42M	-3.82M
Net Income	31.96M	31.86M	-1.90M	-3.64M	-2.17M	-2.99M
Balance Sheet
Total Assets	47.48M	65.95M	33.02M	37.17M	27.93M	21.29M
Cash, Cash Equivalents and Short-Term Investments	25.84M	41.62M	3.58M	10.30M	9.92M	7.57M
Total Debt	691.00K	775.00K	1.21M	2.27M	1.42M	1.41M
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

• Technical Analysis Sentiment: Positive
• Last Price: 3.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.76 is above the 20-day moving average (MA) of 3.34, above the 50-day MA of 3.01, and above the 200-day MA of 3.44, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPSI.

Pioneer Power Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.71B	16.25	6.57%	2.09%	2.65%	-16.21%
PPSI	56 Neutral	$48.26M	―	-43.18%	―	-19.60%	-483.35%
FLUX	45 Neutral	$30.98M	―	-1582.76%	―	-1.45%	-15.76%
GWH	45 Neutral	$24.69M	―	-207.48%	―	-16.98%	2.43%
DFLI	45 Neutral	$19.07M	―	-3420.59%	―	4.80%	16.72%
SDST	26 Underperform	$34.38M	―	-860.70%	―	―	25.87%
RAYA	―	$9.51M	―	-4.77%	―	―	―

Pioneer Power Solutions Corporate Events

Pioneer Power Secures $10M Award for e-Boost Expansion

On June 24, 2025, Pioneer Power Solutions announced a $10 million award from the largest U.S. Charging-as-a-Service company to accelerate the deployment of its e-Boost technology. This partnership aims to address grid infrastructure delays by providing fast, mobile EV charging solutions, marking a significant expansion for the CaaS company into new U.S., Canadian, and Mexican markets.