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Pioneer Power Solutions (PPSI)
NASDAQ:PPSI
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Pioneer Power Solutions
(NASDAQ:PPSI)
Rating:56Neutral
Price Target:
$3.50
▲(5.42%Upside)
Positive Factors
Market Positioning
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.
Negative Factors
Enterprise Value
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 being overlooked despite minimal deterioration in business fundamentals.
Pioneer Power Solutions (PPSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.03M
Dividend YieldN/A
Average Volume (3M)60.16K
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth-19.60%
EPS Growth-483.35%
CountryUS
Employees59
SectorIndustrials
Sector Strength94
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.09
Shares Outstanding11,120,266
10 Day Avg. Volume104,511
30 Day Avg. Volume60,163
Financial Highlights & Ratios
PEG Ratio3.43
Price to Book (P/B)1.07
Price to Sales (P/S)0.00
P/FCF Ratio-5.35
Enterprise Value/Market Cap0.30
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.67
Enterprise Value/Ebitda-0.87
Forecast
1Y Price Target
$10.50Price Target Upside216.27% 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 through the sale of its electrical equipment products, including transformers and switchgear, which are essential for power distribution and management. The company also earns income from servicing and maintaining the equipment it sells, providing ongoing support and upgrades to its customers. Additionally, Pioneer Power Solutions may engage in partnerships with other companies in the energy sector to expand its market reach and enhance its product offerings. These partnerships and collaborations can lead to increased sales and access to new customer bases, driving further revenue growth.
Pioneer Power Solutions Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 15.28%|
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 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.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.45
Neutral
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.60
Neutral
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.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.88M | 41.49M | 27.00M | 18.31M | 19.49M |
| Gross Profit | 5.51M | 8.35M | 4.61M | 1.39M | 881.00K |
| EBITDA | -4.18M | -1.24M | -4.68M | -3.42M | -3.82M |
| Net Income | 31.86M | -1.90M | -3.64M | -2.17M | -2.99M |
Balance Sheet | |||||
| Total Assets | 65.95M | 33.02M | 37.17M | 27.93M | 21.29M |
| Cash, Cash Equivalents and Short-Term Investments | 41.62M | 3.58M | 10.30M | 9.92M | 7.57M |
| Total Debt | 775.00K | 1.21M | 2.27M | 1.42M | 1.41M |
| Total Liabilities | 30.52M | 18.80M | 20.24M | 8.38M | 7.43M |
| Stockholders Equity | 35.43M | 14.22M | 16.93M | 19.55M | 13.86M |
Cash Flow | |||||
| Free Cash Flow | -9.97M | -6.39M | -7.16M | -2.58M | -3.61M |
| Operating Cash Flow | -6.21M | -3.90M | -5.65M | -2.34M | -3.61M |
| Investing Cash Flow | 38.88M | -2.50M | 4.72M | -237.00K | 2.63M |
| Financing Cash Flow | 5.38M | -323.00K | -479.00K | 7.56M | 337.00K |
Pioneer Power Solutions Technical Analysis
Neutral
3.32
Price Trends
2.84
Positive
2.86
Positive
3.53
Negative
Market Momentum
0.22
Negative
58.20
Neutral
61.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPSI, the sentiment is Neutral. The current price of 3.32 is above the 20-day moving average (MA) of 3.04, above the 50-day MA of 2.84, and below the 200-day MA of 3.53, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 61.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | HK$14.89B | 4.77 | -2.78% | 5.38% | 3.80% | -54.55% | |
56 Neutral | $39.03M | ― | -43.18% | ― | -19.60% | -483.35% | |
54 Neutral | $30.78M | ― | -1582.76% | ― | -1.45% | -15.76% | |
46 Neutral | $14.93M | ― | -3420.59% | ― | -11.38% | -9.63% | |
43 Neutral | $26.68M | ― | -172.05% | ― | -58.05% | -6.90% | |
26 Underperform | $38.90M | ― | -860.70% | ― | ― | -12310.81% | |
| ― | $5.62M | ― | -4.77% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
PPSI
Pioneer Power Solutions
3.32
-0.34
-9.29%
FLUX
Flux Power Holdings
1.80
-1.76
-49.44%
GWH
ESS Tech
1.96
-8.84
-81.85%
SDST
Stardust Power
0.46
-11.36
-96.11%
DFLI
Dragonfly Energy Holdings Corp
0.37
-6.11
-94.29%
RAYA
Erayak Power Solution Group Incorporation Class A
0.12
-0.68
-85.00%
Pioneer Power Solutions Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Pioneer Power Secures $10M Award for e-Boost Expansion
Positive
Jun 24, 2025
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.
The most recent analyst rating on (PPSI) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Pioneer Power Solutions stock, see the PPSI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.