Pioneer Power Solutions (PPSI) AI Stock Analysis

• Market Cap: $41.72M
• Dividend Yield: N/A
• Average Volume (3M): 68.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.14
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 59
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.16
• Shares Outstanding: 11,095,266
• 10 Day Avg. Volume: 57,786
• 30 Day Avg. Volume: 68,765
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.94
• P/FCF Ratio: -4.45
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 7.21
• Enterprise Value/Ebitda: -6.03
• 1Y Price Target: $9.50
• Price Target Upside: 162.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $4.00 ▲(10.50% Upside)

Pioneer Power Solutions' overall stock score reflects a challenging financial performance with operational inefficiencies and negative cash flow. While the company has demonstrated strong revenue growth and strategic initiatives, these are offset by declining margins and increased losses. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The earnings call provided some positive guidance, but financial setbacks remain a concern.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Strategic Partnerships

Strategic partnerships enhance market reach and create opportunities for joint projects, bolstering future revenue streams.

Product Launch

New product launches like PowerCore can open new market segments and drive future growth, enhancing competitive positioning.

Negative Factors

Decline in Gross Margin

A declining gross margin indicates cost pressures, which can affect profitability and require strategic adjustments to maintain margins.

Operating Loss

Sustained operating losses can hinder financial stability and require management to address operational inefficiencies.

Decrease in Cash Reserves

Reduced cash reserves limit financial flexibility and may constrain the company's ability to invest in growth opportunities.

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. The primary revenue model is based on the sale of its proprietary products, including power management systems and energy storage solutions. Additionally, PPSI earns income through service contracts, which provide maintenance and support for its systems, and consultancy services for energy management. The company may also engage in partnerships with utility companies and other organizations to provide tailored solutions, further enhancing its revenue potential. Strategic alliances and collaborations in research and development can lead to expanded offerings and access to new markets, contributing significantly to overall earnings.

Pioneer Power Solutions Financial Statement Overview

Summary

Pioneer Power Solutions shows mixed financial performance. While the net income gain has improved profitability metrics, underlying operational challenges persist, as evidenced by negative EBIT and EBITDA margins and declining revenue. The balance sheet is stable with low leverage, but cash flow generation remains a concern. The company needs to address operational inefficiencies to achieve sustainable growth.

Income Statement

Pioneer Power Solutions has experienced a decline in revenue growth, with a negative growth rate of -17.45% in the TTM period. The gross profit margin has decreased from 24.10% in 2024 to 19.93% in the TTM period, indicating reduced efficiency in generating profit from sales. The net profit margin is positive at 142.75% due to a one-time gain, but EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.03, indicating conservative leverage. Return on equity is strong at 111.90% in the TTM period, driven by the net income gain. However, the equity ratio has decreased, suggesting a lower proportion of equity financing relative to total assets.

Cash Flow

Operating cash flow remains negative, and free cash flow has declined further in the TTM period. The free cash flow to net income ratio is high at 144.17%, but this is due to the net income gain rather than operational improvements. The company faces challenges in generating positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.26M	22.88M	11.12M	25.88M	18.31M	19.49M
Gross Profit	4.35M	5.51M	2.23M	2.83M	1.39M	881.00K
EBITDA	-5.20M	-4.40M	-6.31M	-5.34M	-3.42M	-3.82M
Net Income	32.27M	31.86M	-1.90M	-5.42M	-2.17M	-2.99M
Balance Sheet
Total Assets	37.58M	65.95M	33.02M	37.17M	27.93M	21.29M
Cash, Cash Equivalents and Short-Term Investments	17.34M	41.62M	3.58M	10.30M	9.92M	7.57M
Total Debt	752.00K	775.00K	1.21M	2.27M	1.22M	1.41M
Total Liabilities	6.88M	30.52M	18.80M	20.24M	8.38M	7.43M
Stockholders Equity	30.70M	35.43M	14.22M	16.93M	19.55M	13.86M
Cash Flow
Free Cash Flow	-9.91M	-9.97M	-6.39M	-7.28M	-3.43M	-3.61M
Operating Cash Flow	-5.89M	-6.21M	-3.90M	-5.77M	-3.19M	-3.61M
Investing Cash Flow	36.42M	38.88M	-2.50M	4.72M	-237.00K	2.63M
Financing Cash Flow	-16.27M	5.38M	-323.00K	-353.00K	7.56M	337.00K

Pioneer Power Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPSI, the sentiment is Negative. The current price of 3.62 is below the 20-day moving average (MA) of 3.88, below the 50-day MA of 4.14, and above the 200-day MA of 3.44, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 6.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PPSI	48 Neutral	$41.72M	-5.26	―	―	―	―
IPWR	44 Neutral	$28.17M	-2.65	-74.44%	―	-69.65%	11.41%
GWH	42 Neutral	$40.41M	-0.36	-265.36%	―	-3.53%	24.37%
POLA	40 Neutral	$5.08M	-0.53	-119.92%	―	-44.32%	-49.47%
DFLI	38 Underperform	$48.68M	―	―	―	18.24%	24.49%

Pioneer Power Solutions Corporate Events

Pioneer Power Solutions Reports Q3 2025 Financial Results

Pioneer Power Solutions announced its third-quarter 2025 financial results, reporting a 7% increase in revenue to $6.9 million compared to the same period last year. Despite the revenue growth, the company experienced a decline in gross profit and an increased operating loss. Key achievements include significant project deliveries in school bus and fleet electrification, as well as new orders and partnerships in various sectors, indicating strong market demand and positioning for future growth.