Portsmouth Square (PRSI) AI Stock Analysis

• Market Cap: $5.14M
• Dividend Yield: N/A
• Average Volume (3M): 106.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 10.33%
• EPS Growth: 15.95%
• Country: US
• Employees: 4
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 734,187
• 10 Day Avg. Volume: 170
• 30 Day Avg. Volume: 106
• PEG Ratio: <0.01
• Price to Book (P/B): -0.01
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -0.33
• Enterprise Value/Market Cap: 27.93
• Enterprise Value/Revenue: 2.89
• Enterprise Value/Gross Profit: 20.24
• Enterprise Value/Ebitda: 154.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $6.50 ▲(42.86% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by very weak financial performance (ongoing losses, negative cash flow, and deeply negative equity). Technicals are mixed—longer-term trend support exists, but near-term momentum is weak—while valuation is constrained by the company’s loss-making profile and lack of dividend yield data.

Positive Factors

Prime asset location

Owning a branded Sheraton in a global tourist hub provides structurally higher demand potential and pricing power versus secondary markets. A prime San Francisco location supports durable room-night demand, helping stabilize long-term cash flows tied to hotel performance.

Lean corporate cost base

Very low corporate headcount implies minimal SG&A and overhead, which conserves cash and reduces fixed-cost leverage. For a company that primarily collects JV distributions, a lean structure helps extend runway and prioritize capital allocation to the core hotel asset.

Joint-venture ownership business model

Earnings via a JV align risk and capital needs with partners and the property-level operator, limiting direct operational responsibilities and large corporate capex burdens. This structure can preserve corporate liquidity and transfer some operating risk to the JV.

Negative Factors

Deeply negative equity

A severely impaired capital structure (roughly -$129M equity) constrains financing options and increases bankruptcy or restructuring risk. Negative equity limits ability to absorb shocks, undermines lender confidence, and reduces strategic flexibility for capital improvements or growth.

Persistent cash burn

Sustained negative operating and free cash flow forces reliance on external financing, JV distributions, or asset sales to meet obligations. Ongoing cash burn heightens liquidity and refinancing risk and constrains the company's ability to fund maintenance or strategic investments long term.

Sustained losses and revenue volatility

Consistent net losses and a sharp TTM revenue decline signal weak operating resilience. Low and volatile margins limit capacity to rebuild equity or cover debt service, making recovery dependent on meaningful, sustained improvement in hotel demand and rate realization.

Portsmouth Square Business Overview & Revenue Model

Company Description

Portsmouth Square (PRSI) is a diversified investment company that focuses on acquiring, developing, and managing a portfolio of real estate assets, primarily in urban markets. The company operates in the real estate sector, with core services including property management, development, and investment in commercial and residential properties. PRSI aims to enhance asset value through strategic improvements and innovative management practices.

How the Company Makes Money

Portsmouth Square generates revenue primarily through rental income from its real estate holdings, which includes both commercial and residential properties. The company also benefits from property sales and development projects, where it capitalizes on market appreciation and demand for urban real estate. Key revenue streams include long-term leases with tenants, short-term rental agreements, and profits from the sale of developed properties. Additionally, PRSI may engage in partnerships with other real estate firms or investors to co-develop projects, which can provide further financial leverage and diversification of income sources.

Portsmouth Square Financial Statement Overview

Summary

Very weak fundamentals: persistent net losses (TTM net margin ~-22%), sharply lower TTM revenue (~-21%), and ongoing cash burn (TTM operating cash flow about -$10.9M; free cash flow about -$10.0M). The balance sheet is severely impaired with deeply negative equity (~-$129M TTM), limiting financial flexibility despite some gross margin improvement.

Income Statement

Results remain pressured by persistent net losses across every reported period, including TTM (Trailing-Twelve-Months) with a roughly -22% net margin. Revenue declined sharply in TTM (down ~21%), reversing the prior annual growth pattern. Profitability shows mixed signals: gross margin improved versus earlier years but is still modest (~18% TTM), and EBITDA margin is low in TTM (~2.5%) versus a healthier level in FY2025 (~15.6%), highlighting volatility in operating performance.

Balance Sheet

The balance sheet is the key weakness: stockholders’ equity is deeply negative in all periods (about -$129M in TTM (Trailing-Twelve-Months)), indicating a highly stressed capital structure. Leverage risk is elevated given the combination of negative equity and historically sizable debt (over $125M in prior annual periods), even though TTM shows zero debt reported. Total assets are relatively small (~$44M TTM), limiting financial flexibility and increasing sensitivity to operating downturns.

Cash Flow

Cash generation is consistently weak. TTM (Trailing-Twelve-Months) operating cash flow is materially negative (about -$10.9M) and free cash flow is also negative (about -$10.0M), implying ongoing cash burn. While free cash flow decline moderated versus the prior annual period (growth shown positive in TTM), the company has not demonstrated sustained ability to fund losses internally, which heightens liquidity and refinancing risk over time.

Breakdown	TTM	Sep 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	49.66M	46.36M	41.89M	42.03M	31.53M	14.67M
Gross Profit	7.09M	8.73M	2.35M	4.86M	1.87M	-5.32M
EBITDA	928.00K	7.25M	3.96M	5.78M	2.95M	-2.77M
Net Income	-8.08M	-9.11M	-11.38M	-13.20M	-6.57M	-5.29M
Balance Sheet
Total Assets	43.61M	46.92M	41.40M	41.10M	49.80M	52.55M
Cash, Cash Equivalents and Short-Term Investments	3.55M	4.60M	3.72M	2.65M	3.20M	5.85M
Total Debt	141.82M	141.61M	129.66M	125.77M	126.65M	123.54M
Total Liabilities	172.61M	171.04M	156.41M	144.74M	140.23M	136.07M
Stockholders Equity	-129.00M	-124.12M	-115.01M	-103.64M	-90.43M	-82.87M
Cash Flow
Free Cash Flow	-9.99M	-4.50M	-3.97M	-3.13M	-4.69M	-11.76M
Operating Cash Flow	-10.87M	-2.24M	108.00K	2.74M	-2.76M	-10.69M
Investing Cash Flow	-3.75M	-2.25M	-4.08M	-5.87M	-2.27M	-755.00K
Financing Cash Flow	11.97M	11.35M	3.54M	-557.00K	5.39M	3.59M

Portsmouth Square Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRSI, the sentiment is Positive. The current price of 4.55 is below the 20-day moving average (MA) of 7.08, below the 50-day MA of 7.37, and above the 200-day MA of 3.97, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRSI.

Portsmouth Square Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHH	67 Neutral	$5.01B	13.79	541.60%	1.32%	2.76%	56.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GHG	53 Neutral	$139.09M	9.10	―	2.85%	―	―
INTG	49 Neutral	$65.24M	-51.25	―	―	9.82%	37.93%
PRSI	42 Neutral	$5.14M	-0.64	―	―	10.33%	15.95%