Plaintree Systems (NPT) AI Stock Analysis

• Market Cap: C$646.26K
• Dividend Yield: N/A
• Average Volume (3M): 1.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -18.81%
• EPS Growth: -274.09%
• Country: US
• Employees: 60
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.04
• Shares Outstanding: 12,925,253
• 10 Day Avg. Volume: 1,019
• 30 Day Avg. Volume: 1,753
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.46
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 2.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 44 Neutral
• Price Target: C$0.05 ▼(-18.33% Downside)

The score is held down primarily by high leverage/thin equity and weak technical momentum (downtrend and negative MACD). Partially offsetting this are improving operating profitability and notably positive free cash flow, plus a recent corporate update indicating improved net income and potential shipment normalization.

Positive Factors

Cash generation

Sustained positive operating and free cash flow indicates the business converts sales into real cash, supporting operations, modest capex and working capital without immediate reliance on new financing. This durable cash conversion improves resilience and funds strategic priorities over months.

Improving margins

Material margin recovery and a narrower net loss point to better cost control and business model leverage. If sustained, higher gross and EBITDA margins can translate into recurring profitability, stronger cash flow and greater ability to invest or reduce debt over the medium term.

Operational normalization potential

Management's plan to resume shipments after recertification addresses a structural supply disruption. Restored deliveries would remove an operational bottleneck, enabling revenue normalization and more predictable cash flow, materially affecting medium-term revenue and customer relationships.

Negative Factors

High leverage

Very high debt relative to thin equity materially limits financial flexibility. Persistent leverage increases interest and refinancing risk, reduces ability to fund growth or absorb shocks, and makes the company vulnerable if margins or cash flows weaken over the coming quarters.

Declining revenue

A sustained top-line decline undermines scale economics and makes margin gains harder to sustain. Falling revenue constrains cash generation, limits reinvestment capacity, and complicates deleveraging plans, making profitable and stable growth more difficult in the medium term.

Limited cash coverage of debt

While cash flow is positive, operating cash covers only a small fraction of total debt, limiting rapid deleveraging. Low cash-to-debt coverage increases refinancing and solvency risk if cash flow weakens, constraining strategic options and capital allocation over the next several quarters.

Plaintree Systems Business Overview & Revenue Model

Company Description

Plaintree Systems Inc. designs, develops, manufactures, markets, and supports electronic products and specialty structural products in Canada, the United States, and internationally. The company manufactures avionic components for various applications, including aircraft antiskid braking, aircraft indicators, solenoids, and permanent magnet alternators; and operates as a design/build manufacturer of steel, aluminum, and stainless-steel specialty structures comprising commercial domes, free form structures, barrel vaults, space frames, and industrial dome coverings. It also provides super-alloys for the aircraft and helicopter markets; designs and manufactures custom hydraulic and pneumatic valves and cylinders for industrial, automation, and oil and gas markets; and manufactures kitchen appliances. Plaintree Systems Inc. was founded in 1988 and is headquartered in Arnprior, Canada.

How the Company Makes Money

Plaintree Systems generates revenue through multiple streams. In the aerospace and telecommunications sectors, it earns money by designing, manufacturing, and selling wireless networking equipment and high-precision components for aircraft. The architectural division contributes to revenue by producing and selling specialty glass and custom metal fabrication products for architectural projects. The company's earnings are supported by contracts and partnerships with commercial enterprises, government agencies, and other entities requiring specialized technical solutions. Additionally, Plaintree Systems may engage in collaborative ventures and long-term agreements with key clients, ensuring consistent demand for its diverse product offerings.

Plaintree Systems Financial Statement Overview

Summary

Operating results are improving (higher gross/EBITDA margins and a much smaller TTM net loss), and cash flow is a clear positive (positive operating and free cash flow). However, balance-sheet risk is significant: very high leverage (debt-to-equity ~5.1x) and historically unstable equity meaningfully constrain resilience, and TTM revenue is still declining.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined to ~20.6M (down ~9.5%), but profitability improved versus the prior annual period: net loss narrowed materially (about -0.4M vs. -1.8M). Gross margin rebounded to ~28% (from ~19% in the latest annual), and EBITDA margin improved to ~3.3% (from ~0.6%), indicating better cost control. Offsetting this, the company remains loss-making on a bottom-line basis (net margin ~-1.9%) and recent growth is negative, which keeps the quality of earnings and trajectory mixed.

Balance Sheet

Leverage is the main concern. In TTM (Trailing-Twelve-Months), total debt is ~5.1M against equity of ~1.0M, implying high balance-sheet risk (debt-to-equity ~5.1x). Equity has also been unstable historically (including a period of negative equity), which reduces financial flexibility. While total assets are ~14.4M, the combination of thin equity and elevated leverage limits resilience if earnings or cash flow weaken.

Cash Flow

Cash generation is a relative strength in TTM (Trailing-Twelve-Months): operating cash flow is positive (~2.46M) and free cash flow is positive (~1.97M), with a sharp free-cash-flow increase versus the prior annual period. Free cash flow also compares favorably to the reported net loss, suggesting better cash conversion than accounting earnings. The key weakness is coverage versus debt—operating cash flow is modest relative to total debt (coverage ~0.29), so deleveraging capacity may be limited without sustained cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	20.62M	23.85M	24.20M	19.94M	12.66M	16.19M
Gross Profit	5.79M	4.57M	7.64M	4.14M	3.70M	3.88M
EBITDA	684.17K	148.10K	2.89M	-423.23K	2.08M	1.48M
Net Income	-399.62K	-1.81M	1.07M	-1.94M	844.26K	-201.88K
Balance Sheet
Total Assets	14.40M	13.86M	14.98M	16.13M	12.05M	18.05M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	1.91M	2.07M	1.91M
Total Debt	5.15M	5.83M	6.24M	7.21M	2.34M	6.79M
Total Liabilities	13.39M	14.78M	14.09M	16.31M	10.08M	16.28M
Stockholders Equity	1.01M	-916.67K	894.08K	-177.82K	1.97M	1.77M
Cash Flow
Free Cash Flow	1.97M	501.66K	1.01M	-1.14M	1.07M	835.74K
Operating Cash Flow	2.46M	1.06M	1.58M	-594.92K	1.52M	1.29M
Investing Cash Flow	-521.41K	-557.37K	-568.94K	-543.20K	-450.15K	-701.39K
Financing Cash Flow	-1.96M	-1.32M	-1.80M	-1.87M	-503.78K	-743.05K

Plaintree Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NPT, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 2.80 is Positive, 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 Negative sentiment for TSE:NPT.

Plaintree Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE	66 Neutral	C$138.65M	24.52	10.07%	7.88%	16.69%	111.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCM	54 Neutral	C$96.91M	9.25	26.87%	5.99%	-7.01%	―
DST	48 Neutral	C$11.23M	-1.82	―	―	-27.49%	-32.97%
NPT	44 Neutral	C$646.26K	-0.35	-183.69%	―	-18.81%	-274.09%
SHRC	42 Neutral	C$12.31M	-3.14	―	―	14.18%	-29.19%
LUX	36 Underperform	C$6.25M	-2.13	-209.39%	―	-45.50%	47.92%

Plaintree Systems Corporate Events

Plaintree Systems Reports Improved Net Income Amid Revenue Decline

Plaintree Systems Inc. reported its financial results for the first quarter of fiscal 2026, showing a significant improvement in net income despite a decrease in revenue. The company achieved a net income of $924,152 for the quarter ending September 30, 2025, compared to a net loss in the same period the previous year. This positive outcome comes amid challenges such as the recertification process and tariff uncertainties affecting Elmira shipments. However, the company anticipates resuming shipments soon, which could alleviate the backlog and potentially enhance future financial performance.