POSaBIT Systems (PBIT) AI Stock Analysis

• Market Cap: C$8.61M
• Dividend Yield: N/A
• Average Volume (3M): 21.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -72.74%
• EPS Growth: -143.33%
• Country: CA
• Employees: 54
• Sector: Technology
• Sector Strength: 40
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 156,498,500
• 10 Day Avg. Volume: 17,956
• 30 Day Avg. Volume: 21,261
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.43
• Price to Cash Flow (P/CF): -14.40
• P/FCF Ratio: 0.00
• 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

POSaBIT Systems faces significant financial performance challenges, including declining revenue, negative profitability, and poor cash flow generation, which are the most critical factors impacting the stock score. The technical analysis suggests a bearish trend, and valuation metrics highlight the company's lack of profitability, further dragging down the score. With no earnings call or corporate events to influence the evaluation, the overall stock score reflects the company's need for strategic improvements.

POSaBIT Systems Business Overview & Revenue Model

Company Description

POSaBIT Systems (PBIT) is a financial technology company specializing in providing point-of-sale (POS) systems and solutions tailored for the cannabis industry. The company operates primarily within the retail technology sector, offering a comprehensive suite of tools designed to facilitate secure, efficient, and compliant transactions. POSaBIT's core products include payment processing systems, compliance reporting, and customer management solutions, all aimed at enhancing the operational efficiency of cannabis dispensaries.

How the Company Makes Money

POSaBIT Systems makes money through the sale and licensing of its point-of-sale software and hardware solutions to cannabis dispensaries. The company generates revenue by charging transaction fees on payments processed through its platform, subscription fees for its software services, and sales of its proprietary hardware. Additionally, POSaBIT may engage in strategic partnerships with cannabis industry stakeholders to expand its market reach and integrate its solutions with other complementary platforms. These partnerships can enhance its service offerings and contribute to its revenue growth by attracting a broader client base.

POSaBIT Systems Financial Statement Overview

Summary

POSaBIT Systems exhibits significant financial challenges across income, balance sheet, and cash flow statements. Key issues include declining revenue, negative profitability margins, high leverage, and poor cash flow generation. These factors collectively indicate a need for strategic improvements in operational efficiency, cost management, and financial stability to enhance overall financial health.

Income Statement

POSaBIT Systems shows significant volatility in its income statement metrics. The TTM data reveals a negative net profit margin and declining revenue growth, which is concerning. The gross profit margin is relatively modest, indicating challenges in cost management. Additionally, negative EBIT and EBITDA margins reflect operational inefficiencies or high operating costs, which need attention.

Balance Sheet

The company's balance sheet is marked by a high debt-to-equity ratio, indicating reliance on debt financing and potential financial risk. Stockholders' equity is low, which could signal limited financial flexibility. Although there is some equity recovery from previous periods, overall leverage remains high.

Cash Flow

The cash flow statement highlights persistent negative free cash flow, raising concerns about the company's ability to generate cash internally. The operating cash flow to net income ratio is unfavorable, indicating cash generation issues. Despite some financing inflows, the cash flow situation remains weak.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
17.27M	43.58M	49.77M	21.30M	7.82M	4.18M
	Gross Profit
6.05M	9.22M	22.57M	5.76M	1.74M	598.04K
	EBIT
-8.85M	-10.69M	8.11M	-2.21M	-977.97K	-3.53M
	EBITDA
-4.46M	-12.15M	5.95M	-10.06M	-593.81K	-5.04M
	Net Income Common Stockholders
-5.91M	-13.76M	8.06M	-10.74M	-1.43M	-5.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.91K	1.52M	3.08M	4.42M	977.65K	404.44K
	Total Assets
114.91K	13.16M	18.00M	7.90M	3.69M	2.02M
	Total Debt
200.00K	4.58M	313.41K	134.51K	364.26K	424.30K
	Net Debt
85.09K	3.06M	-2.76M	-4.28M	-613.39K	19.86K
	Total Liabilities
14.91K	7.85M	9.77M	16.61M	6.74M	3.77M
	Stockholders Equity
100.00K	5.31M	8.22M	-8.71M	-3.06M	-1.75M
Cash Flow		Free Cash Flow
-4.64M	-8.34M	-5.25M	-2.44M	-362.36K	-3.41M
	Operating Cash Flow
-3.90M	-7.43M	-4.92M	-2.19M	-186.43K	-3.30M
	Investing Cash Flow
-280.03K	-1.95M	-330.67K	-241.01K	-175.93K	-29.34K
	Financing Cash Flow
1.88M	7.83M	3.90M	5.88M	935.57K	1.53M

POSaBIT Systems Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBIT, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.29 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 Negative sentiment for TSE:PBIT.

POSaBIT Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HITI	58 Neutral	$225.01M	―	-4.87%	―	7.84%	82.16%
Sector *	57 Neutral	$20.31B	10.03	-14.49%	2.79%	5.15%	-23.76%
ACB	47 Neutral	$328.76M	25.76	4.78%	―	16.39%	-98.10%
WEED	42 Neutral	$228.17M	―	-84.50%	―	-16.27%	―
PBIT	41 Neutral	C$8.61M	―	-134.04%	―	-72.74%	-143.33%