POSaBIT Systems (PBIT) AI Stock Analysis

• Market Cap: $8.11M
• Dividend Yield: N/A
• Average Volume (3M): 39.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -33.97%
• EPS Growth: 59.10%
• Country: CA
• Employees: 54
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 162,164,110
• 10 Day Avg. Volume: 72,168
• 30 Day Avg. Volume: 39,872
• PEG Ratio: 0.02
• Price to Book (P/B): 16.58
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -14.76
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: -5.18
• 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$0.06 ▲(45.00% Upside)

POSaBIT Systems' overall stock score is primarily impacted by significant financial challenges, including negative profitability and high leverage. While the earnings call showed some positive trends in profitability and SaaS growth, these are overshadowed by weak technical indicators and poor valuation metrics.

Positive Factors

Improved Profitability

Achieving a milestone in adjusted EBITDA indicates improved operational efficiency and a stronger focus on profitability, which can enhance long-term financial stability.

Growth in SaaS Revenue

The growth in SaaS revenue highlights successful expansion in the point-of-sale and e-commerce business, providing a stable and scalable revenue stream.

Cash Growth and Debt Reduction

Increased cash reserves and reduced liabilities strengthen the company's financial position, enhancing its ability to invest in growth opportunities and manage debt.

Negative Factors

Revenue Decline

A significant decline in revenue suggests potential challenges in maintaining market share or adapting to industry changes, impacting long-term growth prospects.

High Leverage

High leverage can increase financial risk and limit flexibility, potentially affecting the company's ability to navigate economic downturns or invest in growth.

Negative Cash Flow

Consistently negative cash flows indicate challenges in generating sufficient cash from operations, which can hinder the company's ability to fund growth and meet obligations.

POSaBIT Systems Business Overview & Revenue Model

Company Description

POSaBIT Systems (PBIT) is a leading technology company specializing in providing payment processing solutions tailored for the legal cannabis industry. The company operates primarily in the financial technology sector, offering a range of services that include point-of-sale systems, payment processing, and compliance solutions for cannabis retailers. By focusing on the unique challenges faced by cannabis businesses, POSaBIT aims to facilitate seamless transactions while ensuring adherence to regulatory requirements.

How the Company Makes Money

POSaBIT generates revenue primarily through transaction fees charged on every payment processed through its point-of-sale systems. These fees are typically a percentage of the transaction amount, allowing the company to earn a consistent income as cannabis sales increase. In addition to transaction fees, POSaBIT also offers subscription-based services for its POS systems, which provide retailers with ongoing support, software updates, and enhanced features. Strategic partnerships with cannabis dispensaries and other retail operations further contribute to its earnings by expanding its customer base and increasing transaction volume. The company may also explore additional revenue streams through value-added services designed to enhance operational efficiency for its clients.

POSaBIT Systems Financial Statement Overview

Summary

POSaBIT Systems is facing significant financial challenges across multiple areas. The income statement highlights issues with profitability and revenue stability. The balance sheet is strained by high leverage and low equity, posing financial risks. Consistently negative cash flows indicate difficulties in maintaining liquidity and financing operations through internal cash generation. The company needs to address operational inefficiencies and explore ways to stabilize its financial performance.

Income Statement

The company has faced significant challenges in maintaining profitability, with persistent negative net income and EBIT margins over recent years. The gross profit margin has fluctuated, reflecting some operational inefficiencies. Revenue has been volatile, with a significant decline in the most recent year, indicating potential market or operational challenges.

Balance Sheet

The balance sheet shows a concerning high level of leverage with total liabilities significantly exceeding equity, resulting in a negative equity in some years. The debt-to-equity ratio is extremely high, indicating potential financial risk. However, the company has managed to maintain a modest level of cash and cash equivalents.

Cash Flow

The cash flow statements indicate ongoing struggles with negative operating and free cash flows, suggesting difficulties in generating cash from operations. The free cash flow to net income ratio is consistently negative, reflecting challenges in covering investments and financing activities with internally generated funds.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.73M	15.27M	43.58M	49.77M	21.30M	7.82M
Gross Profit	6.69M	7.00M	9.22M	22.57M	5.76M	1.74M
EBITDA	-3.09M	-4.69M	-12.15M	5.95M	-10.15M	-600.53K
Net Income	-3.81M	-5.72M	-13.76M	8.06M	-10.74M	-1.43M
Balance Sheet
Total Assets	6.61M	8.60M	13.16M	18.00M	7.90M	3.69M
Cash, Cash Equivalents and Short-Term Investments	805.92K	999.08K	1.52M	3.08M	4.42M	977.65K
Total Debt	4.55M	4.53M	4.58M	313.41K	134.51K	364.26K
Total Liabilities	7.32M	8.14M	7.85M	9.77M	16.61M	6.74M
Stockholders Equity	-717.50K	458.94K	5.31M	8.22M	-8.71M	-3.06M
Cash Flow
Free Cash Flow	-122.30K	-515.26K	-8.34M	-5.25M	-2.44M	-362.36K
Operating Cash Flow	-122.30K	-515.26K	-7.43M	-4.92M	-2.19M	-186.43K
Investing Cash Flow	48.84K	120.00K	-1.95M	-330.67K	-241.01K	-175.93K
Financing Cash Flow	-192.82K	-127.82K	7.83M	3.90M	5.88M	935.57K

POSaBIT Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.04 is below 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 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PVT	51 Neutral	C$39.49M	11.32	7.17%	―	-13.43%	―
BNXA	50 Neutral	C$56.98M	―	―	―	42.60%	-321.35%
KNR	45 Neutral	C$104.58M	―	-0.42%	―	-59.23%	-100.34%
PBIT	44 Neutral	$8.11M	―	-540.25%	―	-33.97%	59.10%
PAID	39 Underperform	C$7.08M	-0.34	―	―	22.81%	11.13%
DCSI	37 Underperform	$4.97M	-3.03	―	―	33.92%	-402.25%

POSaBIT Systems Corporate Events

POSaBIT’s Earnings Call: Profitability and Expansion Focus

POSaBIT Systems Corp’s recent earnings call painted a picture of a company making significant strides in profitability despite facing some challenges. The sentiment was largely positive, with a focus on record adjusted EBITDA and improved gross profit margins. While there were concerns about revenue decline and a small net loss, the company’s strategic focus on profitability and market expansion was evident. The decision to cut PR spending could impact public perception, but overall, the outlook remains optimistic.

POSaBIT Systems Corp Reports Improved Financial Performance

POSaBIT Systems Corp, a company specializing in point-of-sale solutions primarily for the cannabis industry, provides innovative payment processing and point-of-sale systems. The company is listed on the Canadian Securities Exchange under the symbol ‘PBIT’.

POSaBIT Systems Corp Reports Mixed Financial Results

POSaBIT Systems Corporation is a company that specializes in providing point-of-sale solutions, primarily serving the cannabis industry with a focus on facilitating consumer purchases through innovative payment systems. The company operates within the technology sector and is known for its unique approach to integrating financial services with retail operations.