POSaBIT Systems (PBIT) AI Stock Analysis

• Market Cap: $9.65M
• Dividend Yield: N/A
• Average Volume (3M): 55.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -50.75%
• EPS Growth: 66.00%
• Country: CA
• Employees: 54
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 160,813,430
• 10 Day Avg. Volume: 89,449
• 30 Day Avg. Volume: 55,180
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: -5.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: C$0.00 ▼(-100.00% Downside)

POSaBIT Systems' overall stock score is significantly impacted by its poor financial performance, characterized by high leverage, negative cash flows, and ongoing losses. Technical analysis indicates a bearish trend, with weak momentum. Valuation metrics are unattractive due to a negative P/E ratio and lack of dividends. These factors collectively result in a low overall stock score.

POSaBIT Systems Business Overview & Revenue Model

Company Description

POSaBIT Systems Corporation, a financial technology company, provides block chain-enabled payment processing and point-of-sale systems for cash-only businesses with a focus on the cannabis industry in the United States. The company is headquartered in Kirkland, Washington.

How the Company Makes Money

POSaBIT generates revenue primarily through transaction fees collected from its payment processing services. Each time a cannabis retailer processes a transaction using POSaBIT’s system, a percentage of the transaction amount is retained as a fee. Additionally, the company may earn revenue through subscription fees for its software solutions, which provide retailers with inventory management, sales reporting, and compliance features. Strategic partnerships with cannabis dispensaries and industry stakeholders also play a crucial role in expanding their market presence and driving sales, as these partnerships often lead to higher transaction volumes and recurring revenue streams.

POSaBIT Systems Financial Statement Overview

Summary

POSaBIT Systems is facing significant financial challenges. The income statement reveals 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.

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	-10.15M	5.95M	-10.06M	-593.81K
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: 0.06
• 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 0.08, below the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 3.70 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
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
PVT	54 Neutral	C$45.94M	―	-4.98%	―	-11.75%	74.20%
BNXA	50 Neutral	C$51.40M	―	73.33%	―	29.35%	42.96%
KNR	45 Neutral	C$104.58M	13.71	-10.74%	―	-63.58%	-112.17%
PAID	41 Neutral	C$8.07M	―	99.64%	―	30.97%	18.42%
PBIT	39 Underperform	$9.65M	―	-295.25%	―	-50.75%	66.00%
DCSX	―	$5.57M	―		―	―	―