POSaBIT Systems (PBIT) AI Stock Analysis

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TSE:PBIT Dividends

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POSaBIT Systems

(OTC:PBIT)

41Neutral

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 (PBIT) vs. S&P 500 (SPY)

Market Cap

$14.87M

Dividend YieldN/A

Average Volume (3M)11.16K

Price to Earnings (P/E)―

Beta (1Y)0.29

Revenue Growth-72.74%

EPS Growth-143.33%

CountryCA

Employees54

SectorTechnology

Sector Strength65

IndustryInformation Technology Services

Share Statistics

EPS (TTM)-0.05

Shares Outstanding156,498,500

10 Day Avg. Volume5,046

30 Day Avg. Volume11,161

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.59

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.57

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

POSaBIT Systems Business Overview & Revenue Model

Company DescriptionPOSaBIT 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 MoneyPOSaBIT 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

Negative

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

Negative

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

Negative

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.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
43.58M	49.77M	21.30M	7.82M	4.18M
	Gross Profit
9.22M	22.57M	5.76M	1.74M	598.04K
	EBIT
-10.80M	8.11M	-2.21M	-977.97K	-3.53M
	EBITDA
-12.15M	5.95M	-10.06M	-593.81K	-5.04M
	Net Income Common Stockholders
-13.76M	8.06M	-10.74M	-1.43M	-5.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.52M	3.08M	4.42M	977.65K	404.44K
	Total Assets
13.16M	18.00M	7.90M	3.69M	2.02M
	Total Debt
4.58M	313.41K	134.51K	364.26K	424.30K
	Net Debt
3.06M	-2.76M	-4.28M	-613.39K	19.86K
	Total Liabilities
7.85M	9.77M	16.61M	6.74M	3.77M
	Stockholders Equity
5.31M	8.22M	-8.71M	-3.06M	-1.75M
Cash Flow		Free Cash Flow
-8.34M	-5.25M	-2.44M	-362.36K	-3.41M
	Operating Cash Flow
-7.43M	-4.92M	-2.19M	-186.43K	-3.30M
	Investing Cash Flow
-1.95M	-330.67K	-241.01K	-175.93K	-29.34K
	Financing Cash Flow
7.83M	3.90M	5.88M	935.57K	1.53M

POSaBIT Systems Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.10

Price Trends

50DMA

0.07

Negative

100DMA

0.08

Negative

200DMA

0.10

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

43.53

Neutral

STOCH

<0.01

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 0.1 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.07, and above the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.53 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

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HITI	60 Neutral	C$268.72M	―	-4.87%	―	7.84%	82.16%
Sector *	59 Neutral	$10.75B	10.37	-6.64%	3.00%	7.30%	-12.02%
ACB	50 Neutral	$325.46M	25.51	4.78%	―	16.39%	-98.10%
WEED	47 Neutral	$351.32M	―	-84.50%	―	-16.27%	―
PBIT	41 Neutral	$14.87M	―	-198.19%	―	-72.74%	-143.33%

* Technology Sector Average

Performance Comparison

TSE:PBIT

POSaBIT Systems

0.10

-0.10

-50.00%

TSE:WEED

Canopy Growth

1.94

-12.25

-86.33%

TSE:ACB

Aurora Cannabis

6.58

-2.98

-31.17%

TSE:HITI

High Tide

3.32

0.36

12.16%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.