PesoRama Inc (PESO) AI Stock Analysis

• Market Cap: C$35.71M
• Dividend Yield: N/A
• Average Volume (3M): 101.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -24.63%
• EPS Growth: -27.27%
• Country: CA
• Employees: 124
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): -0.03
• Shares Outstanding: 137,327,650
• 10 Day Avg. Volume: 52,621
• 30 Day Avg. Volume: 101,352
• PEG Ratio: 0.00
• Price to Book (P/B): -1.18
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -1.61
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: C$0.50 ▲(100.00% Upside)

PesoRama Inc.'s overall stock score is primarily impacted by its financial performance, which is hindered by profitability and liquidity challenges. While technical analysis shows some positive momentum, the negative P/E ratio and lack of dividend yield weigh on the valuation. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates effective market penetration and increasing customer base, which are crucial for long-term success in the retail sector.

Business Model

PesoRama's focus on affordable products and convenience positions it well in the discount retail sector, appealing to a broad consumer base and supporting sustained demand.

Market Position

Being a leader in the discount retail sector provides PesoRama with competitive advantages, such as brand recognition and customer loyalty, which can drive long-term growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may hinder PesoRama's ability to reinvest in growth opportunities and improve operational efficiencies, affecting long-term sustainability.

High Leverage

High leverage and negative equity position raise concerns about financial stability, limiting the company's ability to withstand economic downturns or invest in growth.

Cash Flow Issues

Negative cash flow indicates challenges in generating sufficient cash to cover operational expenses, which could lead to liquidity issues and restrict future business investments.

PesoRama Inc Business Overview & Revenue Model

Company Description

PesoRama Inc. operates a chain of retail stores in Mexico. Its stores offer household goods, pet supplies, seasonal products, party supplies, health and beauty, snack food items, confectionery, and other products. The company operates its stores under the JOi Canadian Stores brand name. As of June 14, 2022, it operated 20 stores. PesoRama Inc. is based in Toronto, Canada.

How the Company Makes Money

PesoRama Inc generates revenue primarily through the sale of a diverse assortment of low-cost consumer goods. The company's revenue model is built on high-volume sales and low-margin pricing, which attracts a large customer base seeking value for money. Key revenue streams include in-store sales from its variety stores, as well as potential partnerships with suppliers that may allow for exclusive product offerings or promotional deals. Additionally, PesoRama may capitalize on seasonal trends and promotional events to drive traffic and increase sales, further enhancing its earnings potential.

PesoRama Inc Financial Statement Overview

Summary

PesoRama Inc. demonstrates strong revenue growth but faces significant profitability and cash flow challenges. The high leverage and negative equity position raise financial stability concerns. While the company effectively raises financing, it struggles with generating positive cash flows, indicating potential liquidity issues.

Income Statement

PesoRama Inc. shows significant revenue growth with a TTM (Trailing-Twelve-Months) increase from previous years, indicating strong sales performance. However, the company struggles with profitability, as evidenced by negative EBIT and net income margins. The persistent net losses highlight challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reflects high leverage with a negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio is incalculable due to negative equity, but the high total debt suggests reliance on borrowing. The low equity ratio further emphasizes dependence on liabilities to finance assets.

Cash Flow

Operating cash flow remains negative, which, coupled with negative free cash flow, suggests cash management difficulties. The company has managed to secure financing, but the negative cash flow to net income ratios indicate poor cash generation relative to reported losses, highlighting liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.24M	23.45M	20.52M	14.53M	4.51M	1.70M
Gross Profit	8.78M	8.79M	6.99M	4.85M	843.07K	539.42K
EBITDA	-4.26M	-4.39M	-5.92M	-7.79M	-6.58M	-5.46M
Net Income	-10.75M	-10.13M	-10.62M	-11.94M	-7.09M	-3.78M
Balance Sheet
Total Assets	28.18M	26.27M	18.84M	18.80M	13.37M	17.67M
Cash, Cash Equivalents and Short-Term Investments	579.00K	633.23K	901.55K	3.02M	642.40K	6.73M
Total Debt	25.18M	23.50M	11.22M	5.34M	3.68M	2.75M
Total Liabilities	40.14M	35.24M	16.76M	10.06M	7.02M	4.27M
Stockholders Equity	-11.96M	-8.97M	2.08M	8.74M	6.35M	13.40M
Cash Flow
Free Cash Flow	-5.78M	-6.53M	-4.51M	-8.65M	-6.15M	-9.47M
Operating Cash Flow	-4.50M	-5.78M	-3.34M	-7.36M	-4.63M	-6.76M
Investing Cash Flow	-1.28M	-756.27K	-1.17M	-1.28M	539.71K	-4.71M
Financing Cash Flow	4.97M	6.11M	2.34M	4.89M	-520.68K	11.74M

PesoRama Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PESO, the sentiment is Positive. The current price of 0.25 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.26, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 22.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PESO.

PesoRama Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
L	80 Outperform	$72.44B	29.32	21.51%	1.49%	4.21%	14.03%
DOL	75 Outperform	$53.91B	43.47	94.57%	0.20%	9.91%	16.96%
WN	72 Outperform	C$36.49B	24.96	26.36%	1.19%	4.15%	149.50%
EMP.A	70 Outperform	C$11.24B	16.30	12.97%	1.65%	1.96%	9.26%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NWC	61 Neutral	C$2.19B	15.82	18.55%	3.32%	3.04%	4.17%
PESO	49 Neutral	C$35.71M	-2.24	134.90%	―	-24.63%	-27.27%

PesoRama Inc Corporate Events

PesoRama Inc. Announces LIFE and Private Placement Offerings

PesoRama Inc. has announced its intention to complete a non-brokered private placement offering, known as the LIFE Offering, and a concurrent private placement. The LIFE Offering aims to raise up to $3.5 million through the issuance of 14 million units, each consisting of one common share and a half warrant. The concurrent private placement seeks to raise an additional $1.5 million. The proceeds from these offerings will be used for store expansion and working capital, potentially enhancing PesoRama’s market position in the Mexican retail sector.

PesoRama Inc. Reports Robust Q2 Fiscal 2026 Financial Results

PesoRama Inc. reported a strong financial performance for Q2 Fiscal 2026, with a 20% increase in total sales compared to the previous year, driven by a 20.2% rise in average ticket and a 5% increase in same-store sales. The company’s strategic focus on expanding its product assortment and opening new stores has bolstered customer loyalty and positioned it for continued growth in Mexico’s underserved market. The successful closure of a $6.8 million oversubscribed equity financing will support further store expansion and enhance shareholder value.

PesoRama Expands with New Store Openings in Mexico City

PesoRama Inc. announced the opening of two new stores in Mexico City, marking a significant step in its expansion strategy. Store #29 will be located in the commercial neighborhood of Roma Norte, while Store #30 will be the company’s first location in downtown Mexico City near the iconic Zócalo district. These openings aim to enhance accessibility for Mexican consumers and are part of a broader plan to capitalize on high-density traffic areas to drive growth.

PesoRama Inc. Announces Stock Options and Debt Settlement

PesoRama Inc., a Canadian company operating dollar stores in Mexico, has announced the grant of 10,400,000 incentive stock options at $0.23 per share, and the issuance of 656,250 common shares at $0.20 per share as part of a debt settlement. This move is aimed at improving the company’s financial position and involves a related party transaction, which is subject to regulatory approvals. The issuance of shares is intended to settle a debt of $131,250 with certain directors, and the options are exercisable over five years, reflecting PesoRama’s strategic efforts to stabilize and enhance its market presence.