PesoRama Inc (PESO) AI Stock Analysis

• Market Cap: C$15.96M
• Dividend Yield: N/A
• Average Volume (3M): 59.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 65.44%
• EPS Growth: 14.21%
• Country: CA
• Employees: 124
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Grocery Stores
• EPS (TTM): N/A
• Shares Outstanding: 91,191,246
• 10 Day Avg. Volume: 82,191
• 30 Day Avg. Volume: 59,310
• PEG Ratio: -0.14
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.27
• 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

• Rating: 44 Neutral
• Price Target: ―

PesoRama Inc is facing considerable financial challenges, including negative net profit margins and negative equity. While there is some positive revenue growth, the overall financial instability and lack of profitability weigh heavily on the stock's attractiveness. Technical analysis provides a slightly positive outlook, but valuation metrics further highlight caution due to the company’s financial state.

PesoRama Inc Business Overview & Revenue Model

Company Description

PesoRama Inc (PESO) operates in the retail sector, primarily offering a range of low-cost consumer goods. The company focuses on providing affordable products to customers, including household items, food, and personal care products, through its chain of stores.

How the Company Makes Money

PesoRama Inc generates revenue by selling a variety of consumer products at low prices through its retail stores. The company attracts customers by offering essential items at competitive prices, thus driving high volumes of sales. The revenue model relies heavily on maintaining a wide assortment of products while keeping operational costs low, allowing the company to pass on savings to its customers. Key revenue streams include the sale of household goods, food items, and personal care products. PesoRama Inc may also benefit from strategic partnerships with suppliers to maintain its low pricing strategy and ensure a steady supply of goods.

PesoRama Inc Financial Statement Overview

Summary

PesoRama Inc faces significant financial challenges. While revenue growth is positive, persistent net losses and negative equity highlight risks. The company needs to address cash flow inefficiencies and reduce reliance on debt to improve financial stability.

Income Statement

PesoRama Inc showed a significant improvement in revenue with a TTM growth rate of 11.98%, but it remains unprofitable with a negative net profit margin of -33.72% in TTM. The gross profit margin improved slightly to 35.48% in TTM, indicating some efficiency in cost management. Despite positive EBIT margin of 50.06% in TTM, the negative EBITDA margin of -15.25% suggests challenges in covering non-operational expenses.

Balance Sheet

The company's balance sheet is concerning, with negative stockholders' equity of -5.75 million CAD, indicating financial strain. The debt-to-equity ratio is not calculable due to negative equity, highlighting potential solvency issues. The equity ratio is also negative given the negative equity, signaling a heavy reliance on debt.

Cash Flow

PesoRama's cash flow situation is challenging, with a negative free cash flow growth rate of 16.61% in TTM. The operating cash flow to net income ratio is 0.59, indicating inefficient cash conversion from operations. The free cash flow to net income ratio is 0.68, reflecting pressures in generating cash relative to net income.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	22.99M	20.52M	14.53M	4.51M	1.70M	1.70M
Gross Profit	8.16M	6.99M	4.85M	843.07K	539.42K	539.42K
EBITDA	-3.51M	-5.92M	-7.79M	-6.58M	-5.46M	-3.39M
Net Income	-7.75M	-10.62M	-11.94M	-7.09M	-3.78M	-3.78M
Balance Sheet
Total Assets	22.66M	18.84M	18.80M	13.37M	17.67M	17.67M
Cash, Cash Equivalents and Short-Term Investments	717.02K	901.55K	3.02M	642.40K	6.73M	6.73M
Total Debt	17.54M	11.22M	5.34M	3.68M	2.75M	2.75M
Total Liabilities	28.40M	16.76M	10.06M	7.02M	4.27M	4.27M
Stockholders Equity	-5.75M	2.08M	8.74M	6.35M	13.40M	13.40M
Cash Flow
Free Cash Flow	-5.26M	-4.51M	-8.65M	-6.15M	-9.47M	-9.47M
Operating Cash Flow	-4.57M	-3.34M	-7.36M	-4.63M	-6.76M	-6.76M
Investing Cash Flow	-688.83K	-1.17M	-1.28M	539.71K	-4.71M	-4.71M
Financing Cash Flow	3.92M	2.34M	4.89M	-520.68K	11.74M	11.74M

PesoRama Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 103.37 is Negative, 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
CTC	76 Outperform	C$10.27B	17.61	14.70%	3.63%	-1.12%	201.58%
LNF	73 Outperform	C$1.87B	11.74	14.49%	4.00%	0.47%	9.41%
DOL	71 Outperform	$52.73B	43.33	138.71%	0.22%	9.20%	18.11%
GIL	71 Outperform	$10.11B	18.61	24.40%	2.58%	6.30%	-10.10%
GOOS	67 Neutral	$1.52B	15.99	19.34%	―	4.64%	41.68%
Sector *	61 Neutral	C$5.16B	10.92	18.94%	4.26%	5.08%	6.52%
PESO	44 Neutral	C$15.96M	―	134.90%	―	65.44%	14.21%

PesoRama Inc Corporate Events

PesoRama Inc. Reports Robust Financial Growth

PesoRama Inc. reports a strong financial performance for Q3 2025, with a 17% increase in sales and a 49% rise in gross profits, driven by their strategic merchandising and expansion efforts. The company’s innovative multi-price strategy and enhanced product assortment have significantly boosted store profits by 305%, showcasing their success in tapping into the cost-conscious Mexican market.