PesoRama Inc (PESO) AI Stock Analysis

• Market Cap: C$48.77M
• Dividend Yield: N/A
• Average Volume (3M): 101.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -21.12%
• EPS Growth: -45.49%
• Country: CA
• Employees: 124
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): -0.02
• Shares Outstanding: 157,327,650
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$0.29 ▼(-1.38% Downside)

PesoRama Inc's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and negative profitability. While technical analysis shows some positive momentum, the valuation metrics highlight significant risks due to the company's lack of profitability. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Cash Flow Improvement

The improvement in free cash flow suggests better cash management and potential for future reinvestment, supporting long-term financial stability.

Revenue Growth

Steady revenue growth indicates a strong market position and potential for future expansion, enhancing the company's competitive edge.

Gross Profit Margin

A healthy gross profit margin reflects efficient cost management and pricing power, contributing to long-term profitability potential.

Negative Factors

High Leverage

The high leverage indicates financial risk, which could strain resources and limit growth opportunities if not managed effectively.

Negative Profitability

Persistent negative profitability highlights operational challenges and could hinder future investment and growth prospects.

Financial Instability

The negative equity position reflects financial instability, posing risks to long-term viability and requiring strategic financial restructuring.

PesoRama Inc Business Overview & Revenue Model

Company Description

PesoRama Inc (PESO) is a retail company based in Mexico that operates a chain of variety stores offering a wide range of affordable products, including household items, personal care products, and seasonal goods. The company targets budget-conscious consumers and provides a convenient shopping experience across multiple locations, positioning itself as a leader in the discount retail sector.

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

PesoRama Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 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 0.29 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 65.65 is Neutral, neither overbought nor oversold. The STOCH value of 101.74 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
L	76 Outperform	C$72.58B	29.68	21.51%	1.52%	4.21%	14.03%
DOL	71 Outperform	$56.21B	43.50	102.01%	0.20%	14.02%	20.11%
WN	70 Outperform	C$35.90B	24.55	26.36%	1.23%	4.15%	149.50%
NWC	69 Neutral	C$2.34B	16.38	18.69%	3.27%	2.08%	9.31%
EMP.A	68 Neutral	C$10.87B	16.01	12.66%	1.78%	2.58%	7.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PESO	47 Neutral	C$48.77M	-2.63	134.90%	―	-21.12%	-45.49%

PesoRama Inc Corporate Events

PesoRama Secures $5 Million to Fuel Expansion

PesoRama Inc. has successfully closed its $5 million equity financing, selling 20 million units at $0.25 each. The funds will support the company’s expansion and working capital needs as it continues to grow its presence in Mexico. The offering, which included private placements to accredited investors in Canada and the U.S., is subject to final approval by the TSXV. This financial boost is expected to enhance PesoRama’s market positioning and operational capabilities, benefiting shareholders and facilitating further store openings.

PesoRama Secures $3.5 Million in Equity Financing for Expansion

PesoRama Inc. has announced the first closing of its equity financing, raising $3.5 million through the sale of 14 million units at $0.25 each. The company plans to use the proceeds for store expansion and working capital, with a second tranche expected to close soon. The offering is subject to final approval by the TSX Venture Exchange, and the company has issued warrants and finder warrants as part of the transaction. This move is expected to support PesoRama’s growth strategy in the competitive Mexican retail market.

PesoRama Expands with Three New Store Openings in Mexico

PesoRama Inc. has announced the opening of three new stores in Mexico, marking a significant expansion in its operations. The new locations in Roma Norte, downtown Mexico City, and Puebla aim to increase accessibility for consumers and strengthen the company’s presence in high-traffic areas, aligning with its growth strategy.

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.