PesoRama Inc (PESO) AI Stock Analysis

• Market Cap: C$63.25M
• Dividend Yield: N/A
• Average Volume (3M): 101.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• 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: 166,455,120
• 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$0.35 ▲(18.97% Upside)
• Action: Reiterated Date: 12/22/25
• Date: Action: Reiterated 12/22/25

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

Revenue Growth Momentum

Sustained TTM revenue growth indicates ongoing customer demand and incremental market penetration within its grocery segment. Over the next 2–6 months continued top-line expansion can support operational leverage, enabling management to prioritize margin improvements and debt reduction initiatives.

Healthy Gross Profit Margin

A 33% gross margin provides structural room to absorb SG&A and logistics costs, and suggests the core grocery offering retains pricing ability or supply efficiency. This margin base is a durable asset that, if converted into better operating controls, can materially improve long-term profitability.

Improving Free Cash Flow

Meaningful FCF growth and a positive FCF-to-net-income ratio signal the business can generate cash despite accounting losses. Durable cash generation provides flexibility to service debt, fund targeted store or supply investments, and bridge to profitability without immediate equity raises.

Negative Factors

Highly Levered Balance Sheet

Negative equity and embedded high leverage materially constrain financial flexibility and raise solvency risk. Over a multi-month horizon this limits the company’s ability to access attractive financing, increases refinancing risk, and forces priority on deleveraging rather than strategic growth investments.

Negative Operating Cash Flow

Persistent negative operating cash flow shows core operations are not self-sustaining and require external funding or asset sales. This structural shortfall makes coverage of recurring obligations and debt service dependent on volatile FCF improvements or financing, raising medium-term business risk.

Unprofitable Operations and Declining EPS

Negative profitability metrics and steep EPS decline reflect structural margin pressure and operating inefficiencies. Without clear margin recovery, continued losses will erode equity further, constrain reinvestment, and heighten reliance on external capital, which undermines long-term competitiveness.

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 is experiencing revenue growth but faces significant challenges in profitability and financial stability. The company is heavily leveraged with negative equity and persistent losses, despite some positive signs in cash flow improvements. Overall, the financial health is weak, requiring strategic measures to improve profitability and reduce financial risk.

Income Statement

PesoRama Inc has shown a modest revenue growth rate of 5.36% in the TTM, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 33.03%, but the negative EBITDA margin highlights operational inefficiencies. Overall, the income statement reflects a company facing challenges in achieving profitability despite revenue growth.

Balance Sheet

The balance sheet of PesoRama Inc reveals significant financial risk, with a negative stockholders' equity and a high debt-to-equity ratio of -2.61 in the TTM. This indicates that the company is heavily leveraged, which could pose risks if not managed carefully. The return on equity is positive due to negative equity, but this is not a sustainable position. The equity ratio is also negative, further highlighting the financial instability.

Cash Flow

Cash flow analysis shows some improvement, with a positive free cash flow growth rate of 17.01% in the TTM. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow, but overall cash flow stability remains a concern.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	25.18M	23.45M	20.52M	14.53M	4.51M	1.70M
Gross Profit	8.32M	8.79M	6.99M	4.85M	843.07K	539.42K
EBITDA	-4.40M	-4.39M	-5.92M	-7.79M	-6.58M	-5.46M
Net Income	-12.29M	-10.13M	-10.62M	-11.94M	-7.09M	-3.78M
Balance Sheet
Total Assets	29.21M	26.27M	18.84M	18.80M	13.37M	17.67M
Cash, Cash Equivalents and Short-Term Investments	695.61K	633.23K	901.55K	3.02M	642.40K	6.73M
Total Debt	27.82M	23.50M	11.22M	5.34M	3.68M	2.75M
Total Liabilities	39.88M	35.24M	16.76M	10.06M	7.02M	4.27M
Stockholders Equity	-10.68M	-8.97M	2.08M	8.74M	6.35M	13.40M
Cash Flow
Free Cash Flow	-6.59M	-6.53M	-4.51M	-8.65M	-6.15M	-9.47M
Operating Cash Flow	-4.39M	-5.78M	-3.34M	-7.36M	-4.63M	-6.76M
Investing Cash Flow	-2.20M	-756.27K	-1.17M	-1.28M	539.71K	-4.71M
Financing Cash Flow	6.50M	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 below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.34, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 67.89 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 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
NWC	69 Neutral	C$2.53B	13.57	18.44%	3.27%	2.08%	9.31%
EMP.A	68 Neutral	C$11.10B	17.29	12.66%	1.78%	2.58%	7.85%
MRU	66 Neutral	C$19.86B	23.42	14.48%	1.50%	3.71%	12.40%
WN	65 Neutral	C$36.16B	31.90	21.94%	1.23%	4.15%	149.50%
L	64 Neutral	C$72.35B	27.64	24.03%	1.52%	4.21%	14.03%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PESO	47 Neutral	C$63.25M	-3.25	123.40%	―	-21.12%	-45.49%

PesoRama Inc Corporate Events

PesoRama Expands Mexico Footprint With 32nd JOi Dollar Plus Store

PesoRama Inc. plans to open its 32nd JOi Dollar Plus store on February 21 in Azcapotzalco, roughly 10 kilometers from Mexico City’s historic center. The 5,823-square-foot outlet sits in a densely populated residential area, positioning the company to deepen its reach among local consumers in a core urban market.

Management describes the new location as a key step in PesoRama’s broader expansion strategy, enhancing accessibility for Mexican shoppers and reinforcing its presence in the country’s value retail segment. The company is also using a live-streamed ribbon-cutting on Instagram to promote the launch and engage customers digitally as it scales its brick-and-mortar footprint.

The most recent analyst rating on (TSE:PESO) stock is a Hold with a C$0.36 price target. To see the full list of analyst forecasts on PesoRama Inc stock, see the TSE:PESO Stock Forecast page.

PesoRama to Add Four New JOi Dollar Plus Stores in Mexico

PesoRama is expanding its JOi Dollar Plus footprint in Mexico, where it already runs 31 value-focused dollar stores centered on densely populated, high-traffic areas. The chain targets urban shoppers with a broad mix of low-cost household essentials, personal care items, snacks and discretionary products, strengthening its presence in and around Mexico City and other key markets.

The company announced the opening of four new stores, bringing its network to 35 locations, with sites in Azcapotzalco, Luna Parc, Parque Tepeyac and Puebla’s historic center scheduled to open in February and March. The new outlets deepen PesoRama’s reach in major residential and commercial districts, reinforcing its growth strategy in Mexico’s value retail segment and increasing accessibility for consumers seeking discount shopping options.

The most recent analyst rating on (TSE:PESO) stock is a Hold with a C$0.36 price target. To see the full list of analyst forecasts on PesoRama Inc stock, see the TSE:PESO Stock Forecast page.

PesoRama Seeks TSXV Approval to Extend Warrant Expiry to 2026

PesoRama Inc. plans to extend the exercise period of 5,939,333 existing warrants, each exercisable at $0.30 per common share, to January 23, 2026, aligning their expiry with a larger block of warrants issued in a second tranche of a prior private placement, while leaving all other terms unchanged and subject to TSX Venture Exchange approval. Roughly 10% of the affected warrants are held by related parties, making the amendment a related party transaction under Canadian securities rules; however, PesoRama is relying on available exemptions from formal valuation and minority shareholder approval requirements, reflecting the relatively limited size of the warrant block versus its market capitalization and underscoring its effort to preserve flexibility in its capital structure without triggering more onerous regulatory processes.

The most recent analyst rating on (TSE:PESO) stock is a Hold with a C$0.29 price target. To see the full list of analyst forecasts on PesoRama Inc stock, see the TSE:PESO Stock Forecast page.

PesoRama Enters Puebla With Opening of 31st JOi Dollar Plus Store

PesoRama Inc. announced the grand opening of its 31st JOi Dollar Plus store on December 21 in Puebla, marking the company’s first location in that city. The 4,585-square-foot outlet, situated in one of Puebla’s main shopping malls about 6 km from the Historic Center, underscores the retailer’s strategy of expanding into high-traffic areas as it seeks to bring its value-focused offering closer to households across Mexico. Management framed the new store as an important step in the company’s growth pipeline and broader expansion plans, signaling continued focus on footprint growth to drive scale and accessibility in the Mexican discount retail market.

The most recent analyst rating on (TSE:PESO) stock is a Hold with a C$0.23 price target. To see the full list of analyst forecasts on PesoRama Inc stock, see the TSE:PESO Stock Forecast page.

PesoRama Reports Q3 Fiscal 2026 Growth and Expansion Highlights

PesoRama Inc. reported strong financial performance for Q3 Fiscal 2026, with a 15.9% increase in total sales and a 1.4% rise in product gross margins for the nine months ending October 31, 2025. The company attributed these gains to store expansion, innovative merchandising strategies, and increased customer loyalty in an underserved market. PesoRama also completed oversubscribed equity financing of $6.8 million, with an additional $5.0 million raised after the quarter’s end to support further growth and ensure long-term shareholder value.

The most recent analyst rating on (TSE:PESO) stock is a Hold with a C$0.23 price target. To see the full list of analyst forecasts on PesoRama Inc stock, see the TSE:PESO Stock Forecast page.

PesoRama Secures TSXV Approval for Equity Financing with Clarifications

PesoRama Inc. announced that the TSX Venture Exchange has given final approval for its equity financing, correcting previous announcements about the composition of units and commissions paid. The company clarified that each unit consisted of one common share and half of a common share purchase warrant, and adjusted figures for cash commissions and insider subscriptions. These corrections do not affect other information previously reported, and the approval is expected to positively impact PesoRama’s financial operations and market positioning.

The most recent analyst rating on (TSE:PESO) stock is a Hold with a C$0.23 price target. To see the full list of analyst forecasts on PesoRama Inc stock, see the TSE:PESO Stock Forecast page.