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PesoRama Inc (TSE:PESO)
:PESO
Canadian Market
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PesoRama Inc (PESO) AI Stock Analysis

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PesoRama Inc

(PESO)

Rating:52Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
PesoRama Inc.'s overall score is driven by financial challenges despite positive corporate events. Strong revenue growth is overshadowed by profitability and liquidity issues. The technical outlook is neutral, and recent financing and expansion efforts provide some positive prospects.

PesoRama Inc (PESO) vs. iShares MSCI Canada ETF (EWC)

PesoRama Inc Business Overview & Revenue Model

Company DescriptionPesoRama Inc (PESO) operates within the retail sector, primarily focusing on providing affordable everyday products through its chain of dollar stores across Mexico. The company offers a wide range of merchandise, including household goods, groceries, health and beauty products, and other consumer necessities, catering to budget-conscious customers.
How the Company Makes MoneyPesoRama Inc generates revenue primarily through the sale of low-cost products in its retail stores. The company's business model centers on high-volume sales of a diverse array of goods, which are sourced at low cost and sold at competitive prices to attract a large customer base. Key revenue streams include direct in-store sales across its network of stores. Additionally, PesoRama may benefit from strategic partnerships with suppliers to ensure a steady supply of affordable products, as well as potential collaborations with local distributors to optimize its supply chain and reduce costs.

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
45
Neutral
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
30
Negative
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
35
Negative
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue23.45M20.52M14.53M4.51M1.70M
Gross Profit8.79M6.99M4.85M843.07K539.42K
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 Assets26.27M18.84M18.80M13.37M17.67M
Cash, Cash Equivalents and Short-Term Investments633.23K901.55K3.02M642.40K6.73M
Total Debt23.50M11.22M5.34M3.68M2.75M
Total Liabilities35.24M16.76M10.06M7.02M4.27M
Stockholders Equity-8.97M2.08M8.74M6.35M13.40M
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-1.28M539.71K-4.71M
Financing Cash Flow6.11M2.34M4.89M-520.68K11.74M

PesoRama Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.16
Price Trends
50DMA
0.16
Negative
100DMA
0.16
Positive
200DMA
0.14
Positive
Market Momentum
MACD
<0.01
Positive
RSI
47.96
Neutral
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PESO, the sentiment is Neutral. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.16, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PESO.

PesoRama Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$12.92B18.9413.02%1.83%1.77%0.77%
TSL
78
Outperform
$65.89B30.4420.10%0.95%2.42%7.04%
TSDOL
76
Outperform
$52.06B42.77138.71%0.21%9.20%18.11%
TSWN
76
Outperform
C$34.01B29.8219.58%1.58%2.36%-6.97%
TSNWC
65
Neutral
C$2.28B16.5518.85%4.18%4.19%2.56%
62
Neutral
$16.95B10.84-7.26%3.63%1.71%-25.14%
52
Neutral
C$14.13M134.90%-24.41%0.95%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PESO
PesoRama Inc
0.16
-0.02
-11.11%
TSE:DOL
Dollarama
187.74
58.58
45.35%
TSE:L
Loblaw Companies
220.84
53.77
32.19%
TSE:WN
George Weston
264.31
55.51
26.59%
TSE:EMP.A
Empire Co Cl A NV
55.74
20.12
56.49%
TSE:NWC
North West
47.65
4.34
10.02%

PesoRama Inc Corporate Events

Business Operations and Strategy
PesoRama Expands with 28th Store Opening in Mexico City
Positive
Jul 16, 2025

PesoRama Inc. announced the grand opening of its 28th store in Agrícola Oriental, Mexico City, on July 24th. The new store is strategically located within the Hospital de la Luz complex, opposite a subway station, to capitalize on high foot traffic. This expansion is part of PesoRama’s growth strategy to increase accessibility for Mexican consumers and drive continued success. The opening event will be live-streamed on Instagram, reflecting the company’s engagement with its audience and stakeholders.

Private Placements and FinancingBusiness Operations and Strategy
PesoRama Secures $6.8M in Oversubscribed Equity Financing to Fuel Expansion
Positive
Jul 9, 2025

PesoRama Inc., a Canadian company operating dollar stores in Mexico under the JOI DOLLAR PLUS brand, has successfully closed its equity offering for gross proceeds of $6.8 million. This financing, which was oversubscribed, will support the company’s growth strategy by enabling the expansion of new store locations across Mexico City and beyond, aiming to bring affordable products to more communities and enhance shareholder value. The offering included a mix of public and private placements, with funds earmarked for store expansion and working capital, pending final approval from the TSX Venture Exchange.

Private Placements and FinancingBusiness Operations and Strategy
PesoRama Upsizes Equity Offering to $6.8 Million Amid Strong Demand
Positive
Jul 7, 2025

PesoRama Inc. has announced an increase in its equity offering from $5 million to approximately $6.8 million due to strong investor demand. The additional funds will be raised through a non-brokered private placement alongside the original LIFE offering. The proceeds are intended for store expansion and working capital, potentially enhancing PesoRama’s market presence and operational capabilities in the Mexican retail sector.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
PesoRama Reports Resilient Q1 Fiscal 2026 Results Amid Currency Challenges
Neutral
Jun 27, 2025

PesoRama Inc., a Canadian company operating dollar stores in Mexico, reported its Q1 Fiscal 2026 financial results, showcasing resilience in its business model despite currency headwinds. The company saw a 10% increase in total sales in 2025 compared to 2024, with a 19% rise in average ticket size and a 2% increase in same-store sales. However, total sales in Q1 2026 decreased by 4% due to the depreciation of the Mexican peso against the Canadian dollar. PesoRama announced a $5 million non-brokered LIFE Offering to support store expansion and working capital, reflecting its commitment to growth and long-term value creation for shareholders.

Private Placements and Financing
PesoRama Inc. Launches $5 Million LIFE Offering for Expansion
Positive
Jun 10, 2025

PesoRama Inc. has announced a non-brokered private placement of 33,333,333 units at $0.15 per unit, aiming to raise $5 million through the LIFE Offering. The proceeds will be used for store expansion and working capital, with the offering available in all Canadian provinces except Québec. The company has partnered with Markette Ventures Inc. to facilitate the distribution of securities, and closing is expected around June 26, 2025, pending necessary approvals.

Business Operations and StrategyFinancial Disclosures
PesoRama Inc. Reports Strong Financial Growth and Expansion in 2025
Positive
Jun 3, 2025

PesoRama Inc. reported a strong financial performance for the fiscal year 2025, with a 14% increase in sales to $23,449,999 and a 26% rise in gross profits to $8,791,004. The company attributes its success to strategic merchandising, product assortment, and enhanced customer experience, which led to a 36% increase in store traffic. PesoRama expanded its footprint by opening four new JOi Dollar Plus stores in high-traffic urban areas in Mexico City, aligning with its strategy to cater to cost-conscious shoppers in an underserved market, ultimately driving long-term value for shareholders.

Product-Related AnnouncementsBusiness Operations and Strategy
PesoRama Expands with New Store Opening in Mexico City
Positive
May 31, 2025

PesoRama Inc. announced the grand opening of its 27th JOi Dollar Plus store on May 31st in the Patio Martin Carrera mall, located in a commercially active and affluent neighborhood of Mexico City. This expansion is part of PesoRama’s strategy to increase accessibility for Mexican consumers and drive growth by targeting areas with a high density of potential customers.

Business Operations and Strategy
PesoRama Expands with New Store Opening in Mexico City
Positive
Apr 24, 2025

PesoRama Inc. announced the grand opening of its 26th store in the City Shops del Valle mall, a strategic location in a commercially active and affluent neighborhood of Mexico City. This expansion reflects the company’s growth strategy and aims to enhance accessibility for Mexican consumers, potentially boosting its market presence and customer base.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 18, 2025