Pinetree Capital (PNP) AI Stock Analysis

• Market Cap: C$83.17M
• Dividend Yield: N/A
• Average Volume (3M): 7.14K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.49
• Revenue Growth: 294.30%
• EPS Growth: 49.60%
• Country: CA
• Employees: 3
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.12
• Shares Outstanding: 9,387,000
• 10 Day Avg. Volume: 9,256
• 30 Day Avg. Volume: 7,143
• PEG Ratio: -0.15
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 5.93
• P/FCF Ratio: -26.77
• 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: 61 Neutral
• Price Target: C$9.50 ▼(-15.93% Downside)
• Action: Downgraded Date: 03/06/26
• Date: Action: Downgraded 03/06/26

The score is driven primarily by a very strong, low-leverage balance sheet and periods of strong profitability, offset by inconsistent cash flow and highly volatile, market-sensitive results. Technical indicators are mixed-to-weak (negative MACD and trading below longer-term averages), while valuation is modestly supportive with a low P/E.

Positive Factors

Conservative balance sheet / minimal leverage

Minimal leverage and a conservatively positioned balance sheet provide durable financial resilience, allowing the firm to absorb market drawdowns, preserve optionality to deploy capital when opportunities arise, and protect long-term shareholder value during downturns.

Strong peak profitability and margins

Sustained high gross and operating margins in peak years indicate a business model capable of generating outsized returns on invested capital. Over time this supports retained earnings, compounding of capital, and the ability to fund investments without heavy external financing.

Material growth in assets and equity

Consistent growth in assets and equity expands the firm’s investable base and diversification potential, enabling scale benefits and a broader set of investment opportunities. That structural growth increases strategic optionality and long-term capacity to generate returns.

Negative Factors

Inconsistent and weak cash generation

Repeated negative operating and free cash flows reduce quality of earnings and constrain financial flexibility. Reliance on non-cash gains or timing of investments increases funding risk, limits ability to consistently return capital, and raises vulnerability in tighter markets.

Highly cyclical, market-sensitive results

Large swings in revenue and earnings tied to market cycles make future performance unpredictable. This structural sensitivity impairs planning, can force defensive capital moves in downturns, and means sustainable earnings and distributions are not guaranteed over intermediate horizons.

Large negative recent EPS growth

A sharp decline in EPS reflects material earnings deterioration and amplifies concerns about earnings sustainability. When combined with weak cash conversion and market sensitivity, steep EPS declines indicate elevated downside risk for near-term profitability and capital deployment plans.

Pinetree Capital Business Overview & Revenue Model

Company Description

Pinetree Capital Ltd. is a venture capital and private equity firm specializing in early to later stage venture, middle market, mature, later stage, turnaround, emerging growth and growth capital investments in micro and small cap companies. The firm prefers to invest in all the sector except materials, real estate & energy. It typically invests in USA, Canada and Europe. The firm invests primarily in equities as well as debt and convertible securities. Pinetree Capital Ltd. was founded in 1992 and is based in Toronto, Canada.

How the Company Makes Money

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Pinetree Capital Financial Statement Overview

Summary

Strong, conservatively financed balance sheet with minimal leverage and historically strong profitability, but results are highly cyclical (sharp revenue drop in 2025 after an unusually strong 2024) and cash flow quality is weak with multiple years of negative operating/free cash flow.

Income Statement

Profitability is exceptionally strong for the sector, with consistently very high gross and operating profitability and solid net profitability across years. However, results are volatile: revenue fell sharply in 2025 (annual revenue down ~47% vs. 2024) after an unusually strong 2024, which makes earnings power less predictable and suggests performance is highly market-driven.

Balance Sheet

The balance sheet is conservatively positioned with minimal leverage (debt near zero historically and very low in 2025). Equity and assets have grown materially over time, and returns on equity have been strong in peak years (notably 2024), though they also swing meaningfully year-to-year—highlighting sensitivity to investment/market conditions rather than steady operating returns.

Cash Flow

Cash generation is the weak spot: operating cash flow and free cash flow were negative in several years (including 2025, 2023, 2022, 2021, and 2020), with sharp deterioration again in 2025. While 2024 showed positive cash flow, the pattern overall indicates inconsistent cash conversion and potential reliance on non-cash gains or working-capital/investment timing, increasing volatility and reducing quality-of-earnings comfort.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.48M	33.30M	6.64M	2.10M	2.30M
Gross Profit	17.41M	33.29M	6.62M	2.08M	2.28M
EBITDA	10.52M	32.36M	5.77M	1.15M	1.47M
Net Income	9.89M	32.33M	5.75M	1.18M	1.46M
Balance Sheet
Total Assets	89.39M	78.27M	45.75M	40.06M	38.85M
Cash, Cash Equivalents and Short-Term Investments	5.56M	5.13M	2.17M	6.04M	9.94M
Total Debt	181.00K	0.00	0.00	0.00	0.00
Total Liabilities	1.81M	571.00K	377.00K	443.00K	412.00K
Stockholders Equity	87.59M	77.70M	45.37M	39.62M	38.44M
Cash Flow
Free Cash Flow	-3.88M	2.96M	-3.88M	-3.89M	-10.91M
Operating Cash Flow	-3.88M	2.96M	-3.88M	-3.89M	-10.91M
Investing Cash Flow	4.31M	0.00	0.00	0.00	-10.34M
Financing Cash Flow	0.00	0.00	0.00	0.00	17.88M

Pinetree Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNP, the sentiment is Negative. The current price of 11.3 is above the 20-day moving average (MA) of 9.61, above the 50-day MA of 9.80, and below the 200-day MA of 12.64, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 33.55 is Neutral, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PNP.

Pinetree Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XAU	79 Outperform	C$208.76M	1.83	22.78%	―	113.25%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PNP	61 Neutral	C$83.17M	10.49	11.26%	―	294.30%	49.60%
HODL	45 Neutral	C$46.29M	-1.24	-52.57%	―	―	-90.34%
DEFI	45 Neutral	C$86.46M	44.16	-136.30%	―	972.76%	-192.94%
DMGI	44 Neutral	C$48.49M	-5.39	-8.68%	―	39.64%	-70.96%
NDA	43 Neutral	C$98.78M	-6.21	-11.71%	―	-21.21%	-84.82%

Pinetree Capital Corporate Events

Pinetree Capital Boosts Book Value, Adds Veteran Investor to Board

Pinetree Capital reported a rise in total assets to $89.4 million and an increase in book value per share to $9.33 as of December 31, 2025, up 13% from a year earlier, despite a 1% decline versus the prior quarter amid ongoing headwinds in the software and technology sector. Net income for 2025 fell to $9.9 million from $32.3 million in 2024 as net investment gains moderated, while annual expenses climbed to $1.64 million, or 1.9% of equity, driven in part by foreign exchange effects.

The company also strengthened its governance and investment oversight by appointing veteran asset manager Henry Rachfalowski to its board of directors, adding more than three decades of experience in fixed income, equity, and private investments at major Canadian financial institutions and a large pension fund. This board change comes as Pinetree navigates sector volatility and positions its portfolio for a more challenging market environment, with stakeholders likely to watch whether the added expertise helps manage risk and sustain book value growth.

The most recent analyst rating on (TSE:PNP) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Pinetree Capital stock, see the TSE:PNP Stock Forecast page.

Pinetree Capital Welcomes Back Chief Investment Officer After Leave

Pinetree Capital has announced that Chief Investment Officer Shezad Okhai has returned to his role at the firm, effective January 1, 2026, following a leave of absence that began in April 2025 while he served as interim CEO of portfolio company Bravura Solutions Limited. His return restores continuity in Pinetree’s investment leadership as the firm continues to execute its strategy in the enterprise software and technology sector, a development that may reassure investors and other stakeholders about stability in the company’s portfolio management.

The most recent analyst rating on (TSE:PNP) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on Pinetree Capital stock, see the TSE:PNP Stock Forecast page.