Pinetree Capital (PNP) AI Stock Analysis

• Market Cap: C$88.99M
• Dividend Yield: N/A
• Average Volume (3M): 7.14K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.45
• Revenue Growth: 294.30%
• EPS Growth: 49.60%
• Country: CA
• Employees: 3
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.21
• Shares Outstanding: 9,387,000
• 10 Day Avg. Volume: 9,256
• 30 Day Avg. Volume: 7,143
• PEG Ratio: <0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 34.90
• 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: 70 Outperform
• Price Target: C$10.50 ▼(-7.08% Downside)

Strong underlying fundamentals (notably high profitability and a conservative, debt-free balance sheet) and an inexpensive P/E support the score, but weak technicals and the history of volatile/negative cash flow meaningfully temper the overall rating.

Positive Factors

Conservative balance sheet

Zero reported debt and materially expanded equity provide durable financial flexibility and low solvency risk. This conservatism supports the firm's ability to absorb investment volatility, fund opportunistic deployments, and maintain operations through market cycles without leverage-driven distress.

High profitability and ROE

Exceptionally high net margins and ROE indicate strong earnings conversion and capital efficiency. Over the medium term this helps build retained capital, supports reinvestment or distributions, and creates a buffer against cyclical swings inherent to investment businesses.

Improved cash generation in 2024

A 2024 shift to positive operating and free cash flow, with cash covering net income (~5.2x), signals improved cash conversion. If sustained, this strengthens internal funding capacity for investments or payouts and reduces reliance on asset realizations or external financing.

Negative Factors

Inconsistent historical cash generation

Multi-year negative operating cash flows before the 2024 rebound indicate fragile cash-conversion mechanics. This inconsistency constrains reliable capital allocation, raises the risk of forced realizations in downturns, and complicates multi-year planning for distributions or growth.

Revenue and earnings volatility

As an investment-oriented entity, revenues and earnings swing with market outcomes. This structural volatility reduces predictability of returns and cash flows over multiple quarters, making sustained organic growth, budgeting, and stable distributions more challenging for stakeholders.

Limited operating scale

Relatively small asset and equity base constrains diversification and makes performance more sensitive to a few investments. Limited scale can raise per-event impact on results, reduce bargaining power, and limit resources for product expansion or broad-based client initiatives over the medium term.

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

Pinetree Capital generates revenue primarily through capital gains realized from its investments in early-stage companies. By acquiring equity stakes in promising startups and micro-cap firms, Pinetree Capital aims to benefit from the appreciation of these holdings over time. Additionally, the company may earn dividends from its equity investments, although this is less common given the early-stage nature of its portfolio companies. Revenue is also influenced by the successful exit strategies, such as public offerings or acquisitions, where Pinetree can sell its stakes at a profit. Key factors contributing to its earnings include the identification of high-potential investment opportunities and effective management of its investment portfolio.

Pinetree Capital Financial Statement Overview

Summary

Income statement and balance sheet are very strong (high profitability/ROE and zero reported debt with materially rising equity), but cash-flow reliability is a key offset due to multiple years of negative operating/free cash flow before the 2024 rebound.

Income Statement

Profitability is exceptionally strong, with the latest annual period showing near-total conversion of revenue into profit (net margin ~97%) and a very high return on equity (~42%). Growth also accelerated sharply in 2024 (revenue up ~70% vs. 2023), indicating a strong earnings cycle. The key weakness is volatility in the revenue base over time (including prior-year declines and uneven growth), which is common for investment-oriented businesses and can make results less predictable.

Balance Sheet

The balance sheet is very conservative: total debt is reported at 0 across periods, and equity has expanded materially (from ~$18M in 2019 to ~$77.7M in 2024), supporting financial flexibility. Total assets have also grown in step with equity (~$78.3M in 2024), suggesting strengthening scale. The main drawback is that returns may be more sensitive to market/investment outcomes rather than balance-sheet leverage, which can lead to swings in equity performance despite low solvency risk.

Cash Flow

Cash generation has been inconsistent: operating cash flow was negative in multiple years (2019–2023), then turned positive in 2024 (~$3.0M) with free cash flow also positive and up strongly (~67%). In 2024, cash flow covered net income well (operating cash flow coverage ~5.2x), which is a meaningful improvement. However, the multi-year pattern of negative operating/free cash flow raises questions about sustainability and the reliability of cash conversion through cycles.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.01M	33.30M	6.64M	2.10M	2.30M	1.72M
Gross Profit	32.99M	33.29M	6.62M	2.08M	2.28M	1.70M
EBITDA	31.61M	32.36M	5.77M	1.15M	1.47M	1.25M
Net Income	31.18M	32.33M	5.75M	1.18M	1.46M	1.20M
Balance Sheet
Total Assets	87.82M	78.27M	45.75M	40.06M	38.85M	19.48M
Cash, Cash Equivalents and Short-Term Investments	5.59M	5.13M	2.17M	6.04M	9.94M	2.97M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.13M	571.00K	377.00K	443.00K	412.00K	383.00K
Stockholders Equity	86.69M	77.70M	45.37M	39.62M	38.44M	19.10M
Cash Flow
Free Cash Flow	2.26M	2.96M	-3.88M	-3.89M	-10.91M	-5.08M
Operating Cash Flow	2.26M	2.96M	-3.88M	-3.89M	-10.91M	-5.08M
Investing Cash Flow	-762.00K	0.00	0.00	0.00	-10.34M	0.00
Financing Cash Flow	0.00	0.00	0.00	0.00	17.88M	0.00

Pinetree Capital Technical Analysis

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

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 10.44, above the 50-day MA of 11.18, and below the 200-day MA of 14.30, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 27.92 is Positive, neither overbought nor oversold. The STOCH value of 27.02 is Neutral, 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	71 Outperform	C$144.93M	4.97	11.44%	―	113.25%	―
PNP	70 Outperform	C$88.99M	3.14	38.03%	―	294.30%	49.60%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DMGI	52 Neutral	C$53.58M	-5.02	-10.10%	―	39.64%	-70.96%
DEFI	45 Neutral	C$86.46M	-2.96	-90.12%	―	972.76%	-192.94%
NDA	43 Neutral	C$109.04M	-13.49	0.60%	―	-21.21%	-84.82%
HODL	41 Neutral	C$63.97M	-1.45	-6.67%	―	―	-90.34%

Pinetree Capital Corporate Events

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.