Pinetree Capital (PNP) AI Stock Analysis

• Market Cap: C$158.45M
• Dividend Yield: N/A
• Average Volume (3M): 14.38K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.16
• Revenue Growth: 461.24%
• EPS Growth: 82.98%
• Country: CA
• Employees: 3
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 3.40
• Shares Outstanding: 9,387,000
• 10 Day Avg. Volume: 16,485
• 30 Day Avg. Volume: 14,380
• PEG Ratio: -1.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.62
• 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

• Rating: 85 Outperform
• Price Target: ―

Pinetree Capital's overall score of 85 reflects its strong financial performance, marked by significant revenue and profit growth, a debt-free balance sheet, and high equity ratio. The impressive technical analysis supports this with positive price momentum. However, the low cash flow conversion rate and the absence of a dividend yield could be potential areas of concern for investors. Corporate events further underscore the company's robust financial growth.

Pinetree Capital Business Overview & Revenue Model

Company Description

Pinetree Capital Ltd. (PNP) is an investment firm headquartered in Canada, specializing in investing in early-stage micro and small-cap companies across various sectors, including technology, biotechnology, and clean energy. The firm leverages its extensive industry expertise to identify promising opportunities and provide strategic support to its portfolio companies, aiming to enhance their growth potential and maximize returns for its shareholders.

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

Pinetree Capital shows strong financial health with significant revenue and profit growth, a debt-free balance sheet, and a high equity ratio. However, zero EBIT and EBITDA in 2024 and low conversion of net income into operating cash flow could pose risks if not managed. Overall, the company's financial position is robust, with a need for attention on operational efficiencies and cash flow management.

Income Statement

Pinetree Capital has shown significant revenue growth from 2023 to 2024, with Total Revenue increasing from $6.65M to $33.29M, a staggering growth rate of 400.6%. The Net Profit Margin has also improved sharply to 97.1% in 2024, indicating substantial profitability. However, EBIT and EBITDA for 2024 are reported as zero, which may suggest some operational challenges despite the strong net income.

Balance Sheet

The company maintains a very strong balance sheet with no debt in 2024, resulting in a Debt-to-Equity Ratio of 0. The Equity Ratio is robust at 99.3%, reflecting a highly solvent position. The Return on Equity (ROE) is impressive at 41.6%, showcasing efficient use of equity to generate profits. These metrics indicate financial stability and low leverage risk.

Cash Flow

Pinetree Capital's cash flow situation has improved, with a positive Free Cash Flow of $2.96M in 2024 compared to negative values in previous years. The Operating Cash Flow to Net Income Ratio is 0.09, which is quite low, suggesting that a smaller portion of net income is being converted into cash flow. This could be a potential area of concern if not addressed going forward.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.29M	6.65M	2.08M	2.28M	1.70M
Gross Profit	33.29M	6.62M	2.04M	2.23M	1.68M
EBITDA	32.38M	-107.00K	1.36M	0.00	1.25M
Net Income	32.33M	5.75M	1.18M	1.46M	1.20M
Balance Sheet
Total Assets	78.27M	45.75M	40.06M	38.85M	19.48M
Cash, Cash Equivalents and Short-Term Investments	5.13M	2.17M	6.04M	9.94M	1.11M
Total Debt	0.00	198.00K	203.00K	203.00K	207.00K
Total Liabilities	571.00K	377.00K	443.00K	412.00K	383.00K
Stockholders Equity	77.70M	45.37M	39.62M	38.44M	19.10M
Cash Flow
Free Cash Flow	2.96M	-3.88M	-3.89M	-10.91M	-5.09M
Operating Cash Flow	2.96M	-3.88M	-3.89M	-10.91M	-5.09M
Investing Cash Flow	0.00	0.00	-3.16M	-10.34M	-5.01M
Financing Cash Flow	0.00	0.00	0.00	17.88M	0.00

Pinetree Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 16.88 is below the 20-day moving average (MA) of 18.21, below the 50-day MA of 18.76, and above the 200-day MA of 13.26, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 35.65 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
PNP	85 Outperform	C$158.45M	4.73	44.03%	―	461.24%	82.98%
Sector *	61 Neutral	C$14.62B	6.19	20.17%	5.67%	26.93%	-38.21%
NDA	56 Neutral	C$183.01M	54.62	5.61%	―	-9.36%	―
DMGI	54 Neutral	$48.78M	―	-18.42%	―	17.11%	-26125.00%
DEFI	52 Neutral	C$51.06M	9.33	42.14%	―	109.65%	-22.41%

Pinetree Capital Corporate Events

Pinetree Capital Reports Q1 2025 Financials and Leadership Change

Pinetree Capital Ltd. reported an increase in book value per share from $8.28 to $9.41 for the quarter ending March 31, 2025, reflecting a 14% growth. This growth is attributed to net investment gains and increased equity investments at fair value. However, market volatility has since pressured the book value per share. Additionally, the company announced that its Chief Investment Officer, Shezad Okhai, will take a leave of absence to serve as interim CEO at Bravura Solutions Limited, a company in which Pinetree holds investments.

Spark’s Take on TSE:PNP Stock

According to Spark, TipRanks’ AI Analyst, TSE:PNP is a Outperform.

Pinetree Capital’s overall score of 85 reflects its strong financial performance, marked by significant revenue and profit growth, a debt-free balance sheet, and high equity ratio. The impressive technical analysis supports this with positive price momentum. However, the low cash flow conversion rate and the absence of a dividend yield could be potential areas of concern for investors. Corporate events further underscore the company’s robust financial growth.

To see Spark’s full report on TSE:PNP stock, click here.

Pinetree Capital Reports Strong Financial Growth in 2024

Pinetree Capital Ltd., a company listed on the Toronto Stock Exchange under the symbol PNP, has reported its audited financial results for the year ending December 31, 2024. The company saw a significant increase in its book value per share, rising from $4.83 in 2023 to $8.28 in 2024, marking a 71% increase. This growth was primarily driven by an increase in equity investments at fair value, which represented 94% of the book value by the end of 2024. The company’s total assets increased to $78,270, while total liabilities remained low at $571. Expenses for the year were $939, accounting for 1.2% of the book value, which is a decrease from the previous year’s 1.9%. This financial performance reflects a strong year for Pinetree Capital, with substantial growth in equity investments and improved efficiency in managing expenses.