Pivotree (PVT) AI Stock Analysis

• Market Cap: C$34.60M
• Dividend Yield: N/A
• Average Volume (3M): 35.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -12.88%
• EPS Growth: -66.10%
• Country: CA
• Employees: 300
• Sector: Technology
• Sector Strength: 66
• Industry: Information Technology Services
• EPS (TTM): -0.45
• Shares Outstanding: 26,414,192
• 10 Day Avg. Volume: 15,229
• 30 Day Avg. Volume: 35,349
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: C$1.50
• Price Target Upside: 14.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Pivotree's overall score reflects significant financial challenges with declining revenues and negative profitability, balanced by a strong balance sheet and recent corporate improvements. While technical indicators show positive momentum, the company's valuation remains a concern due to the negative P/E ratio. The recent corporate events suggest operational improvements and potential future growth, which moderately offset the financial challenges.

Pivotree Business Overview & Revenue Model

Company Description

Pivotree Inc. designs, integrates, deploys, and manages digital platforms in commerce, data management, and supply chain for retail and branded manufacturers in Canada and internationally. It operates in two segments, Professional Services and Managed Services. The company offers a combination of application support and managed hosting with digital strategy and software implementation services. It provides its services to B2B, B2C, distribution, finance, healthcare, hospitality, insurance, manufacturing, retail, technology, and telecommunication industries. The company was formerly known as Reliant Web Hosting Inc. and changed its name to Pivotree Inc. in September 2020. Pivotree Inc. was incorporated in 1998 and is headquartered in Toronto, Canada.

How the Company Makes Money

Pivotree makes money primarily through providing professional services and technology solutions in digital commerce and data management. The company's revenue model is based on a combination of project-based fees, subscription services, and managed services. Key revenue streams include consulting fees for system implementations, recurring revenues from managed services and support contracts, and licensing fees for its proprietary technology solutions. Significant partnerships with leading technology providers and platform vendors also contribute to Pivotree's earnings by enabling it to offer a broad range of integrated solutions and leverage best-in-class technologies. Additionally, long-term relationships with clients and a focus on customer success drive repeat business and ongoing revenue growth.

Pivotree Financial Statement Overview

Summary

Pivotree faces significant financial challenges, with declining revenues and negative profitability metrics. While the balance sheet remains strong with low leverage, the cash flow situation is concerning, suggesting liquidity issues and operational inefficiencies. The company needs to address profitability and cash flow generation to improve its financial health.

Income Statement

Pivotree has experienced declining revenue over recent years, with a noticeable drop from $101.7M in 2022 to $78.2M in 2024. The negative EBIT and net income indicate persistent operational challenges and profitability issues. Margins are under pressure, reflecting difficulty in converting revenue into profit.

Balance Sheet

The company maintains a strong equity position with an equity ratio of approximately 87.1% in 2024, showcasing financial stability. However, declining total assets and stockholders' equity over the years may pose risks. The low debt-to-equity ratio indicates conservative leverage usage.

Cash Flow

Pivotree's cash flow metrics highlight significant challenges, with negative free cash flow in recent years. Operating cash flow has consistently been negative, indicating potential liquidity issues. The free cash flow to net income ratio is concerning, reflecting inefficiencies in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
78.24M	89.81M	101.69M	67.54M	63.60M
	Gross Profit
33.80M	41.48M	45.73M	29.88M	33.45M
	EBIT
-7.31M	-6.84M	-9.08M	-10.47M	-1.26M
	EBITDA
-3.73M	63.09K	-1.33M	-5.81M	2.17M
	Net Income Common Stockholders
-11.89M	-7.23M	-9.09M	-11.59M	-5.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.88M	8.64M	17.35M	24.57M	53.94M
	Total Assets
55.12M	64.09M	83.75M	94.18M	88.65M
	Total Debt
454.69K	950.37K	1.68M	2.30M	2.87M
	Net Debt
-3.42M	-6.34M	-15.67M	-22.27M	-51.08M
	Total Liabilities
7.12M	6.60M	18.28M	26.30M	11.92M
	Stockholders Equity
47.99M	57.49M	65.47M	67.88M	76.73M
Cash Flow		Free Cash Flow
-5.33M	-3.68M	-2.53M	-8.79M	2.55M
	Operating Cash Flow
-3.82M	-2.58M	-1.69M	-8.16M	3.46M
	Investing Cash Flow
-160.00K	-3.63M	-4.85M	-20.33M	-5.60M
	Financing Cash Flow
-843.67K	-2.52M	-682.36K	-879.05K	53.09M

Pivotree Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PVT, the sentiment is Positive. The current price of 1.31 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.05, and above the 200-day MA of 1.04, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PVT.

Pivotree Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMG	75 Outperform	C$668.56M	27.07	33.92%	2.47%	32.49%	-0.20%
KXS	68 Neutral	C$5.25B	157.81	-0.10%	―	14.85%	-105.25%
SYZ	68 Neutral	C$205.83M	―	-1.93%	0.45%	-13.99%	-421.95%
Sector *	60 Neutral	$10.94B	10.48	-7.04%	2.99%	7.55%	-12.20%
ENW	57 Neutral	C$34.99M	―	-22.54%	―	-17.72%	64.42%
PVT	54 Neutral	C$34.60M	―	-22.54%	―	-12.88%	-66.10%

Pivotree Corporate Events

Pivotree to Announce Q1 2025 Financial Results and Launches Share Purchase Plan

Pivotree announced it will release its first quarter 2025 financial results on May 14, 2025, accompanied by a webinar hosted by its CEO and CFO. Additionally, Pivotree has established an automatic securities purchase plan to facilitate the repurchase of its common shares under its existing normal course issuer bid, allowing purchases during blackout periods and regulatory restrictions.

Spark’s Take on TSE:PVT Stock

According to Spark, TipRanks’ AI Analyst, TSE:PVT is a Neutral.

Pivotree’s overall stock score reflects financial challenges with declining revenues and negative profitability, despite a strong balance sheet. Technical analysis indicates potential overbought conditions, adding caution. Valuation metrics highlight profitability issues, while the earnings call and corporate events signal some positive restructuring and growth potential.

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

Pivotree Achieves Record Q4 2024 Adjusted EBITDA Amid Revenue Decline

Pivotree Inc. reported a record Adjusted EBITDA of $1.7 million for Q4 2024, marking a significant improvement due to organizational changes that enhanced operating efficiencies. Despite a decrease in total revenue by 13.3% compared to the previous year, the company achieved a reduced net loss and continued to secure key project extensions and new deals, indicating potential future revenue growth.