Pivotree (PVT) AI Stock Analysis

• Market Cap: C$45.54M
• Dividend Yield: N/A
• Average Volume (3M): 6.50K
• Price to Earnings (P/E): 13.4
• Beta (1Y): -0.33
• Revenue Growth: -13.43%
• EPS Growth: N/A
• Country: CA
• Employees: 300
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.04
• Shares Outstanding: 26,324,278
• 10 Day Avg. Volume: 4,127
• 30 Day Avg. Volume: 6,495
• PEG Ratio: -0.03
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -3.95
• 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): 0.16
• Revenue Forecast (FY): C$70.05M

• Rating: 64 Neutral
• Price Target: C$1.50 ▼(-15.25% Downside)

Pivotree's overall stock score is driven by strong technical momentum and a reasonable valuation, despite financial performance challenges. The company's low leverage provides a stable financial foundation, but strategic initiatives are needed to improve revenue growth and profitability.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and reduces risk, allowing Pivotree to invest in growth opportunities.

Cash Flow Improvement

Improved cash flow management enhances Pivotree's ability to fund operations and strategic initiatives, supporting long-term financial health.

Service Diversification

Diversified revenue streams from managed services and consulting provide resilience against market fluctuations and support sustainable growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, necessitating strategic actions to reverse the trend.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and the need for cost management to achieve sustainable profitability.

Inconsistent Cash Flow Generation

Inconsistent cash flow generation limits financial flexibility and could hinder the company's ability to invest in growth and manage liabilities.

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 generates revenue through multiple streams, primarily from its managed services and consulting engagements. The company charges clients for ongoing support and maintenance of their eCommerce platforms, which includes hosting, system integration, and performance optimization. Additionally, Pivotree earns revenue from project-based consulting services, helping businesses implement and customize their digital solutions. Key partnerships with major technology providers enhance its service offerings, enabling Pivotree to leverage additional revenue opportunities through bundled service packages and co-selling arrangements. Overall, the company's focus on delivering value-added services and maintaining long-term client relationships contributes significantly to its earnings.

Pivotree Financial Statement Overview

Summary

Pivotree's financial performance is challenged by declining revenues, negative profit margins, and weak cash flow generation. Despite a strong equity position and low leverage, the company needs to enhance profitability and cash flow management to improve financial health.

Income Statement

Pivotree's income statement reveals a challenging financial position with declining revenues and negative profit margins. The TTM data shows a revenue decline of 3.91% and a net profit margin of -3.44%, indicating ongoing profitability issues. Despite a relatively stable gross profit margin of 43.15%, the negative EBIT and EBITDA margins highlight operational inefficiencies. The company needs to focus on cost management and revenue growth strategies to improve its financial health.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.48%, suggesting minimal leverage risk. However, the negative return on equity of -5.25% indicates that the company is not generating sufficient returns on shareholders' investments. The equity ratio of 90.68% underscores a solid capital structure, but improving profitability is crucial for enhancing shareholder value.

Cash Flow

Cash flow analysis shows significant challenges, with a substantial decline in free cash flow growth at -212.87% TTM. The operating cash flow to net income ratio of 0.45 indicates limited cash generation relative to net losses. While the free cash flow to net income ratio of 0.44 suggests some ability to cover net losses, the overall cash flow position remains weak, necessitating improved cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.16M	78.24M	89.81M	101.69M	67.54M	63.60M
Gross Profit	31.69M	33.80M	41.48M	45.73M	29.88M	33.45M
EBITDA	8.83M	-3.73M	63.09K	-1.33M	-5.81M	2.17M
Net Income	3.50M	-11.89M	-7.23M	-9.09M	-11.59M	-5.76M
Balance Sheet
Total Assets	56.69M	55.12M	64.09M	83.75M	94.18M	88.65M
Cash, Cash Equivalents and Short-Term Investments	11.77M	3.88M	8.64M	17.35M	24.57M	53.94M
Total Debt	337.36K	454.69K	950.37K	1.68M	2.30M	2.87M
Total Liabilities	5.66M	7.12M	6.60M	18.28M	26.30M	11.92M
Stockholders Equity	51.03M	47.99M	57.49M	65.47M	67.88M	76.73M
Cash Flow
Free Cash Flow	5.00M	-5.33M	-3.68M	-2.53M	-8.79M	2.55M
Operating Cash Flow	6.21M	-3.82M	-2.58M	-1.69M	-8.16M	3.46M
Investing Cash Flow	726.06K	-160.00K	-3.63M	-4.85M	-20.33M	-5.60M
Financing Cash Flow	-622.60K	-843.67K	-2.52M	-682.36K	-879.05K	53.09M

Pivotree Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.77 is above the 20-day moving average (MA) of 1.62, above the 50-day MA of 1.57, and above the 200-day MA of 1.34, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.83 is Neutral, neither overbought nor oversold. The STOCH value of 84.62 is Negative, 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
SPOT	71 Outperform	C$42.33M	1.97	39.00%	―	37.95%	―
PVT	64 Neutral	C$45.54M	13.36	7.17%	―	-13.43%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BNXA	49 Neutral	C$54.77M	-8.20	―	―	42.60%	-321.35%
PAID	48 Neutral	C$5.58M	-0.22	―	―	22.81%	11.13%
PBIT	45 Neutral	C$8.11M	-3.11	-540.25%	―	-33.97%	59.10%
FARM	40 Underperform	C$8.31M	-0.12	―	―	-18.97%	-55.19%

Pivotree Corporate Events

Pivotree Reports Strong Q3 2025 Financial Results Amid Revenue Decline

Pivotree Inc. reported strong financial results for Q3 2025, achieving a net income of $0.9 million compared to a net loss in the previous year, driven by reduced operating expenses and improved gross margins. Despite a decline in total revenue by 17.7% from Q3 2024, the company saw growth in Managed and IP Solutions and significant contract bookings in its Commerce and Supply Chain businesses, indicating a solid operational foundation and potential for future growth.

Pivotree to Announce Q3 2025 Financial Results

Pivotree Inc. announced it will release its third quarter 2025 financial results on November 13, 2025, before the market opens. The announcement will be followed by a webinar hosted by CEO Bill Di Nardo and CFO Mo Ashoor, which will include a question and answer session. This release is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.