POSaBIT Systems Corp. (PBIT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pivotree, Inc.

Tiny Ltd.

Alithya Group, Inc.

OneSoft Solutions, Inc.

Nuvei Corp.

HIVE Digital Technologies Ltd.

Softchoice Corp.

TELUS International (CDA), Inc.

POSaBIT Systems Corp.

Diagnos, Inc.

Verses AI, Inc.

Why is POSaBIT Systems Corp. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -3.11

The company has declared Negative results for the last 5 consecutive quarters

NET SALES(Q) At CAD 5.57 has Fallen at -69.44%
PRE-TAX PROFIT(Q) At CAD -2.34 has Fallen at -251.13%
NET PROFIT(Q) At CAD -2.34 MM has Fallen at -251.13%

Risky - No result in last 6 months

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -35.71%, its profits have fallen by -281%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -35.71% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is POSaBIT Systems Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

POSaBIT Systems Corp.

-20.0%

-0.32

201.48%

S&P/TSX 60

22.62%

1.43

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.22%

EBIT Growth (5y)

-10.43%

EBIT to Interest (avg)

-3.56

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-5.47

Sales to Capital Employed (avg)

3.68

Tax Ratio

0.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.98%

ROE (avg)

3.37%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-7.96

EV to EBIT

-3.22

EV to EBITDA

-3.39

EV to Capital Employed

4.17

EV to Sales

0.93

PEG Ratio

Dividend Yield

ROCE (Latest)

-129.45%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 0.58 MM

RAW MATERIAL COST(Y)

Fallen by -97.19% (YoY

OPERATING PROFIT(Q)

Highest at CAD -0.23 MM

OPERATING PROFIT MARGIN(Q)

Highest at -6.96 %

PRE-TAX PROFIT(Q)

At CAD -0.73 MM has Grown at 68.9%

NET PROFIT(Q)

At CAD -0.79 MM has Grown at 66.04%

-17What is not working for the Company

INTEREST(HY)

At CAD 0.4 MM has Grown at 20.31%

ROCE(HY)

Lowest at -583.54%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.41 times

NET SALES(Q)

Lowest at CAD 3.25 MM

Here's what is working for POSaBIT Systems Corp.

Operating Cash Flow

Highest at CAD 0.58 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Operating Profit

Highest at CAD -0.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at -6.96 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CAD -0.73 MM has Grown at 68.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -0.79 MM has Grown at 66.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Raw Material Cost

Fallen by -97.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for POSaBIT Systems Corp.

Net Sales

At CAD 3.25 MM has Fallen at -41.55%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Net Sales

Lowest at CAD 3.25 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Interest

At CAD 0.4 MM has Grown at 20.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debtors Turnover Ratio

Lowest at 2.41 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio