Pineapple Financial, Inc. (PAPL) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 998.49K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.30
• Revenue Growth: 14.97%
• EPS Growth: -12.65%
• Country: US
• Employees: 55
• Sector: Financial
• Sector Strength: 87
• Industry: Financial - Mortgages
• EPS (TTM): -0.35
• Shares Outstanding: 9,692,020
• 10 Day Avg. Volume: 2,886,708
• 30 Day Avg. Volume: 998,492
• 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: 15.83
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 3471.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Pineapple Financial, Inc. faces significant financial and operational challenges, with ongoing losses and high leverage. Despite some revenue growth, the negative profit margins and cash flow issues indicate potential financial instability. The technical analysis suggests bearish momentum, and the valuation metrics highlight the company's struggles with profitability. Overall, the stock is currently seen as high-risk with limited short-term upside potential.

Pineapple Financial, Inc. Business Overview & Revenue Model

Company Description

Pineapple Financial, Inc. (PAPL) is a diversified financial services company operating primarily in the fintech sector. It specializes in providing innovative financial solutions, including digital banking services, investment management, and personalized financial advisory. With a focus on leveraging technology, Pineapple Financial aims to deliver seamless financial experiences to individuals and small businesses, enhancing their financial well-being through user-friendly digital platforms and tools.

How the Company Makes Money

Pineapple Financial, Inc. generates revenue through multiple streams, primarily from its digital banking services, investment management, and financial advisory. The company earns interest income from loans and credit products offered through its digital banking platform. Additionally, it charges fees for account maintenance, transactions, and other banking services. Investment management contributes to revenue through asset management fees, where a percentage of the assets under management (AUM) is charged as a fee. The financial advisory services generate income through consultation fees and commissions on financial products recommended to clients. Strategic partnerships with other financial institutions and fintech companies also play a role in enhancing revenue by expanding product offerings and customer reach.

Pineapple Financial, Inc. Financial Statement Overview

Summary

Pineapple Financial, Inc. demonstrates challenges in profitability and cash flow generation, despite some revenue growth. The high leverage and negative profit margins suggest financial instability and potential risks. Improvements in operational efficiency and cash management are essential for a more favorable financial outlook.

Income Statement

Pineapple Financial, Inc. has shown significant volatility in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is relatively low at 6.06%, and the net profit margin is negative at -17.50%, indicating ongoing losses. Revenue growth is positive, with a substantial 24.2% increase from the previous annual period, but profitability metrics such as EBIT and EBITDA margins remain negative, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.02 in the TTM period, suggesting a leveraged position. The equity ratio stands at 18.65%, indicating moderate financial stability, but has decreased over time. The return on equity (ROE) is negative, further highlighting profitability issues. While there is some equity buffer, the leverage level poses potential risks.

Cash Flow

Cash flow analysis reveals a negative free cash flow growth rate, with significant negative free cash flow in the TTM period. The operating cash flow to net income ratio is also negative, suggesting insufficient cash flow generation to cover losses. These factors point to potential liquidity issues.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
17.58M	2.50M	3.60M	2.98M	2.69M
	Gross Profit
252.20K	172.14K	1.24M	1.74M	1.15M
	EBIT
-3.82M	-3.32M	-2.67M	-235.72K	170.73K
	EBITDA
-2.99M	-2.31M	-2.46M	-180.18K	195.17K
	Net Income Common Stockholders
-4.10M	-2.81M	-2.81M	-234.68K	141.81K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
580.36K	720.37K	3.90M	7.01M	288.25K
	Total Assets
4.10M	4.63M	6.43M	7.58M	310.38K
	Total Debt
977.11K	1.54M	1.02M	263.24K	10.45K
	Net Debt
396.75K	817.69K	-2.88M	-6.75M	-277.80K
	Total Liabilities
2.75M	2.84M	1.80M	662.56K	153.61K
	Stockholders Equity
1.35M	1.79M	4.63M	6.92M	156.77K
Cash Flow		Free Cash Flow
-1.71M	-3.48M	-2.89M	606.92K	159.93K
	Operating Cash Flow
-1.71M	-2.12M	-1.83M	668.55K	159.93K
	Investing Cash Flow
-1.12M	-1.36M	-1.05M	-101.35K	0.00
	Financing Cash Flow
2.91M	349.01K	-61.47K	6.27M	-24.89K

Pineapple Financial, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAPL, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.31, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 22.60 is Positive, neither overbought nor oversold. The STOCH value of 16.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAPL.

Pineapple Financial, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEL	68 Neutral	$624.73M	9.06	14.22%	―	32.62%	16.91%
Sector *	64 Neutral	$12.61B	9.78	8.01%	16985.69%	12.73%	-4.58%
PFSI	61 Neutral	$5.07B	15.06	9.32%	1.12%	23.79%	121.61%
GHLD	61 Neutral	$781.68M	8.08	7.97%	3.96%	40.27%	―
UWMC	52 Neutral	$7.80B	37.74	10.51%	8.20%	12.29%	―
LDI	48 Neutral	$377.52M	―	-31.41%	―	3.76%	16.19%
PAPL	40 Underperform		―	-206.51%	―	14.97%	-12.65%