One-glance verdict
Within fair range
$2.94 our estimate vs market $2.95
Wall Street consensus: $9.50 (223.2% higher than our fair-value estimate)
0% above our estimate
Fundamentals snapshot
Pioneer Power Solutions, Inc.
PPSI · NCM · Industrials · Electrical Equipment & Parts
Current price
$2.95
52-week range
$2.35 - $6.29
Market cap
$32.74M
Balance sheet
Healthy
-8.92x Concerning
Net cash $9.33M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -26.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -22.5% to -39.9% over 3 years.
What this company does
Pioneer Power Solutions, Inc.
Pioneer Power Solutions makes and sells equipment that provides backup and on-site power, like generators, and also offers mobile electric vehicle charging solutions. Their main income comes from selling this equipment and providing services like repairs and maintenance. This matters because they are positioning themselves to help businesses and utilities manage their energy needs, especially with the growing demand for electric vehicles and reliable power.
How the company got here
Pioneer Power Solutions, Inc. was founded in 2008, evolving from its predecessor, Pioneer Transformers Ltd., which was acquired in 1995. The company officially became a public entity in the U.S. as Pioneer Power Solutions, Inc. in December 2009. Over the years, Pioneer has strategically acquired and divested businesses to focus on its core strengths in power generation and distribution equipment. A significant shift occurred in August 2019 when certain transformer businesses were sold, sharpening the company's focus on large power systems and their maintenance. This strategic repositioning has allowed Pioneer to concentrate on innovation and expansion within the evolving energy sector.
What it actually does
Pioneer Power Solutions designs, manufactures, integrates, services, and sells equipment related to distributed energy resources. This includes on-site and mobile power generation equipment, as well as mobile electric vehicle (EV) charging solutions. Essentially, they provide the hardware and services that help businesses and utilities manage, generate, and distribute electricity, especially in situations where reliable power is critical or traditional grid access is challenging. Their offerings cater to a range of clients, from large industrial companies to smaller commercial operations and even residential needs.
Critical Power Solutions
The Critical Power Solutions segment is a major part of Pioneer Power Solutions' business, focusing on providing reliable power sources for essential operations. This includes offering engine-generator sets and controls, which are crucial for backup power during outages, and uninterruptible power supply (UPS) systems that ensure continuous electricity flow. They also provide mobile EV charging solutions, recognizing the growing need for flexible and accessible charging infrastructure. This segment is supported by a nationwide service network for maintenance and repairs, ensuring that these critical power systems are always operational.
Distributed Energy Resources (DER)
Pioneer Power Solutions is increasingly focused on Distributed Energy Resources (DER), which are small-scale power generation units located close to where the energy is used. This includes systems like their PRYMUS platform, designed for customers needing 1-10 megawatts of mobile power to supplement their existing energy supply. By offering DER, Pioneer helps clients enhance their energy resilience, reduce reliance on the main power grid, and potentially lower energy costs. This area represents a key growth avenue as demand for flexible and localized power solutions rises.
Mobile Electric Vehicle (EV) Charging Solutions
A significant and growing area for Pioneer Power Solutions is its mobile electric vehicle (EV) charging solutions, branded under names like e-Boost. These solutions are designed to provide charging capabilities in various locations, addressing the need for flexible and accessible EV charging infrastructure. This is particularly important for fleet operators, remote locations, or temporary charging needs. The company is expanding this business through new product developments and strategic partnerships, recognizing the rapid growth in EV adoption and the corresponding demand for charging solutions.
What management is betting on now
Pioneer Power Solutions' management is focused on capitalizing on the growing demand for distributed energy and mobile EV charging solutions. They are investing in new product platforms like PRYMUS and PowerCore to enhance manufacturing capabilities and target emerging markets, including data centers and residential energy needs. The strategy involves expanding beyond mobile EV charging to encompass broader mobile distributed energy systems, addressing infrastructure bottlenecks and the need for residential energy independence. Management sees these areas as key drivers for future growth and aims to transform Pioneer into a major supplier of power equipment and solutions.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-3.40M
FY2024 Q4
$-4.58M
FY2025 Q1
$907.00K
FY2025 Q2
$-5.61M
FY2025 Q3
$-1.61M
FY2025 Q4
$-2.18M
FY2026 Q1
$-1.12M
FY2026 Q2
$-2.81M
Revenue
$4.71M
Net income
$-2.06M
Diluted EPS
-0.19
Operating cash flow
$-2.74M
Free cash flow
$-2.81M
Fetching…
Sources
Revenue
$4.01M
Net income
$-2.51M
Diluted EPS
-0.23
Operating cash flow
$-887.00K
Free cash flow
$-1.12M
Fetching…
Sources
Revenue
$5.63M
Net income
$-1.39M
Diluted EPS
-0.12
Operating cash flow
$-1.04M
Free cash flow
$-2.18M
Fetching…
Sources
Revenue
$6.89M
Net income
$-2.35M
Diluted EPS
-0.21
Operating cash flow
$-817.00K
Free cash flow
$-1.61M
Fetching…
Sources
Revenue
$8.37M
Net income
$-1.33M
Diluted EPS
-0.12
Operating cash flow
$-5.46M
Free cash flow
$-5.61M
Fetching…
Sources
Revenue
$6.74M
Net income
$-929.00K
Diluted EPS
-0.09
Operating cash flow
$1.50M
Free cash flow
$907.00K
Fetching…
Sources
Revenue
$-2.96M
Net income
$36.29M
Diluted EPS
3.31
Operating cash flow
$-2.09M
Free cash flow
$-4.58M
Fetching…
Sources
Revenue
$10.91M
Net income
$-1.12M
Diluted EPS
-0.10
Operating cash flow
$-2.74M
Free cash flow
$-3.40M
Fetching…
Sources
Is it cheap or expensive?
Fair value $2.94 vs current price $2.95
Wall Street consensus is the average analyst price target: $9.50 (223.2% higher than our fair-value estimate).
Our most-likely fair value is $2.94 a share — about 0.4% away from today's price of $2.95, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $9.3M - more cash than debt. Interest coverage -8.9x.
Net debt
$-9.33M
Interest coverage
-8.92x
Pioneer Power Solutions, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PPSI
BASELINE
Pioneer Power Solutions, Inc.
Total debt $1.34M Interest coverage -8.92x This is the baseline the peer rows are being compared against.
Total debt $9.82M Interest coverage -13.77x Neither company has much profit cushion over interest right now.
Total debt $3.90M Interest coverage -0.78x Neither company has much profit cushion over interest right now.
Total debt $3.72B Interest coverage 14.17x This peer still has a real interest-payment cushion, while PPSI does not.
Total debt $2.82B Interest coverage 1.35x This peer still has a real interest-payment cushion, while PPSI does not.
Total debt $2.95B Interest coverage 2.12x This peer still has a real interest-payment cushion, while PPSI does not.
What you should know
The case for and against PPSI
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -26.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -22.5% to -39.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-17.35x
P/B
1.32x
P/S
1.50x
EV/EBITDA
-4.33x
PEG ratio
1.96x
Profitability
How much profit each dollar creates
Gross margin
16.2%
Operating margin
-39.9%
Net margin
-38.1%
ROE
-26.7%
ROA
-11.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
4.11x
Quick ratio
2.71x
Total debt
$1.34M
Total cash
$10.67M
Growth
How the business has been compounding
Revenue TTM
$21.24M
Revenue 5Y CAGR
10.8%
EPS TTM
-0.72
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-5.48M
Free CF TTM
$-8.49M
FCF margin
-40.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2024-12-17