Last Updated: 18 Sep 2024
Executive Summary
ShiftPixy Inc. (PIXY) is a staffing services provider headquartered in Miami, Florida. Despite a recent uptick in revenue, the company faces significant financial challenges, including negative EBITDA, low profit margins, and a high price-to-book ratio. Analysts maintain a "Buy" rating, but with a target price of $3, indicating limited upside potential.
Company Overview
ShiftPixy provides staffing services in the United States. Its clients include healthcare facilities, hospitality businesses, and retail stores. The company has been publicly traded on the NASDAQ since 2017.
Fundamental Analysis
Revenue: Revenue for the latest quarter (ending May 31, 2024) was $15.02 million, a modest increase of 3.7% year-over-year.
Profitability: ShiftPixy has been consistently unprofitable, with an EBITDA of -$28.85 million for the latest quarter. Profit margins remain negative, with a gross profit margin of -1.98% and an operating margin of -0.97%.
Valuation: The company's market capitalization is $9.53 million, with a trailing price-to-earnings (PE) ratio of 0.0318. However, the high price-to-book ratio of 18.7 indicates that the stock may be overvalued.
Technical Analysis
52-Week Range: The stock has traded between a 52-week high of $49.44 and a 52-week low of $0.908.
Moving Averages: The 50-day moving average is $1.317, while the 200-day moving average is $3.196.
Momentum: The stock has been trading below its moving averages, indicating a bearish trend.
Short Term Outlook
In the short term, ShiftPixy faces challenges due to its negative profitability and high valuation. The stock is likely to remain volatile and may continue to trade below its moving averages.
Long Term Outlook
The long-term outlook for ShiftPixy is uncertain. The company needs to improve its profitability and reduce its debt to attract investors. If it can successfully execute on its turnaround plan, the stock could see some upside potential.
Analyst Recommendations
Analysts have a "Buy" rating on ShiftPixy, with a target price of $3. This suggests that analysts believe the stock is undervalued, but with limited upside potential.
