# Pinewood Technologies Group (PINE.LSE)

Canonical: https://gigainvestors.com/s/PINE.LSE

Analysis as of: 2026-10-16T07:45:31.035Z. Financial observations: FY2016–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 448.50 per share; close as of 2026-10-09.

Estimated value: low GBX 97.82 per share, central GBX 107.37 per share, high GBX 120.09 per share. Buy at or below the central value GBX 107.37 per share. Valuation as of 2026-10-16T07:45:31.035Z; scenarios are not confidence intervals.

Expected annual return: 4.3% at the stated quote. About 4.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 3

- Operating margin variation: 1.58×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.02×

- FY2018: 0.02×

- FY2019: 0.00×

- FY2020: 0.00×

- FY2021: 0.04×

- FY2022: 0.37×

- FY2023: 0.41×

- FY2024: 0.24×

- FY2025: -0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.0%

- ROIC, second-lowest year: 1.5%

- Typical minus recent gross margin: -45.0 pp

- Typical gross margin (annual median): 10.8%

- Recent gross margin (lower of latest and 3-year median): 55.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.9%

- ROIC including acquisitions, ten-year median: -6.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 67.6%

- FY2017: 32.8%

- FY2018: 25.8%

- FY2019: 3.8%

- FY2020: 3.1%

- FY2021: 29.3%

- FY2022: 1.5%

- FY2023: 1.9%

- FY2024: 18.1%

- FY2025: -2.9%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.64×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 130M

- Net income, five-year total: GBP 201M

- Return on incremental invested capital: -451.0%

- Working capital / revenue, annual change: 121.1 pp

- Working capital / revenue, change between three-year averages: 635.3 pp

- Working capital / revenue, final three-year average: 638.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.19×

- FY2022: -0.84×

- FY2023: 0.99×

- FY2024: 1.00×

- FY2025: 1.01×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 32.8% vs 1.9%

- Per-share earnings: 0.75 to 0.48 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 8.6%

- Market cap gain: GBP 353M

- Cumulative retained earnings: GBP -301M

- Diluted shares, 5-year annual growth: 8.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -6.2%

- Per-share value change: GBP -0.27

- Per-share value, starting three-year median: GBP 0.75

- Per-share value, ending three-year median: GBP 0.48

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 23.8%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: GBP 90M

- ROIC, first three-year median: 32.8%

- ROIC, last three-year median: 1.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.76

- FY2017: GBP 0.75

- FY2018: GBP -0.76

- FY2019: GBP -2.14

- FY2020: GBP -0.26

- FY2021: GBP 0.87

- FY2022: GBP 0.63

- FY2023: GBP 0.54

- FY2024: GBP 0.06

- FY2025: GBP 0.48

### accounting: fail

- Sloan accruals exceed 10%

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 16.3%

- Receivables to sales index (DSRI): 0.44×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 52.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.14×

- Accounting red flags: 2

- Goodwill and intangibles / equity: 1.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.2%

- FY2017: -1.9%

- FY2018: -5.2%

- FY2019: -9.1%

- FY2020: -2.9%

- FY2021: -0.1%

- FY2022: -1.9%

- FY2023: -1.4%

- FY2024: -4.7%

- FY2025: 16.3%

## Holders

## Price story

Price needs cash profits to grow 22.3% a year for ten years · "Pinewood Technologies rockets as board give nod to Ridgeview bid" (finance.yahoo.com, Jul 2026) · sales +19%

Story as of 2026-10-16T10:00:13.421Z; price observation 2026-10-09.

Price needs cash profits to grow 22.3% a year for ten years

- 2026-07-27: Pinewood Technologies rockets as board give nod to Ridgeview bid ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pinewood-technologies-rockets-board-nod-084200666.html))

### Sales · FY2024–2025

sales +19%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: GBP 4.5B 

- FY2017: GBP 4.3B 

- FY2018: GBP 4.1B 

- FY2019: GBP 4.1B 

- FY2020: GBP 2.8B 

- FY2021: GBP 3.4B 

- FY2022: GBP 19M 

- FY2023: GBP 23M 

- FY2024: GBP 34M 

- FY2025: GBP 41M 

### Gross margin · FY2025

gross margin 55.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 11.1% 

- FY2017: 10.1% 

- FY2018: 10.3% 

- FY2019: 8.1% 

- FY2020: 8.9% 

- FY2021: 10.6% 

- FY2023: 89.0% 

- FY2024: 72.4% 

- FY2025: 55.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are GBP 40.5 million.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2025-12-31 (filed 2026-10-16T07:45:31.035Z); FY2025: revenue 40500000; grossProfit 22600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PINE.LSE: Pinewood Technologies Group PLC operates as a cloud-based dealer management software provider in the United Kingdom, rest of Europe, Africa, Asia, the Middle East, and internationally. The company primarily offers automotive retail software to motor vehicle dealers. It also offers consultancy, training, and installation services. The company was formerly known as Pendragon PLC and changed its name to Pinewood Technologies Group PLC in February 2024. Pinewood Technologies Group PLC was founded in 1981 and is headquartered in Birmingham, United Kingdom.

### Why customers stay

Margins ranged from 55.8% to 89% during 2023–25; it earns 11% on its capital.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2023-12-31 (filed 2026-10-16T07:45:31.035Z); FY2023: grossProfit / revenue = 89%.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2024-12-31 (filed 2026-10-16T07:45:31.035Z); FY2024: grossProfit / revenue = 72.4%.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2025-12-31 (filed 2026-10-16T07:45:31.035Z); FY2025: grossProfit / revenue = 55.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:31.035Z); 10-year return on capital observations [[2016,0.6757990867579909],[2017,0.3275578565322716],[2018,0.2576169802219006],[2019,0.03832774193548387],[2020,0.030859375],[2021,0.29338327091136085],[2022,0.015095338983050847],[2023,0.01901923908537327],[2024,0.18101717447365603],[2025,-0.029142381348875937]]; median 0.10967245820456994. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 1.4% of cash earnings; paid dividends in 5 of 10 years.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2021-12-31 (filed 2026-10-16T07:45:31.035Z); FY2021: growth capex 0; upkeep 18600000; cash acquisitions 0; owner earnings 72980000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2023-12-31 (filed 2026-10-16T07:45:31.035Z); FY2023: growth capex 8769231; upkeep 28338464; owner earnings 37738588. Growth capex / owner earnings = 0.2323677557835497.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2024-12-31 (filed 2026-10-16T07:45:31.035Z); FY2024: growth capex 1390904; upkeep 6109096; owner earnings 6218187. Growth capex / owner earnings = 0.22368320541019432.

- Source: https://eodhd.com/api/fundamentals/PINE.LSE.json#2025-12-31 (filed 2026-10-16T07:45:31.035Z); FY2025: growth capex 0; upkeep 11400000; cash acquisitions 700000; owner earnings 50740000. Growth capex plus acquisitions / owner earnings = 0.013795821836815136.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:31.035Z); Dividend observations: [[2016,20300000],[2017,21300000],[2018,22500000],[2019,9700000],[2020,0],[2021,0],[2022,0],[2023,0],[2024,358400000],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 35.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PINE.LSE SharesStats.PercentInsiders = 35.621 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 22.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:31.035Z); Ten-year compound average after fade. Initial solved rate 0.3125601692755354. Price 448.5; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-09.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 30.00 per share

- 2016-11: GBX 30.50 per share

- 2016-12: GBX 31.25 per share

- 2017-01: GBX 34.75 per share

- 2017-02: GBX 34.00 per share

- 2017-03: GBX 35.00 per share

- 2017-04: GBX 35.00 per share

- 2017-05: GBX 36.25 per share

- 2017-06: GBX 31.00 per share

- 2017-07: GBX 30.00 per share

- 2017-08: GBX 32.00 per share

- 2017-09: GBX 32.00 per share

- 2017-10: GBX 25.25 per share

- 2017-11: GBX 26.00 per share

- 2017-12: GBX 28.50 per share

- 2018-01: GBX 22.70 per share

- 2018-02: GBX 26.70 per share

- 2018-03: GBX 23.20 per share

- 2018-04: GBX 29.00 per share

- 2018-05: GBX 26.10 per share

- 2018-06: GBX 24.45 per share

- 2018-07: GBX 23.35 per share

- 2018-08: GBX 25.00 per share

- 2018-09: GBX 27.20 per share

- 2018-10: GBX 26.90 per share

- 2018-11: GBX 24.50 per share

- 2018-12: GBX 22.50 per share

- 2019-01: GBX 26.10 per share

- 2019-02: GBX 25.20 per share

- 2019-03: GBX 28.00 per share

- 2019-04: GBX 23.00 per share

- 2019-05: GBX 22.90 per share

- 2019-06: GBX 16.28 per share

- 2019-07: GBX 12.90 per share

- 2019-08: GBX 10.20 per share

- 2019-09: GBX 9.15 per share

- 2019-10: GBX 14.32 per share

- 2019-11: GBX 11.00 per share

- 2019-12: GBX 13.00 per share

- 2020-01: GBX 12.28 per share

- 2020-02: GBX 12.00 per share

- 2020-03: GBX 6.30 per share

- 2020-04: GBX 8.01 per share

- 2020-05: GBX 8.21 per share

- 2020-06: GBX 9.00 per share

- 2020-07: GBX 8.32 per share

- 2020-08: GBX 7.70 per share

- 2020-09: GBX 7.10 per share

- 2020-10: GBX 13.00 per share

- 2020-11: GBX 12.88 per share

- 2020-12: GBX 13.10 per share

- 2021-01: GBX 13.94 per share

- 2021-02: GBX 14.12 per share

- 2021-03: GBX 16.70 per share

- 2021-04: GBX 18.10 per share

- 2021-05: GBX 18.50 per share

- 2021-06: GBX 18.50 per share

- 2021-07: GBX 18.00 per share

- 2021-08: GBX 19.00 per share

- 2021-09: GBX 18.40 per share

- 2021-10: GBX 18.35 per share

- 2021-11: GBX 18.60 per share

- 2021-12: GBX 23.20 per share

- 2022-01: GBX 22.70 per share

- 2022-02: GBX 21.30 per share

- 2022-03: GBX 28.20 per share

- 2022-04: GBX 22.20 per share

- 2022-05: GBX 22.80 per share

- 2022-06: GBX 20.90 per share

- 2022-07: GBX 22.00 per share

- 2022-08: GBX 22.40 per share

- 2022-09: GBX 27.00 per share

- 2022-10: GBX 27.20 per share

- 2022-11: GBX 28.00 per share

- 2022-12: GBX 19.20 per share

- 2023-01: GBX 19.85 per share

- 2023-02: GBX 19.05 per share

- 2023-03: GBX 16.55 per share

- 2023-04: GBX 17.62 per share

- 2023-05: GBX 17.30 per share

- 2023-06: GBX 17.66 per share

- 2023-07: GBX 17.02 per share

- 2023-08: GBX 18.70 per share

- 2023-09: GBX 33.30 per share

- 2023-10: GBX 32.10 per share

- 2023-11: GBX 31.80 per share

- 2023-12: GBX 32.30 per share

- 2024-01: GBX 36.35 per share

- 2024-02: GBX 36.50 per share

- 2024-03: GBX 38.40 per share

- 2024-04: GBX 333.00 per share

- 2024-05: GBX 355.00 per share

- 2024-06: GBX 356.00 per share

- 2024-07: GBX 355.50 per share

- 2024-08: GBX 352.50 per share

- 2024-09: GBX 354.50 per share

- 2024-10: GBX 332.00 per share

- 2024-11: GBX 343.50 per share

- 2024-12: GBX 359.00 per share

- 2025-01: GBX 343.50 per share

- 2025-02: GBX 362.00 per share

- 2025-03: GBX 325.00 per share

- 2025-04: GBX 360.00 per share

- 2025-05: GBX 391.50 per share

- 2025-06: GBX 446.00 per share

- 2025-07: GBX 483.00 per share

- 2025-08: GBX 514.00 per share

- 2025-09: GBX 415.00 per share

- 2025-10: GBX 368.50 per share

- 2025-11: GBX 356.00 per share

- 2025-12: GBX 358.00 per share

- 2026-01: GBX 472.00 per share

- 2026-02: GBX 291.50 per share

- 2026-03: GBX 208.50 per share

- 2026-04: GBX 250.50 per share

- 2026-05: GBX 270.00 per share

- 2026-06: GBX 266.00 per share

- 2026-07: GBX 430.00 per share

- 2026-08: GBX 452.00 per share

- 2026-09: GBX 446.00 per share

- 2026-10: GBX 448.50 per share

## Annual estimated value (GBX per share)

- FY2024: low GBX 14.86 per share, central GBX 15.84 per share, high GBX 17.15 per share

- FY2025: low GBX 108.83 per share, central GBX 119.46 per share, high GBX 133.61 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations