PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PBH-DB-H - CA74061AAJ75
100.35 CAD
+0.35 (+0.35%)
Overall PBH-DB-H gets a fundamental rating of 4 out of 10. We evaluated PBH-DB-H against 20 industry peers in the Food Products industry. While PBH-DB-H is still in line with the averages on profitability rating, there are concerns on its financial health. PBH-DB-H is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- PBH-DB-H had positive earnings in the past year.
- In the past year PBH-DB-H had a positive cash flow from operations.
- PBH-DB-H had positive earnings in each of the past 5 years.
- Each year in the past 5 years PBH-DB-H had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.10%, PBH-DB-H is in line with its industry, outperforming 55.00% of the companies in the same industry.
- PBH-DB-H has a Return On Equity (3.92%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.85%, PBH-DB-H is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- PBH-DB-H had an Average Return On Invested Capital over the past 3 years of 5.05%. This is significantly below the industry average of 96.55%.
- The last Return On Invested Capital (5.85%) for PBH-DB-H is above the 3 year average (5.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 3.92% | ||
| ROIC | 5.85% |
ROA(3y)2.36%
ROA(5y)2.49%
ROE(3y)7.01%
ROE(5y)6.75%
ROIC(3y)5.05%
ROIC(5y)4.74%
1.3 Margins
- PBH-DB-H has a better Profit Margin (0.92%) than 65.00% of its industry peers.
- PBH-DB-H's Profit Margin has declined in the last couple of years.
- PBH-DB-H's Operating Margin of 5.39% is fine compared to the rest of the industry. PBH-DB-H outperforms 70.00% of its industry peers.
- PBH-DB-H's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 18.95%, PBH-DB-H is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of PBH-DB-H has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.39% | ||
| PM (TTM) | 0.92% | ||
| GM | 18.95% |
OM growth 3Y5.39%
OM growth 5Y1.03%
PM growth 3Y-11.3%
PM growth 5Y-4.04%
GM growth 3Y2.99%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
- PBH-DB-H has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for PBH-DB-H has been increased compared to 1 year ago.
- Compared to 5 years ago, PBH-DB-H has more shares outstanding
- Compared to 1 year ago, PBH-DB-H has a worse debt to assets ratio.
2.2 Solvency
- PBH-DB-H has an Altman-Z score of 2.10. This is not the best score and indicates that PBH-DB-H is in the grey zone with still only limited risk for bankruptcy at the moment.
- PBH-DB-H has a Altman-Z score of 2.10. This is comparable to the rest of the industry: PBH-DB-H outperforms 50.00% of its industry peers.
- A Debt/Equity ratio of 1.70 is on the high side and indicates that PBH-DB-H has dependencies on debt financing.
- PBH-DB-H has a Debt to Equity ratio of 1.70. This is in the lower half of the industry: PBH-DB-H underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.1 |
ROIC/WACC0.91
WACC6.46%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that PBH-DB-H should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.33, PBH-DB-H is doing worse than 65.00% of the companies in the same industry.
- A Quick Ratio of 0.51 indicates that PBH-DB-H may have some problems paying its short term obligations.
- With a Quick ratio value of 0.51, PBH-DB-H is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.34% over the past year.
- The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
- Looking at the last year, PBH-DB-H shows a quite strong growth in Revenue. The Revenue has grown by 13.05% in the last year.
- Measured over the past years, PBH-DB-H shows a quite strong growth in Revenue. The Revenue has been growing by 12.14% on average per year.
EPS 1Y (TTM)9.34%
EPS 3Y-2.37%
EPS 5Y4.8%
EPS Q2Q%14.41%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y9.47%
Revenue growth 5Y12.14%
Sales Q2Q%19.14%
3.2 Future
- PBH-DB-H is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.85% yearly.
- The Revenue is expected to grow by 15.72% on average over the next years. This is quite good.
EPS Next Y12.15%
EPS Next 2Y27.66%
EPS Next 3Y26.85%
EPS Next 5YN/A
Revenue Next Year16.37%
Revenue Next 2Y19.76%
Revenue Next 3Y15.72%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.18, which indicates a rather expensive current valuation of PBH-DB-H.
- The rest of the industry has a similar Price/Earnings ratio as PBH-DB-H.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, PBH-DB-H is valued at the same level.
- The Price/Forward Earnings ratio is 14.80, which indicates a correct valuation of PBH-DB-H.
- Based on the Price/Forward Earnings ratio, PBH-DB-H is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- PBH-DB-H is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
- PBH-DB-H's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PBH-DB-H has a very decent profitability rating, which may justify a higher PE ratio.
- PBH-DB-H's earnings are expected to grow with 26.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)4.82
EPS Next 2Y27.66%
EPS Next 3Y26.85%
5. Dividend
5.1 Amount
- PBH-DB-H has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.68, PBH-DB-H pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PBH-DB-H pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
- The dividend of PBH-DB-H is nicely growing with an annual growth rate of 10.08%!
- PBH-DB-H is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)10.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 230.41% of the earnings are spent on dividend by PBH-DB-H. This is not a sustainable payout ratio.
- The dividend of PBH-DB-H is growing, but earnings are growing more, so the dividend growth is sustainable.
DP230.41%
EPS Next 2Y27.66%
EPS Next 3Y26.85%
PREMIUM BRANDS HLDGS COR / PBH-DB-H.CA FAQ
What is the fundamental rating for PBH-DB-H stock?
ChartMill assigns a fundamental rating of 4 / 10 to PBH-DB-H.CA.
What is the valuation status for PBH-DB-H stock?
ChartMill assigns a valuation rating of 3 / 10 to PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA). This can be considered as Overvalued.
How profitable is PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA) stock?
PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA) has a profitability rating of 6 / 10.
What is the financial health of PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA) stock?
The financial health rating of PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA) is 1 / 10.
What is the expected EPS growth for PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA) stock?
The Earnings per Share (EPS) of PREMIUM BRANDS HLDGS COR (PBH-DB-H.CA) is expected to grow by 12.15% in the next year.