PREMIUM BRANDS HOLDINGS CORP (PBH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PBH - CA74061A1084 - Common Stock
95.26 CAD
-1.51 (-1.56%)
We assign a fundamental rating of 4 out of 10 to PBH. PBH was compared to 20 industry peers in the Food Products industry. While PBH is still in line with the averages on profitability rating, there are concerns on its financial health. PBH is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- PBH had positive earnings in the past year.
- PBH had a positive operating cash flow in the past year.
- PBH had positive earnings in each of the past 5 years.
- Each year in the past 5 years PBH had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.10%, PBH is in line with its industry, outperforming 60.00% of the companies in the same industry.
- PBH has a Return On Equity (3.92%) which is comparable to the rest of the industry.
- PBH's Return On Invested Capital of 5.85% is fine compared to the rest of the industry. PBH outperforms 70.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PBH is significantly below the industry average of 96.55%.
- The 3 year average ROIC (5.05%) for PBH is below the current ROIC(5.85%), indicating increased profibility in the last year.
| 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
- With a decent Profit Margin value of 0.92%, PBH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- PBH's Profit Margin has declined in the last couple of years.
- PBH has a Operating Margin of 5.39%. This is in the better half of the industry: PBH outperforms 75.00% of its industry peers.
- In the last couple of years the Operating Margin of PBH has remained more or less at the same level.
- PBH has a Gross Margin of 18.95%. This is in the better half of the industry: PBH outperforms 70.00% of its industry peers.
- PBH's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBH is destroying value.
- The number of shares outstanding for PBH has been increased compared to 1 year ago.
- Compared to 5 years ago, PBH has more shares outstanding
- PBH has a worse debt/assets ratio than last year.
2.2 Solvency
- PBH has an Altman-Z score of 2.06. This is not the best score and indicates that PBH is in the grey zone with still only limited risk for bankruptcy at the moment.
- PBH's Altman-Z score of 2.06 is in line compared to the rest of the industry. PBH outperforms 45.00% of its industry peers.
- A Debt/Equity ratio of 1.70 is on the high side and indicates that PBH has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.70, PBH is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.06 |
ROIC/WACC0.91
WACC6.41%
2.3 Liquidity
- PBH has a Current Ratio of 1.33. This is a normal value and indicates that PBH is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of PBH (1.33) is worse than 60.00% of its industry peers.
- PBH has a Quick Ratio of 1.33. This is a bad value and indicates that PBH is not financially healthy enough and could expect problems in meeting its short term obligations.
- PBH's Quick ratio of 0.51 is on the low side compared to the rest of the industry. PBH is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- PBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.34%, which is quite good.
- The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
- PBH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.05%.
- The Revenue has been growing by 12.14% on average over the past years. This is quite good.
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
- Based on estimates for the next years, PBH will show a very strong growth in Earnings Per Share. The EPS will grow by 26.85% on average per year.
- Based on estimates for the next years, PBH will show a quite strong growth in Revenue. The Revenue will grow by 15.72% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.00, PBH is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of PBH indicates a somewhat cheap valuation: PBH is cheaper than 65.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PBH is valued at the same level.
- PBH is valuated correctly with a Price/Forward Earnings ratio of 14.05.
- Based on the Price/Forward Earnings ratio, PBH is valued a bit cheaper than 80.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PBH to the average of the S&P500 Index (25.98), we can say PBH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PBH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PBH does not grow enough to justify the current Price/Earnings ratio.
- PBH has a very decent profitability rating, which may justify a higher PE ratio.
- PBH's earnings are expected to grow with 26.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)4.58
EPS Next 2Y27.66%
EPS Next 3Y26.85%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.51%, PBH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.68, PBH pays a bit more dividend than its industry peers.
- PBH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
- The dividend of PBH is nicely growing with an annual growth rate of 10.08%!
- PBH has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of PBH decreased recently.
Dividend Growth(5Y)10.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- PBH pays out 230.41% of its income as dividend. This is not a sustainable payout ratio.
- PBH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP230.41%
EPS Next 2Y27.66%
EPS Next 3Y26.85%
PREMIUM BRANDS HOLDINGS CORP / PBH.CA FAQ
What is the ChartMill fundamental rating of PREMIUM BRANDS HOLDINGS CORP (PBH.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PBH.CA.
Can you provide the valuation status for PREMIUM BRANDS HOLDINGS CORP?
ChartMill assigns a valuation rating of 4 / 10 to PREMIUM BRANDS HOLDINGS CORP (PBH.CA). This can be considered as Fairly Valued.
What is the profitability of PBH stock?
PREMIUM BRANDS HOLDINGS CORP (PBH.CA) has a profitability rating of 6 / 10.
What is the expected EPS growth for PREMIUM BRANDS HOLDINGS CORP (PBH.CA) stock?
The Earnings per Share (EPS) of PREMIUM BRANDS HOLDINGS CORP (PBH.CA) is expected to grow by 12.15% in the next year.
Can you provide the dividend sustainability for PBH stock?
The dividend rating of PREMIUM BRANDS HOLDINGS CORP (PBH.CA) is 5 / 10 and the dividend payout ratio is 230.41%.