POLLARD BANKNOTE LTD (PBL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PBL - CA73150R1055 - Common Stock
19.26 CAD
-0.23 (-1.18%)
Taking everything into account, PBL scores 5 out of 10 in our fundamental rating. PBL was compared to 19 industry peers in the Hotels, Restaurants & Leisure industry. PBL has an average financial health and profitability rating. PBL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year PBL was profitable.
- PBL had a positive operating cash flow in the past year.
- Each year in the past 5 years PBL has been profitable.
- In the past 5 years PBL always reported a positive cash flow from operatings.
1.2 Ratios
- PBL has a better Return On Assets (4.06%) than 73.68% of its industry peers.
- Looking at the Return On Equity, with a value of 7.60%, PBL is in line with its industry, outperforming 57.89% of the companies in the same industry.
- PBL has a Return On Invested Capital (0.80%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for PBL is significantly below the industry average of 8.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 7.6% | ||
| ROIC | 0.8% |
ROA(3y)5.14%
ROA(5y)5.59%
ROE(3y)9.87%
ROE(5y)12.5%
ROIC(3y)2.12%
ROIC(5y)3.81%
1.3 Margins
- With a Profit Margin value of 4.83%, PBL perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
- In the last couple of years the Profit Margin of PBL has grown nicely.
- The Operating Margin of PBL (1.03%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of PBL has declined.
- With a Gross Margin value of 17.18%, PBL is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of PBL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.03% | ||
| PM (TTM) | 4.83% | ||
| GM | 17.18% |
OM growth 3Y-5.89%
OM growth 5Y-18.35%
PM growth 3Y13.76%
PM growth 5Y2.7%
GM growth 3Y-1.79%
GM growth 5Y-3.87%
2. Health
2.1 Basic Checks
- PBL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, PBL has more shares outstanding
- The number of shares outstanding for PBL has been increased compared to 5 years ago.
- PBL has a better debt/assets ratio than last year.
2.2 Solvency
- PBL has an Altman-Z score of 2.42. This is not the best score and indicates that PBL is in the grey zone with still only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.42, PBL belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- The Debt to FCF ratio of PBL is 20.44, which is on the high side as it means it would take PBL, 20.44 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of PBL (20.44) is comparable to the rest of the industry.
- PBL has a Debt/Equity ratio of 0.51. This is a neutral value indicating PBL is somewhat dependend on debt financing.
- The Debt to Equity ratio of PBL (0.51) is better than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 20.44 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.11
WACC7.3%
2.3 Liquidity
- A Current Ratio of 1.97 indicates that PBL should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.97, PBL belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- PBL has a Quick Ratio of 1.43. This is a normal value and indicates that PBL is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Quick ratio value of 1.43, PBL belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- The earnings per share for PBL have decreased strongly by -41.14% in the last year.
- PBL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.28% yearly.
- PBL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.77%.
- PBL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.97% yearly.
EPS 1Y (TTM)-41.14%
EPS 3Y20.04%
EPS 5Y8.28%
EPS Q2Q%-43.94%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y6.67%
Revenue growth 5Y6.97%
Sales Q2Q%1.98%
3.2 Future
- PBL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.01% yearly.
- PBL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
EPS Next Y22.11%
EPS Next 2Y35.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.01%
Revenue Next 2Y6.78%
Revenue Next 3YN/A
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.70, which indicates a rather expensive current valuation of PBL.
- Compared to the rest of the industry, the Price/Earnings ratio of PBL is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.82. PBL is valued slightly cheaper when compared to this.
- PBL is valuated reasonably with a Price/Forward Earnings ratio of 8.26.
- Based on the Price/Forward Earnings ratio, PBL is valued cheaper than 94.74% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, PBL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
- PBL's Enterprise Value to EBITDA ratio is in line with the industry average.
- PBL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.8 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as PBL's earnings are expected to grow with 35.01% in the coming years.
PEG (NY)0.85
PEG (5Y)2.26
EPS Next 2Y35.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.01%, PBL has a reasonable but not impressive dividend return.
- PBL's Dividend Yield is comparable with the industry average which is at 2.40.
- With a Dividend Yield of 1.01, PBL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
- The dividend of PBL has a limited annual growth rate of 4.80%.
- PBL has paid a dividend for at least 10 years, which is a reliable track record.
- PBL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.8%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
- PBL pays out 19.14% of its income as dividend. This is a sustainable payout ratio.
- PBL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.14%
EPS Next 2Y35.01%
EPS Next 3YN/A
POLLARD BANKNOTE LTD / PBL.CA FAQ
What is the ChartMill fundamental rating of POLLARD BANKNOTE LTD (PBL.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PBL.CA.
What is the valuation status of POLLARD BANKNOTE LTD (PBL.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to POLLARD BANKNOTE LTD (PBL.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for POLLARD BANKNOTE LTD?
POLLARD BANKNOTE LTD (PBL.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for PBL stock?
The financial health rating of POLLARD BANKNOTE LTD (PBL.CA) is 5 / 10.
What is the expected EPS growth for POLLARD BANKNOTE LTD (PBL.CA) stock?
The Earnings per Share (EPS) of POLLARD BANKNOTE LTD (PBL.CA) is expected to grow by 22.11% in the next year.