POLLARD BANKNOTE LTD (PBL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PBL - CA73150R1055 - Common Stock
19.49 CAD
-0.16 (-0.81%)
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.
- PBL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of PBL (4.06%) is better than 73.68% of its industry peers.
- PBL's Return On Equity of 7.60% is in line compared to the rest of the industry. PBL outperforms 57.89% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 0.80%, PBL is in line with its industry, outperforming 47.37% of the companies in the same industry.
- 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
- PBL has a Profit Margin of 4.83%. This is comparable to the rest of the industry: PBL outperforms 57.89% of its industry peers.
- PBL's Profit Margin has improved in the last couple of years.
- PBL's Operating Margin of 1.03% is in line compared to the rest of the industry. PBL outperforms 47.37% of its industry peers.
- PBL's Operating Margin has declined in the last couple of years.
- PBL has a Gross Margin of 17.18%. This is in the lower half of the industry: PBL underperforms 63.16% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBL is destroying value.
- The number of shares outstanding for PBL has been increased compared to 1 year ago.
- Compared to 5 years ago, PBL has more shares outstanding
- The debt/assets ratio for PBL has been reduced compared to a year ago.
2.2 Solvency
- PBL has an Altman-Z score of 2.43. 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.
- Looking at the Altman-Z score, with a value of 2.43, PBL belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- PBL has a debt to FCF ratio of 20.44. This is a negative value and a sign of low solvency as PBL would need 20.44 years to pay back of all of its debts.
- PBL has a Debt to FCF ratio (20.44) which is in line with its industry peers.
- A Debt/Equity ratio of 0.51 indicates that PBL is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.51, PBL is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 20.44 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.11
WACC7.31%
2.3 Liquidity
- PBL has a Current Ratio of 1.97. This is a normal value and indicates that PBL is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of PBL (1.97) is better than 89.47% of its industry peers.
- A Quick Ratio of 1.43 indicates that PBL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.43, PBL belongs to the top 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.
- Looking at the last year, PBL shows a small growth in Revenue. The Revenue has grown by 5.77% in the last year.
- The Revenue has been growing slightly by 6.97% on average over the past years.
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.
- The Revenue is expected to grow by 6.78% on average over the next years.
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
- 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 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 18.92, which indicates a rather expensive current valuation of PBL.
- PBL's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, PBL is valued a bit cheaper.
- The Price/Forward Earnings ratio is 8.35, which indicates a very decent valuation of PBL.
- 94.74% of the companies in the same industry are more expensive than PBL, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, PBL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
- PBL's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as PBL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.45 | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
- PBL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PBL's earnings are expected to grow with 35.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)2.29
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.
- Compared to an average industry Dividend Yield of 2.40, PBL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PBL's dividend is way lower than the S&P500 average.
| 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
- 19.14% of the earnings are spent on dividend by PBL. This is a low number and 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.