POTLATCHDELTIC CORP (PCH) Stock Fundamental Analysis
NASDAQ:PCH - Nasdaq - US7376301039 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to PCH. PCH was compared to 30 industry peers in the Specialized REITs industry. While PCH seems to be doing ok healthwise, there are quite some concerns on its profitability. PCH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PCH had positive earnings in the past year.
In the past year PCH had a positive cash flow from operations.
Each year in the past 5 years PCH has been profitable.
In the past 5 years PCH always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.47%, PCH perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.39%, PCH is in line with its industry, outperforming 43.33% of the companies in the same industry.
PCH has a worse Return On Invested Capital (1.71%) than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCH is in line with the industry average of 5.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 2.39% | ||
| ROIC | 1.71% |
ROA(3y)3.96%
ROA(5y)7.12%
ROE(3y)6.23%
ROE(5y)11.85%
ROIC(3y)4.14%
ROIC(5y)8.06%
1.3 Margins
PCH's Profit Margin of 4.35% is on the low side compared to the rest of the industry. PCH is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of PCH has declined.
PCH's Operating Margin of 5.98% is on the low side compared to the rest of the industry. PCH is outperformed by 90.00% of its industry peers.
In the last couple of years the Operating Margin of PCH has declined.
The Gross Margin of PCH (13.45%) is worse than 83.33% of its industry peers.
In the last couple of years the Gross Margin of PCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.98% | ||
| PM (TTM) | 4.35% | ||
| GM | 13.45% |
OM growth 3Y-57.6%
OM growth 5Y-21.57%
PM growth 3Y-59.79%
PM growth 5Y-21.1%
GM growth 3Y-38.22%
GM growth 5Y-8.97%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PCH is destroying value.
PCH has less shares outstanding than it did 1 year ago.
PCH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PCH has a worse debt to assets ratio.
2.2 Solvency
PCH has an Altman-Z score of 1.74. This is a bad value and indicates that PCH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, PCH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
PCH has a debt to FCF ratio of 8.29. This is a slightly negative value and a sign of low solvency as PCH would need 8.29 years to pay back of all of its debts.
PCH has a Debt to FCF ratio of 8.29. This is amongst the best in the industry. PCH outperforms 83.33% of its industry peers.
PCH has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
PCH has a better Debt to Equity ratio (0.46) than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 8.29 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.24
WACC7.14%
2.3 Liquidity
PCH has a Current Ratio of 1.43. This is a normal value and indicates that PCH is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.43, PCH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that PCH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.04, PCH is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
PCH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.29%, which is quite impressive.
PCH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.34% yearly.
Looking at the last year, PCH shows a quite strong growth in Revenue. The Revenue has grown by 10.86% in the last year.
The Revenue has been growing slightly by 5.13% on average over the past years.
EPS 1Y (TTM)75.29%
EPS 3Y-64.41%
EPS 5Y-21.34%
EPS Q2Q%8676.32%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y-7.4%
Revenue growth 5Y5.13%
Sales Q2Q%17.59%
3.2 Future
Based on estimates for the next years, PCH will show a very strong growth in Earnings Per Share. The EPS will grow by 66.08% on average per year.
The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y219.83%
EPS Next 2Y105.14%
EPS Next 3Y66.08%
EPS Next 5YN/A
Revenue Next Year3.02%
Revenue Next 2Y3.84%
Revenue Next 3Y2.3%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 65.43, the valuation of PCH can be described as expensive.
Based on the Price/Earnings ratio, PCH is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, PCH is valued quite expensively.
A Price/Forward Earnings ratio of 33.87 indicates a quite expensive valuation of PCH.
PCH's Price/Forward Earnings ratio is in line with the industry average.
PCH is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.43 | ||
| Fwd PE | 33.87 |
4.2 Price Multiples
PCH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PCH is more expensive than 76.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCH indicates a somewhat cheap valuation: PCH is cheaper than 63.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.85 | ||
| EV/EBITDA | 23.19 |
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.
PCH's earnings are expected to grow with 66.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y105.14%
EPS Next 3Y66.08%
5. Dividend
5.1 Amount
PCH has a Yearly Dividend Yield of 4.51%, which is a nice return.
PCH's Dividend Yield is comparable with the industry average which is at 5.78.
Compared to an average S&P500 Dividend Yield of 2.38, PCH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
The dividend of PCH has a limited annual growth rate of 2.43%.
PCH has paid a dividend for at least 10 years, which is a reliable track record.
PCH has decreased its dividend recently.
Dividend Growth(5Y)2.43%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
295.93% of the earnings are spent on dividend by PCH. This is not a sustainable payout ratio.
PCH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP295.93%
EPS Next 2Y105.14%
EPS Next 3Y66.08%
39.91
-0.78 (-1.92%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.97%
Inst Owner Change1.92%
Ins Owners1.57%
Ins Owner Change7.16%
Market Cap3.14B
Analysts81.67
Price Target50.75 (27.16%)
Short Float %1.55%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend1.8
Dividend Growth(5Y)2.43%
DP295.93%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)208.22%
Min EPS beat(2)84.33%
Max EPS beat(2)332.11%
EPS beat(4)4
Avg EPS beat(4)146.54%
Min EPS beat(4)8.47%
Max EPS beat(4)332.11%
EPS beat(8)5
Avg EPS beat(8)50.57%
EPS beat(12)7
Avg EPS beat(12)32.05%
EPS beat(16)9
Avg EPS beat(16)24.68%
Revenue beat(2)2
Avg Revenue beat(2)6.36%
Min Revenue beat(2)3.68%
Max Revenue beat(2)9.04%
Revenue beat(4)4
Avg Revenue beat(4)5.42%
Min Revenue beat(4)3.68%
Max Revenue beat(4)9.04%
Revenue beat(8)6
Avg Revenue beat(8)3.24%
Revenue beat(12)9
Avg Revenue beat(12)3.07%
Revenue beat(16)11
Avg Revenue beat(16)2.6%
PT rev (1m)-0.5%
PT rev (3m)-1.24%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-10.06%
EPS NY rev (1m)0%
EPS NY rev (3m)6.64%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.43 | ||
| Fwd PE | 33.87 | ||
| P/S | 2.85 | ||
| P/FCF | 24.85 | ||
| P/OCF | 14.16 | ||
| P/B | 1.56 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 23.19 |
EPS(TTM)0.61
EY1.53%
EPS(NY)1.18
Fwd EY2.95%
FCF(TTM)1.61
FCFY4.02%
OCF(TTM)2.82
OCFY7.06%
SpS14.02
BVpS25.57
TBVpS25.4
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 2.39% | ||
| ROCE | 2.16% | ||
| ROIC | 1.71% | ||
| ROICexc | 1.8% | ||
| ROICexgc | 1.8% | ||
| OM | 5.98% | ||
| PM (TTM) | 4.35% | ||
| GM | 13.45% | ||
| FCFM | 11.45% |
ROA(3y)3.96%
ROA(5y)7.12%
ROE(3y)6.23%
ROE(5y)11.85%
ROIC(3y)4.14%
ROIC(5y)8.06%
ROICexc(3y)4.57%
ROICexc(5y)9.07%
ROICexgc(3y)4.61%
ROICexgc(5y)9.16%
ROCE(3y)5.24%
ROCE(5y)10.2%
ROICexcg growth 3Y-64.93%
ROICexcg growth 5Y-23.51%
ROICexc growth 3Y-64.88%
ROICexc growth 5Y-23.44%
OM growth 3Y-57.6%
OM growth 5Y-21.57%
PM growth 3Y-59.79%
PM growth 5Y-21.1%
GM growth 3Y-38.22%
GM growth 5Y-8.97%
F-Score8
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 8.29 | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 88.12% | ||
| Cap/Sales | 8.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.27% | ||
| Profit Quality | 263.1% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.74 |
F-Score8
WACC7.14%
ROIC/WACC0.24
Cap/Depr(3y)84.43%
Cap/Depr(5y)74.94%
Cap/Sales(3y)8.55%
Cap/Sales(5y)6.71%
Profit Quality(3y)214.85%
Profit Quality(5y)185.66%
High Growth Momentum
Growth
EPS 1Y (TTM)75.29%
EPS 3Y-64.41%
EPS 5Y-21.34%
EPS Q2Q%8676.32%
EPS Next Y219.83%
EPS Next 2Y105.14%
EPS Next 3Y66.08%
EPS Next 5YN/A
Revenue 1Y (TTM)10.86%
Revenue growth 3Y-7.4%
Revenue growth 5Y5.13%
Sales Q2Q%17.59%
Revenue Next Year3.02%
Revenue Next 2Y3.84%
Revenue Next 3Y2.3%
Revenue Next 5YN/A
EBIT growth 1Y130.4%
EBIT growth 3Y-60.73%
EBIT growth 5Y-17.55%
EBIT Next Year887.05%
EBIT Next 3Y129.09%
EBIT Next 5YN/A
FCF growth 1Y-45.79%
FCF growth 3Y-39.45%
FCF growth 5Y3.93%
OCF growth 1Y-26.35%
OCF growth 3Y-28%
OCF growth 5Y6.26%