POTLATCHDELTIC CORP (PCH) Stock Fundamental Analysis
USA - NASDAQ:PCH - US7376301039 - REIT
40.51 USD
-0.83 (-2.01%)
40.51 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PCH. PCH was compared to 29 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.
PCH had a positive operating cash flow in the past year.
PCH had positive earnings in each of the past 5 years.
PCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PCH (1.31%) is worse than 62.07% of its industry peers.
PCH has a worse Return On Equity (2.17%) than 62.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.67%, PCH is doing worse than 72.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PCH is in line with the industry average of 4.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 2.17% | ||
| ROIC | 1.67% |
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 3.94% is on the low side compared to the rest of the industry. PCH is outperformed by 65.52% of its industry peers.
In the last couple of years the Profit Margin of PCH has declined.
The Operating Margin of PCH (5.90%) is worse than 89.66% of its industry peers.
In the last couple of years the Operating Margin of PCH has declined.
With a Gross Margin value of 13.79%, PCH is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
PCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.9% | ||
| PM (TTM) | 3.94% | ||
| GM | 13.8% |
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.
The number of shares outstanding for PCH has been increased compared to 5 years ago.
PCH has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that PCH is in the distress zone and has some risk of bankruptcy.
PCH has a better Altman-Z score (1.68) than 82.76% of its industry peers.
The Debt to FCF ratio of PCH is 12.23, which is on the high side as it means it would take PCH, 12.23 years of fcf income to pay off all of its debts.
PCH has a better Debt to FCF ratio (12.23) than 62.07% of its industry peers.
PCH has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, PCH belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 12.23 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.24
WACC7.04%
2.3 Liquidity
A Current Ratio of 1.13 indicates that PCH should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.13, PCH is doing good in the industry, outperforming 62.07% of the companies in the same industry.
PCH has a Quick Ratio of 1.13. This is a bad value and indicates that PCH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PCH (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
PCH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.72%, which is quite good.
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 decrease in Revenue. The Revenue has decreased by -1.15% in the last year.
The Revenue has been growing slightly by 5.13% on average over the past years.
EPS 1Y (TTM)15.72%
EPS 3Y-64.41%
EPS 5Y-21.34%
EPS Q2Q%-47.06%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-7.4%
Revenue growth 5Y5.13%
Sales Q2Q%-14.25%
3.2 Future
The Earnings Per Share is expected to grow by 64.10% on average over the next years. This is a very strong growth
Based on estimates for the next years, PCH will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y172.34%
EPS Next 2Y102.64%
EPS Next 3Y64.1%
EPS Next 5YN/A
Revenue Next Year4.52%
Revenue Next 2Y4.06%
Revenue Next 3Y3.11%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PCH is valuated quite expensively with a Price/Earnings ratio of 76.43.
Based on the Price/Earnings ratio, PCH is valued a bit more expensive than the industry average as 68.97% of the companies are valued more cheaply.
PCH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.27.
With a Price/Forward Earnings ratio of 35.23, PCH can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as PCH.
PCH's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.43 | ||
| Fwd PE | 35.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCH is valued a bit more expensive than 79.31% of the companies in the same industry.
PCH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.58 | ||
| EV/EBITDA | 24.76 |
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 64.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y102.64%
EPS Next 3Y64.1%
5. Dividend
5.1 Amount
PCH has a Yearly Dividend Yield of 4.22%, which is a nice return.
Compared to an average industry Dividend Yield of 5.99, PCH is paying slightly less dividend.
PCH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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
PCH pays out 338.69% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PCH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP338.69%
EPS Next 2Y102.64%
EPS Next 3Y64.1%
40.51
-0.83 (-2.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner Change-0.44%
Ins Owners1.59%
Ins Owner Change1.79%
Market Cap3.13B
Analysts83.33
Price Target52.15 (28.73%)
Short Float %1.53%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend1.8
Dividend Growth(5Y)2.43%
DP338.69%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)30.77%
Min EPS beat(2)-22.8%
Max EPS beat(2)84.33%
EPS beat(4)3
Avg EPS beat(4)138.72%
Min EPS beat(4)-22.8%
Max EPS beat(4)332.11%
EPS beat(8)5
Avg EPS beat(8)50.77%
EPS beat(12)6
Avg EPS beat(12)28.77%
EPS beat(16)8
Avg EPS beat(16)22.85%
Revenue beat(2)2
Avg Revenue beat(2)6.78%
Min Revenue beat(2)4.52%
Max Revenue beat(2)9.04%
Revenue beat(4)4
Avg Revenue beat(4)5.51%
Min Revenue beat(4)3.68%
Max Revenue beat(4)9.04%
Revenue beat(8)6
Avg Revenue beat(8)3.45%
Revenue beat(12)9
Avg Revenue beat(12)3%
Revenue beat(16)11
Avg Revenue beat(16)2.63%
PT rev (1m)0%
PT rev (3m)2.25%
EPS NQ rev (1m)5.49%
EPS NQ rev (3m)20.5%
EPS NY rev (1m)-12.88%
EPS NY rev (3m)-14.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.88%
Revenue NY rev (1m)2.69%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.43 | ||
| Fwd PE | 35.23 | ||
| P/S | 2.96 | ||
| P/FCF | 36.58 | ||
| P/OCF | 19.34 | ||
| P/B | 1.63 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 24.76 |
EPS(TTM)0.53
EY1.31%
EPS(NY)1.15
Fwd EY2.84%
FCF(TTM)1.11
FCFY2.73%
OCF(TTM)2.09
OCFY5.17%
SpS13.67
BVpS24.87
TBVpS24.7
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 2.17% | ||
| ROCE | 2.11% | ||
| ROIC | 1.67% | ||
| ROICexc | 1.72% | ||
| ROICexgc | 1.73% | ||
| OM | 5.9% | ||
| PM (TTM) | 3.94% | ||
| GM | 13.8% | ||
| FCFM | 8.1% |
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-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 12.23 | ||
| Debt/EBITDA | 5.46 | ||
| Cap/Depr | 72.58% | ||
| Cap/Sales | 7.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.66% | ||
| Profit Quality | 205.43% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.68 |
F-Score7
WACC7.04%
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)15.72%
EPS 3Y-64.41%
EPS 5Y-21.34%
EPS Q2Q%-47.06%
EPS Next Y172.34%
EPS Next 2Y102.64%
EPS Next 3Y64.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-7.4%
Revenue growth 5Y5.13%
Sales Q2Q%-14.25%
Revenue Next Year4.52%
Revenue Next 2Y4.06%
Revenue Next 3Y3.11%
Revenue Next 5YN/A
EBIT growth 1Y91.16%
EBIT growth 3Y-60.73%
EBIT growth 5Y-17.55%
EBIT Next Year890.69%
EBIT Next 3Y129%
EBIT Next 5YN/A
FCF growth 1Y-38.73%
FCF growth 3Y-39.45%
FCF growth 5Y3.93%
OCF growth 1Y-14.82%
OCF growth 3Y-28%
OCF growth 5Y6.26%