PCTEL INC (PCTI) Stock Fundamental Analysis
USA - NASDAQ:PCTI - US69325Q1058 - Common Stock
6.99 USD
-0.01 (-0.14%)
6.99 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PCTI. PCTI was compared to 48 industry peers in the Communications Equipment industry. PCTI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PCTI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PCTI had positive earnings in the past year.
In the past year PCTI had a positive cash flow from operations.
Of the past 5 years PCTI 4 years were profitable.
In the past 5 years PCTI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.13%, PCTI is doing good in the industry, outperforming 76.27% of the companies in the same industry.
PCTI has a better Return On Equity (6.31%) than 71.19% of its industry peers.
PCTI has a Return On Invested Capital of 4.25%. This is in the better half of the industry: PCTI outperforms 62.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCTI is significantly below the industry average of 13.71%.
The 3 year average ROIC (2.82%) for PCTI is below the current ROIC(4.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.31% | ||
| ROIC | 4.25% |
ROA(3y)2.45%
ROA(5y)-0.83%
ROE(3y)3.09%
ROE(5y)-0.82%
ROIC(3y)2.82%
ROIC(5y)N/A
1.3 Margins
PCTI has a Profit Margin of 4.90%. This is in the better half of the industry: PCTI outperforms 66.10% of its industry peers.
PCTI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.37%, PCTI is in line with its industry, outperforming 59.32% of the companies in the same industry.
In the last couple of years the Operating Margin of PCTI has grown nicely.
The Gross Margin of PCTI (48.68%) is better than 71.19% of its industry peers.
PCTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.37% | ||
| PM (TTM) | 4.9% | ||
| GM | 48.68% |
OM growth 3Y-2.07%
OM growth 5Y17.43%
PM growth 3Y-11.4%
PM growth 5Y-6.84%
GM growth 3Y0.12%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
PCTI 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, PCTI has more shares outstanding
The debt/assets ratio for PCTI has been reduced compared to a year ago.
2.2 Solvency
PCTI has an Altman-Z score of 6.12. This indicates that PCTI is financially healthy and has little risk of bankruptcy at the moment.
PCTI has a better Altman-Z score (6.12) than 91.53% of its industry peers.
The Debt to FCF ratio of PCTI is 0.02, which is an excellent value as it means it would take PCTI, only 0.02 years of fcf income to pay off all of its debts.
PCTI has a better Debt to FCF ratio (0.02) than 88.14% of its industry peers.
PCTI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.00, PCTI is doing good in the industry, outperforming 74.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.12 |
ROIC/WACC0.5
WACC8.53%
2.3 Liquidity
A Current Ratio of 5.19 indicates that PCTI has no problem at all paying its short term obligations.
PCTI's Current ratio of 5.19 is amongst the best of the industry. PCTI outperforms 89.83% of its industry peers.
PCTI has a Quick Ratio of 3.85. This indicates that PCTI is financially healthy and has no problem in meeting its short term obligations.
PCTI has a Quick ratio of 3.85. This is amongst the best in the industry. PCTI outperforms 88.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
PCTI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.89%.
The Earnings Per Share has been growing by 10.07% on average over the past years. This is quite good.
Looking at the last year, PCTI shows a very negative growth in Revenue. The Revenue has decreased by -12.72% in the last year.
PCTI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
EPS 1Y (TTM)-7.89%
EPS 3Y-3.68%
EPS 5Y10.07%
EPS Q2Q%-100%
Revenue 1Y (TTM)-12.72%
Revenue growth 3Y3.14%
Revenue growth 5Y1.69%
Sales Q2Q%-33.09%
3.2 Future
PCTI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.80% yearly.
PCTI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.06% yearly.
EPS Next Y-29.57%
EPS Next 2Y-7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.62%
Revenue Next 2Y-3.06%
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 decreasing.
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
PCTI is valuated rather expensively with a Price/Earnings ratio of 19.97.
Based on the Price/Earnings ratio, PCTI is valued a bit cheaper than 61.02% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. PCTI is valued slightly cheaper when compared to this.
PCTI is valuated rather expensively with a Price/Forward Earnings ratio of 19.58.
PCTI's Price/Forward Earnings is on the same level as the industry average.
PCTI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCTI is valued a bit cheaper than 74.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PCTI indicates a rather cheap valuation: PCTI is cheaper than 83.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.1 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
PCTI has a very decent profitability rating, which may justify a higher PE ratio.
PCTI's earnings are expected to decrease with -7.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y-7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PCTI has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.64, PCTI pays a better dividend. On top of this PCTI pays more dividend than 89.83% of the companies listed in the same industry.
PCTI's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of PCTI has a limited annual growth rate of 0.90%.
PCTI has paid a dividend for at least 10 years, which is a reliable track record.
PCTI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.9%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
PCTI pays out 97.89% of its income as dividend. This is not a sustainable payout ratio.
PCTI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP97.89%
EPS Next 2Y-7.8%
EPS Next 3YN/A
6.99
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners0.34%
Inst Owner Change0%
Ins Owners5.47%
Ins Owner Change0%
Market Cap135.26M
Analysts43.33
Price Target7.14 (2.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend0.22
Dividend Growth(5Y)0.9%
DP97.89%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.38%
Min EPS beat(2)-100%
Max EPS beat(2)128.76%
EPS beat(4)2
Avg EPS beat(4)40.52%
Min EPS beat(4)-100%
Max EPS beat(4)135.29%
EPS beat(8)6
Avg EPS beat(8)75.74%
EPS beat(12)9
Avg EPS beat(12)66.61%
EPS beat(16)11
Avg EPS beat(16)55.36%
Revenue beat(2)0
Avg Revenue beat(2)-9.21%
Min Revenue beat(2)-16.83%
Max Revenue beat(2)-1.58%
Revenue beat(4)1
Avg Revenue beat(4)-5.15%
Min Revenue beat(4)-16.83%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-1.58%
Revenue beat(12)4
Avg Revenue beat(12)-1.44%
Revenue beat(16)4
Avg Revenue beat(16)-2.24%
PT rev (1m)0%
PT rev (3m)-22.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)99900%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.58 | ||
| P/S | 1.56 | ||
| P/FCF | 14.1 | ||
| P/OCF | 12.19 | ||
| P/B | 2.01 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)0.35
EY5.01%
EPS(NY)0.36
Fwd EY5.11%
FCF(TTM)0.5
FCFY7.09%
OCF(TTM)0.57
OCFY8.21%
SpS4.49
BVpS3.48
TBVpS3.14
PEG (NY)N/A
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.31% | ||
| ROCE | 5.37% | ||
| ROIC | 4.25% | ||
| ROICexc | 8.05% | ||
| ROICexgc | 9.78% | ||
| OM | 4.37% | ||
| PM (TTM) | 4.9% | ||
| GM | 48.68% | ||
| FCFM | 11.04% |
ROA(3y)2.45%
ROA(5y)-0.83%
ROE(3y)3.09%
ROE(5y)-0.82%
ROIC(3y)2.82%
ROIC(5y)N/A
ROICexc(3y)5.1%
ROICexc(5y)N/A
ROICexgc(3y)5.89%
ROICexgc(5y)N/A
ROCE(3y)3.57%
ROCE(5y)N/A
ROICexcg growth 3Y-1.03%
ROICexcg growth 5Y22.36%
ROICexc growth 3Y-3.65%
ROICexc growth 5Y21.11%
OM growth 3Y-2.07%
OM growth 5Y17.43%
PM growth 3Y-11.4%
PM growth 5Y-6.84%
GM growth 3Y0.12%
GM growth 5Y1.61%
F-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 59.68% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 175.36% | ||
| Profit Quality | 225.12% | ||
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.85 | ||
| Altman-Z | 6.12 |
F-Score6
WACC8.53%
ROIC/WACC0.5
Cap/Depr(3y)75.25%
Cap/Depr(5y)71.31%
Cap/Sales(3y)2.92%
Cap/Sales(5y)2.91%
Profit Quality(3y)686.53%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.89%
EPS 3Y-3.68%
EPS 5Y10.07%
EPS Q2Q%-100%
EPS Next Y-29.57%
EPS Next 2Y-7.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.72%
Revenue growth 3Y3.14%
Revenue growth 5Y1.69%
Sales Q2Q%-33.09%
Revenue Next Year-14.62%
Revenue Next 2Y-3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y44.49%
EBIT growth 3Y1%
EBIT growth 5Y19.42%
EBIT Next Year-3.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y48.91%
FCF growth 3Y-27.21%
FCF growth 5Y-11.92%
OCF growth 1Y21.05%
OCF growth 3Y-27.57%
OCF growth 5Y-14.29%