PCTEL INC (PCTI) Stock Fundamental Analysis
NASDAQ:PCTI - Nasdaq - US69325Q1058 - Common Stock - Currency: USD
PCTI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. While PCTI has a great health rating, its profitability is only average at the moment. 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.
PCTI had a positive operating cash flow in the past year.
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
PCTI has a better Return On Assets (5.13%) than 76.27% of its industry peers.
PCTI has a better Return On Equity (6.31%) than 71.19% of its industry peers.
With a decent Return On Invested Capital value of 4.25%, PCTI is doing good in the industry, outperforming 62.71% of the companies in the same industry.
PCTI had an Average Return On Invested Capital over the past 3 years of 2.82%. This is significantly below the industry average of 11.09%.
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's Profit Margin of 4.90% is fine compared to the rest 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.
PCTI has a better Gross Margin (48.68%) 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PCTI is destroying value.
The number of shares outstanding for PCTI has been increased compared to 1 year ago.
Compared to 1 year ago, PCTI has an improved debt to assets ratio.
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 Altman-Z score of 6.12. This is amongst the best in the industry. PCTI outperforms 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.
With an excellent Debt to FCF ratio value of 0.02, PCTI belongs to the best of the industry, outperforming 88.14% of the companies in the same industry.
PCTI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PCTI (0.00) is better than 74.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.12 |
ROIC/WACC0.5
WACC8.53%
2.3 Liquidity
PCTI has a Current Ratio of 5.19. This indicates that PCTI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.19, PCTI belongs to the best of the industry, outperforming 89.83% of the companies in the same industry.
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 better Quick ratio (3.85) than 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.
PCTI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.72%.
The Revenue has been growing slightly by 1.69% on average over the past years.
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
Based on estimates for the next years, PCTI will show a decrease in Earnings Per Share. The EPS will decrease by -7.80% on average per year.
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
Based on the Price/Earnings ratio of 19.97, the valuation of PCTI can be described as rather expensive.
PCTI's Price/Earnings ratio is a bit cheaper when compared to the industry. PCTI is cheaper than 61.02% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. 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 ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PCTI to the average of the S&P500 Index (22.70), we can say PCTI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
PCTI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PCTI is cheaper than 74.58% of the companies in the same industry.
83.05% of the companies in the same industry are more expensive than PCTI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.1 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The decent profitability rating of PCTI may justify a higher PE ratio.
A cheap valuation may be justified as PCTI's earnings are expected to decrease with -7.80% in the coming years.
PEG (NY)N/A
PEG (5Y)1.98
EPS Next 2Y-7.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, PCTI has a reasonable but not impressive dividend return.
PCTI's Dividend Yield is rather good when compared to the industry average which is at 11.04. PCTI pays more dividend than 89.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, PCTI pays a bit more dividend than the S&P500 average.
| 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.
The Dividend Rate of PCTI has been growing, while earnings will be declining. 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%