PMTS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While PMTS has a great profitability rating, there are some minor concerns on its financial health. PMTS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make PMTS suitable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PMTS had positive earnings in the past year.
PMTS had a positive operating cash flow in the past year.
PMTS had positive earnings in each of the past 5 years.
Each year in the past 5 years PMTS had a positive operating cash flow.

1.2 Ratios

PMTS has a better Return On Assets (3.53%) than 74.29% of its industry peers.
The Return On Invested Capital of PMTS (11.93%) is better than 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PMTS is above the industry average of 16.06%.
The 3 year average ROIC (20.36%) for PMTS is well above the current ROIC(11.93%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	3.53%
ROE	N/A
ROIC	11.93%

ROA(3y)8.68%

ROA(5y)7.61%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)20.36%

ROIC(5y)19.24%

1.3 Margins

PMTS has a better Profit Margin (2.79%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of PMTS has remained more or less at the same level.
PMTS's Operating Margin of 10.18% is amongst the best of the industry. PMTS outperforms 82.86% of its industry peers.
PMTS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.89%, PMTS is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of PMTS has grown nicely.

		Industry Rank	Sector Rank
OM	10.18%
PM (TTM)	2.79%
GM	31.89%

OM growth 3Y-6.21%

OM growth 5Y14.21%

PM growth 3Y-1.41%

PM growth 5YN/A

GM growth 3Y-1.87%

GM growth 5Y1.69%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PMTS is creating value.
PMTS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PMTS has been increased compared to 5 years ago.
PMTS has a better debt/assets ratio than last year.

2.2 Solvency

PMTS has an Altman-Z score of 2.19. This is not the best score and indicates that PMTS is in the grey zone with still only limited risk for bankruptcy at the moment.
PMTS has a Altman-Z score of 2.19. This is in the better half of the industry: PMTS outperforms 62.86% of its industry peers.
PMTS has a debt to FCF ratio of 11.12. This is a negative value and a sign of low solvency as PMTS would need 11.12 years to pay back of all of its debts.
PMTS has a Debt to FCF ratio (11.12) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	11.12
Altman-Z	2.19

ROIC/WACC1.62

WACC7.38%

2.3 Liquidity

A Current Ratio of 2.56 indicates that PMTS has no problem at all paying its short term obligations.
PMTS has a Current ratio of 2.56. This is in the better half of the industry: PMTS outperforms 74.29% of its industry peers.
A Quick Ratio of 1.53 indicates that PMTS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.53, PMTS is in the better half of the industry, outperforming 68.57% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.56
Quick Ratio	1.53

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

PMTS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.40%.
The Earnings Per Share has been growing slightly by 6.51% on average over the past years.
The Revenue has grown by 12.48% in the past year. This is quite good.
PMTS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.56% yearly.

EPS 1Y (TTM)-8.4%

EPS 3Y6.51%

EPS 5YN/A

EPS Q2Q%72.73%

Revenue 1Y (TTM)12.48%

Revenue growth 3Y8.61%

Revenue growth 5Y11.56%

Sales Q2Q%10.59%

3.2 Future

PMTS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.21% yearly.
Based on estimates for the next years, PMTS will show a quite strong growth in Revenue. The Revenue will grow by 9.25% on average per year.

EPS Next Y-26.59%

EPS Next 2Y19.82%

EPS Next 3Y27.21%

EPS Next 5YN/A

Revenue Next Year12.54%

Revenue Next 2Y10.51%

Revenue Next 3Y9.25%

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 stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.70 indicates a reasonable valuation of PMTS.
PMTS's Price/Earnings ratio is rather cheap when compared to the industry. PMTS is cheaper than 97.14% of the companies in the same industry.
PMTS is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.42, the valuation of PMTS can be described as very cheap.
Based on the Price/Forward Earnings ratio, PMTS is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PMTS to the average of the S&P500 Index (25.83), we can say PMTS is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.7
Fwd PE	5.42

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PMTS is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PMTS indicates a rather cheap valuation: PMTS is cheaper than 94.29% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.27
EV/EBITDA	6.04

4.3 Compensation for Growth

The decent profitability rating of PMTS may justify a higher PE ratio.
A more expensive valuation may be justified as PMTS's earnings are expected to grow with 27.21% in the coming years.