PACTIV EVERGREEN INC (PTVE) Stock Fundamental Analysis
NASDAQ:PTVE - Nasdaq - US69526K1051 - Common Stock - Currency: USD
Overall PTVE gets a fundamental rating of 4 out of 10. We evaluated PTVE against 22 industry peers in the Containers & Packaging industry. While PTVE is still in line with the averages on profitability rating, there are concerns on its financial health. PTVE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PTVE was profitable.
PTVE had a positive operating cash flow in the past year.
In multiple years PTVE reported negative net income over the last 5 years.
In the past 5 years PTVE always reported a positive cash flow from operatings.
1.2 Ratios
PTVE's Return On Assets of -2.37% is on the low side compared to the rest of the industry. PTVE is outperformed by 83.33% of its industry peers.
The Return On Equity of PTVE (-12.58%) is worse than 79.17% of its industry peers.
With a decent Return On Invested Capital value of 7.90%, PTVE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PTVE is below the industry average of 7.58%.
The last Return On Invested Capital (7.90%) for PTVE is above the 3 year average (5.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.37% | ||
| ROE | -12.58% | ||
| ROIC | 7.9% |
ROA(3y)-0.52%
ROA(5y)-0.32%
ROE(3y)-2.95%
ROE(5y)-1.91%
ROIC(3y)5.29%
ROIC(5y)4.02%
1.3 Margins
PTVE has a Operating Margin (9.56%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PTVE has grown nicely.
PTVE has a worse Gross Margin (19.09%) than 70.83% of its industry peers.
PTVE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.56% | ||
| PM (TTM) | N/A | ||
| GM | 19.09% |
OM growth 3Y63.34%
OM growth 5Y5.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y21.8%
GM growth 5Y3.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PTVE is still creating some value.
Compared to 1 year ago, PTVE has more shares outstanding
Compared to 5 years ago, PTVE has more shares outstanding
The debt/assets ratio for PTVE is higher compared to a year ago.
2.2 Solvency
PTVE has an Altman-Z score of 1.78. This is a bad value and indicates that PTVE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.78, PTVE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
The Debt to FCF ratio of PTVE is 21.01, which is on the high side as it means it would take PTVE, 21.01 years of fcf income to pay off all of its debts.
PTVE has a Debt to FCF ratio (21.01) which is in line with its industry peers.
A Debt/Equity ratio of 2.90 is on the high side and indicates that PTVE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.90, PTVE is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 21.01 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.12
WACC7.06%
2.3 Liquidity
A Current Ratio of 1.54 indicates that PTVE should not have too much problems paying its short term obligations.
PTVE has a better Current ratio (1.54) than 70.83% of its industry peers.
PTVE has a Quick Ratio of 1.54. This is a bad value and indicates that PTVE is not financially healthy enough and could expect problems in meeting its short term obligations.
PTVE has a Quick ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 855.56% over the past year.
The Earnings Per Share has been growing by 34.94% on average over the past years. This is a very strong growth
Looking at the last year, PTVE shows a decrease in Revenue. The Revenue has decreased by -6.57% in the last year.
The Revenue has been decreasing by -0.17% on average over the past years.
EPS 1Y (TTM)855.56%
EPS 3Y34.94%
EPS 5YN/A
EPS Q2Q%-42.42%
Revenue 1Y (TTM)-6.57%
Revenue growth 3Y-1.8%
Revenue growth 5Y-0.17%
Sales Q2Q%15.46%
3.2 Future
The Earnings Per Share is expected to grow by 30.10% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.22% on average over the next years.
EPS Next Y49.38%
EPS Next 2Y30.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.61%
Revenue Next 2Y2.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PTVE is valuated rather expensively with a Price/Earnings ratio of 20.94.
66.67% of the companies in the same industry are cheaper than PTVE, based on the Price/Earnings ratio.
PTVE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
PTVE is valuated correctly with a Price/Forward Earnings ratio of 14.02.
PTVE's Price/Forward Earnings ratio is in line with the industry average.
PTVE is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTVE is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as PTVE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.96 | ||
| EV/EBITDA | 8.18 |
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.
A more expensive valuation may be justified as PTVE's earnings are expected to grow with 30.10% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y30.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, PTVE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.87, PTVE has a dividend in line with its industry peers.
PTVE's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
PTVE has paid a dividend for less than 5 years, so there is no long track record yet.
PTVE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
The earnings of PTVE are negative and hence is the payout ratio. PTVE will probably not be able to sustain this dividend level.
DP-51.8%
EPS Next 2Y30.1%
EPS Next 3YN/A
18.01
+0.05 (+0.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners22.82%
Inst Owner Change0%
Ins Owners0.86%
Ins Owner Change-38207.8%
Market Cap3.25B
Analysts50
Price Target18.19 (1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP-51.8%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.05%
Min EPS beat(2)-49.15%
Max EPS beat(2)-2.95%
EPS beat(4)1
Avg EPS beat(4)-5.04%
Min EPS beat(4)-49.15%
Max EPS beat(4)65.09%
EPS beat(8)3
Avg EPS beat(8)-130.46%
EPS beat(12)7
Avg EPS beat(12)-8.25%
EPS beat(16)8
Avg EPS beat(16)-14.91%
Revenue beat(2)1
Avg Revenue beat(2)3.89%
Min Revenue beat(2)-4.85%
Max Revenue beat(2)12.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-4.85%
Max Revenue beat(4)12.63%
Revenue beat(8)1
Avg Revenue beat(8)-2.47%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)7
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)1.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.11%
EPS NY rev (1m)-1.95%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 14.02 | ||
| P/S | 0.63 | ||
| P/FCF | 19.96 | ||
| P/OCF | 8.24 | ||
| P/B | 2.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)0.86
EY4.78%
EPS(NY)1.28
Fwd EY7.13%
FCF(TTM)0.9
FCFY5.01%
OCF(TTM)2.19
OCFY12.14%
SpS28.5
BVpS6.12
TBVpS-9.11
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.37% | ||
| ROE | -12.58% | ||
| ROCE | 10.01% | ||
| ROIC | 7.9% | ||
| ROICexc | 8.15% | ||
| ROICexgc | 19.23% | ||
| OM | 9.56% | ||
| PM (TTM) | N/A | ||
| GM | 19.09% | ||
| FCFM | 3.17% |
ROA(3y)-0.52%
ROA(5y)-0.32%
ROE(3y)-2.95%
ROE(5y)-1.91%
ROIC(3y)5.29%
ROIC(5y)4.02%
ROICexc(3y)5.55%
ROICexc(5y)4.23%
ROICexgc(3y)12.09%
ROICexgc(5y)9.06%
ROCE(3y)6.69%
ROCE(5y)5.09%
ROICexcg growth 3Y84.3%
ROICexcg growth 5Y35.68%
ROICexc growth 3Y73.17%
ROICexc growth 5Y22.28%
OM growth 3Y63.34%
OM growth 5Y5.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y21.8%
GM growth 5Y3.17%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 21.01 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 75.82% | ||
| Cap/Sales | 4.51% | ||
| Interest Coverage | 2.21 | ||
| Cash Conversion | 49.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.78 |
F-Score6
WACC7.06%
ROIC/WACC1.12
Cap/Depr(3y)66.47%
Cap/Depr(5y)73.84%
Cap/Sales(3y)4.61%
Cap/Sales(5y)5.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)855.56%
EPS 3Y34.94%
EPS 5YN/A
EPS Q2Q%-42.42%
EPS Next Y49.38%
EPS Next 2Y30.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.57%
Revenue growth 3Y-1.8%
Revenue growth 5Y-0.17%
Sales Q2Q%15.46%
Revenue Next Year1.61%
Revenue Next 2Y2.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y151.02%
EBIT growth 3Y60.39%
EBIT growth 5Y5.2%
EBIT Next Year75.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.54%
FCF growth 3YN/A
FCF growth 5Y-9.4%
OCF growth 1Y-26.03%
OCF growth 3Y14.81%
OCF growth 5Y-15.11%