PREMIUM BRANDS HOLDINGS CORP (PBH.CA) Stock Fundamental Analysis
TSX:PBH - Toronto Stock Exchange - CA74061A1084 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to PBH. PBH was compared to 17 industry peers in the Food Products industry. There are concerns on the financial health of PBH while its profitability can be described as average. PBH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PBH had positive earnings in the past year.
In the past year PBH had a positive cash flow from operations.
Each year in the past 5 years PBH has been profitable.
Each year in the past 5 years PBH had a positive operating cash flow.
1.2 Ratios
PBH has a better Return On Assets (1.99%) than 64.71% of its industry peers.
PBH has a Return On Equity of 6.73%. This is in the better half of the industry: PBH outperforms 70.59% of its industry peers.
PBH has a Return On Invested Capital (5.84%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PBH is in line with the industry average of 6.98%.
The last Return On Invested Capital (5.84%) for PBH is above the 3 year average (5.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.73% | ||
| ROIC | 5.84% |
ROA(3y)2.36%
ROA(5y)2.49%
ROE(3y)7.01%
ROE(5y)6.75%
ROIC(3y)5.05%
ROIC(5y)4.74%
1.3 Margins
With a decent Profit Margin value of 1.76%, PBH is doing good in the industry, outperforming 64.71% of the companies in the same industry.
PBH's Profit Margin has declined in the last couple of years.
The Operating Margin of PBH (5.54%) is comparable to the rest of the industry.
PBH's Operating Margin has been stable in the last couple of years.
The Gross Margin of PBH (19.69%) is better than 76.47% of its industry peers.
PBH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.54% | ||
| PM (TTM) | 1.76% | ||
| GM | 19.69% |
OM growth 3Y5.39%
OM growth 5Y1.03%
PM growth 3Y-11.3%
PM growth 5Y-4.04%
GM growth 3Y2.99%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
PBH 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, PBH has more shares outstanding
PBH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PBH has a worse debt to assets ratio.
2.2 Solvency
PBH has an Altman-Z score of 1.87. This is not the best score and indicates that PBH is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.87, PBH perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
PBH has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.48, PBH perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC0.96
WACC6.1%
2.3 Liquidity
PBH has a Current Ratio of 1.04. This is a normal value and indicates that PBH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PBH (1.04) is comparable to the rest of the industry.
A Quick Ratio of 0.37 indicates that PBH may have some problems paying its short term obligations.
PBH has a Quick ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.41% over the past year.
Measured over the past 5 years, PBH shows a small growth in Earnings Per Share. The EPS has been growing by 4.80% on average per year.
Looking at the last year, PBH shows a small growth in Revenue. The Revenue has grown by 6.29% in the last year.
Measured over the past years, PBH shows a quite strong growth in Revenue. The Revenue has been growing by 12.14% on average per year.
EPS 1Y (TTM)9.41%
EPS 3Y-2.37%
EPS 5Y4.8%
EPS Q2Q%25.93%
Revenue 1Y (TTM)6.29%
Revenue growth 3Y9.47%
Revenue growth 5Y12.14%
Sales Q2Q%14.87%
3.2 Future
PBH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.08% yearly.
The Revenue is expected to grow by 10.74% on average over the next years. This is quite good.
EPS Next Y28.14%
EPS Next 2Y28.98%
EPS Next 3Y25.08%
EPS Next 5YN/A
Revenue Next Year13.08%
Revenue Next 2Y10.91%
Revenue Next 3Y10.74%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.89 indicates a rather expensive valuation of PBH.
PBH's Price/Earnings ratio is a bit cheaper when compared to the industry. PBH is cheaper than 70.59% of the companies in the same industry.
PBH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
The Price/Forward Earnings ratio is 11.73, which indicates a very decent valuation of PBH.
82.35% of the companies in the same industry are more expensive than PBH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.17. PBH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
PBH's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.3 |
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.
The decent profitability rating of PBH may justify a higher PE ratio.
PBH's earnings are expected to grow with 25.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)3.93
EPS Next 2Y28.98%
EPS Next 3Y25.08%
5. Dividend
5.1 Amount
PBH has a Yearly Dividend Yield of 4.18%, which is a nice return.
PBH's Dividend Yield is a higher than the industry average which is at 4.16.
PBH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
On average, the dividend of PBH grows each year by 10.08%, which is quite nice.
PBH has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of PBH decreased recently.
Dividend Growth(5Y)10.08%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PBH pays out 128.86% of its income as dividend. This is not a sustainable payout ratio.
PBH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP128.86%
EPS Next 2Y28.98%
EPS Next 3Y25.08%
TSX:PBH (6/2/2025, 7:00:00 PM)
81.21
-0.17 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners55.79%
Inst Owner ChangeN/A
Ins Owners2.34%
Ins Owner ChangeN/A
Market Cap3.65B
Analysts76.25
Price Target104.55 (28.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend3.33
Dividend Growth(5Y)10.08%
DP128.86%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.14%
Min EPS beat(2)-2.89%
Max EPS beat(2)7.18%
EPS beat(4)2
Avg EPS beat(4)-2.47%
Min EPS beat(4)-25.24%
Max EPS beat(4)11.09%
EPS beat(8)4
Avg EPS beat(8)-5.69%
EPS beat(12)5
Avg EPS beat(12)-6.36%
EPS beat(16)8
Avg EPS beat(16)-2.8%
Revenue beat(2)2
Avg Revenue beat(2)2.81%
Min Revenue beat(2)0.93%
Max Revenue beat(2)4.69%
Revenue beat(4)2
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-5.56%
Max Revenue beat(4)4.69%
Revenue beat(8)2
Avg Revenue beat(8)-1.59%
Revenue beat(12)6
Avg Revenue beat(12)-0.16%
Revenue beat(16)10
Avg Revenue beat(16)0.85%
PT rev (1m)-0.08%
PT rev (3m)0.1%
EPS NQ rev (1m)-7.9%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)4.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.89 | ||
| Fwd PE | 11.73 | ||
| P/S | 0.55 | ||
| P/FCF | N/A | ||
| P/OCF | 13.23 | ||
| P/B | 2.08 | ||
| P/tB | 77.09 | ||
| EV/EBITDA | 12.3 |
EPS(TTM)4.3
EY5.29%
EPS(NY)6.92
Fwd EY8.52%
FCF(TTM)-1.28
FCFYN/A
OCF(TTM)6.14
OCFY7.56%
SpS148.95
BVpS38.97
TBVpS1.05
PEG (NY)0.67
PEG (5Y)3.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.73% | ||
| ROCE | 8.32% | ||
| ROIC | 5.84% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 9.41% | ||
| OM | 5.54% | ||
| PM (TTM) | 1.76% | ||
| GM | 19.69% | ||
| FCFM | N/A |
ROA(3y)2.36%
ROA(5y)2.49%
ROE(3y)7.01%
ROE(5y)6.75%
ROIC(3y)5.05%
ROIC(5y)4.74%
ROICexc(3y)5.08%
ROICexc(5y)4.87%
ROICexgc(3y)7.9%
ROICexgc(5y)8.12%
ROCE(3y)7.12%
ROCE(5y)6.68%
ROICexcg growth 3Y3.84%
ROICexcg growth 5Y-6.21%
ROICexc growth 3Y6.65%
ROICexc growth 5Y-0.8%
OM growth 3Y5.39%
OM growth 5Y1.03%
PM growth 3Y-11.3%
PM growth 5Y-4.04%
GM growth 3Y2.99%
GM growth 5Y0.1%
F-Score6
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.66 | ||
| Cap/Depr | 180.49% | ||
| Cap/Sales | 4.98% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 49.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.87 |
F-Score6
WACC6.1%
ROIC/WACC0.96
Cap/Depr(3y)198.51%
Cap/Depr(5y)155.17%
Cap/Sales(3y)5.27%
Cap/Sales(5y)4.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.41%
EPS 3Y-2.37%
EPS 5Y4.8%
EPS Q2Q%25.93%
EPS Next Y28.14%
EPS Next 2Y28.98%
EPS Next 3Y25.08%
EPS Next 5YN/A
Revenue 1Y (TTM)6.29%
Revenue growth 3Y9.47%
Revenue growth 5Y12.14%
Sales Q2Q%14.87%
Revenue Next Year13.08%
Revenue Next 2Y10.91%
Revenue Next 3Y10.74%
Revenue Next 5YN/A
EBIT growth 1Y9.54%
EBIT growth 3Y15.38%
EBIT growth 5Y13.29%
EBIT Next Year66.75%
EBIT Next 3Y28.18%
EBIT Next 5Y17.93%
FCF growth 1Y-119.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.17%
OCF growth 3Y56.29%
OCF growth 5Y9.04%