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 18 industry peers in the Food Products industry. While PBH is still in line with the averages on profitability rating, there are concerns on its financial health. PBH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PBH was profitable.
In the past year PBH had a positive cash flow from operations.
PBH had positive earnings in each of the past 5 years.
Each year in the past 5 years PBH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.99%, PBH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
PBH has a better Return On Equity (6.73%) than 72.22% of its industry peers.
PBH has a better Return On Invested Capital (5.84%) than 61.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PBH is in line with the industry average of 6.97%.
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
The Profit Margin of PBH (1.76%) is better than 66.67% of its industry peers.
PBH's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.54%, PBH perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Operating Margin of PBH has remained more or less at the same level.
Looking at the Gross Margin, with a value of 19.69%, PBH is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of PBH has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PBH is destroying value.
The number of shares outstanding for PBH has been increased compared to 1 year ago.
Compared to 5 years ago, PBH has more shares outstanding
Compared to 1 year ago, PBH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that PBH is not a great score, but indicates only limited risk for bankruptcy at the moment.
PBH has a Altman-Z score (1.86) which is in line with its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that PBH has dependencies on debt financing.
PBH's Debt to Equity ratio of 1.48 is in line compared to the rest of the industry. PBH outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
ROIC/WACC0.67
WACC8.66%
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.
PBH's Current ratio of 1.04 is in line compared to the rest of the industry. PBH outperforms 55.56% of its industry peers.
PBH has a Quick Ratio of 1.04. This is a bad value and indicates that PBH is not financially healthy enough and could expect problems in meeting its short term obligations.
PBH has a Quick ratio of 0.37. This is comparable to the rest of the industry: PBH outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
PBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.41%, which is quite good.
The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
The Revenue has been growing slightly by 6.29% in the past 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
The Earnings Per Share is expected to grow by 25.08% on average over the next years. This is a very strong growth
PBH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.74% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 18.77, which indicates a rather expensive current valuation of PBH.
PBH's Price/Earnings ratio is a bit cheaper when compared to the industry. PBH is cheaper than 77.78% 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 26.91.
A Price/Forward Earnings ratio of 11.66 indicates a reasonable valuation of PBH.
Based on the Price/Forward Earnings ratio, PBH is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.46, PBH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 11.66 |
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 | 12.26 |
4.3 Compensation for Growth
PBH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PBH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PBH's earnings are expected to grow with 25.08% in the coming years.
PEG (NY)0.67
PEG (5Y)3.91
EPS Next 2Y28.98%
EPS Next 3Y25.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.27%, PBH is a good candidate for dividend investing.
PBH's Dividend Yield is a higher than the industry average which is at 4.15.
Compared to an average S&P500 Dividend Yield of 2.43, PBH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
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
128.86% of the earnings are spent on dividend by PBH. 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 (6/24/2025, 7:00:00 PM)
80.73
+0.27 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners55.4%
Inst Owner ChangeN/A
Ins Owners2.41%
Ins Owner ChangeN/A
Market Cap3.62B
Analysts76.47
Price Target105.69 (30.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
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)1.09%
PT rev (3m)1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.77 | ||
| Fwd PE | 11.66 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | 13.15 | ||
| P/B | 2.07 | ||
| P/tB | 76.63 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)4.3
EY5.33%
EPS(NY)6.92
Fwd EY8.57%
FCF(TTM)-1.28
FCFYN/A
OCF(TTM)6.14
OCFY7.61%
SpS148.95
BVpS38.97
TBVpS1.05
PEG (NY)0.67
PEG (5Y)3.91
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 | 1.86 |
F-Score6
WACC8.66%
ROIC/WACC0.67
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 5Y17.23%
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%