POTLATCHDELTIC CORP (PCH) Stock Fundamental Analysis
NASDAQ:PCH - Nasdaq - US7376301039 - REIT - Currency: USD
Overall PCH gets a fundamental rating of 4 out of 10. We evaluated PCH against 30 industry peers in the Specialized REITs industry. The financial health of PCH is average, but there are quite some concerns on its profitability. PCH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PCH was profitable.
PCH had a positive operating cash flow in the past year.
In the past 5 years PCH has always been profitable.
PCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PCH has a Return On Assets of 1.47%. This is in the lower half of the industry: PCH underperforms 63.33% of its industry peers.
PCH has a Return On Equity of 2.39%. This is in the lower half of the industry: PCH underperforms 60.00% of its industry peers.
PCH has a Return On Invested Capital of 1.71%. This is amonst the worse of the industry: PCH underperforms 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PCH is in line with the industry average of 5.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 2.39% | ||
| ROIC | 1.71% |
ROA(3y)3.96%
ROA(5y)7.12%
ROE(3y)6.23%
ROE(5y)11.85%
ROIC(3y)4.14%
ROIC(5y)8.06%
1.3 Margins
The Profit Margin of PCH (4.35%) is worse than 66.67% of its industry peers.
In the last couple of years the Profit Margin of PCH has declined.
PCH's Operating Margin of 5.98% is on the low side compared to the rest of the industry. PCH is outperformed by 90.00% of its industry peers.
In the last couple of years the Operating Margin of PCH has declined.
PCH has a Gross Margin of 13.45%. This is amonst the worse of the industry: PCH underperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of PCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.98% | ||
| PM (TTM) | 4.35% | ||
| GM | 13.45% |
OM growth 3Y-57.6%
OM growth 5Y-21.57%
PM growth 3Y-59.79%
PM growth 5Y-21.1%
GM growth 3Y-38.22%
GM growth 5Y-8.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PCH is destroying value.
Compared to 1 year ago, PCH has less shares outstanding
PCH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PCH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that PCH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PCH (1.64) is better than 83.33% of its industry peers.
PCH has a debt to FCF ratio of 8.20. This is a slightly negative value and a sign of low solvency as PCH would need 8.20 years to pay back of all of its debts.
PCH's Debt to FCF ratio of 8.20 is amongst the best of the industry. PCH outperforms 83.33% of its industry peers.
PCH has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.45, PCH belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 8.2 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.24
WACC7.11%
2.3 Liquidity
A Current Ratio of 1.43 indicates that PCH should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.43, PCH belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
PCH has a Quick Ratio of 1.04. This is a normal value and indicates that PCH is financially healthy and should not expect problems in meeting its short term obligations.
PCH's Quick ratio of 1.04 is fine compared to the rest of the industry. PCH outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
PCH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.29%, which is quite impressive.
PCH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.34% yearly.
The Revenue has grown by 10.86% in the past year. This is quite good.
Measured over the past years, PCH shows a small growth in Revenue. The Revenue has been growing by 5.13% on average per year.
EPS 1Y (TTM)75.29%
EPS 3Y-64.41%
EPS 5Y-21.34%
EPS Q2Q%8676.32%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y-7.4%
Revenue growth 5Y5.13%
Sales Q2Q%17.59%
3.2 Future
PCH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 63.65% yearly.
Based on estimates for the next years, PCH will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y202.48%
EPS Next 2Y109.78%
EPS Next 3Y63.65%
EPS Next 5YN/A
Revenue Next Year2.17%
Revenue Next 2Y3.88%
Revenue Next 3Y2.15%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 62.02, PCH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PCH is valued a bit more expensive than 70.00% of the companies in the same industry.
PCH is valuated expensively when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.70 indicates a quite expensive valuation of PCH.
63.33% of the companies in the same industry are more expensive than PCH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.35. PCH is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.02 | ||
| Fwd PE | 30.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PCH is valued a bit more expensive than the industry average as 76.67% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, PCH is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.58 | ||
| EV/EBITDA | 21.9 |
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 PCH's earnings are expected to grow with 63.65% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y109.78%
EPS Next 3Y63.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.66%, PCH is a good candidate for dividend investing.
PCH's Dividend Yield is comparable with the industry average which is at 5.71.
PCH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
The dividend of PCH has a limited annual growth rate of 2.43%.
PCH has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)2.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
295.93% of the earnings are spent on dividend by PCH. This is not a sustainable payout ratio.
The dividend of PCH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP295.93%
EPS Next 2Y109.78%
EPS Next 3Y63.65%
37.83
+0.67 (+1.8%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.8%
Inst Owner Change-0.87%
Ins Owners2.53%
Ins Owner Change5.31%
Market Cap2.98B
Analysts81.67
Price Target51 (34.81%)
Short Float %1.66%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend1.8
Dividend Growth(5Y)2.43%
DP295.93%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)206.94%
Min EPS beat(2)81.77%
Max EPS beat(2)332.11%
EPS beat(4)4
Avg EPS beat(4)145.9%
Min EPS beat(4)8.47%
Max EPS beat(4)332.11%
EPS beat(8)5
Avg EPS beat(8)50.25%
EPS beat(12)7
Avg EPS beat(12)31.83%
EPS beat(16)9
Avg EPS beat(16)24.52%
Revenue beat(2)2
Avg Revenue beat(2)6.32%
Min Revenue beat(2)3.68%
Max Revenue beat(2)8.97%
Revenue beat(4)4
Avg Revenue beat(4)5.4%
Min Revenue beat(4)3.68%
Max Revenue beat(4)8.97%
Revenue beat(8)6
Avg Revenue beat(8)3.23%
Revenue beat(12)9
Avg Revenue beat(12)3.06%
Revenue beat(16)11
Avg Revenue beat(16)2.6%
PT rev (1m)0%
PT rev (3m)2.28%
EPS NQ rev (1m)-6.63%
EPS NQ rev (3m)-18.78%
EPS NY rev (1m)0.86%
EPS NY rev (3m)3.27%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.02 | ||
| Fwd PE | 30.7 | ||
| P/S | 2.7 | ||
| P/FCF | 23.58 | ||
| P/OCF | 13.44 | ||
| P/B | 1.48 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 21.9 |
EPS(TTM)0.61
EY1.61%
EPS(NY)1.23
Fwd EY3.26%
FCF(TTM)1.6
FCFY4.24%
OCF(TTM)2.81
OCFY7.44%
SpS14.01
BVpS25.54
TBVpS25.37
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 2.39% | ||
| ROCE | 2.16% | ||
| ROIC | 1.71% | ||
| ROICexc | 1.8% | ||
| ROICexgc | 1.8% | ||
| OM | 5.98% | ||
| PM (TTM) | 4.35% | ||
| GM | 13.45% | ||
| FCFM | 11.45% |
ROA(3y)3.96%
ROA(5y)7.12%
ROE(3y)6.23%
ROE(5y)11.85%
ROIC(3y)4.14%
ROIC(5y)8.06%
ROICexc(3y)4.57%
ROICexc(5y)9.07%
ROICexgc(3y)4.61%
ROICexgc(5y)9.16%
ROCE(3y)5.24%
ROCE(5y)10.2%
ROICexcg growth 3Y-64.93%
ROICexcg growth 5Y-23.51%
ROICexc growth 3Y-64.88%
ROICexc growth 5Y-23.44%
OM growth 3Y-57.6%
OM growth 5Y-21.57%
PM growth 3Y-59.79%
PM growth 5Y-21.1%
GM growth 3Y-38.22%
GM growth 5Y-8.97%
F-Score8
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 8.2 | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 88.12% | ||
| Cap/Sales | 8.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.27% | ||
| Profit Quality | 263.1% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.64 |
F-Score8
WACC7.11%
ROIC/WACC0.24
Cap/Depr(3y)84.43%
Cap/Depr(5y)74.94%
Cap/Sales(3y)8.55%
Cap/Sales(5y)6.71%
Profit Quality(3y)214.85%
Profit Quality(5y)185.66%
High Growth Momentum
Growth
EPS 1Y (TTM)75.29%
EPS 3Y-64.41%
EPS 5Y-21.34%
EPS Q2Q%8676.32%
EPS Next Y202.48%
EPS Next 2Y109.78%
EPS Next 3Y63.65%
EPS Next 5YN/A
Revenue 1Y (TTM)10.86%
Revenue growth 3Y-7.4%
Revenue growth 5Y5.13%
Sales Q2Q%17.59%
Revenue Next Year2.17%
Revenue Next 2Y3.88%
Revenue Next 3Y2.15%
Revenue Next 5YN/A
EBIT growth 1Y130.4%
EBIT growth 3Y-60.73%
EBIT growth 5Y-17.55%
EBIT Next Year881.07%
EBIT Next 3Y128.63%
EBIT Next 5YN/A
FCF growth 1Y-45.79%
FCF growth 3Y-39.45%
FCF growth 5Y3.93%
OCF growth 1Y-26.35%
OCF growth 3Y-28%
OCF growth 5Y6.26%