PRIORITY TECHNOLOGY HOLDINGS (PRTH) Stock Fundamental Analysis
NASDAQ:PRTH - Nasdaq - US74275G1076 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PRTH. PRTH was compared to 101 industry peers in the Financial Services industry. There are concerns on the financial health of PRTH while its profitability can be described as average. PRTH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PRTH had positive earnings in the past year.
In the past year PRTH had a positive cash flow from operations.
In the past 5 years PRTH reported 4 times negative net income.
PRTH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRTH has a worse Return On Assets (-0.40%) than 79.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.82%, PRTH belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRTH is below the industry average of 11.69%.
The last Return On Invested Capital (13.82%) for PRTH is above the 3 year average (9.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | N/A | ||
| ROIC | 13.82% |
ROA(3y)-2.4%
ROA(5y)-0.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.34%
ROIC(5y)7.51%
1.3 Margins
The Operating Margin of PRTH (15.36%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PRTH has grown nicely.
The Gross Margin of PRTH (37.72%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PRTH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.36% | ||
| PM (TTM) | N/A | ||
| GM | 37.72% |
OM growth 3Y33.13%
OM growth 5Y50.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.4%
GM growth 5Y3.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRTH is creating some value.
Compared to 1 year ago, PRTH has more shares outstanding
The number of shares outstanding for PRTH has been increased compared to 5 years ago.
The debt/assets ratio for PRTH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that PRTH is in the distress zone and has some risk of bankruptcy.
PRTH has a Altman-Z score (0.83) which is comparable to the rest of the industry.
PRTH has a debt to FCF ratio of 17.85. This is a negative value and a sign of low solvency as PRTH would need 17.85 years to pay back of all of its debts.
PRTH has a Debt to FCF ratio of 17.85. This is comparable to the rest of the industry: PRTH outperforms 48.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.85 | ||
| Altman-Z | 0.83 |
ROIC/WACC1.38
WACC9.98%
2.3 Liquidity
PRTH has a Current Ratio of 1.06. This is a normal value and indicates that PRTH is financially healthy and should not expect problems in meeting its short term obligations.
PRTH has a Current ratio of 1.06. This is comparable to the rest of the industry: PRTH outperforms 50.49% of its industry peers.
PRTH has a Quick Ratio of 1.06. This is a normal value and indicates that PRTH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.06, PRTH is in line with its industry, outperforming 52.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.44% over the past year.
Looking at the last year, PRTH shows a quite strong growth in Revenue. The Revenue has grown by 15.76% in the last year.
PRTH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.79% yearly.
EPS 1Y (TTM)144.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%320%
Revenue 1Y (TTM)15.76%
Revenue growth 3Y19.55%
Revenue growth 5Y18.79%
Sales Q2Q%9.19%
3.2 Future
Based on estimates for the next years, PRTH will show a very strong growth in Earnings Per Share. The EPS will grow by 307.81% on average per year.
The Revenue is expected to grow by 10.42% on average over the next years. This is quite good.
EPS Next Y1315.5%
EPS Next 2Y307.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.5%
Revenue Next 2Y10.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.38, which means the current valuation is very expensive for PRTH.
Based on the Price/Earnings ratio, PRTH is valued a bit more expensive than 68.32% of the companies in the same industry.
PRTH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
PRTH is valuated cheaply with a Price/Forward Earnings ratio of 6.43.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRTH indicates a rather cheap valuation: PRTH is cheaper than 81.19% of the companies listed in the same industry.
PRTH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 6.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRTH is valued cheaper than 83.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRTH is valued a bit cheaper than 75.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 7.56 |
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.
PRTH's earnings are expected to grow with 307.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y307.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRTH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.53
-0.09 (-1.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners14.01%
Inst Owner Change65.47%
Ins Owners62.91%
Ins Owner Change-5.81%
Market Cap598.79M
Analysts81.82
Price Target13.46 (78.75%)
Short Float %6.51%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.01
Dividend Growth(5Y)N/A
DP-931.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)85.96%
Min EPS beat(2)19.83%
Max EPS beat(2)152.1%
EPS beat(4)3
Avg EPS beat(4)77.74%
Min EPS beat(4)-275.82%
Max EPS beat(4)414.84%
EPS beat(8)3
Avg EPS beat(8)32.19%
EPS beat(12)3
Avg EPS beat(12)-257.68%
EPS beat(16)4
Avg EPS beat(16)-289.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-3.79%
Max Revenue beat(2)-1.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.76%
Revenue beat(12)4
Avg Revenue beat(12)-1.2%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)0%
PT rev (3m)-8.97%
EPS NQ rev (1m)-5.88%
EPS NQ rev (3m)57.89%
EPS NY rev (1m)8.33%
EPS NY rev (3m)56.28%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 6.43 | ||
| P/S | 0.67 | ||
| P/FCF | 11.61 | ||
| P/OCF | 7.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.56 |
EPS(TTM)0.24
EY3.19%
EPS(NY)1.17
Fwd EY15.54%
FCF(TTM)0.65
FCFY8.62%
OCF(TTM)1.03
OCFY13.74%
SpS11.3
BVpS-1.99
TBVpS-9.77
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | N/A | ||
| ROCE | 17.49% | ||
| ROIC | 13.82% | ||
| ROICexc | 14.71% | ||
| ROICexgc | 88.64% | ||
| OM | 15.36% | ||
| PM (TTM) | N/A | ||
| GM | 37.72% | ||
| FCFM | 5.74% |
ROA(3y)-2.4%
ROA(5y)-0.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.34%
ROIC(5y)7.51%
ROICexc(3y)9.91%
ROICexc(5y)7.92%
ROICexgc(3y)86.35%
ROICexgc(5y)70.25%
ROCE(3y)11.82%
ROCE(5y)9.51%
ROICexcg growth 3Y19.43%
ROICexcg growth 5Y69.85%
ROICexc growth 3Y61.44%
ROICexc growth 5Y56.95%
OM growth 3Y33.13%
OM growth 5Y50.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.4%
GM growth 5Y3.06%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.85 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 54.22% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | 42.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 0.83 |
F-Score6
WACC9.98%
ROIC/WACC1.38
Cap/Depr(3y)44.75%
Cap/Depr(5y)57.05%
Cap/Sales(3y)3.8%
Cap/Sales(5y)5.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)144.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%320%
EPS Next Y1315.5%
EPS Next 2Y307.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.76%
Revenue growth 3Y19.55%
Revenue growth 5Y18.79%
Sales Q2Q%9.19%
Revenue Next Year10.5%
Revenue Next 2Y10.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y48.96%
EBIT growth 3Y59.15%
EBIT growth 5Y79.3%
EBIT Next Year66.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.15%
OCF growth 3Y108.98%
OCF growth 5Y16.81%