PRIORITY TECHNOLOGY HOLDINGS (PRTH) Stock Fundamental Analysis
NASDAQ:PRTH - Nasdaq - US74275G1076 - Common Stock - Currency: USD
Taking everything into account, PRTH scores 4 out of 10 in our fundamental rating. PRTH was compared to 100 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
In the past year PRTH was profitable.
In the past year PRTH had a positive cash flow from operations.
In the past 5 years PRTH reported 4 times negative net income.
In the past 5 years PRTH always reported a positive cash flow from operatings.
1.2 Ratios
PRTH has a Return On Assets of -0.42%. This is amonst the worse of the industry: PRTH underperforms 80.00% of its industry peers.
PRTH's Return On Invested Capital of 13.79% is amongst the best of the industry. PRTH outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRTH is below the industry average of 11.84%.
The 3 year average ROIC (9.37%) for PRTH is below the current ROIC(13.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | N/A | ||
| ROIC | 13.79% |
ROA(3y)-2.4%
ROA(5y)-0.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.37%
ROIC(5y)7.53%
1.3 Margins
PRTH's Operating Margin of 15.32% is in line compared to the rest of the industry. PRTH outperforms 53.00% of its industry peers.
PRTH's Operating Margin has improved in the last couple of years.
PRTH has a Gross Margin (37.72%) which is in line with its industry peers.
PRTH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.32% | ||
| PM (TTM) | N/A | ||
| GM | 37.72% |
OM growth 3Y33.32%
OM growth 5Y51.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.4%
GM growth 5Y3.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PRTH is still creating some value.
Compared to 1 year ago, PRTH has about the same amount of shares outstanding.
The number of shares outstanding for PRTH has been increased compared to 5 years ago.
Compared to 1 year ago, PRTH has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that PRTH is in the distress zone and has some risk of bankruptcy.
PRTH has a Altman-Z score (0.82) which is comparable to the rest of the industry.
The Debt to FCF ratio of PRTH is 17.55, which is on the high side as it means it would take PRTH, 17.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.55, PRTH is in line with its industry, outperforming 47.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.55 | ||
| Altman-Z | 0.82 |
ROIC/WACC1.36
WACC10.15%
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 48.00% 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.
PRTH has a Quick ratio (1.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
PRTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 144.44%, which is quite impressive.
The Revenue has grown by 15.76% in the past year. This is quite good.
The Revenue has been growing by 18.79% on average over the past years. This is quite good.
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 171.92% on average per year.
The Revenue is expected to grow by 10.58% on average over the next years. This is quite good.
EPS Next Y1324%
EPS Next 2Y307.42%
EPS Next 3Y171.92%
EPS Next 5YN/A
Revenue Next Year10.5%
Revenue Next 2Y10.42%
Revenue Next 3Y10.58%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.96, the valuation of PRTH can be described as expensive.
Based on the Price/Earnings ratio, PRTH is valued a bit more expensive than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, PRTH is valued at the same level.
Based on the Price/Forward Earnings ratio of 6.16, the valuation of PRTH can be described as very cheap.
82.00% of the companies in the same industry are more expensive than PRTH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, PRTH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.96 | ||
| Fwd PE | 6.16 |
4.2 Price Multiples
81.00% of the companies in the same industry are more expensive than PRTH, based on the Enterprise Value to EBITDA ratio.
72.00% of the companies in the same industry are more expensive than PRTH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.93 | ||
| EV/EBITDA | 7.45 |
4.3 Compensation for Growth
PRTH's 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 171.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y307.42%
EPS Next 3Y171.92%
5. Dividend
5.1 Amount
No dividends for PRTH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.19
-0.04 (-0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners22.78%
Inst Owner Change0%
Ins Owners66.21%
Ins Owner Change-1.54%
Market Cap573.40M
Analysts81.82
Price Target13.06 (81.64%)
Short Float %7.44%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.01
Dividend Growth(5Y)N/A
DP-886.02%
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)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)0%
EPS NY rev (3m)9.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.96 | ||
| Fwd PE | 6.16 | ||
| P/S | 0.64 | ||
| P/FCF | 10.93 | ||
| P/OCF | 6.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.45 |
EPS(TTM)0.24
EY3.34%
EPS(NY)1.17
Fwd EY16.24%
FCF(TTM)0.66
FCFY9.15%
OCF(TTM)1.04
OCFY14.47%
SpS11.27
BVpS-1.98
TBVpS-9.74
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | N/A | ||
| ROCE | 17.45% | ||
| ROIC | 13.79% | ||
| ROICexc | 14.67% | ||
| ROICexgc | 88.87% | ||
| OM | 15.32% | ||
| PM (TTM) | N/A | ||
| GM | 37.72% | ||
| FCFM | 5.84% |
ROA(3y)-2.4%
ROA(5y)-0.57%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.37%
ROIC(5y)7.53%
ROICexc(3y)9.95%
ROICexc(5y)7.94%
ROICexgc(3y)86.68%
ROICexgc(5y)70.44%
ROCE(3y)11.87%
ROCE(5y)9.53%
ROICexcg growth 3Y19.69%
ROICexcg growth 5Y70.07%
ROICexc growth 3Y61.69%
ROICexc growth 5Y57.1%
OM growth 3Y33.32%
OM growth 5Y51.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.4%
GM growth 5Y3.06%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.55 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 53.49% | ||
| Cap/Sales | 3.39% | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | 42.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 0.82 |
F-Score6
WACC10.15%
ROIC/WACC1.36
Cap/Depr(3y)44.79%
Cap/Depr(5y)57.07%
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 Y1324%
EPS Next 2Y307.42%
EPS Next 3Y171.92%
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 3Y10.58%
Revenue Next 5YN/A
EBIT growth 1Y48.64%
EBIT growth 3Y59.38%
EBIT growth 5Y79.45%
EBIT Next Year66.15%
EBIT Next 3Y28.59%
EBIT Next 5YN/A
FCF growth 1Y-8.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.36%
OCF growth 3Y109.3%
OCF growth 5Y16.92%