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. PRTH has a medium profitability rating, but doesn't score so well on its financial health evaluation. PRTH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRTH had negative 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.
Each year in the past 5 years PRTH had a positive operating cash flow.
1.2 Ratios
PRTH has a worse Return On Assets (-1.31%) than 80.20% of its industry peers.
The Return On Invested Capital of PRTH (13.60%) is better than 89.11% of its industry peers.
PRTH had an Average Return On Invested Capital over the past 3 years of 9.34%. This is below the industry average of 11.85%.
The 3 year average ROIC (9.34%) for PRTH is below the current ROIC(13.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | N/A | ||
| ROIC | 13.6% |
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
Looking at the Operating Margin, with a value of 15.17%, PRTH is in line with its industry, outperforming 47.52% of the companies in the same industry.
PRTH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.29%, PRTH is in line with its industry, outperforming 54.46% of the companies in the same industry.
PRTH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.17% | ||
| PM (TTM) | N/A | ||
| GM | 37.29% |
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
PRTH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PRTH has more shares outstanding
Compared to 5 years ago, PRTH has more shares outstanding
PRTH has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 0.82, PRTH perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
The Debt to FCF ratio of PRTH is 17.42, which is on the high side as it means it would take PRTH, 17.42 years of fcf income to pay off all of its debts.
PRTH has a Debt to FCF ratio (17.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.42 | ||
| Altman-Z | 0.82 |
ROIC/WACC1.19
WACC11.47%
2.3 Liquidity
PRTH has a Current Ratio of 1.05. 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 (1.05) which is in line with its industry peers.
PRTH has a Quick Ratio of 1.05. 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 (1.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 86.44% over the past year.
PRTH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.43%.
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)86.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%250%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y19.55%
Revenue growth 5Y18.79%
Sales Q2Q%13.94%
3.2 Future
The Earnings Per Share is expected to grow by 309.37% on average over the next years. This is a very strong growth
PRTH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.58% yearly.
EPS Next Y1222%
EPS Next 2Y309.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.66%
Revenue Next 2Y10.58%
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
PRTH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 8.09 indicates a reasonable valuation of PRTH.
66.34% 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 21.20, PRTH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRTH is valued a bit cheaper than 76.24% of the companies in the same industry.
PRTH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PRTH is cheaper than 74.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 7.61 |
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 PRTH's earnings are expected to grow with 309.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y309.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PRTH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.26
-0.11 (-1.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners14.01%
Inst Owner Change0.47%
Ins Owners62.91%
Ins Owner Change-5.83%
Market Cap577.32M
Analysts81.82
Price Target13.46 (85.4%)
Short Float %5.28%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend1.01
Dividend Growth(5Y)N/A
DP-326.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)283.47%
Min EPS beat(2)152.1%
Max EPS beat(2)414.84%
EPS beat(4)2
Avg EPS beat(4)71.28%
Min EPS beat(4)-275.82%
Max EPS beat(4)414.84%
EPS beat(8)2
Avg EPS beat(8)29.08%
EPS beat(12)2
Avg EPS beat(12)-306.19%
EPS beat(16)4
Avg EPS beat(16)-290.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-4.02%
Max Revenue beat(4)0.11%
Revenue beat(8)2
Avg Revenue beat(8)-1.54%
Revenue beat(12)5
Avg Revenue beat(12)-0.74%
Revenue beat(16)8
Avg Revenue beat(16)0.22%
PT rev (1m)-8.97%
PT rev (3m)-2.22%
EPS NQ rev (1m)8%
EPS NQ rev (3m)86.2%
EPS NY rev (1m)3.94%
EPS NY rev (3m)51.07%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.09 | ||
| P/S | 0.66 | ||
| P/FCF | 10.81 | ||
| P/OCF | 6.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.61 |
EPS(TTM)-0.08
EYN/A
EPS(NY)0.9
Fwd EY12.36%
FCF(TTM)0.67
FCFY9.25%
OCF(TTM)1.08
OCFY14.83%
SpS11.06
BVpS-2.1
TBVpS-9.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | N/A | ||
| ROCE | 17.21% | ||
| ROIC | 13.6% | ||
| ROICexc | 14.71% | ||
| ROICexgc | 105.8% | ||
| OM | 15.17% | ||
| PM (TTM) | N/A | ||
| GM | 37.29% | ||
| FCFM | 6.07% |
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-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 17.42 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 55.45% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | 44.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 0.82 |
F-Score7
WACC11.47%
ROIC/WACC1.19
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)86.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%250%
EPS Next Y1222%
EPS Next 2Y309.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.43%
Revenue growth 3Y19.55%
Revenue growth 5Y18.79%
Sales Q2Q%13.94%
Revenue Next Year10.66%
Revenue Next 2Y10.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.83%
EBIT growth 3Y59.15%
EBIT growth 5Y79.3%
EBIT Next Year66.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.36%
OCF growth 3Y108.98%
OCF growth 5Y16.81%