PORTMAN RIDGE FINANCE CORP (PTMN) Stock Fundamental Analysis
NASDAQ:PTMN - Nasdaq - US73688F2011 - Common Stock - Currency: USD
Taking everything into account, PTMN scores 4 out of 10 in our fundamental rating. PTMN was compared to 229 industry peers in the Capital Markets industry. While PTMN seems to be doing ok healthwise, there are quite some concerns on its profitability. PTMN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PTMN had positive earnings in the past year.
In the past year PTMN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PTMN reported negative net income in multiple years.
PTMN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PTMN's Return On Assets of -1.31% is on the low side compared to the rest of the industry. PTMN is outperformed by 79.91% of its industry peers.
The Return On Equity of PTMN (-3.33%) is worse than 78.60% of its industry peers.
PTMN has a Return On Invested Capital (4.28%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PTMN is below the industry average of 7.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -3.33% | ||
| ROIC | 4.28% |
ROA(3y)-0.88%
ROA(5y)1.33%
ROE(3y)-2.35%
ROE(5y)3.37%
ROIC(3y)4.39%
ROIC(5y)4.14%
1.3 Margins
PTMN has a better Operating Margin (38.51%) than 67.25% of its industry peers.
PTMN's Operating Margin has improved in the last couple of years.
PTMN has a Gross Margin (48.18%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PTMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.51% | ||
| PM (TTM) | N/A | ||
| GM | 48.18% |
OM growth 3Y-9.79%
OM growth 5Y17.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.14%
GM growth 5Y-3.3%
2. Health
2.1 Basic Checks
The number of shares outstanding for PTMN has been reduced compared to 1 year ago.
The number of shares outstanding for PTMN has been increased compared to 5 years ago.
PTMN has a better debt/assets ratio than last year.
2.2 Solvency
PTMN has an Altman-Z score of -1.06. This is a bad value and indicates that PTMN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.06, PTMN is doing worse than 89.96% of the companies in the same industry.
PTMN has a debt to FCF ratio of 4.68. This is a neutral value as PTMN would need 4.68 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.68, PTMN is doing good in the industry, outperforming 65.50% of the companies in the same industry.
PTMN has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
PTMN's Debt to Equity ratio of 1.49 is on the low side compared to the rest of the industry. PTMN is outperformed by 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 4.68 | ||
| Altman-Z | -1.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PTMN has a Current Ratio of 1.89. This is a normal value and indicates that PTMN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PTMN (1.89) is better than 69.00% of its industry peers.
PTMN has a Quick Ratio of 1.89. This is a normal value and indicates that PTMN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.89, PTMN is in the better half of the industry, outperforming 69.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
PTMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.23%.
PTMN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.58% yearly.
Looking at the last year, PTMN shows a very negative growth in Revenue. The Revenue has decreased by -18.19% in the last year.
Measured over the past years, PTMN shows a quite strong growth in Revenue. The Revenue has been growing by 18.69% on average per year.
EPS 1Y (TTM)-30.23%
EPS 3Y-15.64%
EPS 5Y26.58%
EPS Q2Q%-29.85%
Revenue 1Y (TTM)-18.19%
Revenue growth 3Y-7.97%
Revenue growth 5Y18.69%
Sales Q2Q%-26.66%
3.2 Future
PTMN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.39% yearly.
The Revenue is expected to decrease by -0.47% on average over the next years.
EPS Next Y-4.84%
EPS Next 2Y-3.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.87%
Revenue Next 2Y-0.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.25, the valuation of PTMN can be described as very cheap.
PTMN's Price/Earnings ratio is rather cheap when compared to the industry. PTMN is cheaper than 93.89% of the companies in the same industry.
PTMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.05.
The Price/Forward Earnings ratio is 5.19, which indicates a rather cheap valuation of PTMN.
95.63% of the companies in the same industry are more expensive than PTMN, based on the Price/Forward Earnings ratio.
PTMN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.25 | ||
| Fwd PE | 5.19 |
4.2 Price Multiples
PTMN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PTMN is cheaper than 91.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.05 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PTMN's earnings are expected to decrease with -3.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-3.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PTMN has a Yearly Dividend Yield of 15.05%, which is a nice return.
In the last 3 months the price of PTMN has falen by -27.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 8.31, PTMN pays a better dividend. On top of this PTMN pays more dividend than 91.27% of the companies listed in the same industry.
PTMN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.05% |
5.2 History
The dividend of PTMN decreases each year by -0.97%.
PTMN has been paying a dividend for at least 10 years, so it has a reliable track record.
PTMN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.97%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
PTMN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of PTMN has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-425.58%
EPS Next 2Y-3.39%
EPS Next 3YN/A
12.6
-0.05 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners18.97%
Inst Owner Change-1.17%
Ins Owners2.32%
Ins Owner Change0%
Market Cap115.92M
Analysts80
Price Target17.21 (36.59%)
Short Float %1.62%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.05% |
Yearly Dividend2.72
Dividend Growth(5Y)-0.97%
DP-425.58%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.01%
Min EPS beat(2)-9.15%
Max EPS beat(2)-8.86%
EPS beat(4)0
Avg EPS beat(4)-6.57%
Min EPS beat(4)-9.15%
Max EPS beat(4)-0.06%
EPS beat(8)3
Avg EPS beat(8)4.38%
EPS beat(12)4
Avg EPS beat(12)-16.22%
EPS beat(16)7
Avg EPS beat(16)-2.35%
Revenue beat(2)0
Avg Revenue beat(2)-7.52%
Min Revenue beat(2)-8.47%
Max Revenue beat(2)-6.57%
Revenue beat(4)0
Avg Revenue beat(4)-7.65%
Min Revenue beat(4)-8.54%
Max Revenue beat(4)-6.57%
Revenue beat(8)2
Avg Revenue beat(8)-4.32%
Revenue beat(12)4
Avg Revenue beat(12)-2.44%
Revenue beat(16)8
Avg Revenue beat(16)4.52%
PT rev (1m)-2.88%
PT rev (3m)-7.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.25 | ||
| Fwd PE | 5.19 | ||
| P/S | 1.86 | ||
| P/FCF | 2.05 | ||
| P/OCF | 2.05 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.4
EY19.05%
EPS(NY)2.43
Fwd EY19.26%
FCF(TTM)6.16
FCFY48.86%
OCF(TTM)6.16
OCFY48.86%
SpS6.79
BVpS19.4
TBVpS19.4
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -3.33% | ||
| ROCE | 5.42% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.46% | ||
| ROICexgc | 4.47% | ||
| OM | 38.51% | ||
| PM (TTM) | N/A | ||
| GM | 48.18% | ||
| FCFM | 90.71% |
ROA(3y)-0.88%
ROA(5y)1.33%
ROE(3y)-2.35%
ROE(5y)3.37%
ROIC(3y)4.39%
ROIC(5y)4.14%
ROICexc(3y)4.55%
ROICexc(5y)4.3%
ROICexgc(3y)4.57%
ROICexgc(5y)4.32%
ROCE(3y)5.56%
ROCE(5y)5.25%
ROICexcg growth 3Y-7%
ROICexcg growth 5Y30.78%
ROICexc growth 3Y-6.89%
ROICexc growth 5Y30.8%
OM growth 3Y-9.79%
OM growth 5Y17.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.14%
GM growth 5Y-3.3%
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 4.68 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.21 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | -1.06 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.23%
EPS 3Y-15.64%
EPS 5Y26.58%
EPS Q2Q%-29.85%
EPS Next Y-4.84%
EPS Next 2Y-3.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-18.19%
Revenue growth 3Y-7.97%
Revenue growth 5Y18.69%
Sales Q2Q%-26.66%
Revenue Next Year-4.87%
Revenue Next 2Y-0.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-30.87%
EBIT growth 3Y-16.97%
EBIT growth 5Y39.75%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53.16%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-53.16%
OCF growth 3Y-2.5%
OCF growth 5YN/A