PUBMATIC INC-CLASS A (PUBM)
US74467Q1031 - Common Stock
We assign a fundamental rating of 5 out of 10 to PUBM. PUBM was compared to 96 industry peers in the Media industry. PUBM has an average financial health and profitability rating. PUBM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PUBM was profitable.
In the past year PUBM had a positive cash flow from operations.
In the past 5 years PUBM has always been profitable.
In the past 5 years PUBM always reported a positive cash flow from operatings.
1.2 Ratios
PUBM has a Return On Assets of 1.28%. This is comparable to the rest of the industry: PUBM outperforms 60.00% of its industry peers.
PUBM's Return On Equity of 3.00% is fine compared to the rest of the industry. PUBM outperforms 67.37% of its industry peers.
PUBM has a Return On Invested Capital of 0.52%. This is in the lower half of the industry: PUBM underperforms 64.21% of its industry peers.
PUBM had an Average Return On Invested Capital over the past 3 years of 8.94%. This is in line with the industry average of 7.68%.
The 3 year average ROIC (8.94%) for PUBM is well above the current ROIC(0.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 3% | ||
| ROIC | 0.52% |
ROA(3y)5.34%
ROA(5y)3.59%
ROE(3y)11.4%
ROE(5y)7.65%
ROIC(3y)8.94%
ROIC(5y)9.75%
1.3 Margins
PUBM has a Profit Margin of 3.33%. This is in the better half of the industry: PUBM outperforms 66.32% of its industry peers.
In the last couple of years the Profit Margin of PUBM has declined.
PUBM has a worse Operating Margin (0.76%) than 66.32% of its industry peers.
In the last couple of years the Operating Margin of PUBM has declined.
The Gross Margin of PUBM (62.83%) is better than 74.74% of its industry peers.
In the last couple of years the Gross Margin of PUBM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.76% | ||
| PM (TTM) | 3.33% | ||
| GM | 62.83% |
OM growth 3Y-67.09%
OM growth 5Y-31.44%
PM growth 3Y-8.23%
PM growth 5YN/A
GM growth 3Y-4.59%
GM growth 5Y-1.7%
2. Health
2.1 Basic Checks
PUBM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PUBM has less shares outstanding
Compared to 5 years ago, PUBM has more shares outstanding
The debt/assets ratio for PUBM has been reduced compared to a year ago.
2.2 Solvency
PUBM has an Altman-Z score of 2.72. This is not the best score and indicates that PUBM is in the grey zone with still only limited risk for bankruptcy at the moment.
PUBM's Altman-Z score of 2.72 is fine compared to the rest of the industry. PUBM outperforms 75.79% of its industry peers.
PUBM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.06
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.48 indicates that PUBM should not have too much problems paying its short term obligations.
PUBM's Current ratio of 1.48 is in line compared to the rest of the industry. PUBM outperforms 46.32% of its industry peers.
A Quick Ratio of 1.48 indicates that PUBM should not have too much problems paying its short term obligations.
PUBM's Quick ratio of 1.48 is in line compared to the rest of the industry. PUBM outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
PUBM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.27%.
PUBM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.28% yearly.
Looking at the last year, PUBM shows a small growth in Revenue. The Revenue has grown by 4.15% in the last year.
Measured over the past years, PUBM shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
EPS 1Y (TTM)-77.27%
EPS 3Y-25.28%
EPS 5YN/A
EPS growth Q2Q54.55%
Revenue 1Y (TTM)4.15%
Revenue growth 3Y21.55%
Revenue growth 5Y21.88%
Revenue growth Q2Q13.86%
3.2 Future
PUBM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.27% yearly.
PUBM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.96% yearly.
EPS Next Y29.88%
EPS Next 2Y50.4%
EPS Next 3Y50.27%
EPS Next 5YN/A
Revenue Next Year13.31%
Revenue Next 2Y12.07%
Revenue Next 3Y12.62%
Revenue Next 5Y10.96%
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.
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
The Price/Earnings ratio is 156.20, which means the current valuation is very expensive for PUBM.
PUBM's Price/Earnings ratio is in line with the industry average.
PUBM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 120.26, which means the current valuation is very expensive for PUBM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PUBM indicates a slightly more expensive valuation: PUBM is more expensive than 62.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, PUBM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 156.2 | ||
| Fwd PE | 120.26 |
4.2 Price Multiples
PUBM's Enterprise Value to EBITDA is on the same level as the industry average.
PUBM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 18.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as PUBM's earnings are expected to grow with 50.27% in the coming years.
PEG (NY)5.23
PEG (5Y)N/A
EPS Next 2Y50.4%
EPS Next 3Y50.27%
5. Dividend
5.1 Amount
PUBM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PUBMATIC INC-CLASS A
NASDAQ:PUBM (5/3/2024, 7:14:02 PM)
After market: 23.07 -0.36 (-1.54%)23.43
+0.32 (+1.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 156.2 | ||
| Fwd PE | 120.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.76% | ||
| PM (TTM) | 3.33% | ||
| GM | 62.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-77.27%
EPS 3Y-25.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.15%
Revenue growth 3Y21.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 5Y