POWERSCHOOL HOLDINGS INC-A (PWSC) Stock Fundamental Analysis
USA - NYSE:PWSC - US73939C1062 - Common Stock
22.81 USD
-0.04 (-0.18%)
22.82 USD
+0.01 (+0.04%)
Taking everything into account, PWSC scores 3 out of 10 in our fundamental rating. PWSC was compared to 279 industry peers in the Software industry. Both the profitability and financial health of PWSC have multiple concerns. PWSC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PWSC had positive earnings in the past year.
PWSC had a positive operating cash flow in the past year.
PWSC had negative earnings in each of the past 5 years.
In the past 5 years PWSC always reported a positive cash flow from operatings.
1.2 Ratios
PWSC has a Return On Assets (-1.48%) which is in line with its industry peers.
The Return On Equity of PWSC (-4.32%) is comparable to the rest of the industry.
PWSC's Return On Invested Capital of 0.35% is fine compared to the rest of the industry. PWSC outperforms 64.54% of its industry peers.
PWSC had an Average Return On Invested Capital over the past 3 years of 0.41%. This is significantly below the industry average of 11.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -4.32% | ||
| ROIC | 0.35% |
ROA(3y)-0.79%
ROA(5y)-1.33%
ROE(3y)-2.27%
ROE(5y)-2.97%
ROIC(3y)0.41%
ROIC(5y)N/A
1.3 Margins
PWSC has a better Operating Margin (2.05%) than 65.96% of its industry peers.
In the last couple of years the Operating Margin of PWSC has declined.
With a Gross Margin value of 58.82%, PWSC is not doing good in the industry: 62.06% of the companies in the same industry are doing better.
PWSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.05% | ||
| PM (TTM) | N/A | ||
| GM | 58.82% |
OM growth 3Y-10.66%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.99%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWSC is destroying value.
The number of shares outstanding for PWSC has been increased compared to 1 year ago.
PWSC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that PWSC is in the distress zone and has some risk of bankruptcy.
PWSC has a worse Altman-Z score (1.12) than 62.06% of its industry peers.
PWSC has a debt to FCF ratio of 12.08. This is a negative value and a sign of low solvency as PWSC would need 12.08 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.08, PWSC perfoms like the industry average, outperforming 48.58% of the companies in the same industry.
PWSC has a Debt/Equity ratio of 0.77. This is a neutral value indicating PWSC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, PWSC is not doing good in the industry: 71.99% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.08 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.03
WACC10.25%
2.3 Liquidity
PWSC has a Current Ratio of 0.28. This is a bad value and indicates that PWSC is not financially healthy enough and could expect problems in meeting its short term obligations.
PWSC has a Current ratio of 0.28. This is amonst the worse of the industry: PWSC underperforms 96.81% of its industry peers.
A Quick Ratio of 0.28 indicates that PWSC may have some problems paying its short term obligations.
PWSC has a Quick ratio of 0.28. This is amonst the worse of the industry: PWSC underperforms 96.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for PWSC have decreased by -8.99% in the last year.
The Revenue has grown by 12.79% in the past year. This is quite good.
The Revenue has been growing by 17.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y17.06%
Revenue growth 5YN/A
Sales Q2Q%10.18%
3.2 Future
PWSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.
PWSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
EPS Next Y14.16%
EPS Next 2Y18.27%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue Next Year12.84%
Revenue Next 2Y11.67%
Revenue Next 3Y11.4%
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
A Price/Earnings ratio of 28.16 indicates a quite expensive valuation of PWSC.
PWSC's Price/Earnings ratio is a bit cheaper when compared to the industry. PWSC is cheaper than 73.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of PWSC to the average of the S&P500 Index (27.29), we can say PWSC is valued inline with the index average.
The Price/Forward Earnings ratio is 19.89, which indicates a rather expensive current valuation of PWSC.
Based on the Price/Forward Earnings ratio, PWSC is valued a bit cheaper than the industry average as 79.08% of the companies are valued more expensively.
PWSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PWSC indicates a somewhat cheap valuation: PWSC is cheaper than 71.63% of the companies listed in the same industry.
PWSC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.03 | ||
| EV/EBITDA | 35.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PWSC's earnings are expected to grow with 16.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y18.27%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
No dividends for PWSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.81
-0.04 (-0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners61.59%
Inst Owner Change-36.97%
Ins Owners0.19%
Ins Owner Change0%
Market Cap4.66B
Analysts72.86
Price Target25.32 (11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.21%
Min EPS beat(2)-19.52%
Max EPS beat(2)-6.91%
EPS beat(4)1
Avg EPS beat(4)-7.62%
Min EPS beat(4)-19.91%
Max EPS beat(4)15.86%
EPS beat(8)3
Avg EPS beat(8)-0.79%
EPS beat(12)6
Avg EPS beat(12)8.5%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)-1.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)2
Avg Revenue beat(12)-1.17%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.86%
PT rev (3m)3.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 19.89 | ||
| P/S | 6.29 | ||
| P/FCF | 56.03 | ||
| P/OCF | 36.91 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.29 |
EPS(TTM)0.81
EY3.55%
EPS(NY)1.15
Fwd EY5.03%
FCF(TTM)0.41
FCFY1.78%
OCF(TTM)0.62
OCFY2.71%
SpS3.63
BVpS6.31
TBVpS-11.06
PEG (NY)1.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -4.32% | ||
| ROCE | 0.47% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.36% | ||
| ROICexgc | N/A | ||
| OM | 2.05% | ||
| PM (TTM) | N/A | ||
| GM | 58.82% | ||
| FCFM | 11.23% |
ROA(3y)-0.79%
ROA(5y)-1.33%
ROE(3y)-2.27%
ROE(5y)-2.97%
ROIC(3y)0.41%
ROIC(5y)N/A
ROICexc(3y)0.42%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)0.52%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y0.35%
ROICexc growth 5YN/A
OM growth 3Y-10.66%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.99%
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.08 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 30.89% | ||
| Cap/Sales | 5.81% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 81.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.12 |
F-Score4
WACC10.25%
ROIC/WACC0.03
Cap/Depr(3y)34.47%
Cap/Depr(5y)35.58%
Cap/Sales(3y)6.72%
Cap/Sales(5y)7.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y14.16%
EPS Next 2Y18.27%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue 1Y (TTM)12.79%
Revenue growth 3Y17.06%
Revenue growth 5YN/A
Sales Q2Q%10.18%
Revenue Next Year12.84%
Revenue Next 2Y11.67%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
EBIT growth 1Y-19.97%
EBIT growth 3Y4.59%
EBIT growth 5YN/A
EBIT Next Year44.79%
EBIT Next 3Y23.92%
EBIT Next 5YN/A
FCF growth 1Y15.54%
FCF growth 3Y30.83%
FCF growth 5YN/A
OCF growth 1Y11.04%
OCF growth 3Y23.99%
OCF growth 5YN/A