Premium Brands Holdings Corp. (PBH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

High Liner Foods, Inc.

Rogers Sugar, Inc.

Lassonde Industries, Inc.

Premium Brands Holdings Corp.

Maple Leaf Foods, Inc.

Blender Bites Ltd.

Else Nutrition Holdings, Inc.

Burcon NutraScience Corp.

Planet Based Foods Global, Inc.

Vice Health & Wellness, Inc.

DLC Holdings Corp.

Why is Premium Brands Holdings Corp. ?

Poor Management Efficiency with a low ROCE of 7.75%

The company has been able to generate a Return on Capital Employed (avg) of 7.75% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.14% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At CAD 31.38 MM has Grown at -51.74%
OPERATING CASH FLOW(Y) Lowest at CAD 36.9 MM
ROCE(HY) Lowest at 2.16%

With ROE of 2.63%, it has a very expensive valuation with a 2.00 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.73%, its profits have fallen by -49.2%

Underperformed the market in the last 1 year

The stock has generated a return of 7.73% in the last 1 year, much lower than market (S&P/TSX 60) returns of 29.60%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Premium Brands Holdings Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Premium Brands Holdings Corp.

7.73%

-0.19

25.02%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.63%

EBIT Growth (5y)

15.41%

EBIT to Interest (avg)

2.59

Debt to EBITDA (avg)

4.35

Net Debt to Equity (avg)

1.46

Sales to Capital Employed (avg)

1.61

Tax Ratio

21.83%

Dividend Payout Ratio

375.28%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

7.75%

ROE (avg)

7.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.00

EV to EBIT

18.02

EV to EBITDA

11.74

EV to Capital Employed

1.44

EV to Sales

0.96

PEG Ratio

Dividend Yield

ROCE (Latest)

8.00%

ROE (Latest)

2.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,509.77%

DEBTORS TURNOVER RATIO(HY)

Highest at 14.5 times

NET SALES(Q)

Highest at CAD 2,051 MM

-13What is not working for the Company

NET PROFIT(9M)

At CAD 31.38 MM has Grown at -51.74%

OPERATING CASH FLOW(Y)

Lowest at CAD 36.9 MM

ROCE(HY)

Lowest at 2.16%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.47 times

INTEREST(Q)

Highest at CAD 57.9 MM

Here's what is working for Premium Brands Holdings Corp.

Debtors Turnover Ratio

Highest at 14.5 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 1,509.77% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at CAD 2,051 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Depreciation

Highest at CAD 64 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Premium Brands Holdings Corp.

Net Profit

At CAD 31.38 MM has Grown at -51.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 36.9 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

Highest at CAD 57.9 MM

in the last five periods and Increased by 6.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Inventory Turnover Ratio

Lowest at 5.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio