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.

Maple Leaf Foods, Inc.

Premium Brands Holdings Corp.

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

Healthy long term growth as Net Sales has grown by an annual rate of 13.63%

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

NET PROFIT(9M) At CAD 31.38 MM has Grown at -48.95%
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 attractive valuation with a 1.93 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 -11.51%, its profits have fallen by -49.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.51% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Premium Brands Holdings Corp. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Premium Brands Holdings Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Premium Brands Holdings Corp.

-7.38%

-0.34

28.25%

S&P/TSX 60

29.63%

2.33

12.07%

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)

2.30

Debt to EBITDA (avg)

4.43

Net Debt to Equity (avg)

1.46

Sales to Capital Employed (avg)

1.61

Tax Ratio

25.37%

Dividend Payout Ratio

375.28%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

8.04%

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

1.93

EV to EBIT

17.64

EV to EBITDA

11.48

EV to Capital Employed

1.41

EV to Sales

0.94

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

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 358.32

DEBT-EQUITY RATIO (HY)

Lowest at 153.29 %

NET SALES(Q)

Highest at CAD 2,375.7 MM

OPERATING PROFIT(Q)

Highest at CAD 208.9 MM

OPERATING PROFIT MARGIN(Q)

Highest at 8.79 %

PRE-TAX PROFIT(Q)

Highest at CAD 67.9 MM

EPS(Q)

Highest at CAD 1.36

-6What is not working for the Company

ROCE(HY)

Lowest at 1.63%

RAW MATERIAL COST(Y)

Grown by 6.85% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.85 times

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

Interest Coverage Ratio

Highest at 358.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CAD 2,375.7 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 208.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 8.79 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 67.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

EPS

Highest at CAD 1.36

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at 153.29 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at CAD 65.5 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.

Inventory Turnover Ratio

Lowest at 5.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.85% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales