Pollard Banknote Limited Fundamental Analysis (TSX: PBL.TO)
Pollard Banknote Limited Fundamental Analysis (TSX: PBL.TO)
Pollard Banknote Limited (TSX: PBL.TO) shows weak financial fundamentals with a PE ratio of 17.88, profit margin of 4.48%, and ROE of 7.16%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 6.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PBL.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakPBL.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPBL.TO trades at attractive valuation levels.
Growth Score
ModeratePBL.TO shows steady but slowing expansion.
Financial Health Score
ExcellentPBL.TO maintains a strong and stable balance sheet.
Profitability Score
WeakPBL.TO struggles to sustain strong margins.
Key Financial Metrics
Is PBL.TO Expensive or Cheap?
P/E Ratio
PBL.TO trades at 17.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PBL.TO's PEG of -0.72 indicates potential undervaluation.
Price to Book
The market values Pollard Banknote Limited at 1.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.22 times EBITDA. This is generally considered low.
How Well Does PBL.TO Make Money?
Net Profit Margin
For every $100 in sales, Pollard Banknote Limited keeps $4.48 as profit after all expenses.
Operating Margin
Core operations generate -1.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.16 in profit for every $100 of shareholder equity.
ROA
Pollard Banknote Limited generates $3.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pollard Banknote Limited produces operating cash flow of $82.45M, showing steady but balanced cash generation.
Free Cash Flow
Pollard Banknote Limited produces free cash flow of $45.83M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.69 in free cash annually.
FCF Yield
PBL.TO converts 9.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How PBL.TO Stacks Against Its Sector Peers
| Metric | PBL.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.88 | 25.68 | Better (Cheaper) |
| ROE | 7.16% | 970.00% | Weak |
| Net Margin | 4.48% | -4902.00% (disorted) | Weak |
| Debt/Equity | 0.50 | 0.60 | Neutral |
| Current Ratio | 1.71 | 2.33 | Neutral |
| ROA | 3.57% | 321.00% | Weak |
PBL.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pollard Banknote Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.35%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-1.38%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
32.36%
Industry Style: Cyclical, Growth, Discretionary
High Growth