PharmChem, Inc.
PharmChem, Inc. Fundamental Analysis
PharmChem, Inc. (PCHM) shows moderate financial fundamentals with a PE ratio of 30.42, profit margin of 18.36%, and ROE of 24.94%. The company generates $0.0B in annual revenue with weak year-over-year growth of 1.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PCHM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPCHM demonstrates superior asset utilization.
Valuation Score
WeakPCHM trades at a premium to fair value.
Growth Score
ModeratePCHM shows steady but slowing expansion.
Financial Health Score
ExcellentPCHM maintains a strong and stable balance sheet.
Profitability Score
ExcellentPCHM achieves industry-leading margins.
Key Financial Metrics
Is PCHM Expensive or Cheap?
P/E Ratio
PCHM trades at 30.42 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PCHM's PEG of 2.94 indicates potential overvaluation.
Price to Book
The market values PharmChem, Inc. at 7.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.07 times EBITDA. This signals the market has high growth expectations.
How Well Does PCHM Make Money?
Net Profit Margin
For every $100 in sales, PharmChem, Inc. keeps $18.36 as profit after all expenses.
Operating Margin
Core operations generate 23.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.94 in profit for every $100 of shareholder equity.
ROA
PharmChem, Inc. generates $18.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PharmChem, Inc. generates strong operating cash flow of $1.01M, reflecting robust business health.
Free Cash Flow
PharmChem, Inc. generates strong free cash flow of $993.97K, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
PCHM converts 3.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How PCHM Stacks Against Its Sector Peers
| Metric | PCHM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.42 | 28.45 | Neutral |
| ROE | 24.94% | 763.00% | Weak |
| Net Margin | 18.36% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 4.70 | 2795.60 | Strong Liquidity |
| ROA | 18.52% | -16588.00% (disorted) | Strong |
PCHM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PharmChem, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.38%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
1.23%
Industry Style: Defensive, Growth, Innovation
GrowingFCF CAGR
-9.30%
Industry Style: Defensive, Growth, Innovation
Declining