Priority Technology Holdings, Inc.
Priority Technology Holdings, Inc. Fundamental Analysis
Priority Technology Holdings, Inc. (PRTHU) shows moderate financial fundamentals with a PE ratio of 8.43, profit margin of 5.85%, and ROE of -37.55%. The company generates $0.9B in annual revenue with strong year-over-year growth of 16.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 101.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze PRTHU's fundamental strength across five key dimensions:
Efficiency Score
WeakPRTHU struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPRTHU trades at attractive valuation levels.
Growth Score
ExcellentPRTHU delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPRTHU maintains a strong and stable balance sheet.
Profitability Score
WeakPRTHU struggles to sustain strong margins.
Key Financial Metrics
Is PRTHU Expensive or Cheap?
P/E Ratio
PRTHU trades at 8.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PRTHU's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Priority Technology Holdings, Inc. at -4.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.40 times EBITDA. This is generally considered low.
How Well Does PRTHU Make Money?
Net Profit Margin
For every $100 in sales, Priority Technology Holdings, Inc. keeps $5.85 as profit after all expenses.
Operating Margin
Core operations generate 15.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-37.55 in profit for every $100 of shareholder equity.
ROA
Priority Technology Holdings, Inc. generates $2.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Priority Technology Holdings, Inc. generates limited operating cash flow of $85.57M, signaling weaker underlying cash strength.
Free Cash Flow
Priority Technology Holdings, Inc. produces free cash flow of $62.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.79 in free cash annually.
FCF Yield
PRTHU converts 13.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-9.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.38
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How PRTHU Stacks Against Its Sector Peers
| Metric | PRTHU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.43 | 35.62 | Better (Cheaper) |
| ROE | -37.55% | 1160.00% | Weak |
| Net Margin | 5.85% | -136515.00% (disorted) | Weak |
| Debt/Equity | -9.13 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 1.06 | 4.79 | Neutral |
| ROA | 2.46% | -311498.00% (disorted) | Weak |
PRTHU outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Priority Technology Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
103.49%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
161.50%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
87.07%
Industry Style: Growth, Innovation, High Beta
High Growth