Pershing Square Inc. Fundamental Analysis (NYSE: PS)
Pershing Square Inc. (NYSE: PS) shows weak financial fundamentals with a PE ratio of 1155.25, profit margin of 2.09%, and ROE of 1.30%. The company generates $0.8B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PS's fundamental strength across five key dimensions:
Efficiency Score
WeakPS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePS shows balanced valuation metrics.
Growth Score
WeakPS faces weak or negative growth trends.
Financial Health Score
ModeratePS shows balanced financial health with some risks.
Profitability Score
ModeratePS maintains healthy but balanced margins.
Key Financial Metrics
Is PS Expensive or Cheap?
P/E Ratio
PS trades at 1155.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PS's PEG of -12.87 indicates potential undervaluation.
Price to Book
The market values Pershing Square Inc. at 13.58 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -244.63 times EBITDA. This is generally considered low.
How Well Does PS Make Money?
Net Profit Margin
For every $100 in sales, Pershing Square Inc. keeps $2.09 as profit after all expenses.
Operating Margin
Core operations generate 6.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.30 in profit for every $100 of shareholder equity.
ROA
Pershing Square Inc. generates $0.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pershing Square Inc. produces operating cash flow of $142.03M, showing steady but balanced cash generation.
Free Cash Flow
Pershing Square Inc. generates strong free cash flow of $141.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.35 in free cash annually.
FCF Yield
PS converts 0.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1155.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
24.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How PS Stacks Against Its Sector Peers
| Metric | PS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1155.25 | 20.18 | Worse (Expensive) |
| ROE | 1.30% | 630.00% | Weak |
| Net Margin | 2.09% | 33.00% | Weak |
| Debt/Equity | 0.19 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 802.49 | Weak Liquidity |
| ROA | 0.89% | 320.00% | Weak |
PS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pershing Square Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
Declining