Pershing Square Holdings, Ltd.
Pershing Square Holdings, Ltd. Fundamental Analysis
Pershing Square Holdings, Ltd. (PSHZF) shows moderate financial fundamentals with a PE ratio of 8.23, profit margin of 73.58%, and ROE of 8.80%. The company generates $1.6B in annual revenue with weak year-over-year growth of 1.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 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 PSHZF's fundamental strength across five key dimensions:
Efficiency Score
WeakPSHZF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPSHZF trades at attractive valuation levels.
Growth Score
WeakPSHZF faces weak or negative growth trends.
Financial Health Score
ExcellentPSHZF maintains a strong and stable balance sheet.
Profitability Score
WeakPSHZF struggles to sustain strong margins.
Key Financial Metrics
Is PSHZF Expensive or Cheap?
P/E Ratio
PSHZF trades at 8.23 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PSHZF's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Pershing Square Holdings, Ltd. at 0.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.00 times EBITDA. This is generally considered low.
How Well Does PSHZF Make Money?
Net Profit Margin
For every $100 in sales, Pershing Square Holdings, Ltd. keeps $73.58 as profit after all expenses.
Operating Margin
Core operations generate 79.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.80 in profit for every $100 of shareholder equity.
ROA
Pershing Square Holdings, Ltd. generates $6.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pershing Square Holdings, Ltd. generates limited operating cash flow of $-849.90M, signaling weaker underlying cash strength.
Free Cash Flow
Pershing Square Holdings, Ltd. generates weak or negative free cash flow of $-849.90M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.74 in free cash annually.
FCF Yield
PSHZF converts -8.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.002
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
23.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PSHZF Stacks Against Its Sector Peers
| Metric | PSHZF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.23 | 18.50 | Better (Cheaper) |
| ROE | 8.80% | 809.00% | Weak |
| Net Margin | 73.58% | 2211.00% | Weak |
| Debt/Equity | 0.21 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 23.67 | 691.82 | Strong Liquidity |
| ROA | 6.53% | -24320.00% (disorted) | Weak |
PSHZF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pershing Square Holdings, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-23.82%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-24.25%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-109.46%
Industry Style: Value, Dividend, Cyclical
Declining