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Pendrell Corp
PCO : NASDAQ : Technology

$2.40 0.01 | 0.42%
Today's Range: 2.35 - 2.42
Avg. Daily Volume: 332,400
05/20/13 - 4:00 PM ET

Financial Analysis


PENDRELL CORP's gross profit margin for the first quarter of its fiscal year 2013 has significantly increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PENDRELL CORP is extremely liquid. Currently, the Quick Ratio is 14.34 which clearly shows the ability to cover any short-term cash needs. PCO managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 18.35% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.



Income Statement Q1 FY13 Q1 FY12
Net Sales ($mil)10.993.7
EBITDA ($mil)-8.87-6.17
EBIT ($mil)-12.65-8.94
Net Income ($mil)-12.37-1.84


Balance Sheet Q1 FY13 Q1 FY12
Cash & Equiv. ($mil)210.07208.62
Total Assets ($mil)394.88430.28
Total Debt ($mil)0.015.09
Equity ($mil)359.19303.49


Profitability Q1 FY13 Q1 FY12
Gross Profit Margin-80.66-166.8
EBITDA Margin-80.65-166.8
Operating Margin-115.11-241.58
Sales Turnover0.10.01
Return on Assets7.483.67
Return on Equity8.225.21
Debt Q1 FY13 Q1 FY12
Current Ratio14.474.53
Debt/Capital0.00.05
Interest Expense0.01.25
Interest Coverage0.0-7.15


Share Data Q1 FY13 Q1 FY12
Shares outstanding (mil)265.37260.86
Div / share0.00.0
EPS-0.05-0.01
Book value / share1.351.16
Institutional Own % n/a n/a
Avg Daily Volume330347.0378278.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 32.93 for the Professional Services industry and a value on par with the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.71 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 7.23. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, PENDRELL CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PCO 21.00 Peers 32.93   PCO 42.54 Peers 16.32

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

PCO is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PCO is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PCO NA Peers 19.59   PCO NA Peers 0.77

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PCO 1.71 Peers 7.23   PCO 83.33 Peers 22.84

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PCO is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

PCO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PCO 14.93 Peers 2.91   PCO 548.16 Peers 13.29

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PCO is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

PCO has a sales growth rate that significantly exceeds its peers.

 

 

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