TSX:PBL

Stock Analysis Report

Executive Summary

Pollard Banknote Limited, together with its subsidiaries, provides lottery and gaming products and services worldwide.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Pollard Banknote's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.5%

TSX:PBL

-1.6%

CA Hospitality

1.2%

CA Market


1 Year Return

2.1%

TSX:PBL

-20.4%

CA Hospitality

-0.4%

CA Market

PBL outperformed the Hospitality industry which returned -17.4% over the past year.

PBL outperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

PBLIndustryMarket
7 Day-4.5%-1.6%1.2%
30 Day4.2%5.9%3.3%
90 Day-15.8%-4.5%0.8%
1 Year2.8%2.1%-19.9%-20.4%3.1%-0.4%
3 Year159.5%152.8%20.6%17.4%18.0%7.4%
5 Year368.1%339.8%-3.3%-6.1%22.0%4.5%

Price Volatility Vs. Market

How volatile is Pollard Banknote's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pollard Banknote undervalued based on future cash flows and its price relative to the stock market?

29.52x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Pollard Banknote's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Pollard Banknote's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Pollard Banknote is overvalued based on earnings compared to the CA Hospitality industry average.

Pollard Banknote is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Pollard Banknote is poor value based on expected growth next year.


Price Based on Value of Assets

Pollard Banknote is overvalued based on assets compared to the CA Hospitality industry average.


Next Steps

Future Growth

How is Pollard Banknote expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pollard Banknote's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

Pollard Banknote's earnings are expected to grow by 15.8% yearly, however this is not considered high growth (20% yearly).

Pollard Banknote's revenue growth is expected to exceed the Canada market average.

Pollard Banknote's earnings growth is expected to exceed the Canada market average.

Pollard Banknote's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Pollard Banknote is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Pollard Banknote performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pollard Banknote has delivered over 20% year on year earnings growth in the past 5 years.

Pollard Banknote's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Pollard Banknote's 1-year earnings growth is negative, it can't be compared to the CA Hospitality industry average.


Return on Equity

Pollard Banknote has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Pollard Banknote used its assets more efficiently than the CA Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Pollard Banknote's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pollard Banknote's financial position?


Financial Position Analysis

Pollard Banknote is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pollard Banknote's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pollard Banknote's level of debt (110%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (204.3% vs 110% today).

Debt is not well covered by operating cash flow (16.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

What is Pollard Banknote's current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Pollard Banknote before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Pollard Banknote's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.96%).

Pollard Banknote's dividend is below the markets top 25% of dividend payers in Canada (5.79%).

Pollard Banknote is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.

Pollard Banknote is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Pollard Banknote's dividends as it is not paying a notable one for Canada.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Pollard Banknote's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

John Pollard (57yo)

22.7yrs

Tenure

CA$342,106

Compensation

Mr. John S. Pollard, B.Comm., CA, has been the Co-Chief Executive Officer at Pollard Banknote Limited since 1997, which acts as general partner of Pollard Banknote Income Fund and Pollard Holdings Limited  ...


CEO Compensation Analysis

John's remuneration is lower than average for companies of similar size in Canada.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.3yrs

Average Tenure

57yo

Average Age

The average tenure for the Pollard Banknote management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.5yrs

Average Tenure

59yo

Average Age

The tenure for the Pollard Banknote board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCA$117,50007 Jun 19
Jennifer Westbury
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Customer Development
Shares5,000
Max PriceCA$23.50
SellCA$110,50004 Apr 19
Jennifer Westbury
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Customer Development
Shares5,000
Max PriceCA$22.10
BuyCA$34,82019 Mar 19
Pedro Melo
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Information Technology
Shares1,550
Max PriceCA$22.49
BuyCA$18,15019 Mar 19
Jennifer Westbury
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Customer Development
Shares5,000
Max PriceCA$3.63
SellCA$115,00013 Feb 19
Robert Young
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Operations
Shares5,000
Max PriceCA$23.00
SellCA$115,00011 Feb 19
Robert Young
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Operations
Shares5,000
Max PriceCA$23.00

Ownership Breakdown


Management Team

  • John Pollard (57yo)

    Co-CEO & Director

    • Tenure: 22.7yrs
    • Compensation: CA$342.11k
  • Riva Richard

    Executive VP of Legal Affairs

    • Tenure: 0yrs
    • Compensation: CA$416.33k
  • Rob Rose

    Executive VP of Finance & CFO

    • Tenure: 23.7yrs
    • Compensation: CA$440.34k
  • Jennifer Westbury

    Executive Vice President of Sales & Customer Development

    • Tenure: 0yrs
    • Compensation: CA$512.31k
  • Gordon Pollard (59yo)

    Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: CA$100.93k
  • Doug Pollard (48yo)

    Co-CEO & Director

    • Tenure: 14.7yrs
    • Compensation: CA$312.11k
  • Paul Franzmann

    Executive Vice President of Corporate Development

    • Tenure: 2.3yrs
  • Rob Young

    Executive Vice President of Operations

    • Tenure: 0yrs
    • Compensation: CA$493.11k
  • Pedro Melo

    Executive Vice President of Information Technology

    • Tenure: 2.2yrs

Board Members

  • Jerry Gray (76yo)

    Lead Director

    • Tenure: 2.5yrs
    • Compensation: CA$70.00k
  • Dave Brown (59yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$69.50k
  • Garry Leach (71yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: CA$67.00k
  • John Pollard (57yo)

    Co-CEO & Director

    • Tenure: 22.7yrs
    • Compensation: CA$342.11k
  • Gordon Pollard (59yo)

    Executive Chairman

    • Tenure: 8.3yrs
    • Compensation: CA$100.93k
  • Doug Pollard (48yo)

    Co-CEO & Director

    • Tenure: 14.7yrs
    • Compensation: CA$312.11k

Company Information

Pollard Banknote Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pollard Banknote Limited
  • Ticker: PBL
  • Exchange: TSX
  • Founded: 1907
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: CA$541.169m
  • Shares outstanding: 25.64m
  • Website: https://www.pollardbanknote.com

Number of Employees


Location

  • Pollard Banknote Limited
  • 140 Otter Street
  • Winnipeg
  • Manitoba
  • R3T 0M8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBLTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2005
PBKO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2005

Biography

Pollard Banknote Limited, together with its subsidiaries, provides lottery and gaming products and services worldwide. The company operates in two segments, Lotteries and Charitable Gaming, and Diamond Gam ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:52
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.