TSXV:PRH

Stock Analysis Report

Pearl River Holdings

Executive Summary

Pearl River Holdings Limited, through its subsidiaries, manufactures and distributes plastic products in the People’s Republic of China, Australia, and the United States.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Share Price & News

How has Pearl River Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-34.0%

PRH

-3.0%

CA Chemicals

0.1%

CA Market


1 Year Return

-26.7%

PRH

-17.5%

CA Chemicals

1.6%

CA Market

Return vs Industry: PRH underperformed the Canadian Chemicals industry which returned -17.5% over the past year.

Return vs Market: PRH underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

PRHIndustryMarket
7 Day-34.0%-3.0%0.1%
30 Day-34.0%-5.9%-2.9%
90 Dayn/a-5.4%-1.4%
1 Year-26.7%-26.7%-14.7%-17.5%5.2%1.6%
3 Year-29.8%-29.8%-10.5%-15.7%13.8%3.7%
5 Year-17.5%-17.5%-24.8%-32.3%25.3%7.2%

Price Volatility Vs. Market

How volatile is Pearl River Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pearl River Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PRH (CA$0.17) is trading below our estimate of fair value (CA$6.14)

Significantly Undervalued: PRH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRH is good value based on its PE Ratio (5x) compared to the Chemicals industry average (14.4x).

PE vs Market: PRH is good value based on its PE Ratio (5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PRH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRH is good value based on its PB Ratio (0.4x) compared to the CA Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Pearl River Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRH's forecast earnings growth (10.7% per year) is above the savings rate (1.9%).

Earnings vs Market: PRH's earnings (10.7% per year) are forecast to grow slower than the Canadian market (13.2% per year).

High Growth Earnings: PRH's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if PRH's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if PRH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PRH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pearl River Holdings performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PRH's earnings have declined by -21.5% per year over the past 5 years.

Accelerating Growth: PRH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PRH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-25.7%).


Return on Equity

High ROE: PRH's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: PRH's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: PRH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pearl River Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PRH's short term assets (CN¥111.1M) exceeds its short term liabilities (CN¥84.8M)

Long Term Liabilities: PRH's short term assets (111.1M) exceeds its long term liabilities (4.1M)


Debt to Equity History and Analysis

Debt Level: PRH's debt to equity ratio (8.1%) is considered satisfactory

Reducing Debt: PRH's debt to equity ratio has reduced from 11% to 8.1% over the past 5 years.

Debt Coverage: PRH's debt is well covered by operating cash flow (230%).

Interest Coverage: PRH's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

Inventory Level: PRH has a high level of physical assets or inventory.

Debt Coverage by Assets: PRH's debt is covered by short term assets (assets are 13.891610x debt).


Next Steps

Dividend

What is Pearl River Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PRH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PRH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PRH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRH's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Pearl River Holdings's salary, the management and board of directors tenure and is there insider trading?

18.9yrs

Average board tenure


CEO

George Lunick (60yo)

24.4yrs

Tenure

CN¥3,261

Compensation

Mr. George W. Lunick has been the Chief Executive Officer, President, Chief Financial Officer and Secretary of Carrington Acquisition Corp. since July 2005. Mr. Lunick has been the Chief Executive Officer  ...


Board Age and Tenure

18.9yrs

Average Tenure

Experienced Board: PRH's board of directors are seasoned and experienced ( 18.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥50011 Dec 18
George Lunick
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares4,000
Max PriceCN¥0.13

Ownership Breakdown


Management Team

  • George Lunick (60yo)

    CEO, President & Director

    • Tenure: 24.4yrs
    • Compensation: CN¥3.26k
  • Anne Dang

    Chief Financial Officer

    • Tenure: 7.5yrs

Board Members

  • George Lunick (60yo)

    CEO, President & Director

    • Tenure: 24.4yrs
    • Compensation: CN¥3.26k
  • Jim Filer

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: CN¥2.00k
  • Jorge Ruiz

    Chairman of the Board

    • Tenure: 2.5yrs

Company Information

Pearl River Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pearl River Holdings Limited
  • Ticker: PRH
  • Exchange: TSXV
  • Founded: 1994
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: CA$4.506m
  • Shares outstanding: 27.31m
  • Website: https://null

Location

  • Pearl River Holdings Limited
  • 383 Richmond Street
  • Suite 500
  • London
  • Ontario
  • N6A 3C4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRHTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1995

Biography

Pearl River Holdings Limited, through its subsidiaries, manufactures and distributes plastic products in the People’s Republic of China, Australia, and the United States. The company was incorporated in 19 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:41
End of Day Share Price2019/10/17 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.