Points.com (TSX:PTS) - Share price, News & Analysis

PTS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

PTS Stock Overview

Points.com Inc. provides technology solutions to loyalty industry in the United States, Europe, and internationally.

Rewards

Trading at 23.9% below our estimate of its fair value

Earnings are forecast to grow 70.73% per year

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Points.com Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Points.com
Historical stock prices
Current Share Price	CA$31.09
52 Week High	CA$32.16
52 Week Low	CA$17.38
Beta	1.86
1 Month Change	51.07%
3 Month Change	33.89%
1 Year Change	48.05%
3 Year Change	82.99%
5 Year Change	132.88%
Change since IPO	-12.42%

Shareholder Returns

	PTS	CA Online Retail	CA Market
7D	0.2%	0.5%	0.8%
1Y	48.0%	-48.7%	4.9%

Return vs Industry: PTS exceeded the Canadian Online Retail industry which returned -48.7% over the past year.

Return vs Market: PTS exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is PTS's price volatile compared to industry and market?
PTS volatility
PTS Average Weekly Movement	13.1%
Online Retail Industry Average Movement	14.0%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: PTS is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: PTS's weekly volatility has increased from 8% to 13% over the past year, but is still lower than 75% of Canadian stocks.

About the Company

Founded	Employees	CEO	Website
2000	279	Rob MacLean	https://www.points.com

Points.com Inc. provides technology solutions to loyalty industry in the United States, Europe, and internationally. It offers Currency Retailing for its members to get more of their currency, whenever they need it; Travel Accrual for its members to book any hotel, car, or activity and earn currency; Everyday Accrual for members to earn currency on day-to-day purchases; Travel Rewards for members to redeem their currency for hotel stays and car rentals; Everyday Rewards for members to redeem their currency for more than travel; and Currency Utility for members to do so much more with currency. The company was founded in 2000 and is headquartered in Toronto, Canada.

Points.com Fundamentals Summary

How do Points.com's earnings and revenue compare to its market cap?
PTS fundamental statistics
Market Cap	US$357.59m
Earnings (TTM)	US$2.10m
Revenue (TTM)	US$432.40m

170.5x

P/E Ratio

0.8x

P/S Ratio

Is PTS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PTS income statement (TTM)
Revenue	US$432.40m
Cost of Revenue	US$371.92m
Gross Profit	US$60.48m
Other Expenses	US$58.38m
Earnings	US$2.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.14
Gross Margin	13.99%
Net Profit Margin	0.48%
Debt/Equity Ratio	0%

How did PTS perform over the long term?

See historical performance and comparison

Valuation

Is Points.com undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

23.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PTS (CA$31.09) is trading below our estimate of fair value (CA$40.87)

Significantly Below Fair Value: PTS is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: PTS is poor value based on its PE Ratio (170.5x) compared to the North American Online Retail industry average (11.7x).

PE vs Market: PTS is poor value based on its PE Ratio (170.5x) compared to the Canadian market (11.5x).

Price to Earnings Growth Ratio

PEG Ratio: PTS is poor value based on its PEG Ratio (2.4x)

Price to Book Ratio

PB vs Industry: PTS is overvalued based on its PB Ratio (5.7x) compared to the CA Online Retail industry average (1.3x).

Future Growth

How is Points.com forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

70.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTS's forecast earnings growth (70.7% per year) is above the savings rate (1.6%).

Earnings vs Market: PTS's earnings (70.7% per year) are forecast to grow faster than the Canadian market (7.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PTS's revenue (13.9% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: PTS's revenue (13.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Points.com performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PTS has a large one-off gain of $1.4M impacting its March 31 2022 financial results.

Growing Profit Margin: PTS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: PTS has become profitable over the past 5 years, growing earnings by -18% per year.

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

Earnings vs Industry: PTS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-8.3%).

Return on Equity

High ROE: PTS's Return on Equity (3.3%) is considered low.

Financial Health

How is Points.com's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PTS's short term assets ($166.1M) exceed its short term liabilities ($123.4M).

Long Term Liabilities: PTS's short term assets ($166.1M) exceed its long term liabilities ($54.0K).

Debt to Equity History and Analysis

Debt Level: PTS is debt free.

Reducing Debt: PTS had no debt 5 years ago.

Debt Coverage: PTS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PTS has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Points.com current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PTS has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure

CEO

Rob MacLean (54 yo)

22.25yrs

Tenure

US$1,997,970

Compensation

Mr. T. Robert MacLean, also known as Rob, has been a Director of Prodigy Ventures Inc. since September 2015. Mr. MacLean was the Chairman of Prodigy Ventures Inc. until December 20, 2018. He is a Founder o...

CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD2.00M) is above average for companies of similar size in the Canadian market ($USD974.36K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: PTS's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: PTS's board of directors are seasoned and experienced ( 12.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31