TSX:PHO

Stock Analysis Report

Photon Control

Executive Summary

Photon Control Inc. designs, manufactures, and distributes a range of optical sensors and systems to measure temperature and position.

Snowflake

Fundamentals

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Photon Control's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PHO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

PHO

1.3%

CA Electronic

1.1%

CA Market


1 Year Return

-12.4%

PHO

-8.5%

CA Electronic

6.6%

CA Market

Return vs Industry: PHO matched the Canadian Electronic industry which returned -8.5% over the past year.

Return vs Market: PHO underperformed the Canadian Market which returned 6.6% over the past year.


Shareholder returns

PHOIndustryMarket
7 Day0.9%1.3%1.1%
30 Day21.5%13.1%2.5%
90 Day21.5%3.9%2.8%
1 Year-12.4%-12.4%-5.7%-8.5%10.2%6.6%
3 Year52.7%52.7%-7.1%-13.8%19.4%8.7%
5 Year121.6%121.6%9.5%-3.0%27.3%8.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Photon Control undervalued compared to its fair value and its price relative to the market?

27.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PHO (CA$1.13) is trading above our estimate of fair value (CA$0.16)

Significantly Below Fair Value: PHO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PHO is poor value based on its PE Ratio (27.8x) compared to the Electronic industry average (15.7x).

PE vs Market: PHO is poor value based on its PE Ratio (27.8x) compared to the Canadian market (14.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PHO is good value based on its PB Ratio (2.4x) compared to the CA Electronic industry average (2.6x).


Next Steps

Future Growth

How is Photon Control forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PHO's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if PHO's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: PHO's revenue (9.5% per year) is forecast to grow faster than the Canadian market (5.1% per year).

High Growth Revenue: PHO's revenue (9.5% 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 PHO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Photon Control performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHO has high quality earnings.

Growing Profit Margin: PHO's current net profit margins (13.6%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: PHO's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: PHO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PHO had negative earnings growth (-59%) over the past year, making it difficult to compare to the Electronic industry average (162.2%).


Return on Equity

High ROE: PHO's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Photon Control's financial position?


Financial Position Analysis

Short Term Liabilities: PHO's short term assets (CA$43.8M) exceeds its short term liabilities (CA$5.5M)

Long Term Liabilities: PHO's short term assets (43.8M) exceeds its long term liabilities (2.7M)


Debt to Equity History and Analysis

Debt Level: PHO is debt free.

Reducing Debt: PHO has not had any debt for past 5 years.

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if PHO's debt is covered by short term assets.


Next Steps

Dividend

What is Photon Control's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if PHO'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 PHO'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 Photon Control's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Nigel Hunton (58yo)

0.5yrs

Tenure

0

Mr. Nigel Hunton had been President and Chief Operating Officer at Ferrotec (USA) Corporation since July 27, 2017. Mr. Hunton served as the Chief Executive Officer of MBA Polymers, Inc from January 02, 201 ...


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: PHO's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

58yo

Average Age

Experienced Board: PHO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: PHO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$9,50003 Sep 19
Nigel Hunton
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$0.95
BuyCA$8,28018 Aug 19
David McDonnell
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares9,000
Max PriceCA$0.92
BuyCA$25,44029 May 19
Nigel Hunton
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceCA$1.27
BuyCA$25,20628 May 19
Nigel Hunton
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceCA$1.26
BuyCA$24,81424 May 19
Nigel Hunton
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceCA$1.24
BuyCA$32,07623 May 19
Michele Klein
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares26,000
Max PriceCA$1.23
BuyCA$25,03623 May 19
Nigel Hunton
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceCA$1.25
BuyCA$25,23022 May 19
Nigel Hunton
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceCA$1.26
BuyCA$4,35014 May 19
Michele Klein
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$0.87
BuyCA$17,42527 Dec 18
Daniel Lee
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares20,500
Max PriceCA$0.85
BuyCA$8,86521 Dec 18
David McDonnell
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceCA$0.90
BuyCA$47,35521 Dec 18
Ronan McGrath
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$0.95

Ownership Breakdown

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


Management Team

  • Nigel Hunton (58yo)

    President

    • Tenure: 0.5yrs
  • Michael Weston

    Special Advisor

    • Tenure: 10.1yrs
  • Yuri Sikorski

    Senior Vice President of Engineering

    • Tenure: 1.9yrs
    • Compensation: CA$413.12k
  • Daniel Lee

    CFO & Corporate Secretary

    • Tenure: 2.3yrs
    • Compensation: CA$279.05k
  • Sal Akram

    Senior Vice President of Engineering

    • Tenure: 0yrs
  • John Rydstrom

    Senior Vice President of Sales

    • Tenure: 2.3yrs
    • Compensation: CA$450.41k
  • Nalini McIntosh

    Vice President of Human Resource

    • Tenure: 0yrs
  • Paul Moffat

    Vice President of Manufacturing Operations

    • Tenure: 2.6yrs
    • Compensation: CA$257.78k

Board Members

  • Ronan McGrath

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$29.00k
  • Chuck Cargile (54yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: CA$26.00k
  • Michele Klein

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: CA$183.50k
  • David McDonnell (60yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: CA$471.11k
  • Nigel Hunton (58yo)

    President

    • Tenure: 0.5yrs

Company Information

Photon Control Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Photon Control Inc.
  • Ticker: PHO
  • Exchange: TSX
  • Founded: 1988
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CA$118.059m
  • Shares outstanding: 104.48m
  • Website: https://www.photoncontrol.com

Number of Employees


Location

  • Photon Control Inc.
  • 13500 Verdun Place
  • Suite 130
  • Richmond
  • British Columbia
  • V6V 1V2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHOTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2000
POCE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2000
0DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2000

Biography

Photon Control Inc. designs, manufactures, and distributes a range of optical sensors and systems to measure temperature and position. The company offers fiber optic temperature probes that measure tempera ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:32
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
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.