DB:PFW1

Stock Analysis Report

Executive Summary

PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India.

Rewards

Revenue is forecast to grow 7.66% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap (€86M)



Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PFW1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

PFW1

-3.1%

DE IT

0.2%

DE Market


1 Year Return

-22.4%

PFW1

36.1%

DE IT

14.4%

DE Market

Return vs Industry: PFW1 underperformed the German IT industry which returned 29% over the past year.

Return vs Market: PFW1 underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

PFW1IndustryMarket
7 Day-1.4%-3.1%0.2%
30 Day-2.9%6.5%0.9%
90 Day29.1%18.4%4.6%
1 Year-22.4%-22.4%37.0%36.1%17.9%14.4%
3 Year-41.0%-41.0%158.4%151.4%15.7%5.6%
5 Year-56.9%-56.9%239.1%225.2%23.4%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.94x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PFW1 (€4.08) is trading above our estimate of fair value (€3.74)

Significantly Below Fair Value: PFW1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PFW1 is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: PFW1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PFW1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PFW1 is good value based on its PB Ratio (1.9x) compared to the DE IT industry average (4.7x).


Next Steps

Future Growth

How is PFSweb forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFW1 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PFW1 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PFW1 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PFW1's revenue (7.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: PFW1's revenue (7.7% 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 PFW1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PFSweb performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFW1 is currently unprofitable.

Growing Profit Margin: PFW1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PFW1 is unprofitable, but has reduced losses over the past 5 years at a rate of 31.3% per year.

Accelerating Growth: Unable to compare PFW1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PFW1 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (16.1%).


Return on Equity

High ROE: PFW1 has a negative Return on Equity (-1.1%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PFSweb's financial position?


Financial Position Analysis

Short Term Liabilities: PFW1's short term assets ($77.1M) exceed its short term liabilities ($66.7M).

Long Term Liabilities: PFW1's short term assets ($77.1M) exceed its long term liabilities ($71.9M).


Debt to Equity History and Analysis

Debt Level: PFW1's debt to equity ratio (83%) is considered high.

Reducing Debt: PFW1's debt to equity ratio has increased from 59.5% to 83% over the past 5 years.


Balance Sheet

Inventory Level: PFW1 has a high level of physical assets or inventory.

Debt Coverage by Assets: PFW1's debt is covered by short term assets (assets are 2.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PFW1 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PFW1 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PFW1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PFW1'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 PFW1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PFW1'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 PFW1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Mike Willoughby (55yo)

6.9yrs

Tenure

US$1,645,414

Compensation

Mr. Michael C. Willoughby, also known as Mike, has been the Chief Executive Officer of PFSweb Inc. since March 26, 2013. Mr. Willoughby served as Acting General Manager of the LiveArea Business Unit at PFS ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.65M) is above average for companies of similar size in the German market ($USD413.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Willoughby
CEO & Director6.9yrsUS$1.65m1.26% $1.0m
Thomas Madden
Executive VP & CFO21.1yrsUS$971.97k1.02% $816.2k
Stephanie Delacruz
VP & CAO0.3yrsno data0.039% $31.1k
Mark Fuentes
Senior VP & Chief Information Officer3.8yrsno data0.19% $148.8k
Melanie Klint
VP, General Counsel & Secretary0yrsno datano data
Laura Osborne
Corporate Communications Manager0yrsno datano data
Latrice Bryant-Robinson
Vice President of Human Resources2.1yrsno datano data
Joe Farrell
VP & MD of International Operations6.3yrsno datano data
R. Thomann
Executive VP & GM of PFS3.8yrsUS$476.17k0.14% $108.7k
Stephen Smith
Senior Vice President of Global Operations0.7yrsno datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: PFW1's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Willoughby
CEO & Director6.9yrsUS$1.65m1.26% $1.0m
Robert Frankfurt
Independent Director0.9yrsno datano data
Monica Luechtefeld
Independent Director5.8yrsUS$120.63kno data
James Reilly
Independent Chairman of the Board6.9yrsUS$126.25k0.29% $228.0k
Shinichi Nagakura
Independent Director6.8yrsno datano data
David Beatson
Independent Director19.3yrsUS$120.63k0.074% $59.2k
Gladys De Luca
Independent Director0.8yrsno datano data
Peter Stein
Independent Director4.1yrsUS$115.00kno data
Benjamin Rosenzweig
Independent Director6.8yrsUS$115.00k0.077% $61.2k

6.8yrs

Average Tenure

55yo

Average Age

Experienced Board: PFW1's board of directors are considered experienced (6.8 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.


Top Shareholders

Company Information

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


Key Information

  • Name: PFSweb, Inc.
  • Ticker: PFW1
  • Exchange: DB
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$86.280m
  • Listing Market Cap: US$79.947m
  • Shares outstanding: 19.43m
  • Website: https://www.pfsweb.com

Number of Employees


Location

  • PFSweb, Inc.
  • 505 Millennium Drive
  • Allen
  • Texas
  • 75013
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFSWNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 1999
PFW1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1999

Biography

PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India. It operates through two segments, LiveArea Professional Services and PFS Operations. The company offers strategic commerce consulting services, including commerce strategy, omni-channel consulting, digital opportunity audit, organizational/operational readiness, and platform evaluation/selection services; and design and digital marketing services, such as design, user experience, interactive development, search engine optimization and paid search, affiliate marketing, conversion optimization, storefront management, email marketing, and digital analytics. It also provides technology services comprising commerce development, managed, quality assurance, and training services; and order to cash service, such as technology collaboration, information management services, payments, business-to-business financial management, and direct-to-consumer financial management. In addition, the company offers fulfillment services, including distribution facilities and infrastructure, facility operations and management, pop-up distribution centers, and kitting and assembly services; and customer care services comprising customer service application, customer assistance, quality monitoring, and customer self-help. It serves clients in various industries, such as fashion apparel and accessories, fragrance and beauty products, consumer packaged goods, home furnishings and housewares, coins and collectibles, and technology products. The company was founded in 1999 and is headquartered in Allen, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:44
End of Day Share Price2020/02/20 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.