DB:PEW

Stock Analysis Report

Executive Summary

PCTEL, Inc., together with its subsidiaries, delivers performance critical telecom solutions in the Asia Pacific, Europe, the Middle East, Africa, and the Americas.

Rewards

Trading at 42.7% below its fair value

Earnings are forecast to grow 79.66% per year

Risk Analysis

Dividend of 2.49% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

PEW

-0.4%

DE Communications

0.1%

DE Market


1 Year Return

74.3%

PEW

9.9%

DE Communications

14.1%

DE Market

Return vs Industry: PEW exceeded the German Communications industry which returned 11.2% over the past year.

Return vs Market: PEW exceeded the German Market which returned 15.1% over the past year.


Shareholder returns

PEWIndustryMarket
7 Day-0.6%-0.4%0.1%
30 Day0.6%1.8%0.2%
90 Day1.9%-0.9%3.3%
1 Year81.1%74.3%10.5%9.9%17.6%14.1%
3 Year67.6%50.3%0.6%0.2%14.8%4.8%
5 Year35.6%12.9%103.9%103.5%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PEW (€8.15) is trading below our estimate of fair value (€14.22)

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


Price To Earnings Ratio

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

PE vs Market: PEW 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 PEW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PEW is good value based on its PB Ratio (2.2x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

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

79.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: PEW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PEW's is expected to become profitable in the next 3 years.

Revenue vs Market: PEW's revenue (6% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: PEW's revenue (6% 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 PEW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PCTEL performed over the past 5 years?

-35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEW is currently unprofitable.

Growing Profit Margin: PEW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PEW is unprofitable, and losses have increased over the past 5 years at a rate of -35.7% per year.

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

Earnings vs Industry: PEW is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: PEW has a negative Return on Equity (-10.05%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PCTEL's financial position?


Financial Position Analysis

Short Term Liabilities: PEW's short term assets ($69.8M) exceed its short term liabilities ($13.4M).

Long Term Liabilities: PEW's short term assets ($69.8M) exceed its long term liabilities ($3.0M).


Debt to Equity History and Analysis

Debt Level: PEW is debt free.

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


Balance Sheet

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

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


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 PEW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PEW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.5% per year.


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.3%markettop25%3.6%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PEW's dividend (2.49%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: PEW's dividend (2.49%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PEW has been paying a dividend for less than 10 years.

Growing Dividend: PEW's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: PEW is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

David Neumann (53yo)

3.1yrs

Tenure

US$677,774

Compensation

Mr. David A. Neumann has been the Chief Executive Officer and Director of PCTEL, Inc. since January 2, 2017. Mr. Neumann served as Senior Vice President and General Manager of PCTEL RF Solutions Inc. from  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD677.77K) is about average for companies of similar size in the German market ($USD633.80K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Neumann
CEO & Director3.1yrsUS$677.77k1.26% $1.8m
Rishi Bharadwaj
COO & Senior VP1.5yrsUS$472.37k1.08% $1.6m
Arnt Arvik
VP & Chief Sales Officer1.5yrsUS$429.94k0.18% $256.8k
Kevin McGowan
VP & CFO1.2yrsno data0.69% $1.0m
Sumeet Paul
VP & Chief Information Officer3.1yrsno data0.33% $480.0k
Shelley Bacastow
VP, General Counsel & Corporate Secretary5.1yrsUS$425.59k0.36% $518.1k
Michael Rosenberg
Director of Marketing0yrsno datano data
Martin Singer
Vice Chair3.1yrsUS$925.44kno data
Leslie Sgnilek
VP of Corporate Resources & Chief Risk Officer4.3yrsno data0.38% $543.8k

3.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: PEW's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Neumann
CEO & Director3.1yrsUS$677.77k1.26% $1.8m
Giacomo Marini
Independent Director23.3yrsUS$98.00k0.54% $780.7k
Michael Sinder
Independent Director5.2yrsUS$102.00k0.33% $480.8k
Cynthia Andreotti
Independent Director6.4yrsUS$108.99k0.38% $546.2k
Steven Levy
Independent Chairman of the Board3.1yrsUS$131.00k0.51% $731.1k
Gina Haspilaire
Independent Director4.3yrsUS$112.72k0.34% $494.0k
Cynthia Keith
Independent Director2yrsUS$104.02k0.17% $250.7k

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: PEW's board of directors are considered experienced (4.3 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 been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: PCTEL, Inc.
  • Ticker: PEW
  • Exchange: DB
  • Founded: 1994
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$156.027m
  • Listing Market Cap: US$144.528m
  • Shares outstanding: 17.98m
  • Website: https://www.pctel.com

Number of Employees


Location

  • PCTEL, Inc.
  • 471 Brighton Drive
  • Bloomingdale
  • Illinois
  • 60108
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCTINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1999
PEWDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1999

Biography

PCTEL, Inc., together with its subsidiaries, delivers performance critical telecom solutions in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. The company designs and manufactures precision antennas, which are used primarily in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things. It also offers radio frequency test and measurement tools that enhance the performance of wireless networks. The company serves public and private carriers, wireless infrastructure providers, wireless equipment distributors, and value added resellers, as well as original equipment manufacturers. PCTEL, Inc. was founded in 1994 and is headquartered in Bloomingdale, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:00
End of Day Share Price2020/02/19 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.