LSE:PRV

Stock Analysis Report

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Market Cap

UK£287.2m

Last Updated

2021/08/04 21:42 UTC

Data Sources

Company Financials +

Executive Summary

Porvair plc, a filtration and environmental technology company, designs, manufactures, and sells filtration and separation equipment primarily in the United Kingdom. More Details

Rewards

PE ratio (29.6x) is below the Machinery industry average (31.5x)

Earnings are forecast to grow 5.93% per year

Risk Analysis

No risks detected for PRV from our risk checks.


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PRV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PRV's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.5%

PRV

-1.4%

GB Machinery

1.4%

GB Market


1 Year Return

22.3%

PRV

40.0%

GB Machinery

20.2%

GB Market

Return vs Industry: PRV underperformed the UK Machinery industry which returned 43.7% over the past year.

Return vs Market: PRV matched the UK Market which returned 21.5% over the past year.


Shareholder returns

PRVIndustryMarket
7 Day6.5%-1.4%1.4%
30 Day9.4%2.4%-0.03%
90 Day9.4%8.3%1.7%
1 Year23.4%22.3%42.9%40.0%25.5%20.2%
3 Year38.7%35.2%29.9%22.5%13.8%1.2%
5 Year77.3%70.0%106.3%84.1%39.9%14.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PRV (£6.41) is trading above our estimate of fair value (£5)

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


Price To Earnings Ratio

PE vs Industry: PRV is good value based on its PE Ratio (29.6x) compared to the UK Machinery industry average (31.5x).

PE vs Market: PRV is poor value based on its PE Ratio (29.6x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: PRV is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: PRV is overvalued based on its PB Ratio (2.9x) compared to the GB Machinery industry average (2.3x).


Future Growth

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

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRV's forecast earnings growth (5.9% per year) is above the savings rate (0.9%).

Earnings vs Market: PRV's earnings (5.9% per year) are forecast to grow slower than the UK market (14.3% per year).

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

Revenue vs Market: PRV's revenue (6% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: PRV'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 PRV's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Porvair performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRV has high quality earnings.

Growing Profit Margin: PRV's current net profit margins (7.6%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: PRV's earnings have grown by 5.9% per year over the past 5 years.

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

Earnings vs Industry: PRV had negative earnings growth (-10.9%) over the past year, making it difficult to compare to the Machinery industry average (4.2%).


Return on Equity

High ROE: PRV's Return on Equity (9.7%) is considered low.


Financial Health

How is Porvair's financial position?


Financial Position Analysis

Short Term Liabilities: PRV's short term assets (£62.6M) exceed its short term liabilities (£31.6M).

Long Term Liabilities: PRV's short term assets (£62.6M) exceed its long term liabilities (£34.1M).


Debt to Equity History and Analysis

Debt Level: PRV's debt to equity ratio (9.1%) is considered satisfactory.

Reducing Debt: PRV's debt to equity ratio has increased from 1.8% to 9.1% over the past 5 years.

Debt Coverage: PRV's debt is well covered by operating cash flow (158%).

Interest Coverage: PRV's interest payments on its debt are well covered by EBIT (18.4x coverage).


Balance Sheet


Dividend

What is Porvair current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRV's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.3%).

High Dividend: PRV's dividend (0.8%) is low compared to the top 25% of dividend payers in the UK market (3.87%).


Stability and Growth of Payments

Stable Dividend: PRV's dividends per share have been stable in the past 10 years.

Growing Dividend: PRV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), PRV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRV's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

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

2.2yrs

Average board tenure


CEO

Ben D. Stocks (59 yo)

23.5yrs

Tenure

UK£429,000

Compensation

Mr. Ben D. W. Stocks has been the Group Chief Executive and Executive Director of Porvair Plc since February 1998. Mr. Stocks served as UK Managing Director of the Speciality Packaging Division at Carnauld...


CEO Compensation Analysis

Compensation vs Market: Ben D.'s total compensation ($USD596.11K) is about average for companies of similar size in the UK market ($USD724.11K).

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


Board Members

Experienced Board: PRV's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

Porvair plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Porvair plc
  • Ticker: PRV
  • Exchange: LSE
  • Founded: 1982
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£287.249m
  • Shares outstanding: 46.03m
  • Website: https://www.porvair.com

Number of Employees


Location

  • Porvair plc
  • 7 Regis Place
  • Bergen Way
  • King's Lynn
  • Norfolk
  • PE30 2JN
  • United Kingdom

Listings


Biography

Porvair plc, a filtration and environmental technology company, designs, manufactures, and sells filtration and separation equipment primarily in the United Kingdom. It operates in three segments: Aerospac...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 21:42
End of Day Share Price2021/08/04 00:00
Earnings2021/05/31
Annual Earnings2020/11/30


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.