Prime Focus (NSEI:PFOCUS) - Share price, News & Analysis

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

PFOCUS Stock Overview

Risk Analysis

Earnings have declined by 32.9% per year over past 5 years

Significant insider selling over the past 3 months

Prime Focus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Prime Focus
Historical stock prices
Current Share Price	₹61.45
52 Week High	₹98.95
52 Week Low	₹48.45
Beta	0.95
1 Month Change	-11.39%
3 Month Change	-27.66%
1 Year Change	3.10%
3 Year Change	10.82%
5 Year Change	-43.57%
Change since IPO	88.41%

Recent News & Updates

May 26

Investors Will Want Prime Focus' (NSE:PFOCUS) Growth In ROCE To Persist

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

Shareholder Returns

	PFOCUS	IN Entertainment	IN Market
7D	-10.9%	-2.9%	-3.1%
1Y	3.1%	15.2%	-2.5%

Return vs Industry: PFOCUS underperformed the Indian Entertainment industry which returned 15.2% over the past year.

Return vs Market: PFOCUS exceeded the Indian Market which returned -2.5% over the past year.

Price Volatility

Is PFOCUS's price volatile compared to industry and market?
PFOCUS volatility
PFOCUS Average Weekly Movement	5.9%
Entertainment Industry Average Movement	6.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: PFOCUS is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PFOCUS's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	8,300	Naresh Malhotra	https://www.primefocus.com

Prime Focus Limited, together with its subsidiaries, engages in the motion picture, video, and television program post-production activities primarily in India, the United Kingdom, the United States, and Canada. It offers creative services, including visual effects, advertising, stereo 3D conversion, and feature and TV animation; equipment rental services; and post production services, such as digital intermediate/color grading, sound, and picture post services to the media and entertainment industry. The company also provides technology products comprising CLEAR, a multi-cloud-enabled media enterprise resource planning suite that automates the content supply chain and builds a connected enterprise; clear modules including cloud MAM, Operations Cloud, Broadcast Cloud, Production Cloud, SecureScreener, and Vision Cloud modules, as well as cloud media services for broadcasters, studios, brands, and service providers transformational solutions; cloud media services; and CLEAR solutions.

Prime Focus Fundamentals Summary

How do Prime Focus's earnings and revenue compare to its market cap?
PFOCUS fundamental statistics
Market Cap	₹18.27b
Earnings (TTM)	-₹1.72b
Revenue (TTM)	₹34.31b

0.5x

P/S Ratio

-10.6x

P/E Ratio

Is PFOCUS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFOCUS income statement (TTM)
Revenue	₹34.31b
Cost of Revenue	₹1.42b
Gross Profit	₹32.89b
Other Expenses	₹34.61b
Earnings	-₹1.72b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-5.73
Gross Margin	95.87%
Net Profit Margin	-5.00%
Debt/Equity Ratio	1,698.5%

How did PFOCUS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PFOCUS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PFOCUS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PFOCUS. This is calculated by dividing PFOCUS's market cap by their current preferred multiple.
What is PFOCUS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹18.27b

PFOCUS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	7.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PFOCUS's PS Ratio compare to its peers?

PFOCUS PS Ratio vs Peers

The above table shows the PS ratio for PFOCUS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	6.8x

Forward PS

Price-To-Sales vs Peers: PFOCUS is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (6.8x).

Price to Earnings Ratio vs Industry

How does PFOCUS's PE Ratio compare vs other companies in the Indian Entertainment Industry?

Price-To-Sales vs Industry: PFOCUS is good value based on its Price-To-Sales Ratio (0.5x) compared to the Indian Entertainment industry average (5.4x)

Price to Sales Ratio vs Fair Ratio

What is PFOCUS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PFOCUS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PFOCUS's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PFOCUS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PFOCUS (₹61.45) is trading above our estimate of fair value (₹2.5)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Prime Focus forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

17.4%

Forecasted Media industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Prime Focus has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Take a look at our analysis of PFOCUS’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Prime Focus competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Prime Focus performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-32.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PFOCUS is currently unprofitable.

Growing Profit Margin: PFOCUS is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PFOCUS is unprofitable, and losses have increased over the past 5 years at a rate of 32.9% per year.

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

Earnings vs Industry: PFOCUS is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (12.5%).

Return on Equity

High ROE: PFOCUS has a negative Return on Equity (-90.7%), as it is currently unprofitable.

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Financial Health

How is Prime Focus's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PFOCUS's short term assets (₹18.1B) do not cover its short term liabilities (₹33.8B).

Long Term Liabilities: PFOCUS's short term assets (₹18.1B) do not cover its long term liabilities (₹21.1B).

Debt to Equity History and Analysis

Debt Level: PFOCUS's net debt to equity ratio (1573.7%) is considered high.

Reducing Debt: PFOCUS's debt to equity ratio has increased from 192.2% to 1698.5% over the past 5 years.

Balance Sheet

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

Forecast Cash Runway: PFOCUS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39.3% per year.

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Dividend

What is Prime Focus's 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 PFOCUS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if PFOCUS'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 PFOCUS has not reported any payouts.

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Management

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

6.8yrs

Average management tenure

CEO

Naresh Malhotra (77 yo)

2.08yrs

Tenure

₹11,773,476

Compensation

Mr. Naresh Mahendranath Malhotra serves as Chairman of the Board at Prime Focus Limited since May 01, 2020. Mr. Malhotra served as Chairman of the Board since February 14, 2019 and Whole-time Director at P...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Naresh's total compensation is reasonable compared to companies of similar size in the Indian market.

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

Leadership Team

Experienced Management: PFOCUS's management team is seasoned and experienced (6.8 years average tenure).

Board Members

Experienced Board: PFOCUS's board of directors are seasoned and experienced ( 12.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: PFOCUS insiders have only sold shares 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	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31