Pulse Investments (JMSE:PULS) - Share price, News & Analysis

PULS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	0/6

PULS Stock Overview

Pulse Investments Limited engages in the development and production of media content, model agency representation, and live show production businesses in Jamaica.

Rewards

Trading at 15% below our estimate of its fair value

Earnings grew by 83.5% over the past year

Risk Analysis

Large one-off items impacting financial results

Pulse Investments Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pulse Investments
Historical stock prices
Current Share Price	JA$3.84
52 Week High	JA$5.15
52 Week Low	JA$3.06
Beta	-0.54
1 Month Change	-9.65%
3 Month Change	-7.69%
1 Year Change	-14.67%
3 Year Change	514.40%
5 Year Change	540.00%
Change since IPO	3,906.97%

Shareholder Returns

	PULS	JM Entertainment	JM Market
7D	-5.0%	-0.2%	0.5%
1Y	-14.7%	-15.7%	5.0%

Return vs Industry: PULS exceeded the JM Entertainment industry which returned -15.7% over the past year.

Return vs Market: PULS underperformed the JM Market which returned 5% over the past year.

Price Volatility

Is PULS's price volatile compared to industry and market?
PULS volatility
PULS Average Weekly Movement	8.9%
Entertainment Industry Average Movement	7.8%
Market Average Movement	9.7%
10% most volatile stocks in JM Market	16.4%
10% least volatile stocks in JM Market	4.8%

Stable Share Price: PULS is not significantly more volatile than the rest of JM stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PULS's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	n/a	Safia Cooper	https://www.pulseinvestmentsltd.com

Pulse Investments Limited engages in the development and production of media content, model agency representation, and live show production businesses in Jamaica. It is also involved in the sub-letting of leasehold properties; property development; and hospitality and leisure activities. The company was incorporated in 1993 and is based in Kingston, Jamaica.

Pulse Investments Fundamentals Summary

How do Pulse Investments's earnings and revenue compare to its market cap?
PULS fundamental statistics
Market Cap	JA$25.05b
Earnings (TTM)	JA$1.70b
Revenue (TTM)	JA$906.53m

14.7x

P/E Ratio

27.6x

P/S Ratio

Is PULS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PULS income statement (TTM)
Revenue	JA$906.53m
Cost of Revenue	JA$53.96m
Gross Profit	JA$852.57m
Other Expenses	-JA$851.42m
Earnings	JA$1.70b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.26
Gross Margin	94.05%
Net Profit Margin	187.97%
Debt/Equity Ratio	6.8%

How did PULS perform over the long term?

See historical performance and comparison

Dividends

0.1%

Current Dividend Yield

2%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

15.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PULS (JMD3.84) is trading below our estimate of fair value (JMD4.52)

Significantly Below Fair Value: PULS is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: PULS is good value based on its PE Ratio (14.7x) compared to the Global Entertainment industry average (19.8x).

PE vs Market: PULS is good value based on its PE Ratio (14.7x) compared to the JM market (19.1x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: PULS is overvalued based on its PB Ratio (3.9x) compared to the XS Entertainment industry average (1.7x).

Future Growth

How is Pulse Investments 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

21.9%

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 Pulse Investments 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.

Past Performance

How has Pulse Investments performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

36.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PULS has a large one-off gain of JMD1.3B impacting its December 31 2021 financial results.

Growing Profit Margin: PULS's current net profit margins are higher than last year .

Past Earnings Growth Analysis

Earnings Trend: PULS's earnings have grown significantly by 36.6% per year over the past 5 years.

Accelerating Growth: PULS's earnings growth over the past year (83.5%) exceeds its 5-year average (36.6% per year).

Earnings vs Industry: PULS earnings growth over the past year (83.5%) exceeded the Entertainment industry 15.2%.

Return on Equity

High ROE: PULS's Return on Equity (26.5%) is considered high.

Financial Health

How is Pulse Investments's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PULS's short term assets (JMD160.9M) do not cover its short term liabilities (JMD498.1M).

Long Term Liabilities: PULS's short term assets (JMD160.9M) do not cover its long term liabilities (JMD877.9M).

Debt to Equity History and Analysis

Debt Level: PULS's net debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: PULS's debt to equity ratio has increased from 0.8% to 6.8% over the past 5 years.

Debt Coverage: PULS's debt is well covered by operating cash flow (174.3%).

Interest Coverage: PULS's interest payments on its debt are well covered by EBIT (12.4x coverage).

Balance Sheet

Dividend

What is Pulse Investments'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

0.13%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PULS's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the JM market (1.05%).

High Dividend: PULS's dividend (0.13%) is low compared to the top 25% of dividend payers in the JM market (2.86%).

Stability and Growth of Payments

Stable Dividend: PULS is not paying a notable dividend for the JM market, therefore no need to check if payments are stable.

Growing Dividend: PULS is not paying a notable dividend for the JM market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: PULS is not paying a notable dividend for the JM market.

Cash Payout to Shareholders

Cash Flow Coverage: PULS is not paying a notable dividend for the JM market.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

4.9yrs

Average board tenure

CEO

Safia Cooper

6.33yrs

Tenure

Ms. Safia L. Cooper, M.B.A., has been the Chief Executive Officer of Pulse Investments Ltd., since January 1, 2016. She is Co- Managing Director and Director at Pulse Investments Ltd. since December 16, 20...

Board Members

Experienced Board: PULS's board of directors are considered experienced (4.9 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30