NasdaqGS:PFMT

Stock Analysis Report

Executive Summary

Performant Financial Corporation provides technology-enabled audit, recovery, outsource customer, and related analytics services in the United States.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

PFMT

1.8%

US Commercial Services

0.5%

US Market


1 Year Return

-47.4%

PFMT

18.7%

US Commercial Services

6.8%

US Market

Return vs Industry: PFMT underperformed the US Commercial Services industry which returned 18.7% over the past year.

Return vs Market: PFMT underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

PFMTIndustryMarket
7 Day-1.9%1.8%0.5%
30 Day-6.4%2.5%-0.8%
90 Day-23.7%2.6%-0.9%
1 Year-47.4%-47.4%23.1%18.7%9.2%6.8%
3 Year-67.6%-67.6%73.5%61.6%45.6%36.2%
5 Year-87.2%-87.2%104.1%83.6%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.86x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PFMT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PFMT's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFMT is good value based on its PB Ratio (0.9x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Performant Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

89.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PFMT's revenue (17.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PFMT's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFMT is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Performant Financial performed over the past 5 years?

-60.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PFMT is unprofitable, and losses have increased over the past 5 years at a rate of -60.2% per year.

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

Earnings vs Industry: PFMT is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-2.4%).


Return on Equity

High ROE: PFMT has a negative Return on Equity (-43.41%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PFMT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PFMT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Performant Financial's financial position?


Financial Position Analysis

Short Term Liabilities: PFMT's short term assets ($28.7M) exceeds its short term liabilities ($17.7M)

Long Term Liabilities: PFMT's short term assets (28.7M) do not cover its long term liabilities (60.6M)


Debt to Equity History and Analysis

Debt Level: PFMT's debt to equity ratio (82.7%) is considered high

Reducing Debt: PFMT's debt to equity ratio has reduced from 131.2% to 82.7% over the past 5 years.

Debt Coverage: PFMT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if PFMT's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: PFMT's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if PFMT's dividends per share have been stable in the past.

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


Next Steps

Management

What is the CEO of Performant Financial's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Lisa Im (54yo)

15.5yrs

Tenure

US$423,848

Compensation

Ms. Lisa C. Im serves as the Chief Executive Officer of Performant Recovery, Inc. Ms. Im has been the Chief Executive Officer of Performant Financial Corporation since April 2004 and as its Chairwoman sinc ...


CEO Compensation Analysis

Compensation vs. Market: Lisa's total compensation ($USD423.85K) is about average for companies of similar size in the US market ($USD503.30K).

Compensation vs Earnings: Lisa's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: PFMT's management team is considered experienced (3 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

54yo

Average Age

Experienced Board: PFMT's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$412,42215 Oct 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares404,492
Max PriceUS$1.03
BuyUS$514,26010 Oct 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares514,481
Max PriceUS$1.00

Ownership Breakdown


Management Team

  • Ian Johnston (64yo)

    Vice President

    • Tenure: 2.3yrs
    • Compensation: US$387.05k
  • Lisa Im (54yo)

    Chairman & CEO

    • Tenure: 15.5yrs
    • Compensation: US$423.85k
  • Hal Leach (61yo)

    Chief Compliance Officer

    • Tenure: 3.5yrs
    • Compensation: US$551.82k
  • Jeff Nelson

    Vice President of Technology

    • Tenure: 0yrs
  • Simeon Kohl (52yo)

    VP of Healthcare & GM of Healthcare

    • Tenure: 2.5yrs
    • Compensation: US$424.25k
  • Richard Zubek

    Investor Relations Professional

    • Tenure: 0yrs

Board Members

  • Jeffrey Stein (54yo)

    Director

    • Tenure: 0.4yrs
  • Todd Ford (52yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$136.00k
  • William Hansen (60yo)

    Lead Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$136.00k
  • Lisa Im (54yo)

    Chairman & CEO

    • Tenure: 15.5yrs
    • Compensation: US$423.85k
  • Brad Fluegel (57yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$122.00k

Company Information

Performant Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Performant Financial Corporation
  • Ticker: PFMT
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$55.268m
  • Shares outstanding: 53.66m
  • Website: https://performantcorp.com

Number of Employees


Location

  • Performant Financial Corporation
  • 333 North Canyons Parkway
  • Suite 100
  • Livermore
  • California
  • 94551
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFMTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2012
PF3DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2012

Biography

Performant Financial Corporation provides technology-enabled audit, recovery, outsource customer, and related analytics services in the United States. The company offers recovery services primarily to the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:18
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.