NasdaqGS:PICO

Stock Analysis Report

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Executive Summary

PICO Holdings, Inc., together with its subsidiaries, engages in the water resource and water storage activities in the southwestern United States. More Details

Rewards

Trading at 91.8% below our estimate of its fair value

Earnings grew by 597% over the past year

Risk Analysis

No risks detected for PICO from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

PICO

-1.1%

US Commercial Services

-0.4%

US Market


1 Year Return

-14.6%

PICO

8.8%

US Commercial Services

18.3%

US Market

Return vs Industry: PICO underperformed the US Commercial Services industry which returned 8.9% over the past year.

Return vs Market: PICO underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

PICOIndustryMarket
7 Day-1.7%-1.1%-0.4%
30 Day-0.2%5.2%6.6%
90 Day7.7%11.5%8.6%
1 Year-14.6%-14.6%10.5%8.8%21.0%18.3%
3 Year-37.6%-55.0%49.5%40.0%42.1%32.7%
5 Year28.1%-7.6%111.8%90.1%85.6%64.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PICO ($8.93) is trading below our estimate of fair value ($108.75)

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


Price To Earnings Ratio

PE vs Industry: PICO is poor value based on its PE Ratio (29.3x) compared to the US Commercial Services industry average (27.7x).

PE vs Market: PICO is poor value based on its PE Ratio (29.3x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PICO is good value based on its PB Ratio (1x) compared to the US Commercial Services industry average (1.6x).


Next Steps

Future Growth

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

26.0%

Forecasted Commercial Services 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 PICO Holdings 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.


Next Steps

Past Performance

How has PICO Holdings performed over the past 5 years?

69.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PICO has high quality earnings.

Growing Profit Margin: PICO's current net profit margins (32.2%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: PICO has become profitable over the past 5 years, growing earnings by 69.8% per year.

Accelerating Growth: PICO's earnings growth over the past year (597%) exceeds its 5-year average (69.8% per year).

Earnings vs Industry: PICO earnings growth over the past year (597%) exceeded the Commercial Services industry -13.1%.


Return on Equity

High ROE: PICO's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is PICO Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PICO's short term assets ($11.3M) exceed its short term liabilities ($88.0K).

Long Term Liabilities: PICO's short term assets ($11.3M) exceed its long term liabilities ($1.3M).


Debt to Equity History and Analysis

Debt Level: PICO is debt free.

Reducing Debt: PICO has no debt compared to 5 years ago when its debt to equity ratio was 36%.

Debt Coverage: PICO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PICO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

Dorothy Timian-Palmer (62 yo)

2.17yrs

Tenure

US$837,217

Compensation

Ms. Dorothy Ann Timian-Palmer, P.E. serves as President and Chief Executive Officer of Vidler Water Company, PICO Holdings, Inc. wholly-owned subsidiary which owns water resources and water storage operati ...


CEO Compensation Analysis

Compensation vs Market: Dorothy's total compensation ($USD837.22K) is below average for companies of similar size in the US market ($USD1.24M).

Compensation vs Earnings: Dorothy's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Maxim Charles Webb
Executive Chairman3.83yrsUS$580.75k0.45%
$ 755.7k
Dorothy Timian-Palmer
President2.17yrsUS$837.22k0.20%
$ 336.9k
Gregory Bylinsky
Independent Director3.42yrsUS$43.75k0%
$ 0
Eric Speron
Lead Independent Director2.42yrsUS$35.00k0.37%
$ 632.2k
Nicole Weymouth
Independent Director2.58yrsUS$43.75k0%
$ 0

2.6yrs

Average Tenure

53yo

Average Age

Experienced Board: PICO's board of directors are not considered experienced ( 2.6 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

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


Key Information

  • Name: PICO Holdings, Inc.
  • Ticker: PICO
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$169.267m
  • Shares outstanding: 18.95m
  • Website: https://www.picoholdings.com

Number of Employees


Location

  • PICO Holdings, Inc.
  • 3480 GS Richards Boulevard
  • Suite 101
  • Carson City
  • Nevada
  • 89703
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PICONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1996
PIDDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1996

Biography

PICO Holdings, Inc., together with its subsidiaries, engages in the water resource and water storage activities in the southwestern United States. It engages in selling its water rights and storage credits ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:20
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.