NasdaqCM:PNTR

Stock Analysis Report

Executive Summary

Pointer Telocation Ltd. provides mobile resource management (MRM) products and services for the automotive and insurance industries, and mobile assets management markets in Israel, Latin America, Europe, and internationally.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

PNTR

2.6%

US Commercial Services

2.0%

US Market


1 Year Return

28.5%

PNTR

22.9%

US Commercial Services

23.6%

US Market

Return vs Industry: PNTR exceeded the US Commercial Services industry which returned 23.7% over the past year.

Return vs Market: PNTR exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

PNTRIndustryMarket
7 Day0%2.6%2.0%
30 Day0%4.3%3.9%
90 Day7.2%4.8%12.0%
1 Year28.5%28.5%27.5%22.9%26.2%23.6%
3 Year100.9%100.9%66.5%55.6%53.2%43.3%
5 Year89.5%89.5%108.1%86.9%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PNTR ($15.27) is trading above our estimate of fair value ($5.18)

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


Price To Earnings Ratio

PE vs Industry: PNTR is good value based on its PE Ratio (25.2x) compared to the Commercial Services industry average (26.4x).

PE vs Market: PNTR is poor value based on its PE Ratio (25.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PNTR is good value based on its PB Ratio (1.8x) compared to the US Commercial Services industry average (2.1x).


Next Steps

Future Growth

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

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNTR's forecast earnings growth (18.4% per year) is above the savings rate (2.7%).

Earnings vs Market: PNTR's earnings (18.4% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: Insufficient data to determine if PNTR's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if PNTR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PNTR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pointer Telocation performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNTR has high quality earnings.

Growing Profit Margin: PNTR's current net profit margins (6.4%) are lower than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: PNTR's earnings have grown by 1.4% per year over the past 5 years.

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

Earnings vs Industry: PNTR had negative earnings growth (-70.4%) over the past year, making it difficult to compare to the Commercial Services industry average (-1.3%).


Return on Equity

High ROE: PNTR's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pointer Telocation's financial position?


Financial Position Analysis

Short Term Liabilities: PNTR's short term assets ($37.5M) exceed its short term liabilities ($20.4M).

Long Term Liabilities: PNTR's short term assets ($37.5M) exceed its long term liabilities ($9.3M).


Debt to Equity History and Analysis

Debt Level: PNTR's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: PNTR's debt to equity ratio has reduced from 55.7% to 5.7% over the past 5 years.

Debt Coverage: PNTR's debt is well covered by operating cash flow (141.6%).

Interest Coverage: PNTR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PNTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: PNTR's debt is covered by short term assets (assets are 9.4x debt).


Next Steps

Dividend

What is Pointer Telocation's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if PNTR'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 PNTR'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 Pointer Telocation's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

David Mahlab (62yo)

8.8yrs

Tenure

US$1,273,416

Compensation

Mr. David Mahlab has been Chief Executive Officer of International and Director at PowerFleet, Inc. (formerly ID Systems Inc.) since October 03, 2019. Mr. Mahlab has been the Chief Executive Officer and Pr ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.27M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

7.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: PNTR's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PNTR's board of directors are considered experienced (5.6 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.


Ownership Breakdown

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


Management Team

  • David Mahlab (62yo)

    President & CEO

    • Tenure: 8.8yrs
    • Compensation: US$1.27m
  • Gary Macdowell (67yo)

    President of Nexus America

    • Ofer Lior

      Special Officer of Towing Operations Abroad

      • Tenure: 14.3yrs
    • Micha Kraus

      Chief Executive Officer of Shagrir Vehicle Systems Ltd

      • Tenure: 14.3yrs
    • Shuki Rozanski (53yo)

      Vice President of Sales and Marketing

      • Tenure: 5.2yrs
      • Compensation: US$267.90k
    • Moses Zelniker (57yo)

      Chief Technology Officer

      • Tenure: 1.4yrs
    • Rami Peled (63yo)

      Chief Information Officer

      • Compensation: US$233.32k
    • Yaniv Dorani (42yo)

      Chief Financial Officer

      • Tenure: 2.6yrs
      • Compensation: US$434.22k
    • Eran Tibon (58yo)

      Chief Operational Officer

      • Compensation: US$253.36k
    • Nessy Turgeman (44yo)

      Chief Information Officer & VP of Global Software Solution

      • Compensation: US$238.01k

    Board Members

    • Nir Cohen (47yo)

      Director

      • Tenure: 7.4yrs
    • Barak Dotan (52yo)

      Director

      • Tenure: 16.6yrs
    • Yosi Ben Shalom (64yo)

      Chairman

      • Tenure: 16.6yrs
    • Yehudit Rozenberg (59yo)

      Director

      • Tenure: 3.8yrs
    • Arieh Ben-Yosef (66yo)

      External Director

      • Tenure: 2.4yrs
    • Ofer Wolf (56yo)

      External Director

      • Tenure: 2.4yrs

    Company Information

    Pointer Telocation Ltd.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Pointer Telocation Ltd.
    • Ticker: PNTR
    • Exchange: NasdaqCM
    • Founded: 1991
    • Industry: Diversified Support Services
    • Sector: Commercial Services
    • Market Cap: US$125.040m
    • Shares outstanding: 8.19m
    • Website: https://www.pointer.com

    Number of Employees


    Location

    • Pointer Telocation Ltd.
    • 14 Hamelacha Street
    • Rosh Haayin
    • 48091
    • Israel

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    PNTRNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDJun 1994

    Biography

    Pointer Telocation Ltd. provides mobile resource management (MRM) products and services for the automotive and insurance industries, and mobile assets management markets in Israel, Latin America, Europe, and internationally. It operates in two segments, MRM and Cellocator. The MRM segment offers asset management, fleet management, stolen vehicle retrieval (SVR), and connected car services. The Cellocator segment designs, develops, and manufactures MRM products, such as fleet management products, including remote monitoring and control solutions comprising command and control center, and communications infrastructure; asset management products; and SVR products. The company was formerly known as Nexus Telocation Systems Ltd. and changed its name to Pointer Telocation Ltd. in January 2006. Pointer Telocation Ltd. was founded in 1991 and is headquartered in Rosh Haayin, Israel. As of October 3, 2019, Pointer Telocation Ltd. operates as a subsidiary of PowerFleet, Inc. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2019/11/18 00:06
    End of Day Share Price2019/10/02 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.