NasdaqGM:PFIN

Stock Analysis Report

Executive Summary

P&F Industries, Inc., through its subsidiaries, designs, imports, and sells pneumatic hand tools primarily to the retail, industrial, automotive, and aerospace markets in the United States and internationally.

Rewards

PE ratio (3.8x) is below the US market (18.5x)

Earnings grew by 8735.4% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Does not have a meaningful market cap ($21M)



Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has P&F Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.9%

PFIN

1.3%

US Consumer Durables

0.7%

US Market


1 Year Return

-17.2%

PFIN

37.1%

US Consumer Durables

18.2%

US Market

Return vs Industry: PFIN underperformed the US Consumer Durables industry which returned 37.1% over the past year.

Return vs Market: PFIN underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

PFINIndustryMarket
7 Day2.9%1.3%0.7%
30 Dayn/a1.7%1.5%
90 Day-4.7%9.1%5.0%
1 Year-14.9%-17.2%39.3%37.1%20.8%18.2%
3 Year-15.2%-21.8%29.1%23.2%45.2%35.8%
5 Year-4.1%-16.8%42.7%33.3%71.6%52.7%

Price Volatility Vs. Market

How volatile is P&F Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is P&F Industries undervalued compared to its fair value and its price relative to the market?

3.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PFIN ($6.54) is trading above our estimate of fair value ($2.48)

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


Price To Earnings Ratio

PE vs Industry: PFIN is good value based on its PE Ratio (3.8x) compared to the Consumer Durables industry average (14.2x).

PE vs Market: PFIN is good value based on its PE Ratio (3.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFIN is good value based on its PB Ratio (0.4x) compared to the US Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is P&F Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.9%

Forecasted Consumer Durables 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 P&F Industries 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 P&F Industries performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFIN has a large one-off gain of $7.7M impacting its September 30 2019 financial results.

Growing Profit Margin: PFIN's current net profit margins (9.7%) are higher than last year (0.1%).


Past Earnings Growth Analysis

Earnings Trend: PFIN's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: PFIN's earnings growth over the past year (8735.4%) exceeds its 5-year average (9.2% per year).

Earnings vs Industry: PFIN earnings growth over the past year (8735.4%) exceeded the Consumer Durables industry 1.2%.


Return on Equity

High ROE: PFIN's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is P&F Industries's financial position?


Financial Position Analysis

Short Term Liabilities: PFIN's short term assets ($35.1M) exceed its short term liabilities ($9.6M).

Long Term Liabilities: PFIN's short term assets ($35.1M) exceed its long term liabilities ($1.7M).


Debt to Equity History and Analysis

Debt Level: PFIN's debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: PFIN's debt to equity ratio has reduced from 58.7% to 3.8% over the past 5 years.

Debt Coverage: PFIN's debt is well covered by operating cash flow (25.7%).

Interest Coverage: PFIN's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: PFIN's debt is covered by short term assets (assets are 19.6x debt).


Next Steps

Dividend

What is P&F Industries's current dividend yield, its reliability and sustainability?

3.06%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PFIN's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: PFIN's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PFIN has been paying a dividend for less than 10 years.

Growing Dividend: PFIN has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.6%), PFIN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of P&F Industries's salary, the management and board of directors tenure and is there insider trading?

14.3yrs

Average board tenure


CEO

Richard Horowitz (69yo)

24.1yrs

Tenure

US$1,676,354

Compensation

Mr. Richard A. Horowitz is the Founder of P&F Industries, Inc. and has been its Chairman and Chief Executive Officer since November 1995. Mr. Horowitz has been the President of P&F Industries, Inc. since 1 ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.68M) is above average for companies of similar size in the US market ($USD502.49K).

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


Board Age and Tenure

14.3yrs

Average Tenure

69yo

Average Age

Experienced Board: PFIN's board of directors are seasoned and experienced ( 14.3 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

  • Richard Horowitz (69yo)

    Founder

    • Tenure: 24.1yrs
    • Compensation: US$1.68m
  • Joseph Molino (55yo)

    VP, COO

    • Tenure: 22yrs
    • Compensation: US$692.62k
  • Richard Goodman

    General Counsel

    • Tenure: 0yrs
  • Kirsten Nicklaus

    Controller

    • Tenure: 0yrs

Board Members

  • Richard Horowitz (69yo)

    Founder

    • Tenure: 24.1yrs
    • Compensation: US$1.68m
  • Richard Randall (81yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$49.79k
  • Sidney Horowitz (99yo)

    Chairman Emeritus

    • Tenure: 24.1yrs
    • Compensation: US$10.63k
  • Mitchell Solomon (59yo)

    Lead Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$41.04k
  • Howard Brownstein (68yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$46.54k
  • Jeffrey Franklin (65yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$56.04k
  • Ken Scheriff (70yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$42.04k

Company Information

P&F Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: P&F Industries, Inc.
  • Ticker: PFIN
  • Exchange: NasdaqGM
  • Founded:
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: US$20.623m
  • Shares outstanding: 3.14m
  • Website: https://www.pfina.com

Number of Employees


Location

  • P&F Industries, Inc.
  • 445 Broadhollow Road
  • Suite 100
  • Melville
  • New York
  • 11747
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFINNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDJan 1968

Biography

P&F Industries, Inc., through its subsidiaries, designs, imports, and sells pneumatic hand tools primarily to the retail, industrial, automotive, and aerospace markets in the United States and internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:42
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.