OTCPK:PGCM.F

Stock Analysis Report

Executive Summary

Puregold Price Club, Inc. engages in the retail and wholesale of consumer goods in the Philippines.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Puregold Price Club's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.3%

PGCM.F

-4.4%

US Consumer Retailing

-7.6%

US Market


1 Year Return

n/a

PGCM.F

11.6%

US Consumer Retailing

10.2%

US Market

Return vs Industry: Insufficient data to determine how PGCM.F performed against the US Consumer Retailing industry.

Return vs Market: Insufficient data to determine how PGCM.F performed against the US Market.


Shareholder returns

PGCM.FIndustryMarket
7 Day-10.3%-4.4%-7.6%
30 Day-13.6%-3.4%-4.5%
90 Day-6.7%-4.7%-0.6%
1 Yearn/a13.8%11.6%12.5%10.2%
3 Yearn/a42.6%33.4%37.1%28.3%
5 Year-26.3%-26.3%42.1%27.3%60.8%43.2%

Price Volatility Vs. Market

How volatile is Puregold Price Club's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Puregold Price Club undervalued compared to its fair value and its price relative to the market?

16.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PGCM.F ($0.7) is trading above our estimate of fair value ($0.57)

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


Price To Earnings Ratio

PE vs Industry: PGCM.F is good value based on its PE Ratio (16.2x) compared to the Consumer Retailing industry average (21.3x).

PE vs Market: PGCM.F is good value based on its PE Ratio (16.2x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: PGCM.F is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: PGCM.F is good value based on its PB Ratio (1.8x) compared to the US Consumer Retailing industry average (2x).


Next Steps

Future Growth

How is Puregold Price Club forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGCM.F's forecast earnings growth (12.8% per year) is above the savings rate (1.7%).

Earnings vs Market: PGCM.F's earnings (12.8% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: PGCM.F's revenue (11% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PGCM.F's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGCM.F's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Puregold Price Club performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGCM.F has high quality earnings.

Growing Profit Margin: PGCM.F's current net profit margins (4.4%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: PGCM.F's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: PGCM.F's earnings growth over the past year (4.5%) is below its 5-year average (8.4% per year).

Earnings vs Industry: PGCM.F earnings growth over the past year (4.5%) exceeded the Consumer Retailing industry -6%.


Return on Equity

High ROE: PGCM.F's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is Puregold Price Club's financial position?


Financial Position Analysis

Short Term Liabilities: PGCM.F's short term assets (PHP32.0B) exceed its short term liabilities (PHP7.3B).

Long Term Liabilities: PGCM.F's short term assets (PHP32.0B) exceed its long term liabilities (PHP26.9B).


Debt to Equity History and Analysis

Debt Level: PGCM.F's debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: PGCM.F's debt to equity ratio has reduced from 13.7% to 2.1% over the past 5 years.

Debt Coverage: PGCM.F's debt is well covered by operating cash flow (817.6%).

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


Balance Sheet

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

Debt Coverage by Assets: PGCM.F's debt is covered by short term assets (assets are 24.4x debt).


Next Steps

Dividend

What is Puregold Price Club's current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PGCM.F's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: PGCM.F's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: PGCM.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PGCM.F's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.5%), PGCM.F's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PGCM.F's dividends in 3 years are forecast to be well covered by earnings (19% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Ferdinand Vincent Co (37yo)

4.8yrs

Tenure

Mr. Ferdinand Vincent P. Co serves as the President of 514 Shaw Property Holdings, Inc., KMC Realty Corporation, VFC Land Resources and Pajusco Corporation. Mr. Co has been the President of Puregold Price  ...


CEO Compensation Analysis

Compensation vs Market: Ferdinand Vincent's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Insufficient data to compare Ferdinand Vincent's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ferdinand Vincent Co
President & Director4.8yrsno data0.93% PHP19.9m
Denise Maria Carolino
Vice President of Administration25yrs₱780.00kno data
Iraida De Guzman
Senior Vice President4.1yrs₱1.17mno data
Antonio E. Santos
Operations Head0yrsno datano data
John Marson Hao
Vice President of Investor Relations5.2yrsno datano data
Andres Santos
Legal Counsel15.1yrsno datano data
Candy Dacanay-Datuon
Assistant Corporate Secretary & Compliance Officer8.3yrsno datano data
Elvira Gutierrez
Senior Manager of Human Resources8.8yrsno datano data
Baby Gerlie Sacro
Corporate Secretary20.1yrsno datano data
Teodoro Polinga
Comptroller4.9yrsno datano data

8.3yrs

Average Tenure

47yo

Average Age

Experienced Management: PGCM.F's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ferdinand Vincent Co
President & Director4.8yrsno data0.93% PHP19.9m
Jack Ekian Huang
Director2.8yrsno data0.00017% PHP3.6k
Leonardo Dayao
Director21.4yrs₱750.00k0.026% PHP550.4k
Lucio Co
Chairman of the Board21.4yrsno data7.32% PHP157.0m
Jaime S. De Rosa
Independent Director2.8yrsno datano data
Susan Co
Vice-Chairman21.4yrsno data6.18% PHP132.6m
Pamela Justine Co
Director17.1yrsno data0.93% PHP19.9m
Marilyn Pardo
Independent Director9.3yrsno datano data
Edgardo Lacson
Lead Independent Director0yrsno datano data

16.8yrs

Average Tenure

65yo

Average Age

Experienced Board: PGCM.F's board of directors are seasoned and experienced ( 16.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Puregold Price Club, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Puregold Price Club, Inc.
  • Ticker: PGCM.F
  • Exchange: OTCPK
  • Founded: 1998
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: ₱109.601b
  • Listing Market Cap: ₱2.146b
  • Shares outstanding: 2.88b
  • Website: https://www.puregold.com.ph

Number of Employees


Location

  • Puregold Price Club, Inc.
  • Tabacalera Building
  • 2nd Floor
  • Manila
  • 1007
  • Philippines

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGOLDPSE (Philippines Stock Exchange)YesOrdinary SharesPHPHPOct 2011
PGCM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2011

Biography

Puregold Price Club, Inc. engages in the retail and wholesale of consumer goods in the Philippines. The company operates hypermarkets under the Puregold Price Club name primarily in commercial centers and near transportation hubs; supermarkets under the Puregold Junior name primarily located in residential areas; and discounters under the Puregold Extra name, as well as stores under the warehouse club concept. It also operates convenience stores under the LAWSON name; and supermarkets under the San Roque Supermarkets name. The company's stores offer canned goods, housewares, toiletries, dry goods, food products, pharmaceutical and medical goods, etc. It sells its products to retail consumers; and resellers, small to medium sized sari-sari stores, canteens, restaurants, bakeries, and convenience and drug stores, as well as small to medium sized businesses. The company operates 408 stores, including 354 Puregold stores, 16 S&R membership shopping warehouses, and 39 S&R New York Style QSR. The company was founded in 1998 and is based in Manila, the Philippines. Puregold Price Club, Inc. is a subsidiary of Cosco Capital, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:12
End of Day Share Price2020/02/26 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.