OTCPK:PBKO.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Pollard Banknote Limited, together with its subsidiaries, manufactures and sells a range of gaming products and services for the lottery and charitable gaming industries worldwide.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Pollard Banknote's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

PBKO.F

0.2%

US Hospitality

2.3%

US Market


1 Year Return

n/a

PBKO.F

-28.1%

US Hospitality

6.7%

US Market

Return vs Industry: Insufficient data to determine how PBKO.F performed against the US Hospitality industry.

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


Shareholder returns

PBKO.FIndustryMarket
7 Day0%0.2%2.3%
30 Day17.5%-1.8%7.4%
90 Day4.8%19.5%17.9%
1 Yearn/a-26.6%-28.1%9.0%6.7%
3 Year73.8%69.4%-17.7%-23.0%36.6%27.7%
5 Year134.2%121.2%-1.1%-11.7%64.2%46.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Pollard Banknote undervalued compared to its fair value and its price relative to the market?

34.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PBKO.F ($12.71) is trading above our estimate of fair value ($9.67)

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


Price To Earnings Ratio

PE vs Industry: PBKO.F is poor value based on its PE Ratio (34.1x) compared to the US Hospitality industry average (20.3x).

PE vs Market: PBKO.F is poor value based on its PE Ratio (34.1x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: PBKO.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PBKO.F is overvalued based on its PB Ratio (3.2x) compared to the US Hospitality industry average (1.7x).


Next Steps

Future Growth

How is Pollard Banknote forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

49.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBKO.F's forecast earnings growth (49.4% per year) is above the savings rate (2.2%).

Earnings vs Market: PBKO.F's earnings (49.4% per year) are forecast to grow faster than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PBKO.F's revenue (8.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: PBKO.F's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Pollard Banknote performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBKO.F has high quality earnings.

Growing Profit Margin: PBKO.F's current net profit margins (3.2%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: PBKO.F's earnings have grown by 17.3% per year over the past 5 years.

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

Earnings vs Industry: PBKO.F had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Hospitality industry average (-30.8%).


Return on Equity

High ROE: PBKO.F's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Pollard Banknote's financial position?


Financial Position Analysis

Short Term Liabilities: PBKO.F's short term assets (CA$138.6M) exceed its short term liabilities (CA$65.9M).

Long Term Liabilities: PBKO.F's short term assets (CA$138.6M) do not cover its long term liabilities (CA$183.3M).


Debt to Equity History and Analysis

Debt Level: PBKO.F's debt to equity ratio (100.8%) is considered high.

Reducing Debt: PBKO.F's debt to equity ratio has reduced from 217.3% to 100.8% over the past 5 years.

Debt Coverage: PBKO.F's debt is well covered by operating cash flow (37.2%).

Interest Coverage: PBKO.F's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Pollard Banknote current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PBKO.F's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: PBKO.F's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (4.6%).


Stability and Growth of Payments

Stable Dividend: PBKO.F's dividends per share have been stable in the past 10 years.

Growing Dividend: PBKO.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), PBKO.F's dividend payments are well 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

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

9.2yrs

Average management tenure


CEO

John Pollard (58yo)

23.5yrs

Tenure

CA$340,430

Compensation

Mr. John S. Pollard, B.Comm., CA, has been the Co-Chief Executive Officer at Pollard Banknote Limited since 1997, which acts as general partner of Pollard Banknote Income Fund and Pollard Holdings Limited  ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD250.38K) is below average for companies of similar size in the US market ($USD2.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gordon Pollard
Executive Chairman9.17yrsCA$100.95kno data
John Pollard
Co-CEO & Director23.5yrsCA$340.43kno data
Douglas Pollard
Co-CEO & Director15.5yrsCA$306.43kno data
Robert Rose
Executive VP of Finance & CFO24.5yrsCA$561.62k0.029% CA$93.4k
Robert Young
Executive Vice President of Operationsno dataCA$596.40kno data
Riva Richard
Executive VP of Legal Affairsno dataCA$541.62kno data
Jennifer Westbury
Executive Vice President of Sales & Customer Developmentno dataCA$653.02kno data
Paul Franzmann
Executive Vice President of Corporate Development3.17yrsno datano data
Margaret Proven
Executive Vice President of Human Resourcesno datano datano data
Pedro Melo
Executive Vice President of Information Technology3yrsno data0.0060% CA$19.3k

9.2yrs

Average Tenure

58yo

Average Age

Experienced Management: PBKO.F's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gordon Pollard
Executive Chairman9.17yrsCA$100.95kno data
John Pollard
Co-CEO & Director23.5yrsCA$340.43kno data
Douglas Pollard
Co-CEO & Director15.5yrsCA$306.43kno data
Jerry Gray
Lead Independent Director3.33yrsCA$73.43k0.12% CA$391.0k
David Brown
Independent Director3.17yrsCA$68.43k0.021% CA$67.2k
Garry Leach
Independent Director11.5yrsCA$73.43k0.0078% CA$24.9k

10.3yrs

Average Tenure

60yo

Average Age

Experienced Board: PBKO.F's board of directors are seasoned and experienced ( 10.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pollard Banknote Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pollard Banknote Limited
  • Ticker: PBKO.F
  • Exchange: OTCPK
  • Founded: 1907
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: CA$434.012m
  • Listing Market Cap: CA$319.201m
  • Shares outstanding: 25.64m
  • Website: https://www.pollardbanknote.com

Number of Employees


Location

  • Pollard Banknote Limited
  • 140 Otter Street
  • Winnipeg
  • Manitoba
  • R3T 0M8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBLTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2005
PBKO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2005

Biography

Pollard Banknote Limited, together with its subsidiaries, manufactures and sells a range of gaming products and services for the lottery and charitable gaming industries worldwide. The company operates in two segments, Lotteries and Charitable Gaming, and Diamond Game. It designs, manufactures, and distributes instant tickets, as well as offers related services. The company also offers a range of bingo and bingo-related products; manufactures and sells pull-tab tickets, as well as pull-tab ticket vending machines and pull-tab ticket counting machines. In addition, it provides licensed games; and various solutions for licensed games, such as ticket design and manufacturing, prize structure consultation, merchandise selection and fulfillment, publicity and promotional opportunities, and second chance draw management. Further, the company offers lottery ticket dispensers and point-of-sale displays; charitable gaming machines; and lottery management services and information systems, as well as warehouse and distribution services to lotteries. Additionally, it engages in the interactive digital games and website development; and internet-based gaming businesses. The company was formerly known as 7510101 Canada Limited. Pollard Banknote Limited was founded in 1907 and is headquartered in Winnipeg, Canada. Pollard Banknote Limited is a subsidiary of Pollard Equities Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 00:49
End of Day Share Price2020/06/23 00:00
Earnings2020/03/31
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.