NasdaqCM:PMD

Stock Analysis Report

Executive Summary

Psychemedics Corporation provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States, Brazil, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Risks

  • Psychemedics is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

6.1%

NasdaqCM:PMD

0.8%

US Healthcare

1.3%

US Market


1 Year Return

-54.8%

NasdaqCM:PMD

-8.2%

US Healthcare

2.0%

US Market

PMD underperformed the Healthcare industry which returned -8.2% over the past year.

PMD underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

PMDIndustryMarket
7 Day6.1%0.8%1.3%
30 Day17.1%-1.5%3.9%
90 Day-14.4%-0.5%3.4%
1 Year-51.9%-54.8%-6.8%-8.2%4.2%2.0%
3 Year-50.6%-56.3%30.2%24.9%47.2%37.6%
5 Year-20.5%-35.4%63.6%53.9%60.5%42.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Psychemedics undervalued based on future cash flows and its price relative to the stock market?

42%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Psychemedics's share price is below the future cash flow value, and at a moderate discount (> 20%).

Psychemedics's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Psychemedics is good value based on earnings compared to the US Healthcare industry average.

Psychemedics is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Psychemedics, we can't assess if its growth is good value.


Price Based on Value of Assets

Psychemedics is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Psychemedics expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Psychemedics is high growth as no revenue estimate data is available.

Psychemedics's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Psychemedics's revenue growth to the United States of America market average as no estimate data is available.

Psychemedics's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Psychemedics's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Psychemedics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Psychemedics performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Psychemedics's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Psychemedics's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Psychemedics's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

Psychemedics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Psychemedics used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Psychemedics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Psychemedics's financial position?


Financial Position Analysis

Psychemedics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Psychemedics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Psychemedics's level of debt (7.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (47.3% vs 7.7% today).

Debt is well covered by operating cash flow (423.6%, greater than 20% of total debt).

Psychemedics earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 9.4x debt.


Next Steps

Dividend

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

8.27%

Current Dividend Yield


Dividend Yield and Payments Analysis

Psychemedics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Psychemedics's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Psychemedics's salary, the management and board of directors tenure and is there insider trading?

20.7yrs

Average management tenure


CEO

Raymond Kubacki (74yo)

28.7yrs

Tenure

US$788,460

Compensation

Mr. Raymond C. Kubacki has been the President and Chief Executive Officer at Psychemedics Corp., since July 1991. Prior to joining Psychemedics Corp., Mr. Kubacki served as Vice President National Accounts ...


CEO Compensation Analysis

Raymond's remuneration is higher than average for companies of similar size in United States of America.

Raymond's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

20.7yrs

Average Tenure

63.5yo

Average Age

The average tenure for the Psychemedics management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

16.0yrs

Average Tenure

74yo

Average Age

The average tenure for the Psychemedics board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$9,99017 Jun 19
Raymond Kubacki
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000
Max PriceUS$9.99
SellUS$90,86714 Jun 19
Michael Schaffer
EntityIndividual
Role
Other Key Executive
Vice President of Laboratory Operations
Shares9,331
Max PriceUS$9.84
BuyUS$4,95107 Jun 19
Charles Doucot
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares500
Max PriceUS$9.90
SellUS$136,78113 Mar 19
Neil Lerner
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares9,057
Max PriceUS$15.11

Ownership Breakdown


Management Team

  • Werner Baumgartner

    • Tenure: 41.7yrs
  • Raymond Kubacki (74yo)

    Chairman

    • Tenure: 28.7yrs
    • Compensation: US$788.46k
  • Michael Schaffer (74yo)

    Vice President of Laboratory Operations

    • Tenure: 20.7yrs
    • Compensation: US$349.70k
  • Annette Baumgartner

    • Tenure: 41.7yrs
  • Charlie Doucot (53yo)

    Executive Vice President

    • Tenure: 0.7yrs
    • Compensation: US$474.78k
  • Patrick Kinney

    Secretary

    • Tenure: 0yrs
  • Neil Lerner (51yo)

    VP of Finance

    • Tenure: 8.3yrs
    • Compensation: US$271.67k
  • Jim Abely

    VP & General Counsel

    • Tenure: 3.1yrs

Board Members

  • Raymond Kubacki (74yo)

    Chairman

    • Tenure: 28.7yrs
    • Compensation: US$788.46k
  • A. Allen (75yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$120.38k
  • Walter Tomenson (72yo)

    Independent Director

    • Tenure: 20.7yrs
    • Compensation: US$120.38k
  • Fred Weinert (71yo)

    Independent Director

    • Tenure: 28.7yrs
    • Compensation: US$341.42k
  • Harry Connick (93yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$121.54k

Company Information

Psychemedics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Psychemedics Corporation
  • Ticker: PMD
  • Exchange: NasdaqCM
  • Founded: 1985
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$48.052m
  • Shares outstanding: 5.52m
  • Website: https://www.psychemedics.com

Number of Employees


Location

  • Psychemedics Corporation
  • 289 Great Road
  • Suite 200
  • Acton
  • Massachusetts
  • 1720
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMDNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1987

Biography

Psychemedics Corporation provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States, Brazil, and internationally. Its tests provide quantitative ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:43
End of Day Share Price2019/09/13 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.