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 Analysis

Flawless balance sheet and fair value.


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

Stable Share Price: PMD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

PMD

-4.1%

US Healthcare

-2.8%

US Market


1 Year Return

-61.8%

PMD

-8.9%

US Healthcare

-15.9%

US Market

Return vs Industry: PMD underperformed the US Healthcare industry which returned -8.9% over the past year.

Return vs Market: PMD underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

PMDIndustryMarket
7 Day-2.5%-4.1%-2.8%
30 Day-33.2%-19.5%-18.8%
90 Day-40.8%-21.2%-24.0%
1 Year-58.7%-61.8%-7.7%-8.9%-14.2%-15.9%
3 Year-69.2%-73.4%13.1%8.1%9.9%2.8%
5 Year-58.2%-66.7%16.7%8.8%27.2%13.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PMD ($5.45) is trading below our estimate of fair value ($15.3)

Significantly Below Fair Value: PMD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PMD is poor value based on its PE Ratio (19.5x) compared to the Healthcare industry average (19.4x).

PE vs Market: PMD is poor value based on its PE Ratio (19.5x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PMD is good value based on its PB Ratio (1.8x) compared to the US Healthcare industry average (2.2x).


Next Steps

Future Growth

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

13.4%

Forecasted Healthcare 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 Psychemedics 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 Psychemedics performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PMD has a large one-off loss of $800.0K impacting its December 31 2019 financial results.

Growing Profit Margin: PMD's current net profit margins (4.1%) are lower than last year (10.7%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: PMD had negative earnings growth (-66.4%) over the past year, making it difficult to compare to the Healthcare industry average (14%).


Return on Equity

High ROE: PMD's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Psychemedics's financial position?


Financial Position Analysis

Short Term Liabilities: PMD's short term assets ($12.9M) exceed its short term liabilities ($5.8M).

Long Term Liabilities: PMD's short term assets ($12.9M) exceed its long term liabilities ($4.9M).


Debt to Equity History and Analysis

Debt Level: PMD's debt to equity ratio (15.6%) is considered satisfactory.

Reducing Debt: PMD's debt to equity ratio has reduced from 48.7% to 15.6% over the past 5 years.

Debt Coverage: PMD's debt is well covered by operating cash flow (163.9%).

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


Balance Sheet

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

Debt Coverage by Assets: PMD's debt is covered by short term assets (assets are 4.9x debt).


Next Steps

Dividend

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

13.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PMD's dividend (13.21%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: PMD's dividend (13.21%) is in the top 25% of dividend payers in the US market (5.82%)


Stability and Growth of Payments

Stable Dividend: PMD's dividend payments have been volatile in the past 10 years.

Growing Dividend: PMD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (257.5%), PMD's dividend payments are not 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?

21.3yrs

Average management tenure


CEO

Raymond Kubacki (74yo)

29.25s

Tenure

US$736,800

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

Compensation vs Market: Raymond's total compensation ($USD736.80K) is about average for companies of similar size in the US market ($USD626.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Raymond Kubacki
Chairman29.25yrsUS$736.80k3.2% $961.2k
Charles Doucot
Executive Vice President1.25yrsUS$436.50k0.0091% $2.7k
Michael Schaffer
Vice President of Laboratory Operations21.25yrsUS$349.80k0.39% $116.0k
Werner Baumgartner
42.25yrsno datano data
Annette Baumgartner
42.25yrsno datano data
Neil Lerner
VP of Finance8.92yrsUS$271.67k0.20% $61.4k
James Abely
VP & General Counsel3.67yrsno datano data
Patrick Kinney
Secretaryno datano datano data

21.3yrs

Average Tenure

63.5yo

Average Age

Experienced Management: PMD's management team is seasoned and experienced (21.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raymond Kubacki
Chairman29.25yrsUS$736.80k3.2% $961.2k
A. Allen
Independent Director4.58yrsUS$118.08k0.023% $7.0k
Walter Tomenson
Independent Director21.25yrsUS$118.08k0.57% $171.1k
Fred Weinert
Independent Director29.25yrsUS$334.28k2.45% $736.1k
Harry Connick
Independent Director16.58yrsUS$119.43k0.92% $277.2k

16.6yrs

Average Tenure

74yo

Average Age

Experienced Board: PMD's board of directors are seasoned and experienced ( 16.6 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

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


Key Information

  • Name: Psychemedics Corporation
  • Ticker: PMD
  • Exchange: NasdaqCM
  • Founded: 1986
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$30.067m
  • 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. The company offers screening and confirmation by mass spectrometry using industry-accepted practices for cocaine, marijuana, PCP, amphetamines, opiates, synthetic cannabinoids, and benzodiazepines. Its testing results provide quantitative information that can indicate the approximate amount of drug ingested, as well as historical data that can show a pattern of individual drug use over a longer period-of-time. The company provides its services to employers for applicant and employee testing; and treatment professionals, law enforcement agencies, school administrators, and parents concerned about their children’s drug use. Psychemedics Corporation was founded in 1986 and is headquartered in Acton, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 05:35
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.