OTCPK:PFHO

Stock Analysis Report

Pacific Health Care Organization

Executive Summary

Pacific Health Care Organization, Inc., together with its subsidiaries, provides specialty workers’ compensation managed care services for self-administered employers, insurers, third party administrators, municipalities, and others in the United States.

Rewards

Trading at 53.3% below its fair value

Risk Analysis

Earnings have declined by -11.71% per year over past 5 years

Does not have a meaningful market cap ($14M)



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Pacific Health Care Organization's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.3%

PFHO

-0.8%

US Healthcare

0.6%

US Market


1 Year Return

-10.2%

PFHO

6.7%

US Healthcare

20.8%

US Market

Return vs Industry: PFHO underperformed the US Healthcare industry which returned 6.7% over the past year.

Return vs Market: PFHO underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

PFHOIndustryMarket
7 Day-15.3%-0.8%0.6%
30 Day2.6%5.6%2.5%
90 Day-6.3%15.3%4.9%
1 Year-10.2%-10.2%8.6%6.7%23.5%20.8%
3 Year66.6%66.6%47.0%40.4%46.5%37.0%
5 Year-54.2%-56.7%63.4%52.2%64.6%46.5%

Price Volatility Vs. Market

How volatile is Pacific Health Care Organization's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pacific Health Care Organization 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: PFHO ($4.31) is trading below our estimate of fair value ($9.23)

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


Price To Earnings Ratio

PE vs Industry: PFHO is good value based on its PE Ratio (11.2x) compared to the Healthcare industry average (21.8x).

PE vs Market: PFHO is good value based on its PE Ratio (11.2x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFHO is good value based on its PB Ratio (1.5x) compared to the US Healthcare industry average (2.6x).


Next Steps

Future Growth

How is Pacific Health Care Organization forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.6%

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 Pacific Health Care Organization 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

  • Examine whether Pacific Health Care Organization is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Pacific Health Care Organization's filings and announcements here.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has Pacific Health Care Organization performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFHO has high quality earnings.

Growing Profit Margin: PFHO's current net profit margins (16.9%) are lower than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: PFHO's earnings have declined by -11.7% per year over the past 5 years.

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

Earnings vs Industry: PFHO had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Healthcare industry average (6.2%).


Return on Equity

High ROE: PFHO's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pacific Health Care Organization's financial position?


Financial Position Analysis

Short Term Liabilities: PFHO's short term assets ($9.4M) exceed its short term liabilities ($725.1K).

Long Term Liabilities: PFHO's short term assets ($9.4M) exceed its long term liabilities ($419.8K).


Debt to Equity History and Analysis

Debt Level: PFHO is debt free.

Reducing Debt: PFHO has not had any debt for past 5 years.

Debt Coverage: PFHO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PFHO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PFHO has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PFHO's debt is covered by short term assets.


Next Steps

Dividend

What is Pacific Health Care Organization's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PFHO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PFHO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PFHO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PFHO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PFHO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Pacific Health Care Organization's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average board tenure


CEO

Tom Kubota (80yo)

0yrs

Tenure

US$471,680

Compensation

Mr. Tom Kubota serves as the Chief Executive Officer of Pacific Health Care Organization, Inc. and has been its President since 2000. Mr. Kubota serves as the President of Nanko Corporation. He has experti ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD471.68K) is about average for companies of similar size in the US market ($USD526.35K).

Compensation vs Earnings: Tom's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Board: PFHO's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: PFHO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$5,08203 Dec 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000
Max PriceUS$5.09
BuyUS$5,04319 Aug 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000
Max PriceUS$5.21
BuyUS$5,71019 Jul 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,100
Max PriceUS$5.20
BuyUS$10,00001 Jul 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,000
Max PriceUS$5.00
BuyUS$5,70503 Jun 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000
Max PriceUS$5.90
BuyUS$4,78515 Mar 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000
Max PriceUS$4.80
BuyUS$4,77525 Feb 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000
Max PriceUS$4.80
BuyUS$1,91830 Jan 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares400
Max PriceUS$4.80
BuyUS$2,38707 Jan 19
Tom Kubota
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares500
Max PriceUS$4.80

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Fred Odaka (82yo)

    CFO & Secretary

    • Tenure: 11.3yrs
    • Compensation: US$120.92k
  • Tom Kubota (80yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$471.68k
  • Don Balzano (73yo)

    President of Industrial Resolutions Coalition Inc. & President of Medex Legal Support Inc.

    • Tenure: 11.9yrs
  • Geri Plotzke (76yo)

    Executive Vice President of Medex Healthcare Inc

    • Tenure: 0yrs
    • Compensation: US$105.37k
  • David Kim (46yo)

    Chief Operating Officer of Medex

    • Tenure: 0yrs
    • Compensation: US$98.36k
  • Kathy Torres (69yo)

    Executive Vice President of Medex Healthcare

    • Tenure: 0yrs

Board Members

  • Tom Kubota (80yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$471.68k
  • David Wang (57yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$5.00k
  • Gunter Soraperra (58yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$4.80k
  • Stacy Hadley (51yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$4.80k
  • Kristina Kubota (34yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$77.06k
  • Lauren Kubota (35yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$74.87k

Company Information

Pacific Health Care Organization, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Health Care Organization, Inc.
  • Ticker: PFHO
  • Exchange: OTCPK
  • Founded: 1970
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$13.792m
  • Shares outstanding: 3.20m
  • Website: https://www.pacifichealthcareorganization.com

Number of Employees


Location

  • Pacific Health Care Organization, Inc.
  • 1201 Dove Street
  • Suite 300
  • Newport Beach
  • California
  • 92660
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFHOOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 1995

Biography

Pacific Health Care Organization, Inc., together with its subsidiaries, provides specialty workers’ compensation managed care services for self-administered employers, insurers, third party administrators, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:45
End of Day Share Price2019/12/11 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.