NYSE:PRTY

Stock Analysis Report

Executive Summary

Party City Holdco Inc., through its subsidiaries, designs, manufactures, sources, and distributes party supplies in the United States and internationally.

Snowflake

Fundamentals

Very undervalued with imperfect balance sheet.

Risks

  • Party City Holdco has significant price volatility in the past 3 months.

Share Price & News

How has Party City Holdco's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

NYSE:PRTY

-3.4%

US Specialty Retail

-1.0%

US Market


1 Year Return

-68.9%

NYSE:PRTY

-6.5%

US Specialty Retail

-0.4%

US Market

PRTY underperformed the Specialty Retail industry which returned -7.1% over the past year.

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


Share holder returns

PRTYIndustryMarket
7 Day-0.6%-3.4%-1.0%
30 Day-21.9%-7.4%-3.3%
90 Day-41.3%-6.4%0.4%
1 Year-68.9%-68.9%-5.0%-6.5%1.8%-0.4%
3 Year-74.8%-74.8%17.8%11.8%39.4%30.4%
5 Yearn/a41.5%28.9%54.2%37.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Party City Holdco is good value based on earnings compared to the US Specialty Retail industry average.

Party City Holdco is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Party City Holdco is good value based on expected growth next year.


Price Based on Value of Assets

Party City Holdco is good value based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Party City Holdco expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Party City Holdco's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).

Party City Holdco's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

Party City Holdco's revenue growth is positive but not above the United States of America market average.

Party City Holdco's earnings growth is positive but not above the United States of America market average.

Party City Holdco's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Party City Holdco is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Party City Holdco performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Party City Holdco has delivered over 20% year on year earnings growth in the past 5 years.

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

Party City Holdco's 1-year earnings growth is negative, it can't be compared to the US Specialty Retail industry average.


Return on Equity

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


Return on Assets

Party City Holdco used its assets less efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Party City Holdco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Party City Holdco's financial position?


Financial Position Analysis

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

Party City Holdco's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Party City Holdco's level of debt (182.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (544.5% vs 182.6% today).

Debt is not well covered by operating cash flow (1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Party City Holdco's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Party City Holdco's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Party City Holdco's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Party City Holdco has not reported any payouts.

Unable to verify if Party City Holdco's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Party City Holdco has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Party City Holdco's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Jim Harrison (67yo)

5.6yrs

Tenure

US$2,544,578

Compensation

Mr. James M. Harrison, also known as Jim, has been the Chief Executive Officer of Party City Holdco Inc. since January 13, 2014. Mr. Harrison has been the Chief Operating Officer and President of Amscan Ho ...


CEO Compensation Analysis

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

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


Management Age and Tenure

1.5yrs

Average Tenure

61yo

Average Age

The average tenure for the Party City Holdco management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

57.5yo

Average Age

The tenure for the Party City Holdco board of directors is about average.


Insider Trading

More shares have been bought than sold by Party City Holdco individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$100,35916 Aug 19
Michael Correale
EntityIndividual
Role
Interim CFO & Chief Accounting Officer
Shares24,300
Max PriceUS$4.13
BuyUS$566,25013 Aug 19
James Harrison
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares125,000
Max PriceUS$4.53
BuyUS$493,99717 Dec 18
James Harrison
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares51,458
Max PriceUS$9.60
BuyUS$65,26519 Nov 18
William Creekmuir
EntityIndividual
Role
Member of the Board of Directors
Shares5,700
Max PriceUS$11.45
BuyUS$110,00014 Nov 18
Steven Collins
EntityIndividual
Role
Member of the Board of Directors
Shares10,000
Max PriceUS$11.00
BuyUS$50,81313 Nov 18
Michael Harrison
EntityIndividual
Role
Senior VP & GM of North American Consumer Products Group
Shares4,900
Max PriceUS$10.37
BuyUS$494,50013 Nov 18
Norman Matthews
EntityIndividual
Role
Chairman of the Board
Shares46,000
Max PriceUS$10.75
BuyUS$504,50013 Nov 18
James Harrison
EntityIndividual
Role
CEO & Director
Member of the Board of Directors
Shares50,000
Max PriceUS$10.09

Ownership Breakdown


Management Team

  • Joseph Zepf

    Secretary

  • Gerry Rittenberg (67yo)

    Non-Employee Senior Adviser & Director

    • Compensation: $2.74m
  • Jim Harrison (67yo)

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: $2.54m
  • Mike Correale (61yo)

    Interim CFO & Chief Accounting Officer

    • Tenure: 0.4yrs
    • Compensation: $522.14k
  • Brad Weston (54yo)

    President

    • Tenure: 0.1yrs
  • Marc Ehle

    Chief Operating Officer

  • Michael Harrison (39yo)

    Senior VP & GM of North American Consumer Products Group

    • Tenure: 2.6yrs
    • Compensation: $457.65k
  • Pat Duncan

    Senior VP of Marketing & Chief Digital Officer


Board Members

  • Norm Matthews (86yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: $299.81k
  • Morry Weiss (78yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: $212.50k
  • Meka Millstone-Shroff (44yo)

    Director

    • Tenure: 0.5yrs
  • Bill Creekmuir (63yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: $232.50k
  • Jim Harrison (67yo)

    CEO & Director

    • Tenure: 7.1yrs
    • Compensation: $2.54m
  • Gerry Rittenberg (67yo)

    Non-Employee Senior Adviser & Director

    • Tenure: 7.1yrs
    • Compensation: $2.74m
  • Steven Collins (50yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: $227.14k
  • Todd Abbrecht (50yo)

    Director

    • Tenure: 7.1yrs
  • Douglas Haber (36yo)

    Director

    • Tenure: 1.3yrs
  • Lisa Klinger (52yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: $212.50k

Company Information

Party City Holdco Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Party City Holdco Inc.
  • Ticker: PRTY
  • Exchange: NYSE
  • Founded: 1947
  • Industry: specialty stores
  • Sector: retail
  • Market Cap: US$444.799m
  • Shares outstanding: 94.44m
  • Website: Click here

Number of Employees


Location

  • Party City Holdco Inc.
  • 80 Grasslands Road
  • Elmsford
  • New York
  • 10523
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRTYNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2015
5PYDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2015

Biography

Party City Holdco Inc., through its subsidiaries, designs, manufactures, sources, and distributes party supplies in the United States and internationally. The company operates in two segments, Retail and W ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:26
End of Day Share Price2019/08/16 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.