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

Undervalued with imperfect balance sheet.

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

14.6%

PRTY

3.6%

US Specialty Retail

0.6%

US Market


1 Year Return

-40.1%

PRTY

3.0%

US Specialty Retail

6.2%

US Market

Return vs Industry: PRTY underperformed the US Specialty Retail industry which returned 3% over the past year.

Return vs Market: PRTY underperformed the US Market which returned 6.2% over the past year.


Share holder returns

PRTYIndustryMarket
7 Day14.6%3.6%0.6%
30 Day13.8%-0.1%-1.8%
90 Day5.9%0.4%-2.0%
1 Year-40.1%-40.1%4.8%3.0%8.6%6.2%
3 Year-60.3%-60.3%38.3%31.2%45.7%36.3%
5 Yearn/a61.7%47.3%68.5%50.0%

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?

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: PRTY ($6.77) is trading below our estimate of fair value ($10.09)

Significantly Undervalued: PRTY is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: PRTY is good value based on its PE Ratio (5.6x) compared to the Specialty Retail industry average (15.3x).

PE vs Market: PRTY is good value based on its PE Ratio (5.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: PRTY is good value based on its PEG Ratio (0.8x)


Price Based on Value of Assets

PB vs Industry: PRTY is good value based on its PB Ratio (0.6x) compared to the US Specialty Retail industry average (1.3x).


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?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PRTY's forecast earnings growth (7% per year) is above the savings rate (2.7%).

Earnings vs Market: PRTY's earnings (7% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: PRTY's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRTY's revenue (0.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PRTY's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PRTY's Return on Equity is forecast to be low in 3 years time (11.1%).


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

Earnings Trend: PRTY's earnings have grown significantly by 32.3% per year over the past 5 years.

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

Earnings vs Industry: PRTY had negative earnings growth (-48.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (8.3%).


Return on Equity

High ROE: PRTY's Return on Equity (10.6%) is considered low.


Return on Assets

ROA vs Industry: PRTY's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: PRTY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Party City Holdco's financial position?


Financial Position Analysis

Short Term Liabilities: PRTY's short term assets ($1.0B) exceeds its short term liabilities ($850.4M)

Long Term Liabilities: PRTY's short term assets ($1.0B) do not cover its long term liabilities ($2.5B)


Debt to Equity History and Analysis

Debt Level: PRTY's debt to equity ratio (181.2%) is considered high

Reducing Debt: PRTY's debt to equity ratio has reduced from 544.5% to 181.2% over the past 5 years.

Debt Coverage: PRTY's debt is not well covered by operating cash flow (1%).

Interest Coverage: PRTY's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: PRTY's 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 vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.5%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

Growing Dividend: Insufficient data to determine if PRTY'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 PRTY'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 Party City Holdco's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Jim Harrison (67yo)

5.8yrs

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

Compensation vs. Market: Jim's total compensation ($USD2.54M) is about average for companies of similar size in the US market ($USD2.71M).

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


Management Age and Tenure

0.6yrs

Average Tenure

61yo

Average Age

Experienced Management: PRTY's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

55yo

Average Age

Experienced Board: PRTY's board of directors are considered experienced (4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$19,90126 Aug 19
Michael Harrison
EntityIndividual
Role
Senior Key Executive
Senior VP & GM of North American Consumer Products Group
Shares4,555
Max PriceUS$4.37
BuyUS$100,35916 Aug 19
Michael Correale
EntityIndividual
Role
Chief Financial Officer
Interim CFO & Chief Accounting Officer
Shares24,300
Max PriceUS$4.13
BuyUS$566,25013 Aug 19
James Harrison
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares125,000
Max PriceUS$4.53
BuyUS$493,99717 Dec 18
James Harrison
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares51,458
Max PriceUS$9.60
BuyUS$65,26519 Nov 18
William Creekmuir
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,700
Max PriceUS$11.45
BuyUS$110,00014 Nov 18
Steven Collins
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$11.00
BuyUS$50,81313 Nov 18
Michael Harrison
EntityIndividual
Role
Senior Key Executive
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
Chairman of the Board
Shares46,000
Max PriceUS$10.75
BuyUS$504,50013 Nov 18
James Harrison
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUS$10.09

Ownership Breakdown


Management Team

  • Joseph Zepf

    Secretary

    • Tenure: 0yrs
  • Gerry Rittenberg (67yo)

    Consultant

    • Tenure: 0.08yrs
    • Compensation: US$2.74m
  • Jim Harrison (67yo)

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: US$2.54m
  • Mike Correale (61yo)

    Interim CFO & Chief Accounting Officer

    • Tenure: 0.6yrs
    • Compensation: US$522.14k
  • Brad Weston (54yo)

    President

    • Tenure: 0.3yrs
  • Marc Ehle

    Chief Operating Officer

    • Tenure: 0yrs
  • Michael Harrison (39yo)

    Senior VP & GM of North American Consumer Products Group

    • Tenure: 2.8yrs
    • Compensation: US$457.65k
  • Pat Duncan

    Senior VP of Marketing & Chief Digital Officer

    • Tenure: 0yrs

Board Members

  • Todd Abbrecht (50yo)

    Director

    • Tenure: 7.3yrs
  • Morry Weiss (78yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$212.50k
  • John Frascotti (58yo)

    Director

    • Tenure: 0.08yrs
  • Norm Matthews (86yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$299.81k
  • Bill Creekmuir (63yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$232.50k
  • Steven Collins (50yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$227.14k
  • Jim Harrison (67yo)

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: US$2.54m
  • Lisa Klinger (52yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$212.50k
  • Douglas Haber (36yo)

    Director

    • Tenure: 1.5yrs
  • Meka Millstone-Shroff (44yo)

    Director

    • Tenure: 0.7yrs

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$639.339m
  • Shares outstanding: 94.44m
  • Website: https://www.partycity.com

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 Analysis2019/10/13 01:49
End of Day Share Price2019/10/11 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.

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