NYSE:PRTY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

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

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


Market Performance


7 Day Return

16.0%

PRTY

2.9%

US Specialty Retail

0.5%

US Market


1 Year Return

-56.9%

PRTY

20.4%

US Specialty Retail

18.7%

US Market

Return vs Industry: PRTY underperformed the US Specialty Retail industry which returned 20.4% over the past year.

Return vs Market: PRTY underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

PRTYIndustryMarket
7 Day16.0%2.9%0.5%
30 Day53.8%13.9%4.9%
90 Day321.2%31.4%19.8%
1 Year-56.9%-56.9%21.6%20.4%21.2%18.7%
3 Year-85.6%-85.6%74.5%67.1%46.2%36.8%
5 Year-88.5%-88.5%40.9%30.1%85.3%65.1%

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


In this section, we usually try to help investors determine whether Party City Holdco is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Party City Holdco has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of PRTY's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through Party City Holdco regulatory filings.
  • Explore potentially undervalued companies in the Retail industry.

Future Growth

How is Party City Holdco forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

122.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRTY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PRTY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PRTY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PRTY's revenue (7.6% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: PRTY's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRTY's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

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

-60.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRTY is currently unprofitable.

Growing Profit Margin: PRTY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRTY is unprofitable, and losses have increased over the past 5 years at a rate of 60.1% per year.

Accelerating Growth: Unable to compare PRTY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRTY is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-16.1%).


Return on Equity

High ROE: PRTY's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Party City Holdco's financial position?


Financial Position Analysis

Short Term Liabilities: PRTY has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PRTY has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PRTY has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PRTY's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PRTY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PRTY is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 11.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Brad Weston (55 yo)

0.33

Tenure

US$1,163,184

Compensation

Mr. Bradley Morgan Weston, also known as Brad, serves as President of Party City Holdco Inc. and Chief Executive Officer of Party City Retail Group since July 2019. He serves as Chief Executive Officer and ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD1.16M) is about average for companies of similar size in the US market ($USD1.27M).

Compensation vs Earnings: Insufficient data to compare Brad's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Weston
President0.33yrUS$1.16mno data
Michael Harrison
Senior VP & GM of North American Consumer Products Group3.58yrsUS$575.39k0.026%
$ 50.7k
Gerald Rittenberg
Consultant0.92yrUS$695.25k0.0086%
$ 16.6k
Todd Vogensen
Executive VP0.50yrno datano data
Pat Duncan
Senior VP of Marketing & Chief Digital Officerno datano datano data
Denise Kulikowsky
Executive VP & Chief Human Resources Officer1.75yrsno data0.017%
$ 32.0k
Joseph Zepf
Secretaryno datano datano data
Ian Heller
VP & Associate General Counselno datano datano data

0.9yrs

Average Tenure

51yo

Average Age

Experienced Management: PRTY's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bradley Weston
President0.33yrUS$1.16mno data
Morry Weiss
Independent Director5.17yrsUS$205.43k0.025%
$ 48.4k
John Frascotti
Independent Director0.92yrUS$114.30kno data
Norman Matthews
Independent Chairman of the Board2.17yrsUS$352.50k0.47%
$ 901.4k
William Creekmuir
Independent Director4.42yrsUS$232.50k0.034%
$ 65.9k
Steven Collins
Independent Director8.08yrsUS$230.00k0.011%
$ 20.3k
James Harrison
Vice Chairman0.33yrUS$2.38m0.80%
$ 1.5m
Lisa Klinger
Independent Director5.17yrsUS$212.50k0.0086%
$ 16.6k
James Conroy
Independent Director0.92yrUS$114.30k0.015%
$ 29.1k
Michelle Millstone-Shroff
Independent Director1.5yrsUS$249.87k0.0040%
$ 7.7k

1.8yrs

Average Tenure

57yo

Average Age

Experienced Board: PRTY's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

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$192.043m
  • Shares outstanding: 94.60m
  • 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 Analysis2020/08/14 12:52
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.