NasdaqCM:PFSW

Stock Analysis Report

Executive Summary

PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India.

Rewards

Revenue is forecast to grow 7.66% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($80M)



Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has PFSweb's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

11.1%

PFSW

0.2%

US IT

0.8%

US Market


1 Year Return

-22.3%

PFSW

30.7%

US IT

17.8%

US Market

Return vs Industry: PFSW underperformed the US IT industry which returned 30.7% over the past year.

Return vs Market: PFSW underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

PFSWIndustryMarket
7 Day11.1%0.2%0.8%
30 Day11.7%2.7%1.8%
90 Day58.5%2.1%4.1%
1 Year-22.3%-22.3%32.1%30.7%20.4%17.8%
3 Year-53.2%-53.2%96.6%88.1%45.9%36.4%
5 Year-60.3%-60.3%137.2%116.2%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PFSweb undervalued compared to its fair value and its price relative to the market?

1.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PFSW ($4.12) is trading above our estimate of fair value ($3.82)

Significantly Below Fair Value: PFSW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PFSW is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: PFSW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFSW is good value based on its PB Ratio (1.8x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

How is PFSweb forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PFSW's revenue (7.7% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: PFSW's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PFSW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PFSweb performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFSW is currently unprofitable.

Growing Profit Margin: PFSW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PFSW is unprofitable, but has reduced losses over the past 5 years at a rate of 31.3% per year.

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

Earnings vs Industry: PFSW is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (17%).


Return on Equity

High ROE: PFSW has a negative Return on Equity (-1.1%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PFSweb's financial position?


Financial Position Analysis

Short Term Liabilities: PFSW's short term assets ($77.1M) exceed its short term liabilities ($66.7M).

Long Term Liabilities: PFSW's short term assets ($77.1M) exceed its long term liabilities ($71.9M).


Debt to Equity History and Analysis

Debt Level: PFSW's debt to equity ratio (83%) is considered high.

Reducing Debt: PFSW's debt to equity ratio has increased from 59.5% to 83% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PFSW's debt is covered by short term assets (assets are 2.1x debt).


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 PFSW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PFSW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PFSW'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 PFSW's dividends per share have been stable in the past.

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

3.7yrs

Average management tenure


CEO

Mike Willoughby (55yo)

6.8yrs

Tenure

US$1,645,414

Compensation

Mr. Michael C. Willoughby, also known as Mike, has been the Chief Executive Officer of PFSweb Inc. since March 26, 2013. Mr. Willoughby served as Acting General Manager of the LiveArea Business Unit at PFS ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.65M) is above average for companies of similar size in the US market ($USD530.45K).

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


Management Age and Tenure

3.7yrs

Average Tenure

52yo

Average Age

Experienced Management: PFSW's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

55yo

Average Age

Experienced Board: PFSW's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$80,96117 Sep 19
James Reilly
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares29,039
Max PriceUS$2.79
BuyUS$7,75517 Sep 19
David Beatson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$2.59
BuyUS$47,32417 Sep 19
Michael Willoughby
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares18,407
Max PriceUS$2.58
BuyUS$32,12303 Sep 19
Thomas Madden
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceUS$2.14
BuyUS$5,52527 Aug 19
Benjamin Rosenzweig
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$2.21
BuyUS$2,40020 Aug 19
R. Thomann
EntityIndividual
Role
Senior Key Executive
Executive VP & GM of PFS
Shares1,000
Max PriceUS$2.40
BuyUS$6,84516 Aug 19
Benjamin Rosenzweig
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$2.74
BuyUS$4,94023 May 19
Michael Willoughby
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,235
Max PriceUS$4.00
BuyUS$4,20022 May 19
R. Thomann
EntityIndividual
Role
Senior Key Executive
Executive VP & GM of PFS
Shares1,000
Max PriceUS$4.20
BuyUS$49,58526 Mar 19
Benjamin Rosenzweig
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,868
Max PriceUS$5.04
BuyUS$4,960,39531 Dec 18
Hoak & Co.
EntityCompany
Shares686,085
Max PriceUS$7.23

Ownership Breakdown

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


Management Team

  • Tom Madden (57yo)

    Executive VP & CFO

    • Tenure: 20.9yrs
    • Compensation: US$971.97k
  • Mike Willoughby (55yo)

    CEO & Director

    • Tenure: 6.8yrs
    • Compensation: US$1.65m
  • Laura Osborne

    Corporate Communications Manager

    • Tenure: 0yrs
  • Joe Farrell

    VP & MD of International Operations

    • Tenure: 6.1yrs
  • Mark Fuentes (51yo)

    Senior VP & Chief Information Officer

    • Tenure: 3.7yrs
  • R. Thomann (37yo)

    Executive VP & GM of PFS

    • Tenure: 3.7yrs
    • Compensation: US$476.17k
  • Steve Smith

    Senior Vice President of Global Operations

    • Tenure: 0.5yrs
  • Stephanie Delacruz (52yo)

    VP & CAO

    • Tenure: 0.2yrs
  • Latrice Bryant-Robinson

    Vice President of Human Resources

    • Tenure: 1.9yrs
  • Melanie Klint

    VP, General Counsel & Secretary

    • Tenure: 0yrs

Board Members

  • Rob Frankfurt (53yo)

    Independent Director

    • Tenure: 0.8yrs
  • Monica Luechtefeld (70yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$120.63k
  • Mike Willoughby (55yo)

    CEO & Director

    • Tenure: 6.8yrs
    • Compensation: US$1.65m
  • Jim Reilly (60yo)

    Independent Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$126.25k
  • Shin Nagakura (55yo)

    Independent Director

    • Tenure: 6.6yrs
  • Dave Beatson (71yo)

    Independent Director

    • Tenure: 19.1yrs
    • Compensation: US$120.63k
  • Gladys De Luca (61yo)

    Independent Director

    • Tenure: 0.6yrs
  • Pete Stein (49yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$115.00k
  • Ben Rosenzweig (34yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$115.00k

Company Information

PFSweb, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PFSweb, Inc.
  • Ticker: PFSW
  • Exchange: NasdaqCM
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$80.062m
  • Shares outstanding: 19.43m
  • Website: https://www.pfsweb.com

Number of Employees


Location

  • PFSweb, Inc.
  • 505 Millennium Drive
  • Allen
  • Texas
  • 75013
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFSWNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 1999
PFW1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1999

Biography

PFSweb, Inc. provides omni-channel commerce solutions in the United States, Europe, Canada, and India. It operates through two segments, LiveArea Professional Services and PFS Operations. The company offer ...


Company Analysis and Financial Data Status

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