NasdaqCM:PRTH

Stock Analysis Report

Priority Technology Holdings

Executive Summary

Priority Technology Holdings, Inc. provides merchant acquiring and commercial payment solutions in the United States.

Rewards

Earnings are forecast to grow 59.44% per year

Risk Analysis

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential with weak fundamentals.

Share Price & News

How has Priority Technology Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

PRTH

0.3%

US IT

-1.2%

US Market


1 Year Return

-51.0%

PRTH

40.2%

US IT

22.3%

US Market

Return vs Industry: PRTH underperformed the US IT industry which returned 39.9% over the past year.

Return vs Market: PRTH underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

PRTHIndustryMarket
7 Day-1.7%0.3%-1.2%
30 Day13.8%6.1%1.6%
90 Day-14.7%13.9%8.8%
1 Year-51.0%-51.0%41.6%40.2%25.0%22.3%
3 Yearn/a109.8%100.7%49.9%40.3%
5 Yearn/a159.8%136.9%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Priority Technology Holdings undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Priority Technology Holdings is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Priority Technology Holdings 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

Future Growth

How is Priority Technology Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

59.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRTH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: PRTH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PRTH's is expected to become profitable in the next 3 years.

Revenue vs Market: PRTH's revenue (11.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: PRTH's revenue (11.6% 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 PRTH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Priority Technology Holdings performed over the past 5 years?

-88.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRTH is currently unprofitable.

Growing Profit Margin: PRTH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRTH is unprofitable, and losses have increased over the past 5 years at a rate of -88.7% per year.

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

Earnings vs Industry: PRTH is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (16.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Priority Technology Holdings's financial position?


Financial Position Analysis

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

Long Term Liabilities: PRTH 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: PRTH has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: PRTH has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: PRTH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PRTH has less than a year of cash runway if free cash flow continues to reduce at historical rates of -115.2% each year


Next Steps

Dividend

What is Priority Technology Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

3.9yrs

Average management tenure


CEO

Tom Priore (50yo)

1.1yrs

Tenure

US$900,000

Compensation

Mr. Thomas Charles Priore, also known as Tom is Executive Chairman and Founding Member of Priority Technology Holdings, Inc. since August 2005 and serves as its President and Chief Executive Officer since  ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD900.00K) is about average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Tom's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.9yrs

Average Tenure

50yo

Average Age

Experienced Management: PRTH's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

Experienced Board: PRTH's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.9%.


Management Team

  • Afshin Yazdian (45yo)

    Adviser to Board of Directors

    • Tenure: 5.7yrs
    • Compensation: US$601.71k
  • Mike Vollkommer (60yo)

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: US$959.79k
  • Tom Priore (50yo)

    Executive Chairman

    • Tenure: 1.1yrs
    • Compensation: US$900.00k
  • Sean Kiewiet (47yo)

    Chief Technology Officer

    • Tenure: 14.4yrs
  • David McMiller (64yo)

    President of Commercial Business Services

    • Tenure: 5yrs
  • Cindy O'Neill (51yo)

    President of Commercial Payments

    • Tenure: 2.8yrs
  • Chris Prince (45yo)

    Corporate Secretary

    • La Hagan

      Assistant Vice President of Human Resources

      • Jeff Stein

        Chief Marketing Officer

        • Mayrov Eagan

          Senior Vice President of Human Resources


          Board Members

          • Matthew Kearney (58yo)

            Independent Director

            • Compensation: US$32.99k
          • John Priore (55yo)

            Vice-Chairman

            • Tenure: 1.1yrs
            • Compensation: US$630.57k
          • Tom Priore (50yo)

            Executive Chairman

            • Tenure: 1.1yrs
            • Compensation: US$900.00k
          • William Gahan (53yo)

            Independent Director

            • Compensation: US$21.63k
          • Michael Passilla (52yo)

            Independent Director

            • Tenure: 0.6yrs
          • Christina Favilla

            Director

            • Tenure: 0.3yrs

          Company Information

          Priority Technology Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Priority Technology Holdings, Inc.
          • Ticker: PRTH
          • Exchange: NasdaqCM
          • Founded: 2005
          • Industry: Data Processing and Outsourced Services
          • Sector: Software
          • Market Cap: US$198.341m
          • Shares outstanding: 67.01m
          • Website: https://www.prth.com

          Number of Employees


          Location

          • Priority Technology Holdings, Inc.
          • 2001 Westside Parkway
          • Suite 155
          • Alpharetta
          • Georgia
          • 30004
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          PRTHNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 2018
          PRTH.UOTCPK (Pink Sheets LLC)UNITS(1 COM & 1 WT EXP)USUSDJul 2018

          Biography

          Priority Technology Holdings, Inc. provides merchant acquiring and commercial payment solutions in the United States. It operates through two segments, Consumer Payments; and Commercial Payments and Managed Services. The company offers MX product suite, including MX ISO/Agent and VIMAS reseller technology systems, and MX Merchant products, which provide resellers and merchant clients a customizable set of business applications that enable to manage critical business work functions and revenue performance. It also provides CPX, a turnkey commercial payments platform comprising CPX Access, CPX Gateway, CPX Commercial Acceptance, and CPX Payments solutions that automate the AP payment process between buyers and suppliers to enhance financial rebates and automate payment of vendor payments. In addition, the company offers curated managed services and a suite of integrated automated payment solutions to various financial institutions and card networks. It serves small and mid-sized businesses, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/27 01:16
          End of Day Share Price2020/01/24 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.