NasdaqGS:PSDO

Stock Analysis Report

Executive Summary

Presidio, Inc. provides information technology (IT) solutions to the middle market in North America.

Rewards

PE ratio (30.9x) is below the IT industry average (32x)

Earnings are forecast to grow 29.01% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (1.5%) are lower than last year (4.6%)



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PSDO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

PSDO

0.3%

US IT

-1.3%

US Market


1 Year Return

29.8%

PSDO

38.8%

US IT

22.0%

US Market

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

Return vs Market: PSDO exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

PSDOIndustryMarket
7 Day0.1%0.3%-1.3%
30 Day0.2%6.3%1.8%
90 Day4.0%14.1%9.3%
1 Year31.3%29.8%40.2%38.8%24.6%22.0%
3 Yearn/a108.9%99.9%49.2%39.6%
5 Yearn/a160.4%137.4%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSDO ($16.6) is trading above our estimate of fair value ($2.86)

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


Price To Earnings Ratio

PE vs Industry: PSDO is good value based on its PE Ratio (30.9x) compared to the IT industry average (32x).

PE vs Market: PSDO is poor value based on its PE Ratio (30.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PSDO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PSDO is good value based on its PB Ratio (2.1x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

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

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSDO's forecast earnings growth (29% per year) is above the savings rate (1.7%).

Earnings vs Market: PSDO's earnings (29% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PSDO's revenue (2.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: PSDO's revenue (2.6% 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 PSDO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Presidio performed over the past 5 years?

52.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSDO has a large one-off loss of $27.6M impacting its September 30 2019 financial results.

Growing Profit Margin: PSDO's current net profit margins (1.5%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: PSDO's earnings have grown significantly by 52.6% per year over the past 5 years.

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

Earnings vs Industry: PSDO had negative earnings growth (-65.4%) over the past year, making it difficult to compare to the IT industry average (16.2%).


Return on Equity

High ROE: PSDO's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Presidio's financial position?


Financial Position Analysis

Short Term Liabilities: PSDO's short term assets ($1.2B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: PSDO's short term assets ($1.2B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: PSDO's debt to equity ratio (147.6%) is considered high.

Reducing Debt: Insufficient data to determine if PSDO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PSDO's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: PSDO's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: PSDO's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

0.96%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: PSDO's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PSDO's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PSDO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PSDO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), PSDO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Bob Cagnazzi (60yo)

7.8yrs

Tenure

US$2,947,136

Compensation

Mr. Robert Cagnazzi, also known as Bob, serves as the Chairman of the Board at Presidio, Inc. since November 2017 and its Chief Executive Officer since February 29, 2012. Mr. Cagnazzi has been the Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD2.95M) is about average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: PSDO's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

42yo

Average Age

Experienced Board: PSDO's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

BuyUS$64,10011 Jun 19
Steven Lerner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$12.82
SellUS$75,106,25019 Mar 19
Apollo Global Management, Inc.
EntityCompany
Shares4,925,000
Max PriceUS$15.25
SellUS$1,136,25015 Mar 19
David Hart
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares75,000
Max PriceUS$15.15
SellUS$60,440,00014 Feb 19
Apollo Global Management, Inc.
EntityCompany
Shares4,000,000
Max PriceUS$15.11

Ownership Breakdown

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


Management Team

  • Elliot Brecher (53yo)

    Senior VP

    • Tenure: 4.4yrs
    • Compensation: US$880.08k
  • Neil Johnston (53yo)

    Executive VP

    • Tenure: 1.9yrs
    • Compensation: US$1.79m
  • Rudy Casasola

    President of Sales

    • Tenure: 0.2yrs
  • Bob Cagnazzi (60yo)

    Chairman of the Board & CEO

    • Tenure: 7.8yrs
    • Compensation: US$2.95m
  • Vinu Thomas (43yo)

    Chief Technology Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.35m
  • Waheed Choudhry

    Senior Vice President of West Area Sales

    • Tenure: 0.2yrs
  • Dave Hart (52yo)

    Executive VP & COO

    • Tenure: 6.5yrs
    • Compensation: US$2.04m
  • Stacy Hutchings

    Senior Vice President of Southwest

    • Jennifer Jackson

      Chief Human Resource Officer

      • Tenure: 2.3yrs
    • Michael Kelly

      Senior Vice President of National Named & Public Sector Sales

      • Tenure: 0.9yrs

    Board Members

    • Pankaj Patel (65yo)

      Independent Director

      • Tenure: 3.6yrs
      • Compensation: US$78.50k
    • Bob Cagnazzi (60yo)

      Chairman of the Board & CEO

      • Tenure: 7.8yrs
      • Compensation: US$2.95m
    • Todd Siegel (48yo)

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: US$102.50k
    • Steve Lerner (64yo)

      Independent Director

      • Tenure: 2.8yrs
      • Compensation: US$79.50k
    • Matt Nord (40yo)

      Director

      • Tenure: 5.1yrs
    • Michael Reiss (35yo)

      Director

      • Tenure: 2.1yrs
    • Chris Edson (35yo)

      Director

      • Tenure: 5.1yrs
    • Salim Hirji (29yo)

      Director

      • Tenure: 2.8yrs
    • Heather Berger (42yo)

      Director

      • Tenure: 2.1yrs

    Company Information

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


    Key Information

    • Name: Presidio, Inc.
    • Ticker: PSDO
    • Exchange: NasdaqGS
    • Founded: 2014
    • Industry: IT Consulting and Other Services
    • Sector: Software
    • Market Cap: US$1.387b
    • Shares outstanding: 83.58m
    • Website: https://www.presidio.com

    Number of Employees


    Location

    • Presidio, Inc.
    • One Penn Plaza
    • Suite 2832
    • New York
    • New York
    • 10119
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    PSDONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2017
    6P6BST (Boerse-Stuttgart)YesCommon StockDEEURMar 2017
    6P6DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2017

    Biography

    Presidio, Inc. provides information technology (IT) solutions to the middle market in North America. The company offers digital infrastructure solutions that enable clients to deploy IT infrastructure, as well as focuses on networking, collaboration, enterprise mobility, Internet of Things, and data analytics. It also provides cloud infrastructure solutions through converged infrastructure, server, storage, support, and capacity-on-demand economic models, as well as cloud-managed services. In addition, the company is involved in assessing, designing, implementing, managing, and maintaining information security solutions that protect customers’ critical business data; and provision of risk assessments, detailed reporting, ongoing reviews, process and program development, and training services. Further, it offers cyber risk management, infrastructure security, and managed security solutions; and professional, managed, and support services, including strategy, consulting, design, and implementation. Presidio, Inc. serves customers from various industry verticals, including healthcare, financial services, education, and professional services, as well as government. The company was formerly known as Aegis Holdings, Inc. and changed its name to Presidio, Inc. in September 2016. Presidio, Inc. was incorporated in 2014 and is headquartered in New York, New York. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2019/12/20 00:30
    End of Day Share Price2019/12/18 00:00
    Earnings2019/09/30
    Annual Earnings2019/06/30


    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.