NasdaqGS:PSDO

Stock Analysis Report

Executive Summary

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


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

-3.8%

US IT

-2.6%

US Market


1 Year Return

29.8%

PSDO

-4.8%

US IT

-13.3%

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%-3.8%-2.6%
30 Day0.2%-16.2%-15.2%
90 Day4.0%-19.8%-22.2%
1 Year31.3%29.8%-3.8%-4.8%-11.5%-13.3%
3 Yearn/a60.3%53.6%13.2%5.7%
5 Yearn/a89.6%73.0%31.8%17.2%

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.


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


Next Steps

Dividend

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

0.96%

Current Dividend Yield


Dividend Yield vs Market

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

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

2.3yrs

Average management tenure


CEO

Bob Cagnazzi (60yo)

7.83s

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.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Cagnazzi
Chairman of the Board & CEO7.83yrsUS$2.95m0.012% $165.9k
Neil Johnston
Executive VP1.92yrsUS$1.79mno data
David Hart
Executive VP & COO6.5yrsUS$2.04m0.18% $2.5m
Vinu Thomas
Chief Technology Officer3.83yrsUS$1.35m0.0011% $14.7k
Elliot Brecher
Senior VP4.42yrsUS$880.08k0.00060% $8.3k
Rudy Casasola
President of Sales0.17yrno datano data
Jennifer Jackson
Chief Human Resource Officer2.33yrsno datano data
Stacy Hutchings
Senior Vice President of Southwestno datano datano data
Waheed Choudhry
Senior Vice President of West Area Sales0.17yrno datano data
Michael Kelly
Senior Vice President of National Named & Public Sector Sales0.92yrno datano data

2.3yrs

Average Tenure

53yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Robert Cagnazzi
Chairman of the Board & CEO7.83yrsUS$2.95m0.012% $165.9k
Pankaj Patel
Independent Director3.58yrsUS$78.50k0.012% $165.9k
Todd Siegel
Independent Director4.83yrsUS$102.50kno data
Steven Lerner
Independent Director2.83yrsUS$79.50k0.030% $415.0k
Matthew Nord
Director5.08yrsno datano data
Michael Reiss
Director2.08yrsno datano data
Christopher Edson
Director5.08yrsno datano data
Salim Hirji
Director2.83yrsno datano data
Heather Berger
Director2.08yrsno datano data

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.


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

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.