NasdaqGS:PSDO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable 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


Market Performance


7 Day Return

-0.2%

PSDO

-1.3%

US IT

0.4%

US Market


1 Year Return

17.6%

PSDO

21.8%

US IT

6.9%

US Market

Return vs Industry: PSDO underperformed the US IT industry which returned 21.8% over the past year.

Return vs Market: PSDO exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

PSDOIndustryMarket
7 Day-0.2%-1.3%0.4%
30 Day4.7%-1.7%-1.2%
90 Day22.0%-4.0%-0.4%
1 Year19.0%17.6%23.0%21.8%9.3%6.9%
3 Yearn/a94.5%86.6%45.8%36.4%
5 Yearn/a149.1%126.3%62.9%45.1%

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?

39.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PSDO ($16.72) is trading below our estimate of fair value ($27.49)

Significantly Undervalued: PSDO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PSDO is poor value based on its PE Ratio (40.2x) compared to the IT industry average (36.9x).

PE vs Market: PSDO is poor value based on its PE Ratio (40.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: PSDO is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: PSDO is good value based on its PB Ratio (2.2x) 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 4 analysts?

33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSDO's forecast earnings growth (33% per year) is above the savings rate (2.7%).

Earnings vs Market: PSDO's earnings (33% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: PSDO's revenue (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PSDO's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PSDO's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has Presidio performed over the past 5 years?

41.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PSDO's earnings have grown significantly by 41.9% 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 (-73.7%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: PSDO's Return on Equity (5.5%) is considered low.


Return on Assets

ROA vs Industry: PSDO's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: PSDO has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Presidio's financial position?


Financial Position Analysis

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

Long Term Liabilities: PSDO's short term assets (1.2B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: PSDO's debt to equity ratio (148.3%) 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 (11.4%).

Interest Coverage: PSDO's interest payments on its debt are not well covered by EBIT (2.6x 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 1.220600x 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%industryaverage1.3%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PSDO's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PSDO's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (38.5%), PSDO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSDO's dividends in 3 years are forecast to be thoroughly covered by earnings (9% payout ratio).


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)

7.7yrs

Tenure

US$605,755

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: Insufficient data to establish whether Bob's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Bob's compensation has been consistent with company performance over 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

2.7yrs

Average Tenure

42yo

Average Age

Experienced Board: PSDO's board of directors are not considered experienced ( 2.7 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
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
BuyUS$132,20816 Nov 18
Steven Lerner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$13.22

Ownership Breakdown


Management Team

  • Elliot Brecher (53yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$414.09k
  • Neil Johnston (53yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$1.38m
  • Rudy Casasola

    President of Presidio Networked Solutions

    • Tenure: 2.1yrs
  • Bob Cagnazzi (60yo)

    Chairman of the Board & CEO

    • Tenure: 7.7yrs
    • Compensation: US$605.76k
  • Vinu Thomas (43yo)

    Chief Technology Officer

    • Tenure: 3.7yrs
    • Compensation: US$511.63k
  • Waheed Choudhry

    President of Presidio West

    • Tenure: 2.3yrs
  • Dave Hart (52yo)

    Executive VP & COO

    • Tenure: 6.3yrs
    • Compensation: US$853.99k
  • Stacy Hutchings

    Senior Vice President of Southwest

    • Tenure: 0yrs
  • Jennifer Jackson

    Chief Human Resource Officer

    • Tenure: 2.2yrs
  • Michael Kelly

    Senior Vice President of Presidio North

    • Tenure: 0.8yrs

Board Members

  • Pankaj Patel (65yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$66.00k
  • Bob Cagnazzi (60yo)

    Chairman of the Board & CEO

    • Tenure: 7.7yrs
    • Compensation: US$605.76k
  • Todd Siegel (48yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$101.50k
  • Steve Lerner (64yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$79.50k
  • Matt Nord (40yo)

    Director

    • Tenure: 4.9yrs
  • Michael Reiss (35yo)

    Director

    • Tenure: 1.9yrs
  • Chris Edson (35yo)

    Director

    • Tenure: 4.9yrs
  • Salim Hirji (29yo)

    Director

    • Tenure: 2.7yrs
  • Heather Berger (42yo)

    Director

    • Tenure: 1.9yrs

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$1.390b
  • Shares outstanding: 83.18m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.