OTCPK:POCE.F

Stock Analysis Report

Executive Summary

Photon Control Inc. designs, manufactures, and distributes a range of optical sensors and systems to measure temperature and position.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.8%

POCE.F

-4.2%

US Electronic

-4.2%

US Market


1 Year Return

-21.5%

POCE.F

2.0%

US Electronic

14.0%

US Market

Return vs Industry: POCE.F underperformed the US Electronic industry which returned 2% over the past year.

Return vs Market: POCE.F underperformed the US Market which returned 14% over the past year.


Shareholder returns

POCE.FIndustryMarket
7 Day-6.8%-4.2%-4.2%
30 Day-7.8%-8.2%-1.8%
90 Day13.1%-4.5%2.6%
1 Year-21.5%-21.5%3.0%2.0%16.3%14.0%
3 Year-16.2%-16.2%31.5%27.9%43.2%34.0%
5 Year92.3%92.3%60.5%52.6%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: POCE.F ($0.93) is trading above our estimate of fair value ($0.34)

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


Price To Earnings Ratio

PE vs Industry: POCE.F is poor value based on its PE Ratio (28.3x) compared to the Electronic industry average (18.7x).

PE vs Market: POCE.F is poor value based on its PE Ratio (28.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: POCE.F is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: POCE.F is overvalued based on its PB Ratio (2.5x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POCE.F's forecast earnings growth (20.1% per year) is above the savings rate (1.7%).

Earnings vs Market: POCE.F's earnings (20.1% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: POCE.F's revenue (9.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: POCE.F's revenue (9.2% 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 POCE.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Photon Control performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POCE.F has a high level of non-cash earnings.

Growing Profit Margin: POCE.F's current net profit margins (13.6%) are lower than last year (21.2%).


Past Earnings Growth Analysis

Earnings Trend: POCE.F's earnings have grown by 1.9% per year over the past 5 years.

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

Earnings vs Industry: POCE.F had negative earnings growth (-58.4%) over the past year, making it difficult to compare to the Electronic industry average (12%).


Return on Equity

High ROE: POCE.F's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Photon Control's financial position?


Financial Position Analysis

Short Term Liabilities: POCE.F's short term assets (CA$43.8M) exceed its short term liabilities (CA$5.5M).

Long Term Liabilities: POCE.F's short term assets (CA$43.8M) exceed its long term liabilities (CA$2.7M).


Debt to Equity History and Analysis

Debt Level: POCE.F is debt free.

Reducing Debt: POCE.F has not had any debt for past 5 years.

Debt Coverage: POCE.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: POCE.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if POCE.F's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if POCE.F'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 POCE.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Nigel Hunton (58yo)

0.8yrs

Tenure

0

Mr. Nigel Hunton had been President and Chief Operating Officer at Ferrotec (USA) Corporation since July 27, 2017. Mr. Hunton served as the Chief Executive Officer of MBA Polymers, Inc from January 02, 201 ...


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Lee
CFO & Corporate Secretary2.6yrsCA$279.05k0.020% CA$17.8k
John Rydstrom
Senior Vice President of Sales2.5yrsCA$450.41kno data
Paul Moffat
Vice President of Manufacturing Operations2.8yrsCA$257.78kno data
Nigel Hunton
President0.8yrsno data0.11% CA$95.3k
Nalini McIntosh
Vice President of Culture0yrsno datano data
Yuri Sikorski
Senior Vice President of Engineering2.2yrsCA$413.12kno data
Sal Akram
Senior Vice President of Engineering0yrsno datano data
Michael Weston
Special Advisor10.3yrsno datano data

2.5yrs

Average Tenure

Experienced Management: POCE.F's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nigel Hunton
President0.8yrsno data0.11% CA$95.3k
Ronan McGrath
Independent Director3.6yrsCA$29.00k0.30% CA$273.8k
Charles Cargile
Independent Director2.9yrsCA$26.00k0.10% CA$91.8k
Michele Klein
Independent Director2.3yrsCA$183.50k0.15% CA$137.8k
David McDonnell
Independent Chairman of the Board3.1yrsCA$471.11k0.19% CA$174.9k

2.9yrs

Average Tenure

58yo

Average Age

Experienced Board: POCE.F's board of directors are not considered experienced ( 2.9 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: POCE.F 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

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


Key Information

  • Name: Photon Control Inc.
  • Ticker: POCE.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CA$120.191m
  • Listing Market Cap: CA$90.553m
  • Shares outstanding: 104.51m
  • Website: https://www.photoncontrol.com

Number of Employees


Location

  • Photon Control Inc.
  • 13500 Verdun Place
  • Suite 130
  • Richmond
  • British Columbia
  • V6V 1V2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHOTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 2000
POCE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2000
0DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2000

Biography

Photon Control Inc. designs, manufactures, and distributes a range of optical sensors and systems to measure temperature and position. The company offers fiber optic temperature probes that measure temperature in harsh environments. It also provides single channel and multi-channel temperature sensing products. In addition, the company custom designs, develops, and manufactures optical position and displacement sensors that can measure wafer/chuck edge and center locations. Further, it offers custom design, installation, training, and support services. Photon Control Inc. serves wafer fabrication equipment manufacturers and end users in the semiconductor and related industries in the United States, Asia, and internationally. The company was formerly known as Coldswitch Technologies Inc. and changed its name to Photon Control Inc. in 2002. Photon Control Inc. was founded in 1988 and is headquartered in Richmond, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:27
End of Day Share Price2020/02/20 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.