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PTSI

P.A.M. Transportation Services NasdaqGM:PTSI Stock Report

Last Price

US$33.53

Market Cap

US$746.7m

7D

11.2%

1Y

49.4%

Updated

04 Oct, 2022

Data

Company Financials +
PTSI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance6/6
Financial Health4/6
Dividends0/6

PTSI Stock Overview

P.A.M. Transportation Services, Inc., through its subsidiaries, operates as a truckload transportation and logistics company in the United States, Mexico, and Canada.

P.A.M. Transportation Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for P.A.M. Transportation Services
Historical stock prices
Current Share PriceUS$33.53
52 Week HighUS$40.89
52 Week LowUS$21.31
Beta1.6
1 Month Change11.73%
3 Month Change20.70%
1 Year Change49.35%
3 Year Change118.12%
5 Year Change377.98%
Change since IPO11,821.78%

Recent News & Updates

Oct 05
P.A.M. Transportation Services (NASDAQ:PTSI) Seems To Use Debt Quite Sensibly

P.A.M. Transportation Services (NASDAQ:PTSI) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 29

P.A.M. Transportation Services: Expanding And Delivering Fundamental Stability

Summary P.A.M. Transportation Services, Inc. sustains a robust rebound amidst market headwinds. Its liquidity is impressive with its stable cash and receivables, covering its financial leverage. Its adequate production capacity is its cornerstone as the market demand and e-commerce emerge. The stock price has been in an uptrend from its sharp dip. P.A.M. Transportation Services, Inc. (PTSI) is an Arkansas-based truckload transportation and logistics company. It operates through its subsidiaries across the US, Mexico, and Canada. It transports general commodities in dry van carriers. These include consumer goods, general retail goods, manufactured goods, and automotive parts. Since its foundation, it has expanded to over 2,000 trucks. Today, it already rebounded and even exceeded pre-pandemic levels. Headwinds intensify amidst sustained inflation and slow improvement in port congestion. Yet, its market positioning allows it to cushion the impact and sustain its rebound. It has the adequate financial capacity to expand and cover its financial leverage. Likewise, the stock price stays reasonable and adheres to its fundamentals as the uptrend continues. Company Performance The lifting of restrictions eases the domestic movement of goods. For P.A.M. Transportation Services, Inc., it is an opportunity to rebound and expand. It may still be tough since it also operates in some neighboring countries like Canada and Mexico. Disruptions are still evident in the changes in the trucking market. Customer downtime and labor shortages pose more challenges. Even so, it appears to be bouncing back to pre-pandemic levels. Its fundamentals are more stable amidst these market headwinds. Its operating revenue amounts to $237.17 million, a 44% year-over-year growth. Note that it has already been recovering since 2021. So, we can see that the company sustained its rebound amidst market challenges. Also, it is even higher than pre-pandemic levels. The rising price of goods and energy does not stop its growth and expansion. Despite the overwhelming inflation, the company knows how to balance the trade-offs. Its fuel surcharges are more than twice as much as the value in 2Q 2021. It is a nice move to offset the impact of fuel price increases. Even better, the demand for its transport services continues to increase thanks to the increased domestic movement. There are market opportunities as the pent-up demand and the rise in e-commerce continues. Its growth is also above the market average of 36%. Also, its market share increased from 1.3% to 1.5%. Operating Revenue (MarketWatch) Market Share (MarketWatch) It continues to do a solid job to navigate its overall operations with ease and prudence. The thing is, it remains unperturbed while speeding up its organic growth. It was recently able to complete its M&A deal with Metropolitan Trucking, Inc, which is a timely move amidst the increased demand for door-to-door freight transport. It now has more carriers, matching its increased drivers. Meanwhile, it uses more capital, labor, and fuel. Also, it has to keep up with the rising prices which also raises costs and expenses. Even so, it maintains solid and prudent asset management. Its operating margin is 15% vs 12.4% in 2Q 2021. It is also higher than in 1Q at 14.2%. Note that the operating margin from 3Q 2021 to 1Q 2022 is in a downtrend. It could be attributed to the substantial increase in operating costs and expenses. We can say that it has a better grasp of the market changes this quarter. Operating Margin (MarketWatch) Potential Risks and Opportunities P.A.M. Transportation Services, Inc. continues to show enticing growth prospects. It is geared towards expansion and efficiency with a larger network capacity. It is paying off with stable returns amidst market headwinds. But of course, it has to be more careful. It is still a challenge for businesses to improve supply chains and inventory levels. Port congestion is improving but remains slow-moving. It has to watch the price and demand changes closer to optimize its production capacity. Retail giants also pose challenges in the industry. They influence the number of bookings, orders, and shipments through their responsive supply chains. They are quick to retract their orders, affecting the efficiency of trailers and logistics. Because of their supply chain networks, they are more flexible in managing inventory levels but at the expense of carriers. They also compete with air and water freight carriers. As such, they are more susceptible to risks associated with port congestion and lower orders. Fortunately, PTSI is well-positioned against these market challenges. Its excellent liquidity position allows it to cover its operating capacity and borrowings. Its larger operating capacity allows it to cater to more demand while remaining efficient. Cash and borrowings are stable even after completing its acquisition of Metropolitan Trucking, Inc. Its receivables are higher, given its increased capacity and customers. As such, the percentage of cash and receivables to borrowings is 87% vs 57% previously. Even better, cash and receivables comprise 32% of the total assets. If we use cash alone, the percentage is stable at 21-22%. So, despite the massive changes in operations, liquidity remains almost the same. Also, its Net Debt/EBITDA is 3.72x, which is still within the maximum value of 3.5-4x. It is earning enough to cover its borrowings. It is safe to say that the company sustains its rebound from my previous article. Its fundamentals are also more solid and intact. Cash and Receivables and Borrowings (MarketWatch) We can even confirm its liquidity using the Cash Flow Statement. The cash inflows from its operations amount to $32.78 million. Meanwhile, its CapEx is way higher than the comparative time series. It reflects the impact of the recent acquisition. Its FCF amounts to $20.45 million. So, it proves the stability of its cash levels amidst its expansion. Now, PTSI has over 2,000 trailers with 2,400 drivers. It remains sound despite driver shortages in the US. Operating Cash Flow and CapEx (MarketWatch) Number of Trucks and Drivers (P.A.M. Transport ) Another opportunity in the market may come from the boom in e-commerce. The e-commerce industry continues to evolve as it reaches its peak. It provides more market demand. Indeed, it is a good thing that PTSI expands its operations to increase its domestic presence. Note that many SMEs are in the market. In contrast to many giant retailers, their supply chains are less responsive. They have fewer distribution networks to retract their orders. Also, they don’t have a transportation service provider. So, they still depend on third-party transportation service providers. Their presence is favorable for trailers and logistics. It is evident in the US and Canada since they are two of the largest e-commerce markets. With the evolving market, e-commerce comprises 20% of the total retail sales and may increase to 26%.

Aug 05
Is Now An Opportune Moment To Examine P.A.M. Transportation Services, Inc. (NASDAQ:PTSI)?

Is Now An Opportune Moment To Examine P.A.M. Transportation Services, Inc. (NASDAQ:PTSI)?

P.A.M. Transportation Services, Inc. ( NASDAQ:PTSI ), is not the largest company out there, but it received a lot of...

Jul 20
Returns On Capital Are A Standout For P.A.M. Transportation Services (NASDAQ:PTSI)

Returns On Capital Are A Standout For P.A.M. Transportation Services (NASDAQ:PTSI)

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

PTSIUS TransportationUS Market
7D11.2%5.0%4.4%
1Y49.4%-24.9%-18.2%

Return vs Industry: PTSI exceeded the US Transportation industry which returned -26.5% over the past year.

Return vs Market: PTSI exceeded the US Market which returned -20% over the past year.

Price Volatility

Is PTSI's price volatile compared to industry and market?
PTSI volatility
PTSI Average Weekly Movement6.6%
Transportation Industry Average Movement6.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: PTSI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PTSI's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19802,510Joseph Vitirittohttps://www.pamtransport.com

P.A.M. Transportation Services, Inc., through its subsidiaries, operates as a truckload transportation and logistics company in the United States, Mexico, and Canada. The company operates a truckload dry van carrier that transports general commodities. Its freight primarily consists of automotive parts; expedited goods; consumer goods, such as general retail store merchandise; and manufactured goods, including heating and air conditioning units.

P.A.M. Transportation Services Fundamentals Summary

How do P.A.M. Transportation Services's earnings and revenue compare to its market cap?
PTSI fundamental statistics
Market CapUS$746.68m
Earnings (TTM)US$97.37m
Revenue (TTM)US$853.61m

7.7x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PTSI income statement (TTM)
RevenueUS$853.61m
Cost of RevenueUS$624.02m
Gross ProfitUS$229.60m
Other ExpensesUS$132.22m
EarningsUS$97.37m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.37
Gross Margin26.90%
Net Profit Margin11.41%
Debt/Equity Ratio95.3%

How did PTSI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PTSI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PTSI?

Other financial metrics that can be useful for relative valuation.

PTSI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does PTSI's PE Ratio compare to its peers?

PTSI PE Ratio vs Peers
The above table shows the PE ratio for PTSI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7x
ULH Universal Logistics Holdings
7.8x4.1%US$878.5m
CVLG Covenant Logistics Group
5.4x-29.4%US$433.5m
HTLD Heartland Express
8.5x-17.6%US$1.2b
ARCB ArcBest
6.4x-7.6%US$1.9b
PTSI P.A.M. Transportation Services
7.7xn/aUS$746.7m

Price-To-Earnings vs Peers: PTSI is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (7x).


Price to Earnings Ratio vs Industry

How does PTSI's PE Ratio compare vs other companies in the US Transportation Industry?

Price-To-Earnings vs Industry: PTSI is good value based on its Price-To-Earnings Ratio (7.7x) compared to the US Transportation industry average (9x)


Price to Earnings Ratio vs Fair Ratio

What is PTSI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PTSI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PTSI's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of PTSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PTSI ($33.53) is trading below our estimate of fair value ($94.44)

Significantly Below Fair Value: PTSI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

How is P.A.M. Transportation Services forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PTSI's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if PTSI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if PTSI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PTSI's revenue (8.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PTSI's revenue (8.6% 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 PTSI's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has P.A.M. Transportation Services performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


25.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PTSI has high quality earnings.

Growing Profit Margin: PTSI's current net profit margins (11.4%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: PTSI's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: PTSI's earnings growth over the past year (106.2%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: PTSI earnings growth over the past year (106.2%) exceeded the Transportation industry 62.5%.


Return on Equity

High ROE: PTSI's Return on Equity (37.2%) is considered high.


Discover strong past performing companies

Financial Health

How is P.A.M. Transportation Services's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PTSI's short term assets ($229.1M) exceed its short term liabilities ($128.2M).

Long Term Liabilities: PTSI's short term assets ($229.1M) do not cover its long term liabilities ($293.3M).


Debt to Equity History and Analysis

Debt Level: PTSI's net debt to equity ratio (74.6%) is considered high.

Reducing Debt: PTSI's debt to equity ratio has reduced from 164.3% to 95.3% over the past 5 years.

Debt Coverage: PTSI's debt is well covered by operating cash flow (50.3%).

Interest Coverage: PTSI's interest payments on its debt are well covered by EBIT (22.7x coverage).


Balance Sheet


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Dividend

What is P.A.M. Transportation Services's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

P.A.M. Transportation Services Dividend Yield vs Market
How does P.A.M. Transportation Services dividend yield compare to the market?
SegmentDividend Yield
Company (P.A.M. Transportation Services)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Transportation)1.8%
Analyst forecast in 3 Years (P.A.M. Transportation Services)n/a

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

High Dividend: Unable to evaluate PTSI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PTSI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PTSI's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PTSI has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure


CEO

Joseph Vitiritto (51 yo)

2.17yrs

Tenure

US$1,496,114

Compensation

Mr. Joseph A. Vitiritto has been President, Chief Executive Officer and Director at P.A.M. Transportation Services, Inc. since August 18, 2020. Mr. Vitiritto has served as Senior Vice President of Pricing...


CEO Compensation Analysis

Joseph Vitiritto's Compensation vs P.A.M. Transportation Services Earnings
How has Joseph Vitiritto's remuneration changed compared to P.A.M. Transportation Services's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$97m

Mar 31 2022n/an/a

US$89m

Dec 31 2021US$1mUS$540k

US$77m

Sep 30 2021n/an/a

US$63m

Jun 30 2021n/an/a

US$47m

Mar 31 2021n/an/a

US$31m

Dec 31 2020US$2mUS$183k

US$18m

Compensation vs Market: Joseph's total compensation ($USD1.50M) is below average for companies of similar size in the US market ($USD4.09M).

Compensation vs Earnings: Joseph's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PTSI's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: PTSI's board of directors are considered experienced (4 years average tenure).


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.


Ownership Breakdown

What is the ownership structure of PTSI?
Owner TypeNumber of SharesOwnership Percentage
Hedge Funds1,242,6085.6%
General Public1,334,6966.0%
Institutions3,804,77817.1%
Individual Insiders15,887,07571.3%

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


Top Shareholders

Top 25 shareholders own 92.59% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
70.16%
Matthew Moroun
15,623,648$523.9m0.01%no data
6.44%
Dimensional Fund Advisors LP
1,435,227$48.1m-0.8%0.01%
5.58%
Renaissance Technologies LLC
1,242,608$41.7m-0.26%0.05%
2.13%
BlackRock, Inc.
474,606$15.9m-7.77%no data
1.5%
The Vanguard Group, Inc.
334,120$11.2m12.55%no data
0.72%
Joseph Vitiritto
159,720$5.4m-5.32%no data
0.7%
Bridgeway Capital Management, LLC
155,220$5.2m0%0.11%
0.6%
Geode Capital Management, LLC
133,243$4.5m2.82%no data
0.54%
State Street Global Advisors, Inc.
121,220$4.1m2.54%no data
0.54%
Pacific Ridge Capital Partners, LLC
119,478$4.0m-8.9%0.94%
0.52%
Horrell Capital Management, Inc.
115,576$3.9m-1.52%1.31%
0.33%
Northern Trust Global Investments
74,281$2.5m71.53%no data
0.32%
Jacobs Levy Equity Management Inc
71,621$2.4m1136.55%0.02%
0.32%
Invesco Capital Management LLC
70,811$2.4m19.41%no data
0.31%
O'Shaughnessy Asset Management, LLC
68,526$2.3m0.28%0.04%
0.31%
BNY Mellon Asset Management
68,345$2.3m-8.31%no data
0.25%
W. Davis
56,196$1.9m0%no data
0.23%
Acadian Asset Management LLC
50,284$1.7m37.98%0.01%
0.2%
Arrowstreet Capital, Limited Partnership
43,536$1.5m28.59%no data
0.19%
Millennium Management LLC
43,386$1.5m82.71%no data
0.18%
New Jersey Division of Investment
40,000$1.3m0%no data
0.16%
Driehaus Capital Management LLC
36,676$1.2m0%0.01%
0.13%
Martingale Asset Management, L.P.
28,196$945.4k187.6%0.02%
0.12%
Morgan Stanley, Investment Banking and Brokerage Investments
25,960$870.4k39.65%no data
0.12%
AQR Capital Management, LLC
25,849$866.7k53.17%no data

Company Information

P.A.M. Transportation Services, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: P.A.M. Transportation Services, Inc.
  • Ticker: PTSI
  • Exchange: NasdaqGM
  • Founded: 1980
  • Industry: Trucking
  • Sector: Transportation
  • Implied Market Cap: US$746.685m
  • Shares outstanding: 22.27m
  • Website: https://www.pamtransport.com

Number of Employees


Location

  • P.A.M. Transportation Services, Inc.
  • 297 West Henri De Tonti Boulevard
  • Tontitown
  • Arkansas
  • 72770
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTSINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 1986

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.