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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Priority Technology Holdings, Inc. (XNAS:PRTH) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
PRTH
Name:
PRIORITY TECHNOLOGY HOLDINGS, INC. (XNAS:PRTH)
Sector:
7.24M
Industry:
Software�Infrastructure
CEO:
Mr. Thomas Charles Priore
Total Employees:
783
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 60.71% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF PRIORITY TECHNOLOGY HOLDINGS, INC.(PRTH) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SOFTWARE�INFRASTRUCTURE INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
3.97
One Month Price Target:
$3.99
Six Month Price Target :
$4.09
Likely Price in One Year's Time:
Ticker:
$4.2
Likely Trading Range Today Under (Normal Volatility)
$3.94
Price Upper limit ($) :
$4.02
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$3.46
This week:
$2.83
This month :
$1.7
Other Primary facts
Market Cap:
312.25M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
76.72M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
47.23%
-27.93%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$6.33
$5.23
$1.61
$2.71
Medium risk (<10%) entry points
Buy Call
Sell Call
$4.88
Buy Put:
Sell Put:
$4.64
$3.06
$3.30
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
PRTH
Sharpe Ratio:
3.64%
Comparison:
PRTH, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 122.80% higher than the industry
& ratio is 59.81% higher than the market/S&P 500 average
Average Returns/Yield of
PRTH
Daily returns:
0.24%
Weekly returns:
1.20%
Monthly returns:
4.80%
Yearly returns:
14.38%
Comparison of returns:
Average annual returns/yield (last 3 years) is 300.53% above industry average
Classification:
PRTH, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.53
Statistical test of Returns:
PRTH has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
6.35%
Weekly Volatility:
14.19%
Monthly Volatility:
28.38%
Yearly Volatility:
98.32%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.95%
Volatility in last five trading days has been -53.47% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-12.79%
Weekly VaR:
-28.61%
Monthly VaR:
-57.22%
How Much Can the price of
PRTH
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-48%
Worst case (decline):
>85%
This translates to price declining to:
$2.07
This translates to price declining to:
$0.60
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
PRTH is a 303.84% riskier investment compared to the market/S&P 500 & is 245.97% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 90.48% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
PRTH
Beta in relation to market/S&P 500--0.87
Expected beta in 1 year's time:
0.548
Expected beta in 3 year's time:
0.775
Unlevered (debt free) Beta:
-0.011
Beta in relation to Nasdaq (XNAS):
1.156
Beta in relation to all global stocks::
1.077
Beta Comparison & Analysis
Beta of competitors/peers::
1.572
Beta is -44.43% lower than peers
Average Industry Beta:
1.112
Beta is -21.43% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.485
Alpha is 1239.90% above industry average alpha yield
Alpha is 3086% higher than market/& is unsustainably high
Analysis of Cost of Capital of
PRTH
Equity cost of capital:
0.091
Equity cost of capital is -15.16% below industry mean WACC
Unlevered (without debt) cost of capital:
-0.11%
Before-tax cost of debt:
-0.20%
After-tax cost of debt:
-0.16%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
-0.16%
WACC is -34.00% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$7.23
Revenue growth rate per share of (3Y):
2.12
Annual revenue growth rate is -92.12% below industry average
EPS:
-$0.44
Expected Annual growth rate of EPS (3Y):
-12.06%
Expected future EPS growth rate is -140.04% lower than the Software�Infrastructure industry
Free cash flow (FCF) per share:
$0.20
Balance sheet equity growth per share: -8.10%
Equity growth rate per share is 212.20% higher than the industry
Debt per share
$7.80
EBITDA per share
$0.49
Valuation Analysis Today of
PRTH
P/E Ratio:
33.23
P/E Ratio of Competitors/Peers:
175.85
P/E ratio is -81.10% lower than main peers & is -49.06% lower than the industry
-
PRTH is -113.83% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.55
Price to sales ratio is -95.00% below the industry mean
P/B (Price to book value ratio):
2.12
Price to free cash flow: 19.74
Price to free cash flow ratio is -79.35% lower than the industry
Net income growth rate (3Y):
-108.05%
Net income growth rate is -101.27% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: -22.70%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-836.12%
Net debt to equity ratio:
-825.84%
Debt to assets ratio:
44.32%
Net debt to assets ratio:
43.77%
Debt-to-asset ratio is -36.45% below industry average
Ability to repay debt:
Interest coverage ratio:
-31.33
Interest coverage ratio is -85.15% less than industry average
Looking forward:
Debt growth rate:
61.75%
Annual debt growth is -43% lower than industry average debt growth rate
Debt repayment rate in last quarter: 1.08%
Analysis of Key Statistics
Correlation of price movement with the market:
0.335
Statistical significance of correlation:
PRTH has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.48
Stock price is -30.05% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.48
Correlation of price movement with Nasdaq (^IXIC):
-0.015
Covariance of price movement with the market:
-0.056
Kurtosis
8.745
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
1.207
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
PRTH
Gross Profit Margin Ratio:
192%
Operating Profit Margin Ratio:
7.10%
Operating profit margin is -159.82% lower than the industry
Net Profit Margin Ratio:
192%
Effective Tax Rate:
-875.20%
Effective tax rate is -2893.67% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
21.58%
Return on equity (ROE) is -79.79% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-1.14%
Return on assets (ROA) is -69.80% lower than the industry
Financial Leverage:
1.8x
Current Ratio:
1.03
Current ratio is -55.67% below industry average
Cash Conversion Cycle (days):
40.3
Cash conversion cycle is -64.21% below industry average
The remaining useful life of property plant & equipment is: 5.4 years
Stock based compensation to net income ratio:
-10.09%
In-depth Efficiency Analysis
Revenue generated per employee:
708.6K
Each employee generates 80% more revenue than industry average revenue per employee
EBITDA generated per employee:
48.5K
Each employee generates -26% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 19.7K
Each employee generates -194% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
9.3K
Each employee generates -53% less free cash flow than industry average revenue per employee
Assets/Capital per employee
943.4K
Each employee generates -53% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
PRTH
CALAMP CORP. (XNAS:CAMP)
IBEX Limited (XNAS:IBEX)
BENEFITFOCUS, INC. (XNAS:BNFT)
AKOUSTIS TECHNOLOGIES, INC. (XNAS:AKTS)
NETLIST, INC. (OTCM:NLST)
TURTLE BEACH CORPORATION (XNAS:HEAR)
ATERIAN, INC (XNAS:ATER)
AXT, INC. (XNAS:AXTI)
ZIXI
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
554.84M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
284.14M
270.70M
-
17.06M
49.88M
-
181.43M
231.31M
-
- 1212.00K
57.98M
37.97M
39.39M
- 15442.00K
383.00K
- 3352.00K
- 15442.00K
Statement of Cash Flow
Date:
Period:
17.35M
Differed Income Tax :
- 3227.00K
Stock Based Compensation :
1.56M
Change in Working Capital :
- 5738.00K
Accounts Receivables:
- 14440.00K
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
9.61M
Investments in PP&E:
- 2370.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
13.56M
-
13.56M
72.86M
-
525.23M
611.65M
25.40M
365.74M
325.08M
-
11.49M
10.97M
738.69M
-
1.35B
43.46M
6.20M
-
5.01M
538.10M
592.78M
598.40M
15.68M
614.08M
-
1.21B
78.00K
- 100391.00K
-
28.74M
March 31, 2022 at 6:00:00 AM
384.31M
- 71569.00K
1.14B
-
604.60M
591.0M
-
- 3341.00K
- 5711.00K
- 6550.00K
-
-
- 3505.00K
12.59M
2.54M
-
6.44M
524.53M
-
9.61M
- 2370.00K
7.24M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
PRTH
2023
2024
2025
2026
2027
$4.21
$4.46
$4.72
$5.00
$5.29