PFB Corp.

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Sound bite for Twitter and StockTwits is: Price is reasonable, but above relative median. I think that the stock price testing on the historical dividend yield is probably the best for this stock. See my spreadsheet on PFB Corp.

I do not own this stock of PFB Corp. (TSX-PFB, OTC-PFBOF). I am following this stock as I read a positive article on this stock in November 2009 and thought I would do a spreadsheet on it. This stock is a dividend paying small cap stock. The article said that this stock would be good for long-term gains and rising dividends. This is the thing with small cap stock; you can get a blend of capital gains and rising dividends in the long term only if the company is successful.

Well, the report I read in 2009 was wrong. No rise in dividends have occurred. The dividends have not changed since 2005 and there does not seem to be an increase in the near future. The current dividend yield is moderate at 2.7%. But with the dividend flat for the last 10 years, this is not a good dividend stock. However, they did give out a $1.00 special dividend in 2013.

Of course the problem is that they cannot really afford the current dividend. The Dividend Payout Ratio for 2014 was 171% and the 5 year median DPR for EPS is 122%. The DPR for CFPS is better with the DPR for 2014 at 26% and the 5 year DPR at 31.5%.

The recovery from 2008 has been long and slow and there are a number of companies having difficulties. However this stock has recently perked up. The stock is up by 147% from the lows of 2014. This is why the 5 year total return is at 15.50% per year with 9.01% per year from capital gains and 6.49% per year from dividends. The total return over the past 10 years is not a good with a loss of 1.24% per year and a capital loss of 4.28% per year and 3.04% per year from dividends. Dividends did save this 10 year return.

Outstanding shares have only marginally changed over the past 5 and 10 years. Shares have increased due to Share Issues and Stock Options and have decreased due to Buy Backs. The stock hit a low point in 2012 and has had growth since then. Revenue growth is moderate. EPS growth is non-existent until 2015. Cash Flow growth is non-existent to moderate.

Revenue has grown at 6.4% and 5.6% per year over the past 5 and 10 years. Revenue per Share has grown at 5.9% and 5.6% per year over the past 5 and 10 years. This company has done well so far this year. If you compare the 12 month period to the end of 2014 with the 12 month period to the end of the third quarter, Revenue is up by 11%. There are no analysts following this stock.

The EPS is down by 24% and 8% per year over the past 5 and 10 years. The stats are better if you look at 5 year running averages and here the EPS is down by 8% and 1.5% per year. The EPS has increased this year. If you compare the 12 month period to the end of 2014 with the 12 month period to the end of the third quarter, EPS is up by 471% to $0.80. However, $0.63 of this EPS seems to be due to a Real Estate sale.

Cash Flow is down by 5.3% and up by 4.97% per year over the past 5 and 10 years. CFPS is down by 5.8% and up by 4.9% per year over the past 5 and 10 years. If you compare the 12 month period to the end of 2014 with the 12 month period to the end of the third quarter, Cash Flow is up by 119%.

The Return on Equity has not been very good. The ROE was above 10% only once in the past 5 years and 3 times in the past 10 years. The ROE for 2014 was just 2.2% and the 5 year median is 4.1%. The ROE on comprehensive income is a bit better with the ROE for 2014 at 4.4% and the 5 year median at 4.4% also.

A good thing about this company is the strong balance sheet. The Liquidity Ratios for 2014 is 2.60 and its 5 year median is 2.60. The Debt Ratio for 2014 was 2.60 and the 5 year median is 3.00. The Leverage and Debt/Equity Ratios for 2014 was 1.62 and 0.62. The 5 year median ratios were 1.45 and 0.45, respectively.

The 5 year low, median and high median Price/Earnings per Share Ratios are 19.00, 21.55 and 24.11. The corresponding 10 year ratios are much lower at 11.16, 14.04 and 17.23. The current P/E Ratio using 12 month trailing EPS of $0.80 is 11.06. This P/E Ratio is based on a stock price of $8.85. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham price of $7.93. The 10 year low, median and high median Price/Graham Price Ratios are 0.72, 0.93 and 1.21. The current P/GP Rati is 1.12. This stock price testing suggests that the stock price is relatively reasonable, but above the relative median.

I get a 10 year Price/Book Value per Share Ratio of 0.93. The current P/B Ratio is 1.24 based on a BVPS of $7.11 and a stock price of $8.85. The current P/B Ratio is some 33% higher than the 10 year P/B Ratio. This stock price testing suggests that the stock price is relatively expensive.

The 5 year dividend yield is 4.08%. The current dividend yield is 2.71% a yield some 34% lower. The current dividend yield is based on dividends of $0.24 and a stock price of $8.85. This stock price testing suggests that the stock price is relatively expensive.

The historical median dividend yield is 2.85%. The current dividend yield of 2.71% is some 4.8% lower. This stock price testing suggests that the stock price is relatively reasonable, but above the relative median.

In this Press Release, PFB Corp talks about expanding their operations to the Midwestern Region of US. There is an old report on this company from the Investment Reporter dated January 2014.

I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.

PFB Corporation, through its wholly-owned subsidiaries, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology. This expanded polystyrene (EPS) rigid insulation is used in a wide variety of residential and commercial construction projects across North America. It was founded in 1968 as Plasti-Fab Ltd, now a subsidiary of PFB. Directors and officers own 57% of the issued and outstanding common shares as of December 31, 2008. Its web site is here PFB Corp.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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