New value analysis of Photo-Me International Plc (PHTM:LSE) 2020
New value analysis of Photo-Me International Plc (PHTM:LSE) 2020
A new value analysis of Photo-Me International Plc (PHTM:LSE), a company listed in London has been added to our research pages here. Photo-Me operates, sells and services instant service vending equipment, aimed at consumers. PHTM has approximately 48,000 vending units in operation in three areas:
- Identification: photobooths and integrated biometric identification solutions
- Laundry: unattended laundry services
- Kiosks: digital printing
This equipment is generally sited in areas of high footfall such as supermarkets, shopping malls (indoors and outdoors) and public transport venues. Most of these units are operated and maintained by Photo-Me. Photo-Me pays the site owner commission based on the turnover, which varies depending on the country and location of the machine. PHTM operates in 18 countries worldwide and its financial performance is reported with regard to three geographic regions; Continental Europe, UK & Republic of Ireland and Asia.
PHTM completed a significant corporate action after the 2019 Annual Report was published. PHTM acquired Sempa, the French manner and installer of fruit juicing machines, in April 2019. PHTM used £10 million of debt to make the acquisition, but expect £1-2 million in profit per year from the acquisition, so this is likely to be a good deal for investors.
The analysis on this website does not make any comments on external news items and focuses on the price of financial assets against profits, yields and asset values. The price of many financial assets has changed as a result of the news on Covid-19. The analysis makes no assessment of the future likely earnings and dividend payments from PHTM or any other security.
However, the analysis on this site can show how cheap certain assets have become. For example, the current price of PHTM common stock at. fair value of 16 times earnings, is suggesting earnings per share from PHTM of 2.33 pence per share in the next 12 months. IF PHTM earned 2.33 pence per share in the next 12 months it would be a decline of 72% from the 2019 reported numbers, which do not include any profit from the Sempa deal. So, if PHTM does 72% less business in 2020 than 2019 the current price is a fair price. If PHTM does anything better than 72% worse than last year, the current price is cheap.
You can see the price decline in the chart below.
So, despite the price decline shown in the chart, PHTM is giving a considerable margin of safety for new purchasers of the common stock.
In order to find out why PHTM represents good value at the current price download the individual report here
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