NYSE:PSB
$52.99
(3/19 4:00PM)
-0.2%
| Open | $53.22 |
Mkt Cap | $1.3 Billion |
| High | $53.3 |
52Wk High | $56.44 |
| Low | $52.55 |
52Wk Low | $35.57 |
| Volume | 125,338 |
Avg Vol 10D | 100,200 |
PSB Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, PSB the high and low end of the Price to Sales per share ratios are 5.70x and 3.63x respectively.
Notice that PSB's current Price to Sales per share ratio is 4.71x, which is somewhat above its historical average. As such, the current Price to Sales ratio suggests a neutral share price forecast. In order for us to become more positive about PSB we would need to see a drop in the Price to Sales ratio of 0% given current sales per share levels in order to return to its historical weighted average.
PSB Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of PSB, Ockham views their current Cash Earnings as significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for PSB to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 52.40 and a 33.70 low over the same period.
Now that PSB’s current price is $52.37 and its Price to Cash Earnings ratio is 13.53, we are very positive on its outlook from the cash earnings perspective. In fact, PSB is now trading a full 69% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why PSB has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
PSB Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for PSB, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. PSB’s estimated annual dividend is $1.76 resulting in a current dividend yield of 3.36%. The highest dividend yield from PSB over recent history was 6.23% while the lowest dividend yield was 1.55%. Given this range, the current dividend yield for PSB is below its historical median and not terribly attractive from this perspective.
