Prestige Brands is to continue to go bananas in July

Is the stock valuation justified? Here I will cover Prestige Brands prospective on valuation to give you a better outlook on taking a position in this stock. We consider Prestige Brands very steady. Prestige Brands Hold maintains Sharpe Ratio (i.e. Efficiency) of 0.1173 which implies the corporation had 0.1173% of return per unit of risk over the last 1 month. Our philosophy towards forecasting volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty technical indicators for Prestige Brands Hold which you can use to evaluate future volatility of the company. Please check Prestige Brands Hold Coefficient Of Variation of 873.9, Risk Adjusted Performance of 0.01 and Semi Deviation of 1.43 to confirm if risk estimate we provide are consistent with the epected return of 0.1983%.
Published over a year ago
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Reviewed by Raphi Shpitalnik

The company has 1.8B in debt with debt to equity (D/E) ratio of 164.1 . This implies that the organisation may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. Prestige Brands one year expected dividend income is about $0.16 per share. Let me now analyze Prestige Brands Revenue. Based on latest financial disclosure Prestige Brands Holdings reported 975.78M of revenue. This is 87.21% lower than that of the Healthcare sector, and 98.78% lower than that of Medical Distribution industry, The Revenue for all stocks is 89.66% higher than Prestige Brands.
We determine the current worth of Prestige Brand Holdings using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Prestige Brand Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Prestige Brand's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Prestige Brand's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Prestige Brand. We calculate exposure to Prestige Brand's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Prestige Brand's related companies.

Prestige Brand Holdings Investment Alerts

Prestige investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Prestige Brand Holdings performance across your portfolios.Please check all investment alerts for Prestige

Prestige Brand Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Prestige value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Prestige Brand competition to find correlations between indicators driving the intrinsic value of Prestige.

Prestige Brand Gross Profit

Prestige Brand Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Prestige Brand previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Prestige Brand Gross Profit growth over the last 10 years. Please check Prestige Brand's gross profit and other fundamental indicators for more details.

Breaking down Prestige Brand Further

Prestige Brands operates its asset almost 5.21 pct., making $0.0521 for each dollar of asset held by the company. An accumulating assets utilization implies the company is being more effective with each dollar of asset it holds. In other words assets utilization of Prestige Brands shows how effective it operates for each dollar spent on its asset. The modest gains experienced by current holders of Prestige Brands may encourage investors to take a closer look at the company as it closed today at a share price of 28.475 on 329038.000 in trading volume. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in May. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6908. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Prestige Brands preserves 2.37x of current ratio. Prestige Brands is trading at 29.03 which is 5.44 percent decrease. Started trading at 29.03. Prestige Brands Free Cash Flow per Share is increasing over the last 5 years. The previous year value of Prestige Brands Free Cash Flow per Share was 0.53. Also, Prestige Brands Total Debt USD is nearly stable at the moment.
 2013 2014 2015 2018 2019 (projected)
Prestige Brands Cost of Revenue 261,830,000  308,400,000  339,036,000  305,132,400  234,946,677 
Prestige Brands Consolidated Income 72,615,000  78,260,000  99,907,000  89,916,300  56,954,925 
To conclude, our analysis show that Prestige Brands Ignores market trends. The entity is undervalued and projects chance of distress below average for the next 2 years. Our actual buy-sell advice on the entity is Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Prestige Brand Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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