PHC  Phc Inc.

Exchange

AMEX

Sector

Health Care

Industry

Medical/Nursing Services

Market Cap.

38.9M

Vuru Grade

23.00/100

Current Price

$1.99
0.00 (0.00%)

Company Metrics

  • P/E 66.33
  • P/S 0.63
  • P/B 2.17
  • EPS 0.03
  • Cash ROIC -85.87%
  • Cash Ratio 2.75
  • Dividend 0 / 0%
  • Avg. Vol. 48,946.00
  • Shares 71.74M
  • Market Cap. 38.9M

Company Description

PHC, Inc., through its subsidiaries, provides behavioral health services through inpatient and outpatient facilities in the United States. It offers psychiatric services to individuals, who have behavioral health disorders, including alcohol and drug dependency, as well as to individuals in the gaming and transportation industries. The company's substance abuse facilities provide specialized treat... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PHC to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PHC's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$1.99 Current Price

$-0.38 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.16 NCA Price

Overvalued by 92.05%


Very Poor Cash Return on Invested Capital over the past 5 years

PHC has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

PHC has lost $85.87 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 657,310.00 -6.89M -6.55M -4.66M -8.58M
divided by
Invested Capital 15.15M 6.51M 6.23M 5.00M 6.62M
Cash ROIC 4.34% -105.76% -105.15% -93.28% -129.49%

Very Poor Return on Equity over the past 5 years

PHC has shown an inability to deliver results for shareholders. This could be due to poor management, PHC operating in a highly competitive industry, or having a weak business in general.

PHC has generated a $29.87 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 580,005.00 -6.51M -6.88M -6.13M -7.72M
divided by
Stockholders' Equity 17.92M 13.82M 26.60M 21.65M 15.05M
Return on Equity 3.24% -47.06% -25.87% -28.32% -51.31%

Poor Business Performance over the past 7 years

PHC's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

PHC has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Free Cash Flow -1.81M 1.44M 657,310.00 -6.89M -6.55M -4.66M -8.58M

Very Strong Balance Sheet

PHC has more Cash than its Total Liabilities, resulting in $0.07 Net Cash per share. In other words, if you buy PHC today, the price you're paying for shares is actually $1.92 because $0.07 of Cash is included in the current share price. This much Cash is very healthy. It can help PHC sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Cash 3.20M 4.54M 3.67M 7.71M 20.55M 16.67M 8.44M
Current Assets 11.76M 15.25M 19.36M 12.91M 26.23M 20.47M 14.44M
Total Assets 22.69M 25.21M 28.28M 16.55M 29.83M 23.51M 18.13M
Current Liabilities 6.03M 7.06M 9.47M 2.34M 3.04M 1.84M 3.07M
Total Liabilities 6.65M 7.95M 10.37M 2.73M 3.23M 1.87M 3.09M
Stockholder' Equity 16.04M 17.26M 17.92M 13.82M 26.60M 21.65M 15.05M
Current Ratio 1.95 2.16 2.05 5.52 8.62 11.11 4.70
TL-to-TA 0.29 0.32 0.37 0.17 0.11 0.08 0.17

Low or No Reinvestment of Profits over the past 7 years

PHC has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to PHC operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Retained Earnings -10.70M -9.28M -8.70M -50.50M -57.35M -49.87M -
Retained Earnings Growth - 13.26% 6.25% -480.18% -13.56% 13.04% 100.00%

Loss Making Entity over the past 7 years

PHC has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$52.83 of every $100 of Revenue have been a loss, on average over the past 7 years.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Net Income -2.45M 1.42M 580,005.00 -6.51M -6.88M -6.13M -7.72M
divided by
Revenue 46.41M 53.08M 62.01M 7.75M 7.46M 6.88M 7.51M
Net Profit Margin -5.29% 2.67% 0.94% -83.91% -92.30% -89.10% -102.82%

Strong Pricing Power over the past 7 years

PHC has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$52.86 of every $100 worth of sales have been Gross Profit, on average over the past 7 years.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Gross Profit 19.56M 23.81M 28.16M 4.27M 5.16M 3.50M 4.68M
divided by
Revenue 46.41M 53.08M 62.01M 7.75M 7.46M 6.88M 7.51M
Gross Margin 42.15% 44.85% 45.41% 55.08% 69.26% 50.89% 62.37%

High Capital Intensity over the past 7 years

PHC spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

119.74% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Capital Expenditure 1.31M 751,843.00 1.08M 178,000.00 303,000.00 114,000.00 1.06M
divided by
Net Income -2.45M 1.42M 580,005.00 -6.51M -6.88M -6.13M -7.72M
Capital Expenditure Ratio -53.23% 52.96% 186.52% -2.74% -4.40% -1.86% -13.77%

No Dividend History over the past 7 years

PHC has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Dividend Paid - - - - - - -
divided by
Shares Outstanding 20.09M 19.91M 19.79M 53.26M 65.60M 71.49M 71.74M
Dividend Paid Per Share - - - - - - -
Price at Year End - - - - - 5.40 6,800.00
Dividend Yield - - - - - - -

History of Stock Buybacks over the past 7 years

PHC has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2009201020112012201320142015
Shares Outstanding 20.09M 19.91M 19.79M 53.26M 65.60M 71.49M 71.74M
Stock Bought Back - 0.88% 0.64% -62.85% -18.81% -8.24% -0.35%
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