Party City Holdco Inc. [NYSE:PRTY]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Party City Holdco Inc. [PRTY], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give PRTY an Outperform rating. Its stock price has been found in the range of 7.69 to 16.95. This is compared to its latest closing price of $7.79.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Party City Holdco Inc. [PRTY] is sitting at 2.11. This is compared to 1 month ago, when its average rating was 2.11.
For the quarter ending in Dec-18 Party City Holdco Inc. [PRTY] generated $0.81 billion in sales. That’s 1.44% lower than the average estimate of $0.82 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 8 May (In 36 Days).
Fundamental Analysis of Party City Holdco Inc. [PRTY]
Now let’s turn to look at profitability: with a current Operating Margin for Party City Holdco Inc. [PRTY] sitting at +11.46 and its Gross Margin at +40.33, this company’s Net Margin is now 5.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 9.61, and its Return on Invested Capital has reached 8.00%. Its Return on Equity is 12.21, and its Return on Assets is 3.47. These metrics suggest that this Party City Holdco Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Party City Holdco Inc. [PRTY] has generated a Total Debt to Total Equity ratio of 185.16. Similarly, its Total Debt to Total Capital is 64.93, while its Total Debt to Total Assets stands at 53.21. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 155.46, and its Long-Term Debt to Total Capital is 54.34. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 7.35 and its Total Debt to EBITDA Value is 5.43. The Enterprise Value to Sales for this firm is now 1.08, and its Total Debt to Enterprise Value stands at 0.68. Party City Holdco Inc. [PRTY] has a Price to Book Ratio of 0.90, a Price to Cash Flow Ratio of 9.53 and P/E Ratio of 6.06. These metrics all suggest that Party City Holdco Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Party City Holdco Inc. [PRTY] earns $235,681 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 16.86 and its Total Asset Turnover is 0.68. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.38 and its Current Ratio is 1.44. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Party City Holdco Inc. [PRTY] has 99.21M shares outstanding, amounting to a total market cap of $768.88M. Its stock price has been found in the range of 7.69 to 16.95. At its current price, it has moved by -54.28% from its 52-week high, and it has moved 0.78% from its 52-week low.
This stock’s Beta value is currently 1.99, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 25.75. This stock, according to these metrics, is currently Oversold.
Conclusion: Is Party City Holdco Inc. [PRTY] a Reliable Buy?
Party City Holdco Inc. [PRTY] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.