Latest news with #PHSC
Yahoo
2 days ago
- Business
- Yahoo
A Look At The Fair Value Of PHSC plc (LON:PHSC)
Key Insights The projected fair value for PHSC is UK£0.11 based on 2 Stage Free Cash Flow to Equity PHSC's UK£0.12 share price indicates it is trading at similar levels as its fair value estimate The average discount for PHSC's competitorsis currently 59% Today we'll do a simple run through of a valuation method used to estimate the attractiveness of PHSC plc (LON:PHSC) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Is PHSC Fairly Valued? We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (£, Millions) UK£71.6k UK£61.9k UK£56.6k UK£53.6k UK£52.0k UK£51.3k UK£51.2k UK£51.5k UK£52.2k UK£53.0k Growth Rate Estimate Source Est @ -20.36% Est @ -13.49% Est @ -8.68% Est @ -5.32% Est @ -2.96% Est @ -1.31% Est @ -0.15% Est @ 0.65% Est @ 1.22% Est @ 1.62% Present Value (£, Millions) Discounted @ 6.6% UK£0.07 UK£0.05 UK£0.05 UK£0.04 UK£0.04 UK£0.03 UK£0.03 UK£0.03 UK£0.03 UK£0.03 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£403k We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.5%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.6%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = UK£53k× (1 + 2.5%) ÷ (6.6%– 2.5%) = UK£1.3m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£1.3m÷ ( 1 + 6.6%)10= UK£696k The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is UK£1.1m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of UK£0.1, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at PHSC as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.6%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for PHSC SWOT Analysis for PHSC Strength Currently debt free. Weakness Current share price is above our estimate of fair value. Opportunity Has sufficient cash runway for more than 3 years based on current free cash flows. Lack of analyst coverage makes it difficult to determine PHSC's earnings prospects. Threat No apparent threats visible for PHSC. Next Steps: Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For PHSC, there are three additional factors you should assess: Risks: To that end, you should learn about the 2 warning signs we've spotted with PHSC (including 1 which doesn't sit too well with us) . Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! Other Top Analyst Picks: Interested to see what the analysts are thinking? Take a look at our interactive list of analysts' top stock picks to find out what they feel might have an attractive future outlook! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
PHSC Full Year 2025 Earnings: UK£0.012 loss per share (vs UK£0.022 profit in FY 2024)
PHSC (LON:PHSC) Full Year 2025 Results Key Financial Results Revenue: UK£3.22m (down 15% from FY 2024). Net loss: UK£126.2k (down by 151% from UK£248.8k profit in FY 2024). UK£0.012 loss per share (down from UK£0.022 profit in FY 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period PHSC shares are down 14% from a week ago. Risk Analysis It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with PHSC (at least 1 which is a bit unpleasant), and understanding these should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
The Independent
4 days ago
- Business
- The Independent
Stocks climb as market is buoyed by Trump's decision not to fire Powell
Stock prices in London closed higher on Friday, with markets maintaining the optimism that prevailed after US President Donald Trump said on Wednesday that it was 'highly unlikely' that he would fire Federal Reserve chair Jerome Powell. Meanwhile, also in the US, preliminary data from the University of Michigan showed that consumer sentiment improved marginally in July. However, overall confidence remains well below recent highs and historical norms. The FTSE 100 index closed up 19.48 points, 0.2%, at 8,992.12. The FTSE 250 ended up 131.83 points, 0.6%, at 21,898.26, and the AIM All-Share closed up 3.85 points, 0.5%, at 772.78. On AIM, Metals One closed up 3.3%. The mineral developer with projects in Norway and Finland has completed the acquisition of a 10% interest in NovaCore Exploration Inc, which is advancing the Red Basin uranium project in New Mexico. Metals One has acquired the stake with a share subscription worth 300,000 US dollars (£223,000), and said it has also been granted warrants to increase its ownership to 30%. PHSC fell 9.3%. The provider of health, safety, hygiene and environmental consultancy and security solutions reported a pretax loss of £127,419 for the year to the end of March, swinging from a profit of £332,317 in the prior year. Sales revenue fell 15% to £3.2 million from £3.8 million. PHSC also declared no dividend, down from a total dividend of 2p last year. Small-cap Sure Ventures closed 3.0% higher. The venture capital fund, backing early-stage AI, AR and VR, and IoT companies, said net asset value per share at March 31 was 175.79 pence, more than doubled from 82.53p a year earlier. NAV total return was 113% against a negative 31.25% a year prior. Also, Sure swung to pretax profit of £7.4 million from a £2.5 million loss the year before, as total net income increased to £8.0 million from a £2.1 million loss. It said this was primarily driven by 'two key exits' from the Fund I portfolio. In European equities on Friday, the CAC 40 in Paris closed up 0.1%, while the DAX 40 in Frankfurt ended down 0.4%. The eurozone's current account surplus grew by less than anticipated in May, data from the European Central Bank showed. The single-currency area's surplus grew to 32.31 billion euros (£28 billion) in May from 18.64 billion euros (£16.16 billion) in April, less than the increase to 34.8 billion euros (£30.2 billion) expected by market consensus cited by FXStreet. In the 12 months to the end of May, the current account surplus fell to 333 billion euros (£288.7 billion), or 2.1% of eurozone GDP, from 364 billion euros (£315.6 billion) and 2.5% of GDP a year prior. The decline was mostly driven by a shift from a surplus of 34 billion euros (£29.5 billion) to a deficit of 5.0 billion euros (£4.33 billion) for primary income. Separately, Eurostat reported that annual growth in construction output slowed to 2.9% in May from 4.7% in April. On a monthly basis, eurozone construction output declined by 1.7% in May, after 4.3% growth in April from March. The pound was quoted higher at 1.3444 dollars at the time of the London equities close on Friday, compared to 1.3414 dollars on Thursday. The euro stood at 1.1656 dollars, higher against 1.1594 dollars. Against the Japanese yen, the dollar was trading slightly lower at 148.44 yen compared to 148.48 yen. Stocks in New York were mixed. The Dow Jones Industrial Average was down 0.3%, the S&P 500 index up marginally, and the Nasdaq Composite up 0.1%. The yield on the US 10-year Treasury was quoted at 4.42%, narrowing from 4.45%. The yield on the US 30-year Treasury was quoted unchanged at 4.99%. The University of Michigan's index of US consumer sentiment rose to 61.8 in July from 60.7 in June, up 1.8% on the month but still 6.9% lower than the level recorded in July 2024. The reading marked a five-month high but remained 16% below December 2024. The current economic conditions index climbed to 66.8 from 64.8 in June, a 3.1% monthly gain and a 6.5% increase from a year earlier. However, the index of consumer expectations edged up just 0.9% to 58.6, down 15% on the year. ' Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen,' said Joanne Hsu, director of the survey. She noted that the recent tax and spending bill had little impact on sentiment, while concerns over trade policy continue to weigh on consumer confidence. Also, US housing starts rose modestly in June, rebounding from the previous month, but completions slumped to their lowest level since early 2023, according to data released on Friday by the US Census Bureau and the Department of Housing & Urban Development. Privately-owned housing starts increased to a seasonally adjusted annual rate of 1.32 million in June, up 4.6% from May's revised figure of 1.26 million. However, the total remained slightly below the June 2024 rate of 1.33 million. Housing completions tumbled 14.7% from May to 1.31 million, down 24.1% compared to a year earlier. Single-family completions dropped 12.5% to 908,000, and multifamily completions fell to 383,000. The sharp decline in completions signals continued supply constraints in the housing market, despite a slight pickup in new starts. Brent oil was quoted at 69.41 dollars (£60.17) a barrel at the time of the London equities close on Friday, up from 68.94 dollars (£59.77) late Thursday. Gold was quoted higher at 3,352.48 dollars (£2,496.36) an ounce against 3,338.20 dollars (£2485.72). The biggest risers on the FTSE 100 were: Rentokil, up 10.3p at 357.3p; Antofagasta, up 47p at 1,868.5p; Intermediate Capital, up 50p at 2,156p; 3i, up 96p at 4,340p; and Whitbread, up 61p at 3,182p. The biggest fallers on the FTSE 100 were: GSK, down 65p at 1,348p; Mondi, down 23.3p at 1,144.2p; ConvaTec, down 3.6p at 238p; Informa, down 9.2p at 836.6p; and Croda International, down 31p at 2,846p. On Monday's economic calendar, there is an interest rate call from China, consumer inflation from Hong Kong, and Canada's producer inflation. Japanese markets will be closed for Marine Day. On Monday's UK corporate calendar, Mony Group releases half-year results and Ryanair has its first-quarter report.
Hindustan Times
13-06-2025
- Health
- Hindustan Times
Punjab govt bars Solan firm for supplying sub-standard IV saline
Health minister Dr Balbir Singh on Thursday said that Captab Biotech, Solan, the pharmaceutical firm responsible for manufacturing and supplying non-standard quality IV (intravenous) fluid (normal saline) bottles to the Punjab Health System Corporation (PHSC) has been banned for three years from participating in any tender of Punjab government and its security deposit has been forfeited. Addressing a press conference at Punjab Bhawan here, the minister said besides banning the firm for three years, all the contracts for 11 items being supplied to PHSC by the firm have also been cancelled with immediate effect. 'The firm's security of ₹3.30 lakh has been forfeited, and pending payments have been withheld,' the minister added. The minister further said that after a complaint from the Punjab government, the central drugs standard control organisation (CDSCO), under provisions of the Drug and Cosmetics Act, has stopped all manufacturing of the company with immediate effect. The action comes after adverse drug reactions (ADR) were observed in a few patients at government health institutions in Amritsar and Sangrur due to the use of normal saline manufactured by this company in March this year. Taking immediate action, the Punjab DHS had recalled the entire stock supplied by the firm. A sampling of said normal saline was undertaken by a joint team of the food and drug administration (FDA), Punjab and CDSCO, New Delhi. The said company had also taken back all the left-out stock after PHSC instructed to recall at their own cost, the minister added. 'Besides this, the role of the three labs which initially passed the samples of this company which were later got declared 'non-specified quality' is also under scrutiny,' he added.
Hindustan Times
12-06-2025
- Health
- Hindustan Times
Pharma firm Captab Biotech banned in Punjab for 3 years following adverse drug reactions
Chandigarh, The Punjab government has banned pharma company Captab Biotech for three years for manufacturing and supplying non-standard IV fluid or normal saline bottles to the Punjab Health System Corporation , a minister said on Thursday. Health Minister Dr Balbir Singh said the company has also been debarred for three years from participating in any state government tenders. Contracts for 11 items being supplied to the PHSC have also been cancelled with immediate effect, he said. "Besides, performance security of ₹3,30,000 of the firm has been forfeited, and pending payments have been withheld," Balbir Singh said. The ban came after the Punjab government raised the matter with the Central Drugs Standard Control Organisation for taking action under the provisions of the Drug and Cosmetics Act. The firm came under scrutiny when a few patients at government health institutions in Amritsar and Sangrur showed adverse reactions after the use of normal saline. The incident led a joint team of the Food and Drug Administration and the CDSCO to take samples of the solution. The minister said the company has also recalled the remaining stock of normal saline. "Besides this, the role of the three labs that initially passed the samples of this company that later got declared 'Non-specified Quality' is also under scrutiny of the department for lapses," he said. Meanwhile, after a 'severe heatwave' warning by the India Meteorological Department , the minister also issued a public advisory, urging all residents to take precautions against the extreme heat. He emphasised they stay hydrated and always carry water when stepping outdoors. Special care must be taken of vulnerable groups, such as newborns, children, pregnant women, the elderly, individuals with obesity or mental illness, and those suffering from heart diseases or chronic conditions, he said. He stressed that labourers, construction workers, and street vendors, who work under direct sunlight, take frequent breaks in shaded areas and sip water regularly during peak heat hours. The minister advised the public to avoid outdoor activities between 12 pm and 3 pm, wear light, loose-fitting cotton clothes, and cover their heads with caps, turbans, or dupattas when stepping out. He encouraged the consumption of seasonal fruits and hydrating homemade drinks like lemon water, 'lassi', and coconut water, while avoiding alcohol, caffeinated beverages, fried, or stale food. On the rise in COVID-19 cases in the country, Balbir Singh urged the public not to panic. People should avoid crowded places and wear masks, especially elderly individuals, immunocompromised persons, pregnant women, and those with underlying health conditions, as they are more vulnerable to infection, he said.
