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Productivity Technologies

PRAC
28
Industrial - Machinery · Industrials
Price
$0.13
+0.00 (+0.00%)
Market Cap
$555,605
Winston Score
28
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+4.5% over 5y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 2.5M (1999) → 2.6M (2004)

Productivity Technologies Corp. is a small industrial machinery company that makes equipment and tools used in manufacturing and production environments. Its products are sold to industrial customers such as factories, assembly plants, and other businesses that need machinery to build or process goods. The company operates in the broader industrial equipment sector, which tends to move in line with overall manufacturing activity.

The company earns revenue primarily through the sale of its machinery and related equipment, and may also generate income from parts, service, and maintenance contracts. With a market cap near zero and thin operating margins around 4%, it is a very small player in a competitive industry where larger manufacturers have significant advantages in scale and distribution. The main risk the business faces is its limited size, which makes it vulnerable to economic slowdowns that reduce capital spending by its industrial customers.

Winston Score History

Score breakdown

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Quality

Gross Margin
21.6%
Thin — 21.6% gross margin
Operating Margin
3.2%
Thin — 3.2% operating margin
ROCE
2.2%
Weak — 2.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-8.0%
Shrinking sales (-8.0% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
8.8%
Modest free cash flow (8.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
2.16
Heavy debt load (2.16)
Interest Cover
0.12x
Dangerous — barely covers interest (0.1x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)
0.5x
Attractive valuation — P/E 0.5

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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