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Psychemedics

Nasdaq:PMD
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PMD
Nasdaq
$31M
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Psychemedics Corporation provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States, Brazil, and internationally. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • Psychemedics has significant price volatility in the past 3 months.
PMD Share Price and Events
7 Day Returns
1.3%
NasdaqCM:PMD
1.9%
US Healthcare
-1.1%
US Market
1 Year Returns
-60.3%
NasdaqCM:PMD
-1.7%
US Healthcare
-13.6%
US Market
PMD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Psychemedics (PMD) 1.3% -33.1% -38.1% -60.3% -72.4% -65.4%
US Healthcare 1.9% -10.3% -16.7% -1.7% 14.9% 15.7%
US Market -1.1% -17.8% -22.5% -13.6% 4.9% 16.3%
1 Year Return vs Industry and Market
  • PMD underperformed the Healthcare industry which returned -1.7% over the past year.
  • PMD underperformed the Market in United States of America which returned -13.6% over the past year.
Price Volatility
PMD
Industry
5yr Volatility vs Market

Value

 Is Psychemedics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Psychemedics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Psychemedics.

NasdaqCM:PMD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ .720000
Payout Ratio Company Filings (2019-12-31) 5635%
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:PMD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.656 (1 + (1- 21%) (19.11%))
0.867
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.867 * 5.44%)
6.46%

Discounted Cash Flow Calculation for NasdaqCM:PMD using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Psychemedics is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NasdaqCM:PMD Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.72 / (6.46% - 1.74%)
$15.27
NasdaqCM:PMD Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.27
Current discount Discount to share price of $5.66
= -1 x ($5.66 - $15.27) / $15.27
62.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Psychemedics is available for.
Intrinsic value
>50%
Share price is $5.66 vs Future cash flow value of $15.27
Current Discount Checks
For Psychemedics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Psychemedics's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Psychemedics's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Psychemedics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Psychemedics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:PMD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.28
NasdaqCM:PMD Share Price ** NasdaqCM (2020-04-02) in USD $5.66
United States of America Healthcare Industry PE Ratio Median Figure of 45 Publicly-Listed Healthcare Companies 20.62x
United States of America Market PE Ratio Median Figure of 2,943 Publicly-Listed Companies 12.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Psychemedics.

NasdaqCM:PMD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:PMD Share Price ÷ EPS (both in USD)

= 5.66 ÷ 0.28

20.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Psychemedics is good value based on earnings compared to the US Healthcare industry average.
  • Psychemedics is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Psychemedics's expected growth come at a high price?
Raw Data
NasdaqCM:PMD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Healthcare Industry PEG Ratio Median Figure of 32 Publicly-Listed Healthcare Companies 1.59x
United States of America Market PEG Ratio Median Figure of 2,006 Publicly-Listed Companies 0.95x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Psychemedics, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Psychemedics's assets?
Raw Data
NasdaqCM:PMD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $3.05
NasdaqCM:PMD Share Price * NasdaqCM (2020-04-02) in USD $5.66
United States of America Healthcare Industry PB Ratio Median Figure of 95 Publicly-Listed Healthcare Companies 2.29x
United States of America Market PB Ratio Median Figure of 5,140 Publicly-Listed Companies 1.25x
NasdaqCM:PMD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:PMD Share Price ÷ Book Value per Share (both in USD)

= 5.66 ÷ 3.05

1.86x

* Primary Listing of Psychemedics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Psychemedics is good value based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Psychemedics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Psychemedics has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Psychemedics expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Psychemedics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.6%
Expected Healthcare industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Psychemedics expected to grow at an attractive rate?
  • Unable to compare Psychemedics's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Psychemedics's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Psychemedics's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:PMD Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:PMD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:PMD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 38 4 2
2019-09-30 39 7 3
2019-06-30 40 6 4
2019-03-31 42 7 4
2018-12-31 43 8 5
2018-09-30 42 6 6
2018-06-30 42 9 6
2018-03-31 40 6 6
2017-12-31 40 9 6
2017-09-30 41 10 6
2017-06-30 43 10 7
2017-03-31 43 13 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Psychemedics is high growth as no earnings estimate data is available.
  • Unable to determine if Psychemedics is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:PMD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Psychemedics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:PMD Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.28
2019-09-30 0.54
2019-06-30 0.64
2019-03-31 0.72
2018-12-31 0.83
2018-09-30 1.10
2018-06-30 1.12
2018-03-31 1.07
2017-12-31 1.12
2017-09-30 1.12
2017-06-30 1.37
2017-03-31 1.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Psychemedics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Psychemedics is trading at Psychemedics'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Psychemedics's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Healthcare companies here
  3. Psychemedics's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Psychemedics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Psychemedics has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Psychemedics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Psychemedics's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Psychemedics's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Psychemedics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Psychemedics's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.
Earnings and Revenue History
Psychemedics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Psychemedics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:PMD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 37.68 1.54 11.08 1.57
2019-09-30 38.90 2.95 10.89 1.68
2019-06-30 40.06 3.55 11.10 1.65
2019-03-31 41.56 3.96 11.41 1.61
2018-12-31 42.67 4.58 11.46 1.55
2018-09-30 42.50 6.05 11.19 1.44
2018-06-30 41.53 6.14 10.86 1.42
2018-03-31 40.43 5.87 10.68 1.39
2017-12-31 39.70 6.12 10.31 1.36
2017-09-30 40.71 6.13 10.24 1.36
2017-06-30 42.51 7.48 10.35 1.36
2017-03-31 42.52 8.20 10.26 1.39
2016-12-31 38.98 6.68 9.93 1.42
2016-09-30 34.35 4.50 9.71 1.41
2016-06-30 29.58 2.59 9.57 1.45
2016-03-31 26.89 1.21 9.56 1.54
2015-12-31 26.98 1.51 9.61 1.63
2015-09-30 27.60 2.00 9.58 1.65
2015-06-30 28.22 2.12 9.43 1.62
2015-03-31 28.92 2.73 9.25 1.46
2014-12-31 29.21 3.21 9.10 1.35
2014-09-30 28.93 3.40 9.29 1.25
2014-06-30 28.28 3.53 9.16 1.09
2014-03-31 27.48 3.74 9.02 1.01
2013-12-31 26.87 3.81 8.86 0.83
2013-09-30 26.04 3.21 8.67 0.70
2013-06-30 25.45 3.04 8.42 0.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Psychemedics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Psychemedics used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Psychemedics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Psychemedics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Psychemedics has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Psychemedics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Psychemedics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Psychemedics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Psychemedics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Psychemedics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Psychemedics Company Filings, last reported 3 months ago.

NasdaqCM:PMD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 16.82 2.63 7.28
2019-09-30 18.02 1.32 6.49
2019-06-30 18.48 1.42 7.10
2019-03-31 18.49 1.53 7.14
2018-12-31 18.75 1.63 7.97
2018-09-30 18.51 2.66 6.02
2018-06-30 18.26 2.90 7.72
2018-03-31 19.17 3.14 8.28
2017-12-31 18.62 3.38 8.17
2017-09-30 17.23 1.47 5.60
2017-06-30 16.42 1.61 2.96
2017-03-31 16.45 3.10 6.87
2016-12-31 15.61 3.38 3.94
2016-09-30 13.90 5.23 4.11
2016-06-30 11.85 5.66 2.28
2016-03-31 11.01 6.10 2.00
2015-12-31 11.67 5.89 2.69
2015-09-30 12.20 6.30 1.72
2015-06-30 12.05 5.55 2.10
2015-03-31 12.47 5.90 2.75
2014-12-31 12.84 6.25 3.61
2014-09-30 12.86 6.60 2.61
2014-06-30 12.59 5.95 2.35
2014-03-31 12.43 1.05 2.21
2013-12-31 12.28 0.00 3.97
2013-09-30 12.07 0.00 2.84
2013-06-30 11.65 0.00 2.73
  • Psychemedics's level of debt (15.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (48.7% vs 15.6% today).
  • Debt is well covered by operating cash flow (163.9%, greater than 20% of total debt).
  • Psychemedics earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Psychemedics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Psychemedics has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Psychemedics's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
12.72%
Current annual income from Psychemedics dividends.
If you bought $2,000 of Psychemedics shares you are expected to receive $254 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Psychemedics's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (2%).
  • Psychemedics's dividend is above the markets top 25% of dividend payers in United States of America (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:PMD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1943 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:PMD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-25 0.720 10.983
2020-02-11 0.720 7.930
2019-10-24 0.720 7.679
2019-10-22 0.720 7.958
2019-07-24 0.720 8.591
2019-07-23 0.720 8.476
2019-04-25 0.720 7.137
2019-04-23 0.720 5.777
2019-03-04 0.720 4.918
2018-10-25 0.720 4.150
2018-10-23 0.720 4.197
2018-07-27 0.720 3.687
2018-07-24 0.720 3.530
2018-04-26 0.720 3.609
2018-04-24 0.720 3.420
2018-03-16 0.600 2.915
2018-03-07 0.600 2.904
2017-10-26 0.600 3.028
2017-10-24 0.600 3.560
2017-08-04 0.600 3.152
2017-08-02 0.600 2.671
2017-05-02 0.600 2.626
2017-04-25 0.600 3.107
2017-03-07 0.600 2.992
2017-02-06 0.600 2.837
2016-10-27 0.600 2.540
2016-10-26 0.600 2.833
2016-07-28 0.600 3.003
2016-07-26 0.600 3.615
2016-04-28 0.600 4.320
2016-04-26 0.600 4.133
2016-02-26 0.600 4.341
2016-02-10 0.600 5.084
2015-10-29 0.600 5.829
2015-10-28 0.600 6.070
2015-07-31 0.600 5.498
2015-07-28 0.600 5.026
2015-05-01 0.600 4.214
2015-04-27 0.600 3.752
2014-10-30 0.600 3.886
2014-07-28 0.600 4.244
2014-02-10 0.600 3.844
2013-10-28 0.600 4.151
2013-08-05 0.600 4.586
2013-05-07 0.600 5.338
2013-02-25 0.600 5.183
2012-11-05 0.600 5.221
2012-08-07 0.600 5.157
2012-05-08 0.600 5.870
2012-02-23 0.600 6.060
2011-11-03 0.480 5.172
2011-08-10 0.480 5.789
2011-05-05 0.480 5.099
2011-03-02 0.480 4.895
2010-11-04 0.480 5.605
2010-08-10 0.480 5.263
2010-05-11 0.480 5.746
2009-11-03 0.480 6.783
2009-08-04 0.480 7.828
2009-05-07 0.680 10.339

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Psychemedics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Psychemedics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Psychemedics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Psychemedics has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Psychemedics's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Raymond Kubacki
COMPENSATION $788,460
AGE 74
TENURE AS CEO 29.3 years
CEO Bio

Mr. Raymond C. Kubacki has been the President and Chief Executive Officer at Psychemedics Corp., since July 1991. Prior to joining Psychemedics Corp., Mr. Kubacki served as Vice President National Accounts and Director of Sales and Marketing for Reliance COMM and TEC Corp., a subsidiary of Reliance Electric Co. He held a number of senior management positions in marketing and manufacturing with Reliance Electric Company and ACME Cleveland Corp. Prior to working with ACME Cleveland Corp, he served as an investment officer at Massachusetts Financial Service Company, mutual and investment management firm. He has been the Chairman of the Board of Psychemedics Corporation since November 30, 2003 and also its Director since 1991. Mr. Kubacki has been a Director of Protection One Alarm Monitoring, Inc. since April 2, 2007. He served as a Director of Integrated Environmental Technologies Ltd. since March 3, 2011 until July 13, 2016. He served on the Board of Trustees of Mt. Ida College. He serves as Member of Audit Committee for Protection One Alarm Monitoring, Inc. He is also a Trustee for the Center for Excellence in Education based in Washington, D.C. He served as a Director of Protection One Inc. from April 2007 to June 4, 2010. He served as a Director of Integrated Alarm Services Group Inc. since June 2004 to April 2007. He received his B.A. from the Harvard University in 1967 and his M.B.A. from Harvard Business School in 1970.

CEO Compensation
  • Raymond's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Raymond's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Psychemedics management team in years:

21.3
Average Tenure
63.5
Average Age
  • The average tenure for the Psychemedics management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Raymond Kubacki

TITLE
Chairman
COMPENSATION
$788K
AGE
74
TENURE
29.3 yrs

Charlie Doucot

TITLE
Executive Vice President
COMPENSATION
$475K
AGE
53
TENURE
1.3 yrs

Michael Schaffer

TITLE
Vice President of Laboratory Operations
COMPENSATION
$350K
AGE
74
TENURE
21.3 yrs

Werner Baumgartner

TITLE
TENURE
42.3 yrs

Annette Baumgartner

TITLE
TENURE
42.3 yrs

Neil Lerner

TITLE
VP of Finance
COMPENSATION
$272K
AGE
51
TENURE
8.9 yrs

Jim Abely

TITLE
VP & General Counsel
TENURE
3.7 yrs

Patrick Kinney

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the Psychemedics board of directors in years:

16.6
Average Tenure
74
Average Age
  • The average tenure for the Psychemedics board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Raymond Kubacki

TITLE
Chairman
COMPENSATION
$788K
AGE
74
TENURE
16.4 yrs

Fred Weinert

TITLE
Independent Director
COMPENSATION
$341K
AGE
71
TENURE
29.3 yrs

A. Allen

TITLE
Independent Director
COMPENSATION
$120K
AGE
75
TENURE
4.6 yrs

Walter Tomenson

TITLE
Independent Director
COMPENSATION
$120K
AGE
72
TENURE
21.3 yrs

Harry Connick

TITLE
Independent Director
COMPENSATION
$122K
AGE
93
TENURE
16.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jun 19 Buy Raymond Kubacki Individual 14. Jun 19 14. Jun 19 1,000 $9.99 $9,990
14. Jun 19 Sell Michael Schaffer Individual 12. Jun 19 14. Jun 19 -9,331 $9.84 $-90,867
07. Jun 19 Buy Charles Doucot Individual 05. Jun 19 05. Jun 19 500 $9.90 $4,951
X
Management checks
We assess Psychemedics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Psychemedics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Investor Owns Most Of Psychemedics Corporation (NASDAQ:PMD)?

With a market capitalization of US$43m, Psychemedics is a small cap stock, so it might not be well known by many institutional investors. … Insider Ownership Of Psychemedics The definition of company insiders can be subjective, and does vary between jurisdictions. … In their own names, insiders own US$3.3m worth of stock in the US$43m company.

Simply Wall St -

Should You Consider Psychemedics Corporation (NASDAQ:PMD)?

PMD's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. … According to my intrinsic value of the stock, which is driven by analyst consensus forecast of PMD's earnings, investors now have the opportunity to buy into the stock to reap capital gains. … Also, relative to the rest of its peers with similar levels of earnings, PMD's share price is trading below the group's average.

Simply Wall St -

Why Psychemedics Corporation (NASDAQ:PMD) Looks Like A Quality Company

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Psychemedics: 19% = US$3.6m ÷ US$18m (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Psychemedics Have A Good Return On Equity? … Psychemedics's Debt And Its 19% ROE While Psychemedics does have a tiny amount of debt, with debt to equity of just 0.077, we think the use of debt is very modest.

Simply Wall St -

Do These 3 Checks Before Buying Psychemedics Corporation (NASDAQ:PMD) For Its Upcoming Dividend

Check out our latest analysis for Psychemedics Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. … Psychemedics distributed an unsustainably high 112% of its profit as dividends to shareholders last year. … Additionally, Psychemedics is paying out quite a high percentage of its earnings, and more than half its cash flow, so it's hard to evaluate whether the company is reinvesting enough in its business to improve its situation.

Simply Wall St -

Does Psychemedics (NASDAQ:PMD) Have A Healthy Balance Sheet?

This short term liquidity is a sign that Psychemedics could probably pay off its debt with ease, as its balance sheet is far from stretched. … While Psychemedics has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Summing up While it is always sensible to investigate a company's debt, in this case Psychemedics has US$5.7m in net cash and a decent-looking balance sheet.

Simply Wall St -

Should You Worry About Psychemedics Corporation's (NASDAQ:PMD) CEO Pay?

View our latest analysis for Psychemedics How Does Raymond Kubacki's Compensation Compare With Similar Sized Companies? … Thus we can conclude that Raymond Kubacki receives more in total compensation than the median of a group of companies in the same market, and of similar size to Psychemedics Corporation. … We compared total CEO remuneration at Psychemedics Corporation with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Do You Know What Psychemedics Corporation's (NASDAQ:PMD) P/E Ratio Means?

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Psychemedics: P/E of 13.89 = $9.99 ÷ $0.72 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … Earnings growth means that in the future the 'E' will be higher. … Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.

Simply Wall St -

Should You Be Worried About Insider Transactions At Psychemedics Corporation (NASDAQ:PMD)?

Insiders at Psychemedics Have Sold Stock Recently There was substantially more insider selling, than buying, of Psychemedics shares over the last three months. … Insider Ownership of Psychemedics I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. … Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term.

Simply Wall St -

Did Psychemedics Corporation (NASDAQ:PMD) Insiders Sell Shares?

Psychemedics Insiders Are Selling The Stock There was substantially more insider selling, than buying, of Psychemedics shares over the last three months. … Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months. … Insider Ownership of Psychemedics I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

What Can We Make Of Psychemedics Corporation’s (NASDAQ:PMD) High Return On Capital?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Psychemedics: 0.31 = US$6.6m ÷ (US$26m - US$4.4m) (Based on the trailing twelve months to March 2019.) Therefore, Psychemedics has an ROCE of 31%. … Psychemedics's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … What We Can Learn From Psychemedics's ROCE With low current liabilities and a high ROCE, Psychemedics could be worthy of further investigation.

Simply Wall St -

Company Info

Description

Psychemedics Corporation provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States, Brazil, and internationally. The company offers screening and confirmation by mass spectrometry using industry-accepted practices for cocaine, marijuana, PCP, amphetamines, opiates, synthetic cannabinoids, and benzodiazepines. Its testing results provide quantitative information that can indicate the approximate amount of drug ingested, as well as historical data that can show a pattern of individual drug use over a longer period-of-time. The company provides its services to employers for applicant and employee testing; and treatment professionals, law enforcement agencies, school administrators, and parents concerned about their children’s drug use. Psychemedics Corporation was founded in 1986 and is headquartered in Acton, Massachusetts.

Details
Name: Psychemedics Corporation
PMD
Exchange: NasdaqCM
Founded: 1986
$31,225,829
5,516,931
Website: http://www.psychemedics.com
Address: Psychemedics Corporation
289 Great Road,
Suite 200,
Acton,
Massachusetts, 01720,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM PMD Common Stock Nasdaq Capital Market US USD 22. Jan 1987
Number of employees
Current staff
Staff numbers
204
Psychemedics employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 02:46
End of day share price update: 2020/04/02 00:00
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.