Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

vs
industry
vs
history
Cash to Debt 0.20
PAH's Cash to Debt is ranked lower than
75% of the 1020 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.59 vs. PAH: 0.20 )
Ranked among companies with meaningful Cash to Debt only.
PAH' s 10-Year Cash to Debt Range
Min: 0.08  Med: 0.86 Max: N/A
Current: 0.2
Equity to Asset 0.31
PAH's Equity to Asset is ranked lower than
83% of the 870 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.53 vs. PAH: 0.31 )
Ranked among companies with meaningful Equity to Asset only.
PAH' s 10-Year Equity to Asset Range
Min: 0.25  Med: 0.52 Max: 0.55
Current: 0.31
0.25
0.55
Z-Score: 0.48
WACC vs ROIC
0.81%
2.36%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 3/10

vs
industry
vs
history
Operating margin (%) 2.74
PAH's Operating margin (%) is ranked lower than
67% of the 999 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.56 vs. PAH: 2.74 )
Ranked among companies with meaningful Operating margin (%) only.
PAH' s 10-Year Operating margin (%) Range
Min: 1.13  Med: 7.68 Max: 15.74
Current: 2.74
1.13
15.74
Net-margin (%) -3.63
PAH's Net-margin (%) is ranked lower than
85% of the 1000 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 4.04 vs. PAH: -3.63 )
Ranked among companies with meaningful Net-margin (%) only.
PAH' s 10-Year Net-margin (%) Range
Min: -3.55  Med: 0.14 Max: 6.29
Current: -3.63
-3.55
6.29
ROE (%) -14.50
PAH's ROE (%) is ranked lower than
89% of the 989 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 7.54 vs. PAH: -14.50 )
Ranked among companies with meaningful ROE (%) only.
PAH' s 10-Year ROE (%) Range
Min: -19.22  Med: -9.11 Max: 1.01
Current: -14.5
-19.22
1.01
ROA (%) -1.14
PAH's ROA (%) is ranked lower than
81% of the 1024 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.76 vs. PAH: -1.14 )
Ranked among companies with meaningful ROA (%) only.
PAH' s 10-Year ROA (%) Range
Min: -1.03  Med: 3.21 Max: 7.45
Current: -1.14
-1.03
7.45
ROC (Joel Greenblatt) (%) 5.28
PAH's ROC (Joel Greenblatt) (%) is ranked lower than
68% of the 1017 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 10.82 vs. PAH: 5.28 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
PAH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 1.4  Med: 50.69 Max: 99.98
Current: 5.28
1.4
99.98
» PAH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

PAH Guru Trades in Q3 2014

Murray Stahl 6,156,378 sh (+11.21%)
John Griffin 9,000,000 sh (unchged)
Bill Ackman 33,333,330 sh (unchged)
Paul Tudor Jones Sold Out
Ron Baron 2,000,000 sh (-11.11%)
Whitney Tilson 130,615 sh (-16.23%)
» More
Q4 2014

PAH Guru Trades in Q4 2014

Jim Simons 19,900 sh (New)
Whitney Tilson 192,065 sh (+47.05%)
Bill Ackman 42,737,394 sh (+28.21%)
John Griffin 10,953,888 sh (+21.71%)
Bill Ackman 42,737,394 sh (+12.37%)
John Griffin 10,953,888 sh (unchged)
Ron Baron 2,000,000 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Murray Stahl 6,053,765 sh (-1.67%)
» More
Q1 2015

PAH Guru Trades in Q1 2015

Louis Moore Bacon 53,600 sh (New)
Jim Simons 479,600 sh (+2310.05%)
Whitney Tilson 271,140 sh (+41.17%)
John Griffin 11,000,000 sh (+0.42%)
Ron Baron 2,000,000 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Murray Stahl 5,802,419 sh (-4.15%)
» More
Q2 2015

PAH Guru Trades in Q2 2015

Steven Cohen 376,829 sh (New)
Paul Tudor Jones 54,311 sh (New)
Leon Cooperman 200,000 sh (New)
Manning & Napier Advisors, Inc 422,880 sh (New)
Louis Moore Bacon 77,500 sh (+44.59%)
Bill Ackman 42,737,394 sh (unchged)
Whitney Tilson 271,140 sh (unchged)
John Griffin 11,000,000 sh (unchged)
Ron Baron 2,000,000 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Murray Stahl 5,782,303 sh (-0.35%)
Jim Simons 265,986 sh (-44.54%)
» More
» Details

Insider Trades

Latest Guru Trades with PAH

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Platform Specialty Products Corp

Murray Stahl’s Horizon Kinetics Comments on Platform Specialty Products - Jun 26, 2014

A recent purchase in certain strategies is Platform Specialty Products (PAH). Like Wendy’s (WEN), this stock does not trade at a presently low price-to-earnings, or P/E ratio; in fact, it’s somewhat high. However, the company incorporates many predictive attributes that are suggestive that its revenues and earnings several years from now will be far higher than they are today. As a U.S. company, PAH is new, having been listed on the NYSE only since this past January. Its operating business, though, has been around for over 90 years, and PAH was trading on the London Stock Exchange when it was acquired this past October for $1.8 billion by what is known as a blank-check company. The current stock market value is $2.4 billion. A blank check company raises equity capital in order to acquire a target, often within a specified window of time, and this particular one was organized by three well- known parties: Nicolas Beggruen, through his investment company Beggruen Holdings; Bill Ackman, through his hedge fund Pershing Square; and Martin Franklin. At year-end they each controlled, respectively, 6.5 million, 33.3 million, and 7.3 million shares. Martin Franklin is also the founder and Executive Chairman of Jarden Corp (JAH), which is a significant holding in the Core Value and Strategic Value strategies, among others. The same three, also through a blank check company, brought Burger King (BKW) public again in mid-2012.



PAH produces specialty chemicals for a wide range of industries. It manufactures over 1,000 compounds, and its largest customer represents only 3% of sales. It exhibits very little cyclicality. Energy costs are only 2% of sales. It’s important to qualitatively differentiate the nature of the PAH chemicals business from that of the typical chemicals company. These particular chemicals are often proprietary both as to makeup (the company has over 750 patents) and process. Their employees spend considerable time with customers guiding them as to how to use these chemicals, often in multi-step processes, such as might be used to enhance the performance of a circuit board. PAH refers to these as dynamic chemistries and seeks out markets requiring highly technical post-sale customer service. What PAH sells tend to represent a very small portion of the cost of a customer’s product, yet are important to the product’s function or appearance. According to the company, customer retention is very high because the cost savings from switching to another provider are modest, while the switching costs are high due to process complexities and quality control requirements.



All of these attributes differentiate PAH from commodity chemical providers. Perhaps the most obvious way to observe this is via the balance sheet: whereas total assets are $2.2 billion, property, plant and equipment are only $140 million. Now, the balance sheet is distorted because of $1.7 billion of goodwill and intangible assets; nevertheless, $140 million of production assets is inordinately small relative to $750 million of annual revenue and $383 million of current assets. Accordingly, PAH has more of the character of a branded products business than of a commodity business. If so, it should have greater than average pricing power and modest capital expenditure requirements, which should also be reflected in the financial statements, which they are: capital expenditures are only about $10 million per year, such that free cash flow is about equal to net income, and the 2013 free cash flow margin was about 11.8%. As a point of comparison, to pick a branded consumer products company, General Mills (GIS) had a 9.4% net profit margin last year.



The reason the proprietary-product character of PAH is intriguing is because it bears certain commonalities with Jarden Corp., which is a branded products company. Jarden, which we’ve reviewed in the past, has been a very skilled acquirer and integrator of branded products, its portfolio comprised exclusively of either the leading market share products in their categories or the second largest market share. These range from Bee and Bicycle playing cards to Bionaire, Mr. Coffee, Oster and Sunbeam home and kitchen appliances, to Aerobed mattresses, Coleman camping gear, and on and on. Mr. Franklin’s curricula vitae at Jarden include these two statistics: book value per share, from 2001, when he assumed control, through 2013, expanded at a 26.4% annual rate; earnings per share have increased at a 20.2% rate.



The relevance of the relationship of Jarden and Mr. Franklin to the PAH investment thesis is this: it was a stated goal of the blank check company to identify a suitable target not merely to acquire it but also to use it as a platform for additional acquisitions in its industry. PAH, as a company that has relatively proprietary products and which generates relatively high free cash flow, can afford to fund additional acquisitions. Many large companies in recent years, in order to demonstrate a single-minded focus on their core business lines and maximize their returns on capital, have been spinning off or otherwise divesting lesser or ancillary divisions. The chemicals industries are no exception. The buyers have been entrepreneurs and private equity firms. A sterling example of just such a strategy well executed, aside from Jarden, is Colfax Corp. (CFX), established by the Rales brothers, and which came public in 2008. It is also a holding in Core Value and Strategic Value. Not a quarter goes by without one or more acquisitions, in their case, of generally modest-size industrial companies that manufacture gas- and fluid-handling products and services. If you simply look at the 5-or 6-year price chart, you get the picture.



In this instance, the qualitative assessment is of particular importance. The thesis is that Mr. Franklin will oversee a series of acquisitions, priced well, integrated effectively, eventually with the further benefit of scale economies, and that there will be a suitably large supply of acquisition candidates. If this thesis bears fruit, one can readily see that in success mode PAH can be far, far larger in the foreseeable, though not near, future. The rewards for the patient would be suitable.



From Murray Stahl‘s First Quarter 2014 Market Commentary.



Check out Murray Stahl latest stock trades

Top Ranked Articles about Platform Specialty Products Corp

Whitney Tilson Sells Off AIG in First Quarter
Whitney Tilson (Trades, Portfolio), currently well-known for his short of embattled Lumber Liquidators (NYSE:LL), sold off one of his holdings and didn’t initiate any new positions during the first three months of 2015, according to GuruFocus Real Time Picks. Read more...

Ratios

vs
industry
vs
history
Forward P/E 8.11
PAH's Forward P/E is ranked higher than
54% of the 342 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 13.83 vs. PAH: 8.11 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/B 0.77
PAH's P/B is ranked higher than
75% of the 906 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.52 vs. PAH: 0.77 )
Ranked among companies with meaningful P/B only.
PAH' s 10-Year P/B Range
Min: 0.76  Med: 2.38 Max: 2.71
Current: 0.77
0.76
2.71
P/S 1.83
PAH's P/S is ranked lower than
55% of the 989 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.99 vs. PAH: 1.83 )
Ranked among companies with meaningful P/S only.
PAH' s 10-Year P/S Range
Min: 1.05  Med: 5.63 Max: 15.93
Current: 1.83
1.05
15.93
PFCF 16.31
PAH's PFCF is ranked higher than
57% of the 507 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 21.90 vs. PAH: 16.31 )
Ranked among companies with meaningful PFCF only.
PAH' s 10-Year PFCF Range
Min: 0  Med: 57.84 Max: 151.33
Current: 16.31
0
151.33
POCF 11.61
PAH's POCF is ranked lower than
53% of the 689 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 11.80 vs. PAH: 11.61 )
Ranked among companies with meaningful POCF only.
PAH' s 10-Year POCF Range
Min: 11.42  Med: 65.41 Max: 166.76
Current: 11.61
11.42
166.76
EV-to-EBIT 85.65
PAH's EV-to-EBIT is ranked lower than
94% of the 799 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 14.34 vs. PAH: 85.65 )
Ranked among companies with meaningful EV-to-EBIT only.
PAH' s 10-Year EV-to-EBIT Range
Min: 38.3  Med: 166.75 Max: 1150.8
Current: 85.65
38.3
1150.8
Current Ratio 2.78
PAH's Current Ratio is ranked higher than
79% of the 887 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.72 vs. PAH: 2.78 )
Ranked among companies with meaningful Current Ratio only.
PAH' s 10-Year Current Ratio Range
Min: 1.98  Med: 5.84 Max: 7.71
Current: 2.78
1.98
7.71
Quick Ratio 2.23
PAH's Quick Ratio is ranked higher than
80% of the 887 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.18 vs. PAH: 2.23 )
Ranked among companies with meaningful Quick Ratio only.
PAH' s 10-Year Quick Ratio Range
Min: 1.52  Med: 5.07 Max: 7.02
Current: 2.23
1.52
7.02
Days Inventory 95.71
PAH's Days Inventory is ranked lower than
75% of the 975 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 65.39 vs. PAH: 95.71 )
Ranked among companies with meaningful Days Inventory only.
PAH' s 10-Year Days Inventory Range
Min: 36.92  Med: 76.06 Max: 115.19
Current: 95.71
36.92
115.19
Days Sales Outstanding 228.11
PAH's Days Sales Outstanding is ranked lower than
97% of the 837 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 58.83 vs. PAH: 228.11 )
Ranked among companies with meaningful Days Sales Outstanding only.
PAH' s 10-Year Days Sales Outstanding Range
Min: 69.37  Med: 105.53 Max: 141.68
Current: 228.11
69.37
141.68

Valuation & Return

vs
industry
vs
history
Price/Median PS Value 0.44
PAH's Price/Median PS Value is ranked lower than
138% of the 906 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.11 vs. PAH: 0.44 )
Ranked among companies with meaningful Price/Median PS Value only.
PAH' s 10-Year Price/Median PS Value Range
Min: 0  Med: 0.00 Max: 0
Current: 0.44
Earnings Yield (Greenblatt) (%) 1.15
PAH's Earnings Yield (Greenblatt) (%) is ranked lower than
75% of the 1004 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 4.80 vs. PAH: 1.15 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
PAH' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.1  Med: 0.60 Max: 2.6
Current: 1.15
0.1
2.6

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 2,779 3,133 3,258
EPS($) 1.04 2.20 2.45
EPS without NRI($) 1.04 2.20 2.45

Business Description

Industry: Chemicals » Specialty Chemicals
Compare: » details
Traded in other countries:PAH.UK,
Platform Specialty Products Corp was incorporated under the laws of the British Virgin Islands on April 23, 2013. The Company's businesses include the manufacture of a broad range of specialty chemicals, which it create by blending raw materials, and the incorporation of these chemicals into multi-step technological processes. These specialty chemicals and processes together encompass the products and sells in the electronics, metal and plastic plating, graphic arts, and offshore oil production and drilling industries. The Company has two operating segments: a Performance Materials segment and a Graphic Solutions segment. Performance Materials segment manufactures and markets dynamic chemistry solutions that are used in the electronics, automotive and oil and gas production and drilling industries. Its products include surface and coating materials and water-based hydraulic control fluids. The Graphic Solutions segment produces and markets photopolymers through a line of flexographic plates that are used in the commercial packaging and printing industries. It manufacture photopolymers used to produce printing plates for transferring images onto commercial packaging, including packaging for consumer food products, pet food bags, corrugated boxes, labels and beverage containers. The Company is subject to federal, state and local laws and regulations.
» More Articles for PAH

Headlines

Articles On GuruFocus.com
Whitney Tilson Sells Off AIG in First Quarter May 07 2015 
Bill Ackman's Ira Sohn Presentation – Long Jarden, Platform Specialty Products and Valeant May 06 2015 
Three Activist Targets of Bill Ackman That Are Also Seeing Insider Buying Mar 24 2015 
Activist Investor Bill Ackman's Newest Additions to His Portfolio Feb 18 2015 
Whitney Tilson Adds One Company to Portfolio in Fourth Quarter Feb 05 2015 
Guru Bill Ackman Is Having a Very Good Year Nov 10 2014 
Bill Ackman's Midas Touch Oct 10 2014 
Whitney Tilson's Top Five Q2 Stocks Aug 04 2014 
Murray Stahl’s Horizon Kinetics Comments on Platform Specialty Products Jun 26 2014 
Activist Bill Ackman's First Quarter Top Positions May 16 2014 

More From Other Websites
Platform Specialty Products Corporation to Attend UBS Global Chemicals and Credit Suisse Basic... Sep 02 2015
Platform Specialty Products Corporation to Attend UBS Global Chemicals and Credit Suisse Basic... Sep 02 2015
PLATFORM SPECIALTY PRODUCTS CORP Files SEC form 8-K, Other Events Aug 31 2015
PLATFORM SPECIALTY PRODUCTS CORP Financials Aug 28 2015
Platform Specialty Products Corporation Announces Common Stock Purchases by Founders Aug 27 2015
Platform Specialty Products Corporation Announces Common Stock Purchases by Founders Aug 27 2015
Platform Specialty (PAH): Moving Average Crossover Alert Aug 24 2015
PLATFORM SPECIALTY PRODUCTS CORP Files SEC form 8-K, Entry into a Material Definitive Agreement,... Aug 18 2015
PLATFORM SPECIALTY PRODUCTS CORP Files SEC form 10-Q, Quarterly Report Aug 14 2015
Edited Transcript of PAH earnings conference call or presentation 13-Aug-15 12:00pm GMT Aug 13 2015
Platform Specialty Products (PAH) Stock Falls on Earnings Miss Aug 13 2015
Platform Specialty Products Corporation Announces Second Quarter 2015 Financial Results Aug 13 2015
Platform Specialty reports 2Q loss Aug 13 2015
Platform Specialty reports 2Q loss Aug 13 2015
Q2 2015 Platform Specialty Products Corp Earnings Release - Before Market Open Aug 13 2015
PLATFORM SPECIALTY PRODUCTS CORP Files SEC form 8-K, Results of Operations and Financial Condition,... Aug 13 2015
Platform Specialty Products Corporation Announces Second Quarter 2015 Financial Results Aug 13 2015
OM Group Stockholders Approve Merger Transaction Aug 10 2015
OM Group Stockholders Approve Merger Transaction Aug 10 2015
VRX drove Pershing Square Capital Management in July. PAH did not Aug 07 2015

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK