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Also traded in: UK

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 0.06
PAH's Cash to Debt is ranked lower than
92% of the 1075 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.80 vs. PAH: 0.06 )
Ranked among companies with meaningful Cash to Debt only.
PAH' s Cash to Debt Range Over the Past 10 Years
Min: 0.06  Med: 0.40 Max: N/A
Current: 0.06
Equity to Asset 0.21
PAH's Equity to Asset is ranked lower than
91% of the 1042 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.53 vs. PAH: 0.21 )
Ranked among companies with meaningful Equity to Asset only.
PAH' s Equity to Asset Range Over the Past 10 Years
Min: 0.21  Med: 0.31 Max: 0.55
Current: 0.21
0.21
0.55
Interest Coverage 0.45
PAH's Interest Coverage is ranked lower than
97% of the 742 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 15.34 vs. PAH: 0.45 )
Ranked among companies with meaningful Interest Coverage only.
PAH' s Interest Coverage Range Over the Past 10 Years
Min: 0.25  Med: 0.69 Max: 2.34
Current: 0.45
0.25
2.34
F-Score: 3
Z-Score: 0.29
WACC vs ROIC
0.35%
2.21%
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 : 4/10

vs
industry
vs
history
Operating margin (%) 4.29
PAH's Operating margin (%) is ranked lower than
62% of the 1055 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 6.33 vs. PAH: 4.29 )
Ranked among companies with meaningful Operating margin (%) only.
PAH' s Operating margin (%) Range Over the Past 10 Years
Min: 1.13  Med: 5.25 Max: 15.74
Current: 4.29
1.13
15.74
Net-margin (%) -14.72
PAH's Net-margin (%) is ranked lower than
91% of the 1059 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 4.49 vs. PAH: -14.72 )
Ranked among companies with meaningful Net-margin (%) only.
PAH' s Net-margin (%) Range Over the Past 10 Years
Min: -12.14  Med: -1.71 Max: 6.29
Current: -14.72
-12.14
6.29
ROE (%) -18.62
PAH's ROE (%) is ranked lower than
91% of the 1040 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 8.03 vs. PAH: -18.62 )
Ranked among companies with meaningful ROE (%) only.
PAH' s ROE (%) Range Over the Past 10 Years
Min: -19.22  Med: -13.52 Max: 1.03
Current: -18.62
-19.22
1.03
ROA (%) -4.58
PAH's ROA (%) is ranked lower than
86% of the 1081 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.87 vs. PAH: -4.58 )
Ranked among companies with meaningful ROA (%) only.
PAH' s ROA (%) Range Over the Past 10 Years
Min: -4.19  Med: -1.03 Max: 7.46
Current: -4.58
-4.19
7.46
ROC (Joel Greenblatt) (%) 9.95
PAH's ROC (Joel Greenblatt) (%) is ranked lower than
57% of the 1072 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 12.33 vs. PAH: 9.95 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
PAH' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 1.4  Med: 5.84 Max: 99.98
Current: 9.95
1.4
99.98
» PAH's 10-Y Financials

Financials (Next Earnings Date: Est. 2016-08-13)


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

» Details

Guru Trades

Q2 2015

PAH Guru Trades in Q2 2015

Leon Cooperman 200,000 sh (New)
Paul Tudor Jones 54,311 sh (New)
Manning & Napier Advisors, Inc 422,880 sh (New)
Steven Cohen 376,829 sh (New)
Louis Moore Bacon 77,500 sh (+44.59%)
John Griffin 11,000,000 sh (unchged)
Ron Baron 2,000,000 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Whitney Tilson 271,140 sh (unchged)
Murray Stahl 5,782,303 sh (-0.35%)
Jim Simons 265,986 sh (-44.54%)
» More
Q3 2015

PAH Guru Trades in Q3 2015

Jim Simons 1,486,500 sh (+458.86%)
Manning & Napier Advisors, Inc 1,005,370 sh (+137.74%)
Whitney Tilson 367,320 sh (+35.47%)
John Griffin 11,200,000 sh (+1.82%)
Ron Baron 2,000,000 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Leon Cooperman Sold Out
Louis Moore Bacon Sold Out
Steven Cohen Sold Out
Murray Stahl 5,428,545 sh (-6.12%)
Paul Tudor Jones 17,000 sh (-68.70%)
» More
Q4 2015

PAH Guru Trades in Q4 2015

John Griffin 12,785,000 sh (+14.15%)
Bill Ackman 42,737,394 sh (unchged)
Paul Tudor Jones Sold Out
Jim Simons Sold Out
Manning & Napier Advisors, Inc Sold Out
Ron Baron 1,500,000 sh (-25.00%)
Murray Stahl 4,066,777 sh (-25.09%)
» More
Q1 2016

PAH Guru Trades in Q1 2016

Paul Singer 1,446,500 sh (New)
David Dreman 1,352 sh (New)
First Eagle Investment 57,800 sh (New)
John Griffin 12,785,000 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Ron Baron Sold Out
Murray Stahl 3,915,356 sh (-3.72%)
» More
» Details

Insider Trades

Latest Guru Trades with PAH

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Business Description

Industry: Chemicals » Specialty Chemicals
Compare:OTCPK:DICCF, NYSE:FUL, NYSE:GCP, OTCPK:VTXPF, NYSE:CC, NYSE:CHMT, OTCPK:TYOBY, NAS:WDFC, OTCPK:EMNSF, NYSE:SCL, NYSE:CBT, NYSE:KWR, NYSE:FOE, NAS:IOSP, OTCPK:FRUTF, NYSE:POL, OTCPK:AWTRF, OTCPK:CGIFF, OTCPK:PTPIF, NYSE:OEC » details
Traded in other countries:PAH.UK,
Platform Specialty Products Corp is a producer of high technology specialty chemical products and provider of post-sale technical services.

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: Performance Solutions and Agricultural Solutions. The Performance Solutions segment formulates and markets dynamic chemistry solutions that are used in automotive production, commercial packaging and printing, electronics, and oil and gas production and drilling. Its products include surface and coating materials, functional conversion coatings, electronics assembly materials, water-based hydraulic control fluids and photopolymers. Within this segment, the Company provides specialty chemicals to the following industries, Electronics, Commercial Packing and Printing, Industrial, and Offshore. The Agricultural Solutions segment is based on a solutions-oriented business model that focuses on product innovation to address an ever-increasing need for higher crop yield and quality. It offers to growers diverse crop protection solutions from weeds (herbicides), insects (insecticides) and diseases (fungicides), in foliar and seed treatment applications. It also offers proven biosolutions, including biostimulants, nutrition and biocontrol products. It emphasize on farmer economics and food safety by combining, when possible, biosolutions with crop protection and seed treatment agrochemicals. The Company competes in markets for specialty chemicals for agrochemicals, electronic applications, general metal and plastic finishing, oil and gas exploration and production, and printing. The Company is subject to federal, state and local laws and regulations.

Guru Investment Theses on Platform Specialty Products Corp

Bill Ackman Comments on Platform Specialty Products Corp - May 11, 2016

Platform (NYSE:PAH) reported modestly improved underlying earnings due to strong cost synergies from its recent acquisitions, which were offset by weakness in several key end markets and an increase in corporate costs. Reported earnings were lower than the prior year due to significant headwinds from FX. Still, earnings beat expectations leading to a substantial increase in PAH’s stock price.

Platform’s organic revenue declined 1% as Ag Solutions was flat and Performance Solutions was down 2%. Ag Solutions achieved solid growth in Europe and Latin America, which was offset by market weakness in North America. Performance Solutions’ organic revenue declined primarily due to weakness in the electronics market in Asia. Although several of the company’s end markets have softened recently, Platform’s underlying results continue to outpace its competitors. Platform’s organic EBITDA was up slightly, as the benefit of cost synergies more than offset the increase in corporate costs. In Ag Solutions, organic EBITDA increased 3%, as higher cost synergies more than offset the increase in corporate expenses. In Performance Solutions, organic EBITDA declined 2%, as cost synergies were more than offset by the increase in corporate expenses. Reported EBITDA declined 6% due to the negative headwinds from FX. As a result, EPS declined nearly 30% due to the negative impact from financial leverage.

Based on its first quarter results, Platform reaffirmed its 2016 EBITDA guidance. The company also announced it would hold an investor day in September, where it will provide an update on strategy and longer-term financial outlook.

From Bill Ackman (Trades, Portfolio)'s first quarter shareholder letter.

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Bill Ackman Comments on Platform Specialty Products - Jan 27, 2016

Our most glaring, albeit small, unforced error was buying additional stock in Platform Specialty Products (NYSE:PAH) at $25 per share to assist the company in financing an acquisition. We paid too much as we assumed the new transaction would create substantial value, and because we assigned too much platform value to the company. Our assessment was incorrect as execution difficulties, operating issues, currency effects, and financing issues have destroyed rather than created value.

From Bill Ackman (Trades, Portfolio)'s Pershing Square Annual Investor Letter 2015.

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Bill Ackman Comments on Platform Specialty Products - Dec 16, 2015

Platform Specialty Products (NYSE:PAH)

During the third quarter, PAH’s share price declined 51%. While there were several developments at the company which contributed to the decline in the share price, many companies that have been highly acquisitive or compete in the agricultural chemicals industry also experienced significant share price declines during the quarter. For example, highly acquisitive companies such as XPO Logistics, Altice, and Colfax each exhibited share price declines of between 35% and 47% during the quarter, and the share price of FMC, PAH’s closest agricultural peer, declined 35% during the same period.

During the last several months, PAH announced the resignation, hiring, and promotion of several key executive roles. In August, Wayne Hewett, former President and head of the agricultural solutions business, left the company. In October, Dan Leever, the CEO of PAH, resigned. Dan stated that his resignation occurred due to disagreements with Chairman Martin Franklin regarding management style and the cultural integration of acquired companies. PAH also recently hired a new CFO, Sanjiv Khattri, and promoted its former head of corporate development, Ben Gliklich, to COO. On an investor call in October, Martin reiterated his commitment to PAH and explained that his involvement with the company will be even greater than it has been in the past. Martin and other members of the board and management have made substantial stock purchases in recent weeks.

PAH has reduced its EBITDA guidance twice in 2015. In August, the company reduced 2015 EBITDA guidance by approximately 5% from its initial guidance in March. In October, PAH further reduced its 2015 EBITDA guidance by an additional 12%. The company has explained that the primary drivers of the guidance reductions are worsening foreign exchange rates and a change in distribution strategy in the agricultural solutions business to realign inventory levels to more closely match underlying demand.

During the quarter, the company provided additional details regarding the financing for its pending acquisition of Alent. In October, PAH reiterated that it had obtained an underwritten commitment for long-term debt financing at what it believes to be competitive market rates for the $1.8 billion cash portion of the purchase price. In addition, the company clarified that it does not need to issue additional equity to finance the closing of the Alent acquisition. On December 1st, Platform completed its acquisition of Alent.

While Platform is clearly a work in progress, we have a high degree of confidence in Martin Franklin and his team. Yesterday, Martin’s largest holding, Jarden Corp., where he has served as Executive Chair, agreed to be acquired by Newell Rubbermaid. Under Martin’s leadership, Jarden’s stock price has increased approximately 50 times. Martin will be stepping down as Executive Chair, but will remain on the board of the merged company. We view this sale as favorable for Platform and Nomad Foods as he will now be able to devote more of his time to these companies.

From Bill Ackman (Trades, Portfolio)'s Pershing Square Holdings third quarter 2015 letter to shareholders.

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Top Ranked Articles about Platform Specialty Products Corp

Bill Ackman Comments on Platform Specialty Products Corp Guru stock highlight
Platform (NYSE:PAH) reported modestly improved underlying earnings due to strong cost synergies from its recent acquisitions, which were offset by weakness in several key end markets and an increase in corporate costs. Reported earnings were lower than the prior year due to significant headwinds from FX. Still, earnings beat expectations leading to a substantial increase in PAH’s stock price. Read more...
Bill Ackman’s Fund Falls by Double Digits Again in January All of the investor's long positions declined in the new year
The 12 positions in Bill Ackman (Trades, Portfolio)’s portfolio at his hedge fund Pershing Square Holdings declined a further 11.1% in 2016, extending his dismal 20% drop last year. Read more...
Pershing Square's New Presentation, Part 2 Commentary on Howard Hughes Corporation, Platform Specialty Products, Nomad Foods, Fannie Mae, Freddie Mac
Howard Hughes Corporation (NYSE:HHC) Read more...
Bill Ackman Comments on Platform Specialty Products Guru stock highlight
Our most glaring, albeit small, unforced error was buying additional stock in Platform Specialty Products (NYSE:PAH) at $25 per share to assist the company in financing an acquisition. We paid too much as we assumed the new transaction would create substantial value, and because we assigned too much platform value to the company. Our assessment was incorrect as execution difficulties, operating issues, currency effects, and financing issues have destroyed rather than created value. Read more...
Bill Ackman Comments on Platform Specialty Products Guru stock highlight
Platform Specialty Products (NYSE:PAH) Read more...

Ratios

vs
industry
vs
history
Forward P/E 12.21
PAH's Forward P/E is ranked lower than
99.99% of the 97 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 15.82 vs. PAH: 12.21 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/B 1.10
PAH's P/B is ranked higher than
66% of the 1029 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.59 vs. PAH: 1.10 )
Ranked among companies with meaningful P/B only.
PAH' s P/B Range Over the Past 10 Years
Min: 0.77  Med: 1.00 Max: 1.14
Current: 1.1
0.77
1.14
P/S 0.82
PAH's P/S is ranked higher than
60% of the 1036 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.04 vs. PAH: 0.82 )
Ranked among companies with meaningful P/S only.
PAH' s P/S Range Over the Past 10 Years
Min: 0.72  Med: 1.38 Max: 6.1
Current: 0.82
0.72
6.1
PFCF 22.01
PAH's PFCF is ranked lower than
66% of the 368 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 13.83 vs. PAH: 22.01 )
Ranked among companies with meaningful PFCF only.
PAH' s PFCF Range Over the Past 10 Years
Min: 7.71  Med: 18.81 Max: 58.76
Current: 22.01
7.71
58.76
POCF 15.95
PAH's POCF is ranked lower than
75% of the 475 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 8.31 vs. PAH: 15.95 )
Ranked among companies with meaningful POCF only.
PAH' s POCF Range Over the Past 10 Years
Min: 6.53  Med: 15.64 Max: 53.1
Current: 15.95
6.53
53.1
EV-to-EBIT 53.91
PAH's EV-to-EBIT is ranked lower than
89% of the 858 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 13.17 vs. PAH: 53.91 )
Ranked among companies with meaningful EV-to-EBIT only.
PAH' s EV-to-EBIT Range Over the Past 10 Years
Min: 25.2  Med: 93.70 Max: 706.2
Current: 53.91
25.2
706.2
EV-to-EBITDA 53.91
PAH's EV-to-EBITDA is ranked lower than
91% of the 893 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 9.90 vs. PAH: 53.91 )
Ranked among companies with meaningful EV-to-EBITDA only.
PAH' s EV-to-EBITDA Range Over the Past 10 Years
Min: 21.9  Med: 93.70 Max: 706.2
Current: 53.91
21.9
706.2
Current Ratio 1.95
PAH's Current Ratio is ranked higher than
57% of the 941 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.75 vs. PAH: 1.95 )
Ranked among companies with meaningful Current Ratio only.
PAH' s Current Ratio Range Over the Past 10 Years
Min: 1.95  Med: 2.78 Max: 7.71
Current: 1.95
1.95
7.71
Quick Ratio 1.43
PAH's Quick Ratio is ranked higher than
58% of the 941 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.26 vs. PAH: 1.43 )
Ranked among companies with meaningful Quick Ratio only.
PAH' s Quick Ratio Range Over the Past 10 Years
Min: 1.43  Med: 2.23 Max: 7.02
Current: 1.43
1.43
7.02
Days Inventory 109.16
PAH's Days Inventory is ranked lower than
80% of the 1015 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 67.04 vs. PAH: 109.16 )
Ranked among companies with meaningful Days Inventory only.
PAH' s Days Inventory Range Over the Past 10 Years
Min: 36.92  Med: 85.14 Max: 115.19
Current: 109.16
36.92
115.19
Days Sales Outstanding 151.20
PAH's Days Sales Outstanding is ranked lower than
93% of the 862 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 59.33 vs. PAH: 151.20 )
Ranked among companies with meaningful Days Sales Outstanding only.
PAH' s Days Sales Outstanding Range Over the Past 10 Years
Min: 69.37  Med: 141.68 Max: 146.87
Current: 151.2
69.37
146.87
Days Payable 90.64
PAH's Days Payable is ranked higher than
82% of the 890 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 46.88 vs. PAH: 90.64 )
Ranked among companies with meaningful Days Payable only.
PAH' s Days Payable Range Over the Past 10 Years
Min: 51.84  Med: 87.20 Max: 106.01
Current: 90.64
51.84
106.01

Valuation & Return

vs
industry
vs
history
Price/Median PS Value 0.58
PAH's Price/Median PS Value is ranked higher than
92% of the 1004 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.13 vs. PAH: 0.58 )
Ranked among companies with meaningful Price/Median PS Value only.
PAH' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.56  Med: 1.00 Max: 4.41
Current: 0.58
0.56
4.41
Earnings Yield (Greenblatt) (%) 1.91
PAH's Earnings Yield (Greenblatt) (%) is ranked lower than
72% of the 1061 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.70 vs. PAH: 1.91 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
PAH' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 0.1  Med: 1.10 Max: 4
Current: 1.91
0.1
4

More Statistics

Revenue (TTM) (Mil) $2,831
EPS (TTM) $ -1.91
Short Percentage of Float13.51%
52-Week Range $5.25 - 26.51
Shares Outstanding (Mil)229.56

Analyst Estimate

Dec16 Dec17 Dec18
Revenue (Mil $) 3,586 3,706 3,846
EPS ($) 0.74 0.96 1.25
EPS w/o NRI ($) 0.74 0.96 1.25
EPS Growth Rate
(3Y to 5Y Estimate)
N/A

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