Switch to:
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 0.20
PAH's Cash to Debt is ranked lower than
71% of the 1033 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.48 vs. PAH: 0.20 )
Ranked among companies with meaningful Cash to Debt only.
PAH' s Cash to Debt Range Over the Past 10 Years
Min: 0.08  Med: 0.64 Max: N/A
Current: 0.2
Equity to Asset 0.27
PAH's Equity to Asset is ranked lower than
86% of the 1004 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.53 vs. PAH: 0.27 )
Ranked among companies with meaningful Equity to Asset only.
PAH' s Equity to Asset Range Over the Past 10 Years
Min: 0.25  Med: 0.41 Max: 0.55
Current: 0.27
0.25
0.55
Z-Score: 0.44
WACC vs ROIC
0.65%
2.75%
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 (%) 4.29
PAH's Operating margin (%) is ranked lower than
60% of the 1017 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.90 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: 7.68 Max: 15.74
Current: 4.29
1.13
15.74
Net-margin (%) -8.92
PAH's Net-margin (%) is ranked lower than
89% of the 1021 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 4.31 vs. PAH: -8.92 )
Ranked among companies with meaningful Net-margin (%) only.
PAH' s Net-margin (%) Range Over the Past 10 Years
Min: -3.55  Med: 0.14 Max: 6.29
Current: -8.92
-3.55
6.29
ROE (%) -7.49
PAH's ROE (%) is ranked lower than
87% of the 1007 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 7.52 vs. PAH: -7.49 )
Ranked among companies with meaningful ROE (%) only.
PAH' s ROE (%) Range Over the Past 10 Years
Min: -19.22  Med: -9.11 Max: 1.01
Current: -7.49
-19.22
1.01
ROA (%) -2.52
PAH's ROA (%) is ranked lower than
84% of the 1040 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.68 vs. PAH: -2.52 )
Ranked among companies with meaningful ROA (%) only.
PAH' s ROA (%) Range Over the Past 10 Years
Min: -1.03  Med: 3.21 Max: 7.45
Current: -2.52
-1.03
7.45
ROC (Joel Greenblatt) (%) 7.65
PAH's ROC (Joel Greenblatt) (%) is ranked lower than
65% of the 1031 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 11.64 vs. PAH: 7.65 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
PAH' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 1.4  Med: 50.69 Max: 99.98
Current: 7.65
1.4
99.98
» PAH's 10-Y Financials

Financials


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

» Details

Guru Trades

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%)
Bill Ackman 42,737,394 sh (unchged)
Ron Baron 2,000,000 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

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%)
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)
Bill Ackman 42,737,394 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%)
Manning & Napier Advisors, Inc 422,880 sh (unchged)
Bill Ackman 42,737,394 sh (unchged)
Ron Baron 2,000,000 sh (unchged)
Louis Moore Bacon Sold Out
Steven Cohen Sold Out
Leon Cooperman Sold Out
Murray Stahl 5,428,545 sh (-6.12%)
Paul Tudor Jones 17,000 sh (-68.70%)
» More
2015

PAH Guru Trades in 2015

Bill Ackman 42,737,394 sh (unchged)
» 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

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.

Check out Bill Ackman latest stock trades

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.

Check out Bill Ackman latest stock trades

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

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...
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 12.71
PAH's Forward P/E is ranked higher than
52% of the 344 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 13.21 vs. PAH: 12.71 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/B 1.02
PAH's P/B is ranked higher than
66% of the 992 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.51 vs. PAH: 1.02 )
Ranked among companies with meaningful P/B only.
PAH' s P/B Range Over the Past 10 Years
Min: 0.77  Med: 0.97 Max: 1.04
Current: 1.02
0.77
1.04
P/S 1.15
PAH's P/S is ranked lower than
56% of the 1011 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 0.92 vs. PAH: 1.15 )
Ranked among companies with meaningful P/S only.
PAH' s P/S Range Over the Past 10 Years
Min: 1.15  Med: 2.34 Max: 6.12
Current: 1.15
1.15
6.12
PFCF 19.37
PAH's PFCF is ranked lower than
54% of the 492 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 17.05 vs. PAH: 19.37 )
Ranked among companies with meaningful PFCF only.
PAH' s PFCF Range Over the Past 10 Years
Min: 17.43  Med: 19.37 Max: 58.11
Current: 19.37
17.43
58.11
POCF 13.41
PAH's POCF is ranked lower than
56% of the 685 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 10.45 vs. PAH: 13.41 )
Ranked among companies with meaningful POCF only.
PAH' s POCF Range Over the Past 10 Years
Min: 12.6  Med: 16.87 Max: 61.53
Current: 13.41
12.6
61.53
EV-to-EBIT 53.14
PAH's EV-to-EBIT is ranked lower than
89% of the 843 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 13.56 vs. PAH: 53.14 )
Ranked among companies with meaningful EV-to-EBIT only.
PAH' s EV-to-EBIT Range Over the Past 10 Years
Min: 25.2  Med: 70.40 Max: 174.8
Current: 53.14
25.2
174.8
EV-to-EBITDA 53.14
PAH's EV-to-EBITDA is ranked lower than
91% of the 879 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 10.23 vs. PAH: 53.14 )
Ranked among companies with meaningful EV-to-EBITDA only.
PAH' s EV-to-EBITDA Range Over the Past 10 Years
Min: 21.9  Med: 70.40 Max: 174.8
Current: 53.14
21.9
174.8
Current Ratio 2.40
PAH's Current Ratio is ranked higher than
72% of the 1004 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.75 vs. PAH: 2.40 )
Ranked among companies with meaningful Current Ratio only.
PAH' s Current Ratio Range Over the Past 10 Years
Min: 1.98  Med: 5.22 Max: 7.71
Current: 2.4
1.98
7.71
Quick Ratio 1.91
PAH's Quick Ratio is ranked higher than
73% of the 1004 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.23 vs. PAH: 1.91 )
Ranked among companies with meaningful Quick Ratio only.
PAH' s Quick Ratio Range Over the Past 10 Years
Min: 1.52  Med: 4.47 Max: 7.02
Current: 1.91
1.52
7.02
Days Inventory 112.83
PAH's Days Inventory is ranked lower than
82% of the 984 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 66.54 vs. PAH: 112.83 )
Ranked among companies with meaningful Days Inventory only.
PAH' s Days Inventory Range Over the Past 10 Years
Min: 36.92  Med: 76.06 Max: 115.19
Current: 112.83
36.92
115.19
Days Sales Outstanding 190.54
PAH's Days Sales Outstanding is ranked lower than
96% of the 820 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 60.92 vs. PAH: 190.54 )
Ranked among companies with meaningful Days Sales Outstanding only.
PAH' s Days Sales Outstanding Range Over the Past 10 Years
Min: 69.37  Med: 105.53 Max: 141.68
Current: 190.54
69.37
141.68
Days Payable 129.43
PAH's Days Payable is ranked higher than
92% of the 875 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 50.54 vs. PAH: 129.43 )
Ranked among companies with meaningful Days Payable only.
PAH' s Days Payable Range Over the Past 10 Years
Min: 51.83  Med: 69.52 Max: 87.2
Current: 129.43
51.83
87.2

Valuation & Return

vs
industry
vs
history
Price/Median PS Value 0.57
PAH's Price/Median PS Value is ranked higher than
89% of the 949 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.08 vs. PAH: 0.57 )
Ranked among companies with meaningful Price/Median PS Value only.
PAH' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.57  Med: 1.00 Max: 3.58
Current: 0.57
0.57
3.58
Price/Graham Number 0.36
PAH's Price/Graham Number is ranked higher than
93% of the 767 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.04 vs. PAH: 0.36 )
Ranked among companies with meaningful Price/Graham Number only.
PAH' s Price/Graham Number Range Over the Past 10 Years
Min: 0.36  Med: 1.39 Max: 9.96
Current: 0.36
0.36
9.96
Earnings Yield (Greenblatt) (%) 1.90
PAH's Earnings Yield (Greenblatt) (%) is ranked lower than
74% of the 1021 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 5.80 vs. PAH: 1.90 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
PAH' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 0.6  Med: 1.40 Max: 4
Current: 1.9
0.6
4

More Statistics

Revenue(Mil) $2004
EPS $ -2.37
Short Percentage of Float19.10%
52-Week Range $6.48 - 28.44
Shares Outstanding(Mil)210.88

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 2,511 3,550 3,681
EPS($) 0.80 0.86 1.10
EPS without NRI($) 0.80 0.86 1.10

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.

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