What is Pioneer Power Solutions Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Pioneer Power Solutions's Probability of Financial Distress (%) is 0.10%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Pioneer Power Solutions's Probability of Financial Distress (%)
For the Electrical Equipment & Parts subindustry, Pioneer Power Solutions's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pioneer Power Solutions's Probability of Financial Distress (%) Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Pioneer Power Solutions's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Pioneer Power Solutions's Probability of Financial Distress (%) falls into.
Pioneer Power Solutions Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -6.93 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.10% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Pioneer Power Solutions (Pioneer Power Solutions) Business Description
Traded in Other Exchanges
N/A
Address
400 Kelby Street, 12th Floor, One Parker Plaza, Fort Lee, NJ, USA, 07024
Pioneer Power Solutions Inc manufactures, sells, and services a broad range of specialty electrical transmission, distribution, and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. Its principal products and services include custom-engineered electrical transformers, switchgear and engine-generator sets and controls, complemented by a national field-service network to maintain and repair power generation assets. Pioneer Power works in two reportable segments: Transmission and Distribution Solutions (T&D Solutions) and Critical Power Solutions (Critical Power). Pioneer generates most of its revenue from the United States of America.
Executives
| Nathan Mazurek |
10 percent owner, officer: President, CEO, Chairman |
C/O PIONEER POWER SOLUTIONS, INC., 400 KELBY STREET 9TH FLOOR, FORT LEE NJ 07024 |
| Kytchener Stevenson Whyte |
director |
400 KELBY STREET, 12TH FLOOR, FORT LEE NJ 07024 |
| Wojciech Michalec |
officer: Interim CFO |
400 KELBY STREET, 12TH FLOOR, FORT LEE NJ 07024 |
| A. Lawrence Carroll Trust |
10 percent owner |
415 L'AMBIANCE DRIVE, APT. 804, LONGBOAT KEY FL 34228 |
| David Tesler |
director |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| Jonathan Tulkoff |
director |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| Thomas Klink |
director, officer: See Remarks |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| Andrew Minkow |
director, officer: CFO, Secretary and Treasurer |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| Ian Ross |
director |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| Yossi Cohn |
director |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| David J. Landes |
director, 10 percent owner |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| Provident Pioneer Partners, L.p. |
10 percent owner |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
| Provident Canada Corp. |
10 percent owner |
400 KELBY STREET, 9TH FLOOR, FORT LEE NJ 07024 |
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