Hi there,
PFB Corp has exploded this year. Year to day the company's stock is up by 54% this year, a strong year for a company that has done almost nothing for the past five years. The company is a manufacturer of expanded polystyrene foams and is a leader in North America. It's products are considered 'green' and are likely benefiting from the surge in interest in all things green.
Over the last 12 months, revenue grew by only 2.2% over the previous 12 months while EPS grew by 110% YOY. The company has a long-term goal of achieving $200M in annual revenue, which would be a 50% increase over the revenue generated in the last 12 months.
PFB is also an underappreciated dividend stock. It has grown the dividend for five consecutive years and has announced a $1.00 per share special dividend in each of the last two years. THe last one came on October 29 for shareholders on record as of November 16.
In terms of valuation, the company is actually reasonably priced despite its big jump this year. It is trading at only 9.19 times earnings, 8.36 times next year's earnings and has an EV/EBITDA of 4.91 - all of which are below historical averages. Analysts have a one-year price target of $26.80 which implies 30% upside. They also expect modest high, single digit growth.
Also worth noting, this company has beat estimates in 6 consecutive quarters, and 9 of the past 12 - so it appears to have a strong history of execution.
Overall, I like what i see from them. Steady growth, decent valuations and a growing dividend. As a small cap it will be subject to volatility, but so long as there is a strong North American building demand, it should continue its trek towards $200M in revenue.
Mat