pdvWireless, Inc. – Value Analysis (NASDAQ:PDVW) : September 27, 2016

Capitalcube gives pdvWireless, Inc. a score of 17.

Our analysis is based on comparing pdvWireless, Inc. with the following peers – SBA Communications Corporation, T-Mobile US, Inc., Gogo Inc. and United States Cellular Corporation (SBAC-US, TMUS-US, GOGO-US and USM-US).

Investment Outlook

pdvWireless, Inc. has a fundamental score of 17 and has a relative valuation of OVERVALUED.

Fundamental Score

Access our research and ratings on pdvWireless, Inc.

Company Overview

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • pdvWireless, Inc. trades at a lower Price/Book multiple (1.27) than its peer median (1.75).
  • PDVW-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
  • PDVW-US‘s relatively low net margins and poor asset turns suggest a problematic operating strategy.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • PDVW-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to peers.
  • PDVW-US‘s operating performance may not allow it to raise additional debt.

Access our research and ratings on pdvWireless, Inc.


Leverage & Liquidity

PDVW-US would seem to have a hard time raising additional debt.

  • With debt at a relatively low 0.61% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 38.97%), and relatively tight interest coverage level of -6,296.64x, PDVW-US would have a hard time raising much additional debt. Thus, the company is classified as having Limited Flexibility when it comes to raising more debt.
  • All 4 peers for the company have an outstanding debt balance.

PDVW-US has maintained its Constrained profile from the recent year-end.

  • PDVW-US‘s interest coverage has increased 955.27 points from last year’s low but is still below its five-year average interest coverage of -2,427.08.
  • Though its interest coverage increased to -6,296.64x from -7,251.91x (in 2016), its peer median remained relatively stable during this period at 0.52x.
  • Interest coverage rose 955.52 points relative to peers.
  • PDVW-US‘s debt-EV is its highest relative to the last five years and compares to a low of 0% in 2015.
  • Though its debt-EV has remained relatively stable at 0.61% compared to 2016, its peer median has increased to 38.97% from 37.45% during this period.
  • Relative to peers, debt-EV fell 1.20 percentage points. Unlike the peer median, it is also below the 25% leverage benchmark.

Access the detailed analysis for pdvWireless, Inc.


Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
SBA Communications Corporation 38.97 0.36 1.15 8.82
T-Mobile US, Inc. 50 1.63 1.61 25.23
Gogo Inc. 78.78 3.5 -0.62 4.16
United States Cellular Corporation 37.53 2.2 0.52 50.17
pdvWireless, Inc. 0.61 36.66 -6296.64 -2172.68
Peer Median 38.97 2.2 0.52 8.82
Best In Class 0.61 36.66 1.61 50.17

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Company Profile

pdvWireless, Inc. engages in the provision of mobile workforce communications and location based solutions. It also involves in location based solutions focused on increasing the productivity of customers’ field-based workers and efficiency of dispatch and call center operations. The company was founded by Peter Joel Lasensky and Richard Edward Rohmann in 1997 and is headquartered in Woodland Park, NJ.

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