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Pollard Banknote (TSE:PBL)
:PBL
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Pollard Banknote
(TSX:PBL)
Rating:64Neutral
Price Target:
C$21.50
▲(13.34% Upside)
Pollard Banknote (PBL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$513.47M
Dividend Yield1.05%
Average Volume (3M)15.41K
Price to Earnings (P/E)14.2
Beta (1Y)0.39
Revenue Growth10.36%
EPS Growth-4.77%
CountryCA
Employees2,470
SectorConsumer Cyclical
Sector Strength80
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.32
Shares Outstanding27,067,669
10 Day Avg. Volume26,242
30 Day Avg. Volume15,412
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$32.00Price Target Upside68.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Pollard Banknote Business Overview & Revenue Model
Company DescriptionPollard Banknote Limited, together with its subsidiaries, manufactures and sells a range of gaming products and services for the lottery and charitable gaming industries worldwide. The company operates through two segments, Lotteries and Charitable Gaming, and eGaming Systems. It designs, manufactures, and distributes instant tickets, as well as offers related services. The company also offers a range of bingo and bingo-related products; manufactures and sells pull-tab tickets, as well as pull-tab ticket vending machines and pull-tab ticket counting machines. In addition, it provides licensed games; and various solutions for licensed games, such as ticket design and manufacturing, prize structure consultation, merchandise selection and fulfillment, publicity and promotional opportunities, and second chance draw management. Further, the company offers lottery ticket dispensers and point-of-sale displays; charitable gaming machines; and lottery management services and information systems, as well as warehouse and distribution services to lotteries. Additionally, it engages in the interactive digital games and website development; and internet-based gaming businesses. The company was formerly known as 7510101 Canada Limited. Pollard Banknote Limited was founded in 1907 and is headquartered in Winnipeg, Canada. Pollard Banknote Limited is a subsidiary of Pollard Equities Limited.
How the Company Makes MoneyPollard Banknote generates revenue primarily through the sale of instant lottery tickets and related gaming products. The company designs, manufactures, and distributes secure, high-quality lottery tickets, leveraging advanced printing technologies and proprietary security features. Additionally, Pollard Banknote offers lottery management services and digital solutions that enhance customer engagement and expand market reach. Key revenue streams include long-term contracts with government-run lotteries, licensing agreements, and strategic partnerships with gaming operators. The company's earnings are bolstered by its ability to innovate and adapt to industry trends, offering customized solutions that meet the evolving needs of lottery operators.
Pollard Banknote Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
Pollard Banknote Limited reported record revenues, successful integration of acquisitions, and strong performance from its joint venture. However, these positives were offset by a decline in gross profit, instant ticket sales volume, and net income, along with increased expenses and regulatory challenges in Minnesota. The overall sentiment of the call reflects a mix of significant achievements and notable challenges.Q2-2025 Updates
Positive Updates
Record Revenue Achieved
Pollard Banknote Limited reported record revenue of $288.9 million for the first six months of 2025 and a record combined revenue of $352.7 million.
Strong Performance of NeoPollard Interactive Joint Venture
The NeoPollard Interactive joint venture achieved record results in Q2 2025, with significant eInstant sales growth in Virginia and North Carolina.
Successful Integration of Acquisitions
The integration of Pacific Gaming and CJ Venne has gone well, leading to increased revenue synergies and a complete suite of products for the charitable gaming market.
Increase in Instant Ticket Selling Price
Higher average selling prices of instant tickets increased sales by $4.5 million compared to 2024 due to repriced contracts.
Positive Impact from Foreign Exchange
The weakening of the Canadian dollar compared to the U.S. dollar and euro resulted in an increase of approximately $3.5 million in sales.
Negative Updates
Decrease in Gross Profit
Gross profit decreased to $23.9 million (16.7% of sales) in Q2 2025 from $29.2 million (21.2% of sales) in Q2 2024 due to lower instant ticket margins, iLottery start-up costs, and decreased eTab sales.
Decline in Instant Ticket Sales Volume
Instant ticket sales volumes decreased by $9.2 million compared to 2024, primarily due to customer orders being pushed later in the year.
Impact of Regulatory Changes in Minnesota
Regulatory changes in Minnesota led to a reduction in eTab gameplay and gross gaming revenue across the entire market, affecting Pollard Banknote's offerings.
Increased Administrative and Selling Expenses
Administrative expenses increased by $1.1 million to $17.6 million in Q2 2025, and selling expenses increased by $0.8 million to $16.5 million.
Net Income Decline
Net income decreased to $8 million in Q2 2025 from $11.9 million in Q2 2024, primarily due to decreased gross profit and increased expenses.
Company Guidance
During the second quarter of 2025, Pollard Banknote Limited reported traditional GAAP sales of $142.7 million, up from $137.8 million in the same period last year, and combined sales including their NeoPollard joint venture reached $174.8 million, compared to $166 million in 2024. Despite a challenging environment with lower instant ticket contributions and startup costs from the Kansas iLottery operation, the company saw higher contributions from their NeoPollard joint venture and increased sales from printed charitable products and retail solutions. Adjusted EBITDA decreased to $29.2 million from $32.3 million in the second quarter of 2024, primarily due to decreased instant ticket volumes and margins, Kansas iLottery startup costs, and lower eTab sales margins in Minnesota. However, the NeoPollard Interactive joint venture achieved record results, driven by strong eInstant sales in Virginia and North Carolina. The company anticipates higher third-quarter volumes and continues to focus on improving instant ticket margins while exploring opportunities in the iLottery and charitable gaming sectors.Pollard Banknote Financial Statement Overview
Summary
Pollard Banknote shows strong revenue growth and improved profitability, with stable margins and effective equity utilization. However, increased leverage and negative free cash flow highlight potential financial risks.Income Statement
Pollard Banknote shows strong revenue growth with a TTM growth rate of 8.42%, indicating robust demand. The gross profit margin is stable around 18.8%, and the net profit margin has improved to 6.92% in TTM, reflecting enhanced profitability. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting potential cost pressures.75
Positive
Balance Sheet
The company's debt-to-equity ratio has increased to 0.62 in TTM, indicating higher leverage but still within manageable levels. Return on equity has improved to 12.16%, showcasing effective use of equity. The equity ratio remains stable, suggesting a balanced asset structure.70
Positive
Cash Flow
Pollard Banknote's operating cash flow has decreased significantly in TTM, leading to a negative free cash flow. The free cash flow to net income ratio is negative, indicating cash flow challenges. However, the operating cash flow to net income ratio remains positive, suggesting operational profitability.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 582.48M | 557.10M | 520.44M | 482.28M | 459.01M | 414.13M |
| Gross Profit | 103.55M | 104.72M | 86.58M | 81.82M | 91.10M | 91.05M |
| EBITDA | 113.43M | 106.66M | 93.05M | 71.46M | 71.65M | 82.45M |
| Net Income | 36.15M | 35.20M | 31.42M | 19.28M | 19.70M | 33.29M |
Balance Sheet | ||||||
| Total Assets | 683.51M | 636.31M | 515.71M | 499.27M | 461.40M | 404.57M |
| Cash, Cash Equivalents and Short-Term Investments | 15.66M | 22.36M | 8.41M | 1.48M | 3.52M | 1.89M |
| Total Debt | 203.65M | 168.52M | 137.23M | 135.28M | 131.70M | 148.02M |
| Total Liabilities | 327.28M | 302.17M | 240.91M | 247.33M | 254.45M | 262.18M |
| Stockholders Equity | 356.23M | 334.13M | 274.80M | 251.93M | 206.96M | 142.38M |
Cash Flow | ||||||
| Free Cash Flow | -17.38M | 19.92M | 26.53M | -2.82M | 21.71M | 40.72M |
| Operating Cash Flow | 40.60M | 73.90M | 64.63M | 30.40M | 56.54M | 59.65M |
| Investing Cash Flow | -90.59M | -77.19M | -52.09M | -24.57M | -60.59M | -61.67M |
| Financing Cash Flow | 57.95M | 16.81M | -10.94M | -7.73M | 6.37M | -3.94M |
Pollard Banknote Technical Analysis
Negative
18.97
Price Trends
21.54
Negative
20.70
Negative
22.66
Negative
Market Momentum
-0.65
Positive
26.50
Positive
1.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PBL, the sentiment is Negative. The current price of 18.97 is below the 20-day moving average (MA) of 20.80, below the 50-day MA of 21.54, and below the 200-day MA of 22.66, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 26.50 is Positive, neither overbought nor oversold. The STOCH value of 1.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PBL.
Pollard Banknote Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | C$513.47M | 14.21 | 10.85% | 1.05% | 10.36% | -4.77% | |
61 Neutral | $17.78B | 13.97 | -5.40% | 3.03% | 1.50% | -15.71% | |
| ― | $188.56M | 11.30 | 6.01% | 6.08% | ― | ― | |
| ― | $525.52M | 5.32 | -4.10% | 1.98% | ― | ― | |
74 Outperform | C$1.68B | 9.46 | 9.65% | 9.43% | -2.58% | 100.21% | |
68 Neutral | C$1.68B | 9.42 | 9.65% | 9.36% | -2.58% | 100.21% | |
57 Neutral | C$783.64M | ― | 20.23% | ― | -20.36% | 50.19% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:PBL
Pollard Banknote
18.97
-6.26
-24.81%
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4.96
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7.30
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TSE:ACQ
AutoCanada
33.19
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123.35%
TSE:TCL.A
Transcontinental
20.29
5.15
34.02%
TSE:TCL.B
Transcontinental Inc. Class B
20.14
5.17
34.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.