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Pollard Banknote (TSE:PBL)
TSX:PBL
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Pollard Banknote
(TSX:PBL)
Rating:74Outperform
Price Target:
C$24.50
▲(13.90% Upside)
Pollard Banknote (PBL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$603.34M
Dividend Yield0.93%
Average Volume (3M)10.57K
Price to Earnings (P/E)15.1
Beta (1Y)0.46
Revenue Growth11.03%
EPS Growth18.83%
CountryCA
Employees2,470
SectorConsumer Cyclical
Sector Strength74
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.45
Shares Outstanding27,067,669
10 Day Avg. Volume9,521
30 Day Avg. Volume10,575
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$24.50Price Target Upside13.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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:May 07, 2025
(Q1-2025)
| % Change Since: 6.22%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
Pollard Banknote's first quarter of 2025 showcased strong financial performance with significant growth in sales and net income, driven by successful iLottery implementation and joint venture achievements. However, challenges such as decreased instant ticket sales volumes, regulatory impacts on eTabs, and competitive pressures in Michigan iLottery tempered the overall performance.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Pollard Banknote achieved traditional GAAP sales of $146.2 million compared to $125.7 million in the first quarter of 2024, with combined sales revenue including the NeoPollard joint venture reaching $177 million compared to $151.2 million last year.
iLottery Expansion Success
Successful implementation and start-up of the Kansas iLottery solution, the fastest rollout in North America, showcasing Pollard's expertise in the lottery market.
NeoPollard Interactive Joint Venture
Record results were achieved in Q1 2025, with strong eInstants sales, especially in Virginia and North Carolina, leading to a $4 million increase in income from the joint venture.
Higher Average Selling Price
Significantly higher instant ticket average selling price increased sales by $17.1 million compared to 2024, mainly due to an increase in proprietary product sales and repriced contracts.
Adjusted EBITDA Growth
Adjusted EBITDA increased to $30.6 million in the first quarter compared to $23.7 million last year, driven by higher gross profit and increased equity investment income.
Positive Net Income Trend
Net income rose to $11.7 million from $6.9 million in the first quarter of 2024, with net income per share doubling from $0.26 to $0.43.
Negative Updates
Instant Ticket Sales Volume Decrease
Instant ticket sales volumes decreased by $5.8 million compared to the previous year due to declining production for low-margin accounts.
Regulatory Challenges Impacting eTab Revenue
Charitable eTab revenue decreased by $1.7 million due to regulatory changes in a major jurisdiction.
Michigan iLottery Revenue Decline
Lower Michigan iLottery sales decreased revenue by $1.5 million, reflecting increased competition in the Michigan market with private iCasino gaming operators.
Increased Administrative and Selling Expenses
Administrative expenses rose to $17.3 million from $15.4 million, and selling expenses increased to $6 million from $5.4 million, primarily due to higher compensation and software licensing costs.
Increased Accounts Receivable
Accounts receivable increased by $46 million, largely due to the timing of sales and customer payment terms.
Company Guidance
During the first quarter of 2025, Pollard Banknote Limited reported robust financial performance and significant operational milestones, contributing to their strategic goal of being a leader in the lottery and charitable gaming sectors. The company achieved traditional GAAP sales of $146.2 million, an increase from $125.7 million in the same period last year. The combined sales revenue, including their NeoPollard joint venture, reached $177 million compared to $151.2 million the previous year. Key drivers for this growth included a $17.1 million rise in instant ticket average selling prices and increased charitable gaming volumes by $4.4 million. Adjusted EBITDA rose to $30.6 million from $23.7 million, with net income increasing to $11.7 million, up from $6.9 million. The successful launch of the Kansas iLottery solution on February 13, 2025, illustrated Pollard's technological capabilities and leadership in the iLottery space, despite initial start-up costs affecting gross margins. The company also saw a $4 million rise in income from their NeoPollard joint venture, driven by strong eInstants sales in Virginia and North Carolina. Additionally, Pollard completed the acquisition of Pacific Gaming, enhancing their product offerings in the charitable gaming market. Overall, the company remains optimistic about its growth prospects, particularly in digital areas like iLottery and eInstants.Pollard Banknote Financial Statement Overview
Summary
Pollard Banknote exhibits strong revenue and profit growth, indicative of robust operational performance. The balance sheet is stable, with manageable leverage and effective equity utilization. However, cash flow management poses a challenge, with declining free cash flow requiring strategic focus.Income Statement
Pollard Banknote has demonstrated strong revenue growth, with a noticeable increase from the previous periods. The gross profit margin has remained stable, indicating effective management of cost of goods sold. Net profit margin has improved, reflecting enhanced profitability. The EBIT and EBITDA margins show solid operating performance, further supporting a positive outlook.82
Very Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, suggesting a balanced leverage. Return on equity is healthy, driven by consistent net income growth, indicating efficient use of equity. However, the equity ratio shows a moderate reliance on liabilities, which requires close monitoring.75
Positive
Cash Flow
The cash flow statement shows fluctuating free cash flow, with recent periods experiencing a decline. Operating cash flow remains positive, supporting ongoing operations, but the free cash flow to net income ratio suggests potential pressure from capital expenditures. Overall, cash flow management requires attention to ensure sustainable growth.68
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 557.10M | 520.44M | 482.28M | 459.01M | 414.13M |
| Gross Profit | 104.72M | 86.58M | 81.82M | 91.10M | 91.05M |
| EBITDA | 106.66M | 93.05M | 71.46M | 71.65M | 82.45M |
| Net Income | 35.20M | 31.42M | 19.28M | 19.70M | 33.29M |
Balance Sheet | |||||
| Total Assets | 636.31M | 515.71M | 499.27M | 461.40M | 404.57M |
| Cash, Cash Equivalents and Short-Term Investments | 22.36M | 8.41M | 1.48M | 3.52M | 1.89M |
| Total Debt | 168.52M | 137.23M | 135.28M | 131.70M | 148.02M |
| Total Liabilities | 302.17M | 240.91M | 247.33M | 254.45M | 262.18M |
| Stockholders Equity | 334.13M | 274.80M | 251.93M | 206.96M | 142.38M |
Cash Flow | |||||
| Free Cash Flow | 19.92M | 26.53M | -2.82M | 21.71M | 40.72M |
| Operating Cash Flow | 73.90M | 64.63M | 30.40M | 56.54M | 59.65M |
| Investing Cash Flow | -77.19M | -52.09M | -24.57M | -60.59M | -61.67M |
| Financing Cash Flow | 16.81M | -10.94M | -7.73M | 6.37M | -3.94M |
Pollard Banknote Technical Analysis
Negative
21.51
Price Trends
21.85
Negative
20.64
Positive
22.91
Negative
Market Momentum
0.08
Positive
43.95
Neutral
16.07
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 21.51 is below the 20-day moving average (MA) of 22.16, below the 50-day MA of 21.85, and below the 200-day MA of 22.91, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 43.95 is Neutral, neither overbought nor oversold. The STOCH value of 16.07 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | C$603.34M | 15.09 | 12.45% | 0.93% | 11.03% | 18.83% | |
61 Neutral | $16.55B | 10.17 | -9.03% | 3.33% | 1.46% | -22.85% | |
| ― | $183.64M | 10.87 | 6.01% | 6.28% | ― | ― | |
| ― | $443.21M | 5.32 | -3.98% | 2.39% | ― | ― | |
69 Neutral | C$1.63B | 8.90 | 9.65% | 9.99% | -2.58% | 100.21% | |
65 Neutral | C$1.63B | 9.13 | 9.65% | 9.80% | -2.58% | 100.21% | |
56 Neutral | C$605.61M | ― | 9.31% | ― | -18.16% | -275.09% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:PBL
Pollard Banknote
21.51
2.93
15.77%
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TSE:ACQ
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TSE:TCL.A
Transcontinental
19.38
5.34
38.03%
TSE:TCL.B
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19.01
4.91
34.82%
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.