Stock In Focus – TAM Stock Screener – Pzena Investment Management Inc (PZN)

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As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is:

Pzena Investment Management Inc (PZN)

Pzena Investment Management Inc is a United States (U.S) based investment management company. The company adopts value-oriented investment strategies across a wide range of market capitalizations in both U.S. and non-U.S. capital markets. It manages separate accounts on behalf of institutions; acts as the sub-investment adviser for a variety of Securities and Exchange Commission registered mutual funds and non-U.S. funds, and act as investment adviser for the Pzena Mutual Funds as well as certain private placement funds. In addition, the company offers institutional investment products to public and corporate pension funds, endowments, foundations, and certain commingled vehicles geared toward institutional investors. The primary source of the revenue is management fees received.

A quick look at the share price history (below) over the past twelve months shows that the price is down 18%. Here’s why the company is undervalued.

PZN Chart

PZN data by YCharts


Market Cap: $161 Million

Enterprise Value: $251 Million

Operating Earnings

Operating Earnings: $111 Million

Acquirer’s Multiple

Acquirer’s Multiple: 2.26

Free Cash Flow (TTM)

Free Cash Flow: $69.6 Million

FCF/EV Yield

FCF/EV Yield: 43%

Shareholder Yield:

Shareholder Yield: 11.8%

Other Indicators

Piotroski F-Score: 3

Altman Z-Score: 4.10

ROA (5 Year Avge%): 50.47

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One Comment on “Stock In Focus – TAM Stock Screener – Pzena Investment Management Inc (PZN)”

  1. Great report. One additional side note is Richard Pzena is trying to take the company private for $9.6 / share. I believe Motley Fool had a good coverage about this. That is why the equity suddenly jumped from ~6 to 9ish. So It may be a razor-thin arbitrage play if anyone is interested

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