Symbols

Pfc share buy or sell?

6/5/2025 04:42pm

Aime

The deep research logic is organized as follows: 

Okay, let's tackle this question about whether to buy or sell PFC shares. First, I need to figure out which PFC the user is referring to. Looking at the references, there are two companies with the stock code PFC: Premier Financial Corp (PFC) and another company with the same code but different name, PBF Energy (PBF). The user's question is about PFC, so I need to focus on Premier Financial Corp.

The user is interested in E-Commerce and New Retail sectors, but PFC is a financial company, so maybe they're looking for a dividend play. Their profile mentions buying bargain dividend shares, so I should check the dividend metrics for PFC.

Looking at the references, there's data on PFC's revenue, net income, EPS, growth rates, and cash flows. Let's start with the financial performance. The latest report for PFC (Premier Financial) shows a revenue of $208.76 million with an 82.36% YoY growth, which is impressive. Net income grew 99.58%, and EPS grew 13.95%. However, the 3-year CAGR for revenue, net income, and EPS are all negative (-20.7%, -49.33%, -49.23%), which is concerning. This suggests recent strong growth but a longer-term decline.

Dividend-wise, PFC has a dividend yield of 7.27%  which is attractive. The dividend has been continuous for 45 years and growing for 14 years  That's a strong track record, which aligns with the user's interest in reliable dividends. However, the dividend payout ratio isn't provided, so I need to check if the company can sustain this. The net income is $64.03 million, and the dividend per share is $0.49, but the exact payout ratio isn't clear. However, the company's cash flows might be a concern. The operating cash flow is negative (-$661.4 million)  which could indicate liquidity issues. Financing cash flow is positive ($811.4 million), but free cash flow is negative (-$768.7 million). Negative free cash flow might mean the company is using debt or other financing to pay dividends, which could be a red flag.

The user is looking for a buy or sell decision. The high dividend yield and long history of dividends are positives, but the negative cash flows and recent high growth rates need to be considered. The stock price is $23.33  and the consensus rating is Neutral with an average price target of $24.5  Analysts at BMO Capital have a Buy rating  but others are more cautious. The recent acquisition of Premier Financial by WesBanco (WSBC)  might affect PFC's future, but since PFC is being acquired, the user might need to consider the implications of that merger.

The user's strategy is to buy bargain dividend shares, so the high yield is a plus. However, the negative cash flows and acquisition news could be risks. The user should also look at the technical analysis, like the stock's price action and recent news about options  The options data mentions a covered call strategy with a 4.65% return, which might be an alternative for income-focused investors.

In conclusion, while PFC offers a high dividend and a long history of payouts, the financial health indicators like negative cash flows and recent acquisition activity present risks. The user should weigh the dividend income against the potential risks of the company's financial stability and the impact of the merger with WesBanco.

Conclusion

Sell PFC shares. While Premier Financial Corp. (PFC) offers a high dividend yield and a long history of dividend payments, its financial health and recent performance raise significant concerns. The company’s negative free cash flow, weak 3-year growth metrics, and recent acquisition-related risks outweigh its dividend appeal for a buy decision.

Analysis

1. Financial Health: Mixed Signals

Metric	Recent Performance (2025Q1)	3-Year CAGR (2022–2025)
Revenue	$208.76M (82.36% YoY growth)	-20.7%
Net Income	$64.03M (99.58% YoY growth)	-49.33%
Diluted EPS	$0.49 (13.95% YoY growth)	-49.23%

Key Takeaway: PFC’s recent quarter shows strong YoY growth, but its 3-year compound annual growth rate (CAGR) is negative across all metrics. This suggests short-term volatility and long-term underperformance.

PFE Total Revenue, Net Income...

2. Dividend Sustainability

Metric	Recent Data (2025)
Dividend Yield (TTM)	7.27%
Dividend Continuous Duration	45 years
Dividend Growth Duration	14 years

Key Takeaway: PFC has a long history of paying dividends, but its negative free cash flow (-$768.7M in 2025Q1 raises concerns about its ability to sustain these payments. The company relies heavily on financing cash flow ($811.4M in 2025Q1 to cover its obligations, which may not be sustainable in the long term.

3. Market Sentiment & Analyst Ratings

Metric	Recent Data (2025)
Consensus Rating	Neutral
Analyst Price Target	$24.5 (1.6% upside from $23.33
Recent News	Acquisition-related risks (e.g., WesBanco merger

Key Takeaway: Analysts are cautious about PFC’s future, with a neutral rating and limited upside potential. The recent acquisition by WesBanco (WSBC) adds uncertainty, as PFC’s operations are being integrated into a larger entity.

4. Risks & Concerns

Negative Cash Flow: PFC’s operating cash flow (-$661.4M and free cash flow (-$768.7M indicate liquidity challenges.
High Debt: The company’s debt-to-equity ratio is not explicitly provided, but its reliance on financing cash flow suggests high leverage.
Acquisition Risks: The merger with WesBanco (WSBC)