4 Patriots For Independence Day

by: Gutone

It's Independence Day today and the United States celebrates its 236th birthday. For this holiday, I've found four companies that have named themselves "Patriot". While two of them appear very negative in financials, Patriot Coal may be worth considering in the context of the coal mining industry, and Patriot Transportation is slightly on the expensive side, but not overvalued to the point of short-selling worthy.

Click to enlargePATR Chart

PATR data by YCharts

Patriot Transportation Holding Inc. (PATR) is a trucking company. It has a market cap of $220.52 million. Patriot Transportation engages in the transportation and real estate businesses in the United States. It operates through three segments: Transportation, Mining Royalty Land, and Developed Property Rentals. Its P/E ratio of 27.91 is on the expensive side. Investors should use some cautious because of this valuation.

Patriot Transportation's high PEG ratio also suggests that the market expectation may be too high to become reality. Its price/book ratio is 1.24. Patriot Transportation has an enterprise value / EBITDA ratio of 9.41. It has a profit margin of 6.32%. The company had a net income of $7.78 million and EBITDA of $27.12 million on revenue of $124.94 million. Its revenue grew by 9.60%, and its net income declined by 2.40% during the most recent quarter. This appears a company on par, neither too negative, nor positive enough to watch closely.

Click to enlargePCX Chart

PCX data by YCharts

Patriot Coal Corporation (PCX) is a coal mining company. It has a market cap of $112.06 million. Since the whole coal mining industry is highly correlated, Patriot Coal should be considered together with Alpha Natural Resources (ANR), Arch Coal (ACI), and James River Coal (JRCC). Patriot Coal engages in the mining, production, and sale of thermal coal primarily to electricity generators in the eastern United States. It has operations and coal reserves in the Appalachia and the Illinois Basin coal regions. The company is also involved in the production of metallurgical quality coal and sells it to steel mills and independent coke producers.

Patriot Coal's price/book ratio is 0.22. The company is selling below book value, something worth further investigation: is the company undervalued or are its assets overvalued? Patriot Coal has an enterprise value/ EBITDA ratio of 41.82, largely driven by its deteriorating EBITDA. The company had a net income of $-198.52 million and EBITDA of $10.69 million on revenue of $2.31 billion. The company has $114.99 million cash on its balance sheet. Its debt burden is $443.58 million.

Liquidity could be a potential problem. This month, 25.48 million shares are being shorted. Comparing to 23.58 million shares shorted over the previous month, the shared short has increased by 8%. The short ratio of Patriot Coal is 2.10, accounting for 28.00% of floating shares. Given the historically high trading volatility and quick turnaround of the coal industry, it is still worth watch for changes with Patriot Coal.

Click to enlargePNBK Chart

PNBK data by YCharts

Patriot National Bancorp Inc. (NASDAQ:PNBK) is a Northeast. It has a market cap of $61.91 million. Patriot National Bancorp operates as the bank holding company for Patriot National Bank that provides consumer and commercial banking services to individuals, small and medium-sized businesses, and professionals in Connecticut and New York. Its price shows near-term weakness, close to 52-week low (only 5.26% higher). While the stock appears it might have bottomed, investors should proceed with caution. The company is currently losing money operationally. Its business has to turnaround for the situation to become more positive. The trading volume has been very thin.

Patriot Scientific Corp. (OTCPK:PTSC) is a communication equipment company. It has a market cap of $36.54 million. Patriot Scientific, an intellectual-property licensing company, owns various patents covering the design of microprocessor chips. The company’s technologies are used in products, such as computers and cameras, printers, automobiles, and industrial devices.

One concern is that Patriot Scientific isn't profitable at this point. The company had a net income of $-10.75 million and EBITDA of $-3.40 million on revenue of $0.46 million. The company has $8.53 million cash on its balance sheet and no debt. The recent trading volume is below average. I'm not very positive about the company's prospects.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.