ASX:PGX

Stock Analysis Report

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Executive Summary

Primero Group Limited provides design, engineering, construction, and operational services to the minerals, energy, and infrastructure sectors in Australia. More Details


Snowflake Analysis

Very undervalued with exceptional growth potential.

Share Price & News

How has Primero Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PGX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.4%

PGX

-3.8%

AU Construction

-3.9%

AU Market


1 Year Return

7.7%

PGX

-33.4%

AU Construction

-9.6%

AU Market

Return vs Industry: PGX exceeded the Australian Construction industry which returned -33.4% over the past year.

Return vs Market: PGX exceeded the Australian Market which returned -9.6% over the past year.


Shareholder returns

PGXIndustryMarket
7 Day2.4%-3.8%-3.9%
30 Day28.2%9.3%1.8%
90 Day44.8%4.4%1.7%
1 Year7.7%7.7%-32.7%-33.4%-6.4%-9.6%
3 Yearn/a-46.9%-50.7%12.3%-1.9%
5 Yearn/a0.8%-12.3%40.0%11.3%

Price Volatility Vs. Market

How volatile is Primero Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Primero Group undervalued compared to its fair value and its price relative to the market?

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PGX (A$0.42) is trading below our estimate of fair value (A$0.77)

Significantly Below Fair Value: PGX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PGX is good value based on its PE Ratio (14.7x) compared to the AU Construction industry average (16.6x).

PE vs Market: PGX is good value based on its PE Ratio (14.7x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: PGX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: PGX is good value based on its PB Ratio (1.5x) compared to the AU Construction industry average (2x).


Next Steps

Future Growth

How is Primero Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGX's forecast earnings growth (36% per year) is above the savings rate (2.3%).

Earnings vs Market: PGX's earnings (36% per year) are forecast to grow faster than the Australian market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PGX's revenue (23.9% per year) is forecast to grow faster than the Australian market (4.8% per year).

High Growth Revenue: PGX's revenue (23.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGX's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has Primero Group performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGX has a high level of non-cash earnings.

Growing Profit Margin: PGX's current net profit margins (2.3%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: PGX's earnings have grown significantly by 30.3% per year over the past 5 years.

Accelerating Growth: PGX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PGX had negative earnings growth (-24.8%) over the past year, making it difficult to compare to the Construction industry average (-3.4%).


Return on Equity

High ROE: PGX's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Primero Group's financial position?


Financial Position Analysis

Short Term Liabilities: PGX's short term assets (A$105.2M) exceed its short term liabilities (A$65.6M).

Long Term Liabilities: PGX's short term assets (A$105.2M) exceed its long term liabilities (A$4.8M).


Debt to Equity History and Analysis

Debt Level: PGX is debt free.

Reducing Debt: PGX had no debt 5 years ago.

Debt Coverage: PGX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PGX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Primero Group current dividend yield, its reliability and sustainability?

5.95%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PGX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PGX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PGX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PGX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PGX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PGX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.2yrs

Average board tenure


CEO

Cameron Henry

no data

Tenure

AU$523,707

Compensation

Mr. Cameron David Henry is the Chief Executive Officer, Founding Managing Director and Executive Director of Primero Group Limited. Mr. Henry has been Independent Non-Executive Director of RareX Limited si ...


CEO Compensation Analysis

Compensation vs Market: Cameron's total compensation ($USD368.57K) is above average for companies of similar size in the Australian market ($USD274.23K).

Compensation vs Earnings: Cameron's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Cameron Henry
CEO, MD & Executive Directorno dataAU$523.71k13.9%
A$ 10.0m
Dean Ercegovic
Director of Operationsno dataAU$405.03k10.94%
A$ 7.9m
Brett Grosvenor
Director of Development & Executive Directorno dataAU$429.20k10.59%
A$ 7.6m
Mark Connelly
Independent Non-Executive Chairman2.42yrsAU$99.78k0.073%
A$ 52.5k
Brynmor Hardcastle
Independent Non-Executive Director0.17yrno datano data
Kristie Young
Independent Non-Executive Director0.17yrno datano data

0.2yrs

Average Tenure

46yo

Average Age

Experienced Board: PGX's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.7%.


Top Shareholders

Company Information

Primero Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Primero Group Limited
  • Ticker: PGX
  • Exchange: ASX
  • Founded: 2011
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$72.109m
  • Shares outstanding: 171.69m
  • Website: https://www.primero.com.au

Location

  • Primero Group Limited
  • 78 Hasler Road
  • Osborne Park
  • Western Australia
  • 6017
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2018
PGXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2018

Biography

Primero Group Limited provides design, engineering, construction, and operational services to the minerals, energy, and infrastructure sectors in Australia. Its services include full plant design and feasi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 10:36
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.