ASX:PGX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

PGX

-0.1%

AU Construction

0.03%

AU Market


1 Year Return

2.6%

PGX

-12.5%

AU Construction

15.3%

AU Market

Return vs Industry: PGX exceeded the Australian Construction industry which returned -12.5% over the past year.

Return vs Market: PGX underperformed the Australian Market which returned 15.3% over the past year.


Shareholder returns

PGXIndustryMarket
7 Day3.9%-0.1%0.03%
30 Day6.8%3.4%0.5%
90 Day5.3%6.7%4.7%
1 Year2.6%2.6%-9.1%-12.5%22.0%15.3%
3 Yearn/a35.3%22.0%40.8%21.6%
5 Yearn/a97.6%63.0%56.1%20.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PGX (A$0.4) is trading below our estimate of fair value (A$1.06)

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 (9.5x) compared to the Construction industry average (14.7x).

PE vs Market: PGX is good value based on its PE Ratio (9.5x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PGX is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: PGX is overvalued based on its PB Ratio (1.7x) compared to the AU Construction industry average (1.7x).


Next Steps

Future Growth

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

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGX's forecast earnings growth (9.6% per year) is above the savings rate (2.3%).

Earnings vs Market: PGX's earnings (9.6% per year) are forecast to grow slower than the Australian market (9.8% per year).

High Growth Earnings: PGX's earnings are forecast to grow, but not significantly.

Revenue vs Market: PGX's revenue (6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PGX's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGX's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Primero Group performed over the past 5 years?

18.7%

Last years 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 (4.1%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PGX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare PGX's past year earnings growth to its 5-year average.

Earnings vs Industry: PGX earnings growth over the past year (18.7%) exceeded the Construction industry 11%.


Return on Equity

High ROE: PGX's Return on Equity (17.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Primero Group's financial position?


Financial Position Analysis

Short Term Liabilities: PGX's short term assets (A$65.2M) exceeds its short term liabilities (A$35.1M)

Long Term Liabilities: PGX's short term assets (65.2M) exceeds its long term liabilities (2.4M)


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

Inventory Level: PGX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PGX's debt is covered by short term assets.


Next Steps

Dividend

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

3.80%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage4.1%forecastin3Years3.8%

Current dividend yield vs market & industry

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

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

What is the CEO of Primero Group's salary, the management and board of directors tenure and is there insider trading?

AU$559k

CEO Compensation


CEO

Cameron Henry 0

0yrs

Tenure

AU$558,966

Compensation

Mr. Cameron David Henry is the Managing Director and Executive Director of Primero Group Limited. Mr Henry has over 15 years of extensive site based experience in both technical roles and also managing lar ...


CEO Compensation Analysis

Compensation vs Market: Cameron's total compensation ($USD378.81K) is above average for companies of similar size in the Australian market ($USD255.99K).

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


Insider Trading

Insider Buying: PGX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$545,99930 Oct 19
Ben Davies
EntityIndividual
Role
Other Key Executive
Engineering Manager
Shares1,400,000
Max PriceAU$0.39
BuyAU$627,05408 Aug 19
Perennial Value Management Limited
EntityCompany
Shares1,507,414
Max PriceAU$0.44
BuyAU$381,54328 May 19
Perennial Value Management Limited
EntityCompany
Shares962,149
Max PriceAU$0.43
SellAU$149,71904 Mar 19
Perennial Value Management Limited
EntityCompany
Shares328,042
Max PriceAU$0.46
BuyAU$1,039,80004 Mar 19
Perennial Value Management Limited
EntityCompany
Shares2,416,543
Max PriceAU$0.43
BuyAU$225,33120 Feb 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares591,735
Max PriceAU$0.38
SellAU$1,034,11420 Feb 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares2,522,044
Max PriceAU$0.41
BuyAU$853,40718 Feb 19
Perennial Value Management Limited
EntityCompany
Shares2,083,147
Max PriceAU$0.41
BuyAU$572,94915 Jan 19
Perennial Value Management Limited
EntityCompany
Shares1,559,422
Max PriceAU$0.39
BuyAU$2,347,10129 Nov 18
Perennial Value Management Limited
EntityCompany
Shares6,715,678
Max PriceAU$0.42

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 58.9%.


Management Team

  • Cameron Henry

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$558.97k
  • Dean Ercegovic

    Director of Operation

    • Tenure: 0yrs
    • Compensation: AU$420.70k
  • Brett Grosvenor

    Director of Development & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$441.93k
  • Ryan McFarlane

    CFO & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$252.85k
  • Ben Davies

    Engineering Manager

    • Tenure: 0yrs
    • Compensation: AU$287.09k
  • Peter Grigsby

    General Manager of Technical

    • Tenure: 0yrs
    • Compensation: AU$388.44k
  • Caryn Jones

    People & Culture Manager

    • Tenure: 0.8yrs

Board Members

  • Cliff Lawrenson (57yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Mark Connelly (56yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$86.44k
  • Luke Graham (44yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: AU$53.54k
  • Cameron Henry

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$558.97k
  • Dean Ercegovic

    Director of Operation

    • Tenure: 0yrs
    • Compensation: AU$420.70k
  • Brett Grosvenor

    Director of Development & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$441.93k

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$59.123m
  • Shares outstanding: 149.68m
  • 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, construction, engineering, 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 Analysis2019/11/15 10:42
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.