ASX:PPK

Stock Analysis Report

Executive Summary

PPK Group Limited engages in designing, manufacturing, distributing, hiring, servicing, and supporting underground coal mining equipment in Australia.

Snowflake

Fundamentals

Excellent balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

25.1%

PPK

2.5%

AU Machinery

2.5%

AU Market


1 Year Return

1776.7%

PPK

12.2%

AU Machinery

11.1%

AU Market

Return vs Industry: PPK exceeded the Australian Machinery industry which returned 12.2% over the past year.

Return vs Market: PPK exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

PPKIndustryMarket
7 Day25.1%2.5%2.5%
30 Day75.9%7.6%0.7%
90 Day121.7%23.4%1.4%
1 Year1805.8%1776.7%13.1%12.2%17.5%11.1%
3 Yearn/a-30.7%-31.8%37.8%19.4%
5 Year739.7%681.9%14.9%-7.2%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

219.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: PPK (A$5.63) is trading above our estimate of fair value (A$0.22)

Significantly Undervalued: PPK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PPK is poor value based on its PE Ratio (219.4x) compared to the Machinery industry average (13.5x).

PE vs Market: PPK is poor value based on its PE Ratio (219.4x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PPK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PPK is overvalued based on its PB Ratio (15.2x) compared to the AU Machinery industry average (1.2x).


Next Steps

Future Growth

How is PPK Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPK's forecast earnings growth (9.5% per year) is above the savings rate (2.3%).

Earnings vs Market: PPK's earnings (9.5% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: Insufficient data to determine if PPK's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if PPK's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PPK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PPK Group performed over the past 5 years?

28.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PPK's earnings have grown significantly by 28.8% per year over the past 5 years.

Accelerating Growth: PPK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PPK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-19.1%).


Return on Equity

High ROE: PPK's Return on Equity (5.9%) is considered low.


Return on Assets

ROA vs Industry: PPK's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: PPK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is PPK Group's financial position?


Financial Position Analysis

Short Term Liabilities: PPK's short term assets (A$21.7M) exceeds its short term liabilities (A$8.5M)

Long Term Liabilities: PPK's short term assets (21.7M) exceeds its long term liabilities (9.3M)


Debt to Equity History and Analysis

Debt Level: PPK's debt to equity ratio (7.5%) is considered satisfactory

Reducing Debt: PPK's debt to equity ratio has reduced from 86.5% to 7.5% over the past 5 years.

Debt Coverage: PPK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PPK's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Inventory Level: PPK has a high level of physical assets or inventory.

Debt Coverage by Assets: PPK's debt is covered by short term assets (assets are 9.639620x debt).


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.5%markettop25%5.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PPK's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: PPK's dividend (0.36%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: PPK is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: PPK is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PPK'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 PPK Group's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

PPK Group has no CEO, or we have no data on them.


Management Age and Tenure

6.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: PPK's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

61yo

Average Age

Experienced Board: PPK's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$330,24012 Jun 19
Glenn Molloy
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares129,000
Max PriceAU$2.56
BuyAU$70,04628 Feb 19
Anthony McDonald
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares100,000
Max PriceAU$0.70
BuyAU$35,00005 Dec 18
Glenn Molloy
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares50,000
Max PriceAU$0.70
BuyAU$78,00004 Dec 18
Graeme Webb
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares100,000
Max PriceAU$0.78

Ownership Breakdown


Management Team

  • Glenn Molloy (64yo)

    Executive Director

    • Tenure: 24.8yrs
    • Compensation: AU$39.60k
  • Andrew Cooke (59yo)

    Group Company Secretary

    • Tenure: 7.4yrs
  • Robin Levison (61yo)

    Executive Chairman

    • Tenure: 6yrs
    • Compensation: AU$170.00k
  • P. Crocker

    Group General Manager

    • Tenure: 0yrs
  • Peter Blackett

    Director of Spraypac N Z Pty Ltd

    • Tenure: 0yrs
    • Compensation: AU$155.00k
  • Dale McNamara (60yo)

    Director of Global Mining & Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$308.86k
  • P. Mastalir

    Managing Director of Rambor Pty Limited

    • Tenure: 0yrs
  • Ken Hostland

    Group COO & CFO

    • Tenure: 2.3yrs
    • Compensation: AU$552.62k

Board Members

  • Glenn Molloy (64yo)

    Executive Director

    • Tenure: 24.8yrs
    • Compensation: AU$39.60k
  • Robin Levison (61yo)

    Executive Chairman

    • Tenure: 6yrs
    • Compensation: AU$170.00k
  • Tony McDonald (61yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$40.00k
  • Dale McNamara (60yo)

    Director of Global Mining & Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$308.86k
  • Graeme Webb (68yo)

    Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: AU$40.00k

Company Information

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


Key Information

  • Name: PPK Group Limited
  • Ticker: PPK
  • Exchange: ASX
  • Founded: 1979
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: AU$413.054m
  • Shares outstanding: 81.79m
  • Website: https://www.ppkgroup.com.au

Number of Employees


Location

  • PPK Group Limited
  • 10 Eagle Street
  • Level 27
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1995
PPKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1995

Biography

PPK Group Limited engages in designing, manufacturing, distributing, hiring, servicing, and supporting underground coal mining equipment in Australia. The company offers pneumatic and hydraulic roof bolter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:33
End of Day Share Price2019/10/17 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.