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.

Rewards

Became profitable this year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.5%

PPK

3.9%

AU Machinery

2.0%

AU Market


1 Year Return

836.7%

PPK

29.0%

AU Machinery

19.8%

AU Market

Return vs Industry: PPK exceeded the Australian Machinery industry which returned 32.4% over the past year.

Return vs Market: PPK exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

PPKIndustryMarket
7 Day8.5%3.9%2.0%
30 Day8.1%3.3%3.3%
90 Day2.7%5.4%5.8%
1 Year851.2%836.7%30.2%29.0%25.2%19.8%
3 Yearn/a-34.1%-35.2%39.6%20.9%
5 Year877.9%836.7%71.4%41.3%61.8%25.3%

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?

218.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PPK (A$5.6) is trading above our estimate of fair value (A$0.27)

Significantly Below Fair Value: 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 (218.2x) compared to the Machinery industry average (14.6x).

PE vs Market: PPK is poor value based on its PE Ratio (218.2x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

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 (15.1x) compared to the AU Machinery industry average (1.3x).


Next Steps

Future Growth

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

52.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PPK Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has PPK Group performed over the past 5 years?

28.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: PPK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PPK has become profitable over the past 5 years, growing earnings by 28.8% per year.

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


Return on Capital Employed


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) exceed its short term liabilities (A$8.5M).

Long Term Liabilities: PPK's short term assets (A$21.7M) exceed its long term liabilities (A$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 9.6x 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%2.3%markettop25%5.4%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: PPK's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: PPK's dividend (0.36%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

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?

6.3yrs

Average management tenure


CEO

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


Management Age and Tenure

6.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: PPK's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

61yo

Average Age

Experienced Board: PPK's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: PPK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$96,76620 Nov 19
Graeme Webb
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares22,958
Max PriceAU$4.21
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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Management Team

  • Glenn Molloy (64yo)

    Executive Director

    • Tenure: 25.1yrs
    • Compensation: AU$39.60k
  • Andrew Cooke (59yo)

    Group Company Secretary

    • Tenure: 7.7yrs
  • Robin Levison (61yo)

    Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: AU$170.00k
  • P. Crocker

    Group General Manager

    • Peter Blackett

      Director of Spraypac N Z Pty Ltd

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

      Director of Global Mining & Executive Director

      • Tenure: 4.8yrs
      • Compensation: AU$308.86k
    • P. Mastalir

      Managing Director of Rambor Pty Limited

      • Ken Hostland

        Group COO & CFO

        • Tenure: 2.6yrs
        • Compensation: AU$552.62k

      Board Members

      • Glenn Molloy (64yo)

        Executive Director

        • Tenure: 25.1yrs
        • Compensation: AU$39.60k
      • Robin Levison (61yo)

        Executive Chairman

        • Tenure: 6.3yrs
        • Compensation: AU$170.00k
      • Tony McDonald (61yo)

        Non-Executive Director

        • Tenure: 2.3yrs
        • Compensation: AU$40.00k
      • Dale McNamara (60yo)

        Director of Global Mining & Executive Director

        • Tenure: 4.8yrs
        • Compensation: AU$308.86k
      • Graeme Webb (68yo)

        Non-Executive Director

        • Tenure: 8.4yrs
        • 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$474.361m
      • Shares outstanding: 84.41m
      • 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
      PLPK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 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 bolters, rib drills, remote drilling rigs, grout mixers, pumps, and water separators under the Rambor and King Cobra names; and CoalTram and other underground diesel vehicles, alternators, electrical equipment, drilling and bolting equipment, and mining consumables. It also exports its products to Russia, Germany, the United States, and Japan. The company was formerly known as Plaspak Group Limited. PPK Group Limited was founded in 1979 and is headquartered in Brisbane, Australia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/18 10:33
      End of Day Share Price2020/01/17 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.