ASX:PPK

Stock Analysis Report

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Executive Summary

PPK Group Limited, together with its subsidiaries, engages in designing, manufacturing, distributing, hiring, servicing, and supporting underground coal mining equipment in Australia. More Details


Snowflake Analysis

Excellent balance sheet with proven 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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PPK's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-13.0%

PPK

-5.1%

AU Machinery

1.1%

AU Market


1 Year Return

-10.0%

PPK

-4.2%

AU Machinery

-1.8%

AU Market

Return vs Industry: PPK underperformed the Australian Machinery industry which returned -4.2% over the past year.

Return vs Market: PPK underperformed the Australian Market which returned -1.8% over the past year.


Shareholder returns

PPKIndustryMarket
7 Day-13.0%-5.1%1.1%
30 Day-0.7%0.2%8.7%
90 Day41.8%24.4%9.0%
1 Year-9.4%-10.0%-2.7%-4.2%1.5%-1.8%
3 Year2,762.3%2,700.0%1.7%-1.2%22.0%7.1%
5 Yearn/a67.3%44.1%54.6%23.9%

Long-Term 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?

56.7x

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$0.63)

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 (56.7x) compared to the AU Machinery industry average (21.7x).

PE vs Market: PPK is poor value based on its PE Ratio (56.7x) compared to the Australian market (23x).


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 (9.1x) compared to the AU Machinery industry average (1.9x).


Next Steps

Future Growth

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

41.8%

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?

79.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPK has a large one-off gain of A$9.1M impacting its June 30 2020 financial results.

Growing Profit Margin: PPK's current net profit margins (20.9%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: PPK has become profitable over the past 5 years, growing earnings by 79.2% per year.

Accelerating Growth: PPK's earnings growth over the past year (364.2%) exceeds its 5-year average (79.2% per year).

Earnings vs Industry: PPK earnings growth over the past year (364.2%) exceeded the Machinery industry 39.3%.


Return on Equity

High ROE: PPK's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is PPK Group's financial position?


Financial Position Analysis

Short Term Liabilities: PPK's short term assets (A$24.7M) exceed its short term liabilities (A$7.7M).

Long Term Liabilities: PPK's short term assets (A$24.7M) exceed its long term liabilities (A$2.3M).


Debt to Equity History and Analysis

Debt Level: PPK's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: PPK's debt to equity ratio has reduced from 34.5% to 0.3% over the past 5 years.

Debt Coverage: PPK's debt is well covered by operating cash flow (2141.4%).

Interest Coverage: Insufficient data to determine if PPK's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPK's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.05%).

High Dividend: PPK's dividend (0.36%) is low compared to the top 25% of dividend payers in the Australian market (5.05%).


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

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

7.1yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Robin Levison
Executive Chairman7.08yrsAU$240.00k5.21%
A$ 24.9m
Glenn Molloy
Executive Director25.92yrsAU$240.00k17.14%
A$ 81.9m
Dale McNamara
Director of Global Mining & Executive Director5.58yrsAU$436.11k5.32%
A$ 25.4m
Anthony McDonald
Independent Non-Executive Director3.17yrsAU$282.78k0.48%
A$ 2.3m
Graeme Webb
Non-Executive Director9.25yrsAU$40.00k11.46%
A$ 54.7m

7.1yrs

Average Tenure

62yo

Average Age

Experienced Board: PPK's board of directors are considered experienced (7.1 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$477.694m
  • Shares outstanding: 85.30m
  • 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, together with its subsidiaries, engages in designing, manufacturing, distributing, hiring, servicing, and supporting underground coal mining equipment in Australia. The company offers al...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 07:02
End of Day Share Price2020/11/27 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.