ASX:PET

Stock Analysis Report

Phoslock Environmental Technologies

Executive Summary

Phoslock Environmental Technologies Limited provides water technologies and engineering solutions to manage nutrients and other water pollutants.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Phoslock Environmental Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-29.0%

PET

1.5%

AU Commercial Services

0.4%

AU Market


1 Year Return

88.2%

PET

10.8%

AU Commercial Services

9.8%

AU Market

Return vs Industry: PET exceeded the Australian Commercial Services industry which returned 10.8% over the past year.

Return vs Market: PET exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

PETIndustryMarket
7 Day-29.0%1.5%0.4%
30 Day-38.9%2.0%-1.3%
90 Day-36.4%-3.4%-0.5%
1 Year88.2%88.2%15.4%10.8%16.1%9.8%
3 Year784.4%784.4%27.2%14.4%36.1%17.9%
5 Year2111.1%2111.1%74.0%47.5%49.4%15.7%

Price Volatility Vs. Market

How volatile is Phoslock Environmental Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Phoslock Environmental Technologies undervalued compared to its fair value and its price relative to the market?

19.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PET's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PET's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PET is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: PET is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PET is overvalued based on its PB Ratio (19.5x) compared to the AU Commercial Services industry average (2.2x).


Next Steps

Future Growth

How is Phoslock Environmental Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.6%

Forecasted Commercial Services 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 Phoslock Environmental Technologies 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 Phoslock Environmental Technologies performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PET is unprofitable, but has reduced losses over the past 5 years at a rate of 9.4% per year.

Accelerating Growth: Unable to compare PET's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PET is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (20.4%).


Return on Equity

High ROE: PET has a negative Return on Equity (-5.57%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PET is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PET is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Phoslock Environmental Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: PET's short term assets (A$25.5M) exceeds its short term liabilities (A$3.4M)

Long Term Liabilities: PET's short term assets (25.5M) exceeds its long term liabilities (40.8K)


Debt to Equity History and Analysis

Debt Level: PET is debt free.

Reducing Debt: PET currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if PET has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PET has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Phoslock Environmental Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

1.5yrs

Average board tenure


CEO

Robert Schuitema (57yo)

12.8yrs

Tenure

AU$1,168,446

Compensation

Mr. Robert Schuitema, also known as Rob, BCA, INFINZ, CA, has been Managing Director of Phoslock Water Solutions Limited since January 2007 and has been its Company Secretary since December 10, 2008. Mr. S ...


CEO Compensation Analysis

Compensation vs. Market: Robert's total compensation ($USD799.92K) is about average for companies of similar size in the Australian market ($USD735.92K).

Compensation vs Earnings: Robert's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

1.5yrs

Average Tenure

Experienced Board: PET's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellAU$3,683,12901 Sep 19
Zhigang Zhang
EntityIndividual
Role
Vice Chairman
Non-Executive Deputy Chairman
Shares2,965,485.66
Max PriceAU$1.24
SellAU$1,167,70701 Sep 19
Ningping Ma
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares943,268.88
Max PriceAU$1.24
SellAU$4,315,79601 Sep 19
Robert Schuitema
EntityIndividual
Role
Chief Executive Officer
MD, Company Secretary & Executive Director
Shares3,216,000
Max PriceAU$1.34
SellAU$25,961,50201 Sep 19
Laurence Freedman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares19,355,118.12
Max PriceAU$1.34
SellAU$2,288,12210 Jun 19
Zhigang Zhang
EntityIndividual
Role
Vice Chairman
Non-Executive Deputy Chairman
Shares3,015,000
Max PriceAU$0.76
SellAU$381,56310 Jun 19
Ningping Ma
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares502,500
Max PriceAU$0.76

Ownership Breakdown


Management Team

  • Nigel Traill

    General Manager of International Sales

    • Tenure: 0yrs
    • Compensation: AU$296.72k
  • Robert Schuitema (57yo)

    MD, Company Secretary & Executive Director

    • Tenure: 12.8yrs
    • Compensation: AU$1.17m
  • Andrew Winks

    General Manager of Global Operations

    • Tenure: 0yrs
    • Compensation: AU$271.32k
  • Sarah Marshall

    General Manager of Technical

    • Tenure: 0yrs
  • Ming Hong Zhong

    Executive

    • Tenure: 0yrs
    • Compensation: AU$142.00k
  • Xingyuan Wang

    Executive

    • Tenure: 0yrs
    • Compensation: AU$54.00k
  • Chris Hui

    Group Accountant

    • Tenure: 0yrs
    • Compensation: AU$170.64k
  • Changqing Jia

    Executive Officer

    • Tenure: 0yrs
    • Compensation: AU$108.26k

Board Members

  • Laurence Freedman (75yo)

    Non-Executive Chairman of the Board

    • Tenure: 0yrs
    • Compensation: AU$55.00k
  • Brenda Shanahan

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$38.50k
  • Robert Schuitema (57yo)

    MD, Company Secretary & Executive Director

    • Tenure: 12.8yrs
    • Compensation: AU$1.17m
  • Zhigang Zhang

    Non-Executive Deputy Chairman

    • Tenure: 0.8yrs
    • Compensation: AU$41.25k
  • Ningping Ma

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$5.83k

Company Information

Phoslock Environmental Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Phoslock Environmental Technologies Limited
  • Ticker: PET
  • Exchange: ASX
  • Founded:
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: AU$537.227m
  • Shares outstanding: 562.54m
  • Website: https://www.phoslock.com.au

Number of Employees


Location

  • Phoslock Environmental Technologies Limited
  • 25 Lime Street
  • Suite 403
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PETASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2002
PETCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2002
PSLK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2002

Biography

Phoslock Environmental Technologies Limited provides water technologies and engineering solutions to manage nutrients and other water pollutants. It offers Phoslock, a lanthanum modified bentonite material ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:32
End of Day Share Price2019/10/21 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.