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 Analysis

Flawless balance sheet with acceptable track record.

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

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


Market Performance


7 Day Return

39.0%

PET

8.2%

AU Commercial Services

5.1%

AU Market


1 Year Return

48.8%

PET

-18.1%

AU Commercial Services

-19.0%

AU Market

Return vs Industry: PET exceeded the Australian Commercial Services industry which returned -16.1% over the past year.

Return vs Market: PET exceeded the Australian Market which returned -18.9% over the past year.


Shareholder returns

PETIndustryMarket
7 Day39.0%8.2%5.1%
30 Day-1.7%-17.1%-20.9%
90 Day-30.5%-19.7%-25.6%
1 Year48.8%48.8%-13.7%-18.1%-15.4%-19.0%
3 Year472.9%472.9%14.2%1.3%-3.3%-16.6%
5 Year1264.0%1264.0%17.7%-3.9%6.9%-17.3%

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?

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PET (A$0.57) is trading below our estimate of fair value (A$0.81)

Significantly Below Fair Value: PET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PET is poor value based on its PE Ratio (107.5x) compared to the Commercial Services industry average (16.8x).

PE vs Market: PET is poor value based on its PE Ratio (107.5x) compared to the Australian market (13.3x).


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 (10.8x) compared to the AU Commercial Services industry average (1.5x).


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?

10.3%

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?

37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PET has high quality earnings.

Growing Profit Margin: PET became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PET has become profitable over the past 5 years, growing earnings by 37.6% per year.

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

Earnings vs Industry: PET has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (0.9%).


Return on Equity

High ROE: PET's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is Phoslock Environmental Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: PET's short term assets (A$35.4M) exceed its short term liabilities (A$7.7M).

Long Term Liabilities: PET's short term assets (A$35.4M) exceed its long term liabilities (A$431.3K).


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: PET is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: PET is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

2.0yrs

Average board tenure


CEO

Lachlan McKinnon

0.42

Tenure

Mr. Lachlan McKinnon serves as the Chief Executive Officer of Phoslock Environmental Technologies since November 2019. He has many years of experience in both the chemical and agricultural industries. He h ...


Board Members

NamePositionTenureCompensationOwnership
Robert Schuitema
MD & Executive Director15yrsAU$1.17m1.69% A$5.4m
Laurence Freedman
Non-Executive Chairman of the Boardno dataAU$55.00k12.25% A$39.4m
Brenda Shanahan
Non-Executive Director2.58yrsAU$38.50k0.23% A$744.7k
Zhigang Zhang
Non-Executive Deputy Chairman1.33yrsAU$41.25k2.65% A$8.6m
Ningping Ma
Non-Executive Director1.33yrsAU$5.83k0.40% A$1.3m

2.0yrs

Average Tenure

Experienced Board: PET's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

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: 2002
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: AU$322.045m
  • Shares outstanding: 564.99m
  • Website: https://www.phoslock.com.au

Number of Employees


Location

  • Phoslock Environmental Technologies Limited
  • 25 Lime Street
  • Level 4
  • 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 that removes excess phosphate from water and reduces the growth of harmful algae; Zeolite, which improves water quality by absorbing nutrients, such as nitrogen; and Bacteria that breaks down organic material and cause human and water borne diseases. The company also designs, engineers, and implements solutions for water related projects to clean up lakes, rivers, canals, wetlands, and drinking water reservoirs. It offers its products through licensees and sales agents in Australia and New Zealand; Europe and the United Kingdom; the United States, Canada, and Brazil; and China. The company was formerly known as Phoslock Water Solutions Limited and changed its name to Phoslock Environmental Technologies Limited in August 2018. Phoslock Water Solutions Limited was founded in 2002 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 11:05
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.