ASX:PPE

Stock Analysis Report

Executive Summary

People Infrastructure Ltd, a workforce management company, provides contracted staffing and human resources outsourcing services in Australia and New Zealand.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has People Infrastructure's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PPE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

PPE

-0.6%

AU Professional Services

0.7%

AU Market


1 Year Return

51.0%

PPE

29.2%

AU Professional Services

15.5%

AU Market

Return vs Industry: PPE exceeded the Australian Professional Services industry which returned 29.2% over the past year.

Return vs Market: PPE exceeded the Australian Market which returned 15.5% over the past year.


Shareholder returns

PPEIndustryMarket
7 Day-1.6%-0.6%0.7%
30 Day1.4%0.4%0.8%
90 Day12.5%5.4%6.1%
1 Year55.4%51.0%33.2%29.2%20.6%15.5%
3 Yearn/a58.6%45.1%38.1%19.7%
5 Yearn/a63.3%38.5%51.8%17.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is People Infrastructure undervalued compared to its fair value and its price relative to the market?

36.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPE (A$3.7) is trading below our estimate of fair value (A$5.85)

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


Price To Earnings Ratio

PE vs Industry: PPE is poor value based on its PE Ratio (25.1x) compared to the Professional Services industry average (18.4x).

PE vs Market: PPE is poor value based on its PE Ratio (25.1x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: PPE is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PPE is overvalued based on its PB Ratio (3.8x) compared to the AU Professional Services industry average (1.9x).


Next Steps

Future Growth

How is People Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPE's forecast earnings growth (18.1% per year) is above the savings rate (1.1%).

Earnings vs Market: PPE's earnings (18.1% per year) are forecast to grow faster than the Australian market (9.3% per year).

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

Revenue vs Market: PPE's revenue (10.9% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: PPE's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPE's Return on Equity is forecast to be high in 3 years time (27.2%)


Next Steps

Past Performance

How has People Infrastructure performed over the past 5 years?

13.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: PPE has high quality earnings.

Growing Profit Margin: PPE's current net profit margins (3%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PPE's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare PPE's past year earnings growth to its 5-year average.

Earnings vs Industry: PPE earnings growth over the past year (13.2%) underperformed the Professional Services industry 15.7%.


Return on Equity

High ROE: PPE's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is People Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: PPE's short term assets (A$53.3M) exceed its short term liabilities (A$46.6M).

Long Term Liabilities: PPE's short term assets (A$53.3M) exceed its long term liabilities (A$31.5M).


Debt to Equity History and Analysis

Debt Level: PPE's debt to equity ratio (48.9%) is considered high.

Reducing Debt: Insufficient data to determine if PPE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PPE's debt is well covered by operating cash flow (25.1%).

Interest Coverage: PPE's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: PPE's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is People Infrastructure's current dividend yield, its reliability and sustainability?

2.30%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 21 2020Ex Dividend DateFeb 27 2020Dividend Pay DateMar 30 202032 days from Ex DividendBuy in the next 5 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: PPE's dividend (2.3%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: PPE's dividend (2.3%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PPE's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PPE's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.6%), PPE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPE's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Declan Sherman 0

4.1yrs

Tenure

AU$575,553

Compensation

Mr. Declan Sherman has been Managing Director of People Infrastructure since 2016 and serves as its Executive Director. Mr. Sherman joined People Infrastructure in 2015. Mr. Sherman founded Everlight Capit ...


CEO Compensation Analysis

Compensation vs Market: Declan's total compensation ($USD380.58K) is about average for companies of similar size in the Australian market ($USD453.48K).

Compensation vs Earnings: Declan's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Declan Sherman
MD & Executive Director4.1yrsAU$575.55k11.21% A$30.5m
Thomas Reardon
Executive Director3.1yrsAU$808.52k4.24% A$11.5m
Linda Cascone
Chief Financial Officer3.1yrsno datano data
Kimberley Chan
Company Secretary0.3yrsno datano data

3.1yrs

Average Tenure

Experienced Management: PPE's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Declan Sherman
MD & Executive Director4.1yrsAU$575.55k11.21% A$30.5m
Thomas Reardon
Executive Director3.1yrsAU$808.52k4.24% A$11.5m
Glen Richards
Non-Executive Chairman0yrsAU$113.94k1.29% A$3.5m
Elizabeth Savage
Independent Non-Executive Director2.3yrsAU$83.99k0.028% A$74.8k

3.1yrs

Average Tenure

Experienced Board: PPE's board of directors are considered experienced (3.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.6%.


Top Shareholders

Company Information

People Infrastructure Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: People Infrastructure Ltd
  • Ticker: PPE
  • Exchange: ASX
  • Founded: 1996
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$271.667m
  • Shares outstanding: 73.42m
  • Website: https://www.peopleinfrastructure.com

Number of Employees


Location

  • People Infrastructure Ltd
  • 69-75 Sandgate Road
  • Albion
  • Queensland
  • 4010
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2017
PPECHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2017

Biography

People Infrastructure Ltd, a workforce management company, provides contracted staffing and human resources outsourcing services in Australia and New Zealand. The company offers recruiting, on-boarding, rostering, timesheet management, pay rolling, and workplace health and safety management services. It serves community service, childcare, infrastructure, construction, industrial, landscaping, food processing, mining, and hospitality sectors. The company was founded in 1996 and is based in Albion, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:54
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.