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PPE

People InfrastructureASX:PPE Stock Report

Market Cap

AU$409.7m

7D

-0.9%

1Y

28.2%

Updated

18 Oct, 2021

Data

Company Financials +
PPE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends3/6

PPE Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for People Infrastructure
Historical stock prices
Current Share PriceAU$4.32
52 Week HighAU$2.92
52 Week LowAU$4.88
Beta1.75
1 Month Change8.54%
3 Month Change-0.23%
1 Year Change28.19%
3 Year Change96.36%
5 Year Changen/a
Change since IPO232.31%

Recent News & Updates

Sep 02
People Infrastructure's (ASX:PPE) Dividend Will Be Increased To AU$0.06

People Infrastructure's (ASX:PPE) Dividend Will Be Increased To AU$0.06

People Infrastructure Ltd ( ASX:PPE ) will increase its dividend on the 1st of October to AU$0.06. This takes the...

Jun 02
Under The Bonnet, People Infrastructure's (ASX:PPE) Returns Look Impressive

Under The Bonnet, People Infrastructure's (ASX:PPE) Returns Look Impressive

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

Shareholder Returns

PPEAU Professional ServicesAU Market
7D-0.9%2.2%0.9%
1Y28.2%33.4%20.2%

Return vs Industry: PPE underperformed the Australian Professional Services industry which returned 33.4% over the past year.

Return vs Market: PPE exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is PPE's price volatile compared to industry and market?
PPE volatility
PPE Beta1.75
Industry Beta0.92
Market Beta1

Stable Share Price: PPE is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PPE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996n/aDeclan Shermanhttps://www.peopleinfrastructure.com

People Infrastructure Ltd, a workforce management and staffing company, provides contracted staffing and human resources outsourcing services in Australia and New Zealand. The company offers recruiting, on-boarding, rostering, timesheet management, payroll, and workplace health and safety management services. It serves community, technology, healthcare, and industrial and specialist services sectors.

People Infrastructure Fundamentals Summary

How do People Infrastructure's earnings and revenue compare to its market cap?
PPE fundamental statistics
Market CapAU$409.72m
Earnings (TTM)AU$17.66m
Revenue (TTM)AU$444.28m

23.2x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPE income statement (TTM)
RevenueAU$444.28m
Cost of RevenueAU$395.93m
Gross ProfitAU$48.35m
ExpensesAU$30.68m
EarningsAU$17.66m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin10.88%
Net Profit Margin3.98%
Debt/Equity Ratio34.0%

How did PPE perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

49.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPE (A$4.32) is trading below our estimate of fair value (A$8.6)

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 (23.2x) compared to the Australian Professional Services industry average (21.7x).

PE vs Market: PPE is poor value based on its PE Ratio (23.2x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: PPE is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: PPE is good value based on its PB Ratio (3.7x) compared to the AU Professional Services industry average (3.9x).


Future Growth

How is People Infrastructure forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPE's forecast earnings growth (18% per year) is above the savings rate (1.9%).

Earnings vs Market: PPE's earnings (18% per year) are forecast to grow faster than the Australian market (11.7% per year).

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

Revenue vs Market: PPE's revenue (13.4% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: PPE's revenue (13.4% 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 (23.2%)


Past Performance

How has People Infrastructure performed over the past 5 years?

45.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPE has high quality earnings.

Growing Profit Margin: PPE's current net profit margins (4%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: PPE's earnings have grown significantly by 45.4% per year over the past 5 years.

Accelerating Growth: PPE's earnings growth over the past year (7.7%) is below its 5-year average (45.4% per year).

Earnings vs Industry: PPE earnings growth over the past year (7.7%) underperformed the Professional Services industry 9.3%.


Return on Equity

High ROE: PPE's Return on Equity (15.5%) is considered low.


Financial Health

How is People Infrastructure's financial position?


Financial Position Analysis

Short Term Liabilities: PPE's short term assets (A$91.4M) exceed its short term liabilities (A$66.7M).

Long Term Liabilities: PPE's short term assets (A$91.4M) exceed its long term liabilities (A$36.1M).


Debt to Equity History and Analysis

Debt Level: PPE's debt to equity ratio (34%) is considered satisfactory.

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 not well covered by operating cash flow (19.5%).

Interest Coverage: PPE's interest payments on its debt are well covered by EBIT (24.4x coverage).


Balance Sheet


Dividend

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

2.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPE's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: PPE's dividend (2.78%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PPE has been paying a dividend for less than 10 years.

Growing Dividend: PPE's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.5%), 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 well covered by earnings (41.9% payout ratio).


Next Steps

Management

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

5.0yrs

Average board tenure


CEO

Declan Sherman

0.58

Tenure

AU$493,929

Compensation

Mr. Declan Sherman has been an Executive Director of People Infrastructure Ltd since October 5, 2016, serves as its Interim Chief Executive Officer since March 19, 2021 and served as its Managing Director...


CEO Compensation Analysis

Compensation vs Market: Declan's total compensation ($USD366.61K) is below average for companies of similar size in the Australian market ($USD736.11K).

Compensation vs Earnings: Declan's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: PPE's board of directors are considered experienced (5 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 3.8%.


Top Shareholders

Company Information

People Infrastructure Ltd's 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$409.720m
  • Shares outstanding: 94.84m
  • Website: https://www.peopleinfrastructure.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:38
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.