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PPE

Peoplein ASX:PPE Stock Report

Last Price

AU$2.74

Market Cap

AU$270.6m

7D

5.0%

1Y

-40.3%

Updated

24 Jun, 2022

Data

Company Financials +
PPE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance1/6
Financial Health5/6
Dividends2/6

PPE Stock Overview

Peoplein Limited, a workforce management and staffing company, provides contracted staffing and human resources outsourcing services in Australia and New Zealand.

Peoplein Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Peoplein
Historical stock prices
Current Share PriceAU$2.74
52 Week HighAU$4.67
52 Week LowAU$2.49
Beta1.74
1 Month Change-15.95%
3 Month Change-32.35%
1 Year Change-40.31%
3 Year Change-17.96%
5 Year Changen/a
Change since IPO110.77%

Recent News & Updates

May 09
What Does Peoplein Limited's (ASX:PPE) Share Price Indicate?

What Does Peoplein Limited's (ASX:PPE) Share Price Indicate?

While Peoplein Limited ( ASX:PPE ) might not be the most widely known stock at the moment, it saw significant share...

Shareholder Returns

PPEAU Professional ServicesAU Market
7D5.0%2.0%1.4%
1Y-40.3%-17.6%-11.3%

Return vs Industry: PPE underperformed the Australian Professional Services industry which returned -18.7% over the past year.

Return vs Market: PPE underperformed the Australian Market which returned -12.2% over the past year.

Price Volatility

Is PPE's price volatile compared to industry and market?
PPE volatility
PPE Average Weekly Movement5.7%
Professional Services Industry Average Movement6.6%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

Stable Share Price: PPE is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PPE's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199625,000Ross Thompsonhttps://www.peoplein.com.au

Peoplein Limited, 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.

Peoplein Fundamentals Summary

How do Peoplein's earnings and revenue compare to its market cap?
PPE fundamental statistics
Market CapAU$270.59m
Earnings (TTM)AU$10.27m
Revenue (TTM)AU$559.14m

26.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPE income statement (TTM)
RevenueAU$559.14m
Cost of RevenueAU$506.85m
Gross ProfitAU$52.29m
Other ExpensesAU$42.02m
EarningsAU$10.27m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin9.35%
Net Profit Margin1.84%
Debt/Equity Ratio41.5%

How did PPE perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

114%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PPE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPE?

Other financial metrics that can be useful for relative valuation.

PPE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA9.3x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does PPE's PE Ratio compare to its peers?

PPE PE Ratio vs Peers
The above table shows the PE ratio for PPE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.1x
ASH Ashley Services Group
8.5xn/aAU$95.0m
HIT HiTech Group Australia
18.9xn/aAU$74.7m
MMS McMillan Shakespeare
11.3x12.7%AU$742.9m
SIQ Smartgroup
13.6x8.4%AU$797.2m
PPE Peoplein
26.3x29.6%AU$270.6m

Price-To-Earnings vs Peers: PPE is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (13.1x).


Price to Earnings Ratio vs Industry

How does PPE's PE Ratio compare vs other companies in the Global Professional Services Industry?

Price-To-Earnings vs Industry: PPE is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the Global Professional Services industry average (19.1x)


Price to Earnings Ratio vs Fair Ratio

What is PPE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.3x
Fair PE Ratio25.8x

Price-To-Earnings vs Fair Ratio: PPE is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).


Share Price vs Fair Value

What is the Fair Price of PPE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPE (A$2.74) is trading below our estimate of fair value (A$11)

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


Price to Earnings Growth Ratio

PEG Ratio: PPE is good value based on its PEG Ratio (0.9x)


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Future Growth

How is Peoplein forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPE's forecast earnings growth (29.6% per year) is above the savings rate (1.8%).

Earnings vs Market: PPE's earnings (29.6% per year) are forecast to grow faster than the Australian market (6.2% per year).

High Growth Earnings: PPE's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PPE's revenue (17.8% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: PPE's revenue (17.8% 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 (22.3%)


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Past Performance

How has Peoplein performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


31.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PPE has a large one-off loss of A$6.8M impacting its December 31 2021 financial results.

Growing Profit Margin: PPE's current net profit margins (1.8%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: PPE's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: PPE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PPE had negative earnings growth (-52.7%) over the past year, making it difficult to compare to the Professional Services industry average (-22.7%).


Return on Equity

High ROE: PPE's Return on Equity (8.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Peoplein's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PPE's short term assets (A$102.6M) exceed its short term liabilities (A$81.1M).

Long Term Liabilities: PPE's short term assets (A$102.6M) exceed its long term liabilities (A$36.1M).


Debt to Equity History and Analysis

Debt Level: PPE's net debt to equity ratio (23.9%) 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 well covered by operating cash flow (33.6%).

Interest Coverage: PPE's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet


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Dividend

What is Peoplein current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PPE's dividend (4.74%) is higher than the bottom 25% of dividend payers in the Australian market (2.77%).

High Dividend: PPE's dividend (4.74%) is low compared to the top 25% of dividend payers in the Australian market (6.9%).


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 4 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (113.9%), PPE's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (87.1%), PPE's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

0.7yrs

Average management tenure


CEO

Ross Thompson

0.67

Tenure

Mr. Ross Thompson serves as Chief Executive Officer at Peoplein Limited (formerly known as People Infrastructure Ltd) since October 25, 2021. He served as Chief Executive Officer of Australia Asia Pacific...


Leadership Team

Experienced Management: PPE's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: PPE's board of directors are considered experienced (4.7 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 6.6%.


Top Shareholders

Company Information

Peoplein Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Peoplein Limited
  • Ticker: PPE
  • Exchange: ASX
  • Founded: 1996
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Implied Market Cap: AU$270.589m
  • Shares outstanding: 98.76m
  • Website: https://www.peoplein.com.au

Number of Employees


Location

  • Peoplein Limited
  • 77 Hudson Street
  • Level 2
  • 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 Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
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.