ASX:PSZ

Stock Analysis Report

Executive Summary

PS&C Limited provides information and communications technology (ICT) services primarily in Australia.

Rewards

Trading at 63.7% below its fair value

Risk Analysis

Earnings have declined by -77.83% per year over past 5 years

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (A$14M)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has PS&C's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

24.4%

PSZ

1.7%

AU Professional Services

2.0%

AU Market


1 Year Return

-60.8%

PSZ

30.3%

AU Professional Services

19.8%

AU Market

Return vs Industry: PSZ underperformed the Australian Professional Services industry which returned 29.8% over the past year.

Return vs Market: PSZ underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

PSZIndustryMarket
7 Day24.4%1.7%2.0%
30 Day50.0%2.2%3.8%
90 Day2.0%8.5%5.8%
1 Year-59.6%-60.8%34.1%30.3%25.2%19.8%
3 Year-84.1%-84.5%59.9%47.0%39.6%20.9%
5 Year-92.0%-93.0%72.2%48.2%61.8%25.3%

Price Volatility Vs. Market

How volatile is PS&C's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PS&C undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSZ (A$0.05) is trading below our estimate of fair value (A$0.13)

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


Price To Earnings Ratio

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

PE vs Market: PSZ 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 PSZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PSZ is good value based on its PB Ratio (0.3x) compared to the AU Professional Services industry average (2.1x).


Next Steps

Future Growth

How is PS&C forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.3%

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 PS&C 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 PS&C performed over the past 5 years?

-77.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSZ is currently unprofitable.

Growing Profit Margin: PSZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PSZ is unprofitable, and losses have increased over the past 5 years at a rate of -77.8% per year.

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

Earnings vs Industry: PSZ is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (22.2%).


Return on Equity

High ROE: PSZ has a negative Return on Equity (-147.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PS&C's financial position?


Financial Position Analysis

Short Term Liabilities: PSZ's short term assets (A$19.5M) do not cover its short term liabilities (A$32.2M).

Long Term Liabilities: PSZ's short term assets (A$19.5M) exceed its long term liabilities (A$2.9M).


Debt to Equity History and Analysis

Debt Level: PSZ's debt to equity ratio (31%) is considered satisfactory.

Reducing Debt: PSZ's debt to equity ratio has increased from 0.1% to 31% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: PSZ's debt is covered by short term assets (assets are 1.9x debt).


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: Whilst unprofitable PSZ has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PSZ is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -0.3% per year.


Next Steps

Dividend

What is PS&C's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.4%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PSZ'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 PSZ's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: PSZ is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PSZ'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 PS&C's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average management tenure


CEO

Robert Hogeland (44yo)

0.3yrs

Tenure

0

Mr. Robert Hogeland serves as Executive Director at PS&C Limited since August 16, 2019 and served as it's Director of sales since August 2019 until December 2019. Mr. Hogeland has been Managing Director an ...


Management Age and Tenure

0.5yrs

Average Tenure

Experienced Management: PSZ's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Insider Trading

Insider Buying: PSZ insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$749,97505 Dec 19
Blvd Pty Ltd
EntityCompany
Shares18,750,000
Max PriceAU$0.04
BuyAU$137,25420 Nov 19
Robert Hogeland
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares3,431,374
Max PriceAU$0.04
BuyAU$49,28020 Nov 19
Hatdon Pty Ltd
EntityCompany
Shares1,232,014
Max PriceAU$0.04

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 141.8%.


Management Team

  • Jeff Bennett (61yo)

    CFO & Company Secretary

    • Tenure: 2.3yrs
    • Compensation: AU$318.63k
  • Paul Fielding

    Group Executive of Operations

    • Tenure: 0.7yrs
  • Kevin McLaine

    • Tenure: 0.08yrs
    • Compensation: AU$120.00k
  • Jennifer Hegarty

    Human Resource Manager

    • Robert Hogeland (44yo)

      MD, CEO & Executive Director

      • Tenure: 0.3yrs

    Board Members

    • Robert Hogeland (44yo)

      MD, CEO & Executive Director

      • Tenure: 0.3yrs
    • Renata Sguario (47yo)

      Chairman

      • Tenure: 0.08yrs

    Company Information

    PS&C Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: PS&C Limited
    • Ticker: PSZ
    • Exchange: ASX
    • Founded: 2013
    • Industry: Research and Consulting Services
    • Sector: Commercial Services
    • Market Cap: AU$13.755m
    • Shares outstanding: 305.66m
    • Website: https://www.pscgroup.com.au

    Number of Employees


    Location

    • PS&C Limited
    • 410 Collins Street
    • Level 11
    • Melbourne
    • Victoria
    • 3000
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    PSZXEASX (Australian Securities Exchange)NPV DFD 29/01/20(EX-ENTITLEAUAUDNo data
    PSZASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2013
    PSZCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2013

    Biography

    PS&C Limited provides information and communications technology (ICT) services primarily in Australia. The company operates in four segments: Discovery + Insights, Design + Process, Delivery + Cloud, and Defend + Secure. The Discovery + Insights segment is involved in shaping digital ambition, strategy, and business cases based on insights. The Design + Process segment engages in sourcing and providing specialist contractors to customers for medium and long-term ICT projects, as well as managing payroll function for customers. The Delivery + Cloud segment is involved in the consulting and implementation of services around unified communications, conferencing and messaging, contact center solutions, and secure voice technologies. The Defend + Secure segment engages in services and consulting around reducing operational, financial, reputational risk, and digital security matters. PS&C Limited was founded in 2013 and is headquartered in Melbourne, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 10:40
    End of Day Share Price2020/01/20 00:00
    Earnings2019/06/30
    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.