ASX:3PL

Stock Analysis Report

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Market Cap

AU$359.4m

Last Updated

2021/06/20 08:13 UTC

Data Sources

Company Financials +

Executive Summary

3P Learning Limited, together with its subsidiaries, develops, markets, and sells online educational programs to schools and parents of school-aged students. More Details


Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has 3P Learning's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3PL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3PL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

3PL

4.0%

AU Consumer Services

0.3%

AU Market


1 Year Return

73.3%

3PL

31.3%

AU Consumer Services

27.8%

AU Market

Return vs Industry: 3PL exceeded the Australian Consumer Services industry which returned 31.3% over the past year.

Return vs Market: 3PL exceeded the Australian Market which returned 27.8% over the past year.


Shareholder returns

3PLIndustryMarket
7 Day-3.0%4.0%0.3%
30 Day-2.3%10.3%4.6%
90 Day4.0%1.2%9.0%
1 Year73.3%73.3%32.3%31.3%32.0%27.8%
3 Year0.8%0.8%36.4%25.5%34.0%18.0%
5 Year95.5%95.5%-0.4%47.3%75.2%42.6%

Long-Term Price Volatility Vs. Market

How volatile is 3P Learning's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 3P Learning undervalued compared to its fair value and its price relative to the market?

95.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3PL (A$1.3) is trading above our estimate of fair value (A$1.24)

Significantly Below Fair Value: 3PL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3PL is poor value based on its PE Ratio (95.2x) compared to the Australian Consumer Services industry average (25.8x).

PE vs Market: 3PL is poor value based on its PE Ratio (95.2x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3PL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3PL is overvalued based on its PB Ratio (7x) compared to the AU Consumer Services industry average (2.5x).


Future Growth

How is 3P Learning forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 3PL's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if 3PL's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3PL's revenue (5.4% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: 3PL's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3PL's Return on Equity is forecast to be low in 3 years time (14.4%).


Past Performance

How has 3P Learning performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3PL has high quality earnings.

Growing Profit Margin: 3PL's current net profit margins (3.4%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 3PL has become profitable over the past 5 years, growing earnings by -2.9% per year.

Accelerating Growth: 3PL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3PL had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the Consumer Services industry average (1.2%).


Return on Equity

High ROE: 3PL's Return on Equity (7.4%) is considered low.


Financial Health

How is 3P Learning's financial position?


Financial Position Analysis

Short Term Liabilities: 3PL's short term assets (A$29.6M) do not cover its short term liabilities (A$30.0M).

Long Term Liabilities: 3PL's short term assets (A$29.6M) exceed its long term liabilities (A$5.4M).


Debt to Equity History and Analysis

Debt Level: 3PL is debt free.

Reducing Debt: 3PL has no debt compared to 5 years ago when its debt to equity ratio was 11.8%.

Debt Coverage: 3PL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3PL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is 3P Learning current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3PL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3PL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3PL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3PL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3PL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3PL'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?

0.2yrs

Average management tenure


CEO

Jose Palmero

0.083

Tenure

Mr. Jose Palmero serves as Interim Chief Executive Officer at 3P Learning Limited since May 28, 2021. Mr. Palmero served as Director of 3P Learning Limited until June 2, 2014. He was a member of the 3PL Bo...


Leadership Team

Experienced Management: 3PL's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: 3PL's board of directors are considered experienced (5.1 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 substantially diluted in the past year, with total shares outstanding growing by 98.2%.


Top Shareholders

Company Information

3P Learning Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 3P Learning Limited
  • Ticker: 3PL
  • Exchange: ASX
  • Founded: NaN
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$359.429m
  • Shares outstanding: 276.48m
  • Website: https://www.3plearning.com

Number of Employees


Location

  • 3P Learning Limited
  • 124 Walker Street
  • Level 5
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings


Biography

3P Learning Limited, together with its subsidiaries, develops, markets, and sells online educational programs to schools and parents of school-aged students. It provides online education with e-learning pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 08:13
End of Day Share Price2021/06/18 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.