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PGC

Paragon CareASX:PGC Stock Report

Market Cap

AU$107.2m

7D

-4.7%

1Y

52.5%

Updated

19 Oct, 2021

Data

Company Financials
PGC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends2/6

PGC Overview

Paragon Care Limited supplies durable medical equipment, medical devices, and consumable medical products to health and aged care markets in Australia, New Zealand, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Paragon Care
Historical stock prices
Current Share PriceAU$0.30
52 Week HighAU$0.17
52 Week LowAU$0.34
Beta1.4
1 Month Change-1.61%
3 Month Change8.93%
1 Year Change52.50%
3 Year Change-56.12%
5 Year Change-62.35%
Change since IPO-99.56%

Recent News & Updates

Aug 29
Does Paragon Care (ASX:PGC) Have A Healthy Balance Sheet?

Does Paragon Care (ASX:PGC) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Apr 18
Paragon Care (ASX:PGC) Has No Shortage Of Debt

Paragon Care (ASX:PGC) Has No Shortage Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Mar 15
How Many Paragon Care Limited (ASX:PGC) Shares Did Insiders Buy, In The Last Year?

How Many Paragon Care Limited (ASX:PGC) Shares Did Insiders Buy, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The...

Shareholder Returns

PGCAU HealthcareAU Market
7D-4.7%-0.2%1.7%
1Y52.5%11.0%20.3%

Return vs Industry: PGC exceeded the Australian Healthcare industry which returned 11% over the past year.

Return vs Market: PGC exceeded the Australian Market which returned 20.3% over the past year.

Price Volatility

Is PGC's price volatile compared to industry and market?
PGC volatility
PGC Beta1.4
Industry Beta0.60
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1994400Phil Nichollhttps://www.paragoncare.com.au

Paragon Care Limited supplies durable medical equipment, medical devices, and consumable medical products to health and aged care markets in Australia, New Zealand, and internationally. The company offers clinical solutions for anaesthetists, intensivists, cardiac, vascular, and pain management; designs, manufactures, and distributes reagent red blood cells, monoclonal blood grouping reagents, and ancillary products for immunohaematology laboratories; and eye care products, such as ophthalmology and optometry, neonatal vision screening, and procedural kits. It also provides neonatal and paediatric assessment and treatment, including newborn hearing and vision screening, jaundice management, targeted temperature management, cerebral function monitoring, and seizure detection, as well as pain management and enteral feeding solutions; surgical products for hip and knee arthroplasty, infection prevention, pain management, biologics, and the operating room; and equipment repair and maintenance services.

Paragon Care Fundamentals Summary

How do Paragon Care's earnings and revenue compare to its market cap?
PGC fundamental statistics
Market CapAU$107.18m
Earnings (TTM)AU$8.28m
Revenue (TTM)AU$235.84m

13.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PGC income statement (TTM)
RevenueAU$235.84m
Cost of RevenueAU$145.53m
Gross ProfitAU$90.31m
ExpensesAU$82.03m
EarningsAU$8.28m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.024
Gross Margin38.29%
Net Profit Margin3.51%
Debt/Equity Ratio86.4%

How did PGC perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

41%

Payout Ratio

Valuation

Is Paragon Care 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: PGC (A$0.31) is trading below our estimate of fair value (A$11.19)

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


Price To Earnings Ratio

PE vs Industry: PGC is good value based on its PE Ratio (13x) compared to the Australian Healthcare industry average (25.4x).

PE vs Market: PGC is good value based on its PE Ratio (13x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PGC is good value based on its PB Ratio (0.9x) compared to the AU Healthcare industry average (2.1x).


Future Growth

How is Paragon Care forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.0%

Forecasted Healthcare 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 Paragon Care 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.


Past Performance

How has Paragon Care performed over the past 5 years?

-57.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGC has a large one-off gain of A$3.5M impacting its June 30 2021 financial results.

Growing Profit Margin: PGC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PGC has become profitable over the past 5 years, growing earnings by -57% per year.

Accelerating Growth: PGC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PGC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (61.3%).


Return on Equity

High ROE: PGC's Return on Equity (6.8%) is considered low.


Financial Health

How is Paragon Care's financial position?


Financial Position Analysis

Short Term Liabilities: PGC's short term assets (A$113.2M) exceed its short term liabilities (A$82.2M).

Long Term Liabilities: PGC's short term assets (A$113.2M) exceed its long term liabilities (A$88.2M).


Debt to Equity History and Analysis

Debt Level: PGC's debt to equity ratio (86.4%) is considered high.

Reducing Debt: PGC's debt to equity ratio has increased from 51.2% to 86.4% over the past 5 years.

Debt Coverage: PGC's debt is well covered by operating cash flow (26.1%).

Interest Coverage: PGC's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

What is Paragon Care current dividend yield, its reliability and sustainability?

3.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PGC's dividend (3.28%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: PGC's dividend (3.28%) is low compared to the top 25% of dividend payers in the Australian market (5.28%).


Stability and Growth of Payments

Stable Dividend: PGC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PGC has only been paying a dividend for 8 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.8%), PGC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Phil Nicholl

1.92yrs

Tenure

AU$683,405

Compensation

Mr. Phil Nicholl, BBus (CSU) serves as Chief Executive Officer at Paragon Care Limited since November 27, 2019 and served as its Head of Device Division. Mr. Nicholl is the Chief Executive Officer of one o...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD506.49K) is above average for companies of similar size in the Australian market ($USD301.95K).

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


Leadership Team

Experienced Management: PGC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: PGC's board of directors are considered experienced (4.4 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 4%.


Top Shareholders

Company Information

Paragon Care Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Paragon Care Limited
  • Ticker: PGC
  • Exchange: ASX
  • Founded: 1994
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: AU$107.177m
  • Shares outstanding: 351.40m
  • Website: https://www.paragoncare.com.au

Number of Employees


Location

  • Paragon Care Limited
  • 96-100 Albert Road
  • Level 4
  • Melbourne
  • Victoria
  • 3168
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:42
End of Day Share Price2021/10/19 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.