ASX:PGC

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Very undervalued with reasonable growth potential.

Share Price & News

How has Paragon Care's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.4%

PGC

0.9%

AU Healthcare

0.7%

AU Market


1 Year Return

-37.6%

PGC

18.3%

AU Healthcare

11.0%

AU Market

Return vs Industry: PGC underperformed the Australian Healthcare industry which returned 18.3% over the past year.

Return vs Market: PGC underperformed the Australian Market which returned 11% over the past year.


Shareholder returns

PGCIndustryMarket
7 Day11.4%0.9%0.7%
30 Day11.4%1.8%-0.2%
90 Day-4.3%-0.9%-0.1%
1 Year-36.0%-37.6%22.0%18.3%17.4%11.0%
3 Year-40.5%-47.0%3.0%-6.4%36.3%18.0%
5 Year55.3%25.7%47.3%26.5%51.4%17.3%

Price Volatility Vs. Market

How volatile is Paragon Care's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Paragon Care undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PGC (A$0.44) is trading below our estimate of fair value (A$0.84)

Significantly Undervalued: 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 (16.1x) compared to the Healthcare industry average (19.3x).

PE vs Market: PGC is good value based on its PE Ratio (16.1x) compared to the Australian market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: PGC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PGC is good value based on its PB Ratio (0.8x) compared to the AU Healthcare industry average (1.5x).


Next Steps

Future Growth

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

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGC's forecast earnings growth (21.9% per year) is above the savings rate (2.3%).

Earnings vs Market: PGC's earnings (21.9% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: PGC's revenue (5.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PGC's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PGC's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Paragon Care performed over the past 5 years?

33.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PGC's earnings have grown significantly by 33.3% per year over the past 5 years.

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

Earnings vs Industry: PGC had negative earnings growth (-36.8%) over the past year, making it difficult to compare to the Healthcare industry average (-1.7%).


Return on Equity

High ROE: PGC's Return on Equity (4.6%) is considered low.


Return on Assets

ROA vs Industry: PGC's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: PGC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Paragon Care's financial position?


Financial Position Analysis

Short Term Liabilities: PGC's short term assets (A$137.9M) exceeds its short term liabilities (A$72.9M)

Long Term Liabilities: PGC's short term assets (137.9M) exceeds its long term liabilities (119.0M)


Debt to Equity History and Analysis

Debt Level: PGC's debt to equity ratio (50.8%) is considered high

Reducing Debt: PGC's debt to equity ratio has increased from 21.9% to 50.8% over the past 5 years.

Debt Coverage: PGC's debt is not well covered by operating cash flow (1.2%).

Interest Coverage: PGC's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: PGC has a high level of physical assets or inventory.

Debt Coverage by Assets: PGC's debt is covered by short term assets (assets are 1.411870x debt).


Next Steps

Dividend

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

6.09%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage2.9%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PGC'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 Paragon Care's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Andrew Just 0

1.8yrs

Tenure

AU$525,000

Compensation

Mr. Andrew Just has been Chief Executive Officer of Paragon Care Ltd. since January 2018 and has been Managing Director and Director since May 31, 2018. Mr. Just has twenty-five years of highly relevant gl ...


CEO Compensation Analysis

Compensation vs. Market: Andrew has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

1.8yrs

Average Tenure

46yo

Average Age

Experienced Management: PGC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

65yo

Average Age

Experienced Board: PGC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$559,89407 Jun 19
First Samuel Limited
EntityCompany
Shares1,279,796
Max PriceAU$0.44
BuyAU$1,728,68407 Jun 19
First Samuel Limited
EntityCompany
Shares4,171,109
Max PriceAU$0.41
BuyAU$2,875,94809 May 19
First Samuel Limited
EntityCompany
Shares6,639,113
Max PriceAU$0.44
BuyAU$13,841,37420 Feb 19
First Samuel Limited
EntityCompany
Shares23,157,250
Max PriceAU$0.67
SellAU$2,60727 Dec 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares4,202
Max PriceAU$0.62
BuyAU$4,13527 Dec 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares6,712
Max PriceAU$0.62
BuyAU$5326 Dec 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares87
Max PriceAU$0.61
BuyAU$477,33223 Dec 18
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares670,538
Max PriceAU$0.71
BuyAU$100,00010 Dec 18
Brent Stewart
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares160,000
Max PriceAU$0.63
BuyAU$50,79406 Dec 18
Geoffrey Sam
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares80,000
Max PriceAU$0.64

Ownership Breakdown


Management Team

  • Melanie Jaye Leydin (46yo)

    Company Secretary

    • Tenure: 0yrs
  • Mark Simari (50yo)

    Head of Mergers and Acquisitions

    • Tenure: 1.8yrs
    • Compensation: AU$511.84k
  • Michael Rice (43yo)

    Group Commercial Manager

    • Tenure: 1.4yrs
    • Compensation: AU$304.03k
  • Leonard Kocovic

    CFO & joint Company Secretary

    • Tenure: 2.3yrs
    • Compensation: AU$749.33k
  • Andrew Just

    CEO, MD & Director

    • Tenure: 1.8yrs
    • Compensation: AU$525.00k

Board Members

  • Shane Tanner (66yo)

    Non-Executive Chairman

    • Tenure: 9.4yrs
    • Compensation: AU$120.00k
  • Mike Newton (65yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: AU$47.60k
  • Geoff Sam (65yo)

    Non-Executive Independent Director

    • Tenure: 3.3yrs
    • Compensation: AU$47.60k
  • Brent Stewart

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$60.00k
  • Andrew Just

    CEO, MD & Director

    • Tenure: 1.8yrs
    • Compensation: AU$525.00k
  • Bruce Bian

    Non Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$18.00k

Company Information

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


Key Information

  • Name: Paragon Care Limited
  • Ticker: PGC
  • Exchange: ASX
  • Founded:
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: AU$140.222m
  • Shares outstanding: 337.89m
  • Website: https://www.paragoncare.com.au

Number of Employees


Location

  • Paragon Care Limited
  • 50–54 Clayton Road
  • Clayton
  • Victoria
  • 3168
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PXSDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1999
PGCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 1999
PGCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 1999

Biography

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 was for ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 10:33
End of Day Share Price2019/10/16 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.