ASX:PKS

Stock Analysis Report

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Executive Summary

PKS Holdings Limited, a healthcare technology company, engages in the development and provision of software services for the healthcare industry in Australia, Europe, the Americas, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

How has PKS Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

PKS

8.2%

AU Healthcare Services

-0.3%

AU Market


1 Year Return

67.6%

PKS

4.3%

AU Healthcare Services

-6.9%

AU Market

Return vs Industry: PKS exceeded the Australian Healthcare Services industry which returned 4.3% over the past year.

Return vs Market: PKS exceeded the Australian Market which returned -6.9% over the past year.


Shareholder returns

PKSIndustryMarket
7 Day-3.1%8.2%-0.3%
30 Day17.0%20.2%5.1%
90 Day47.6%27.2%4.2%
1 Year67.6%67.6%4.7%4.3%-3.5%-6.9%
3 Yearn/a234.9%231.3%18.1%3.0%
5 Yearn/a254.4%242.3%44.2%15.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PKS Holdings undervalued compared to its fair value and its price relative to the market?

11.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PKS (A$0.31) is trading below our estimate of fair value (A$0.35)

Significantly Below Fair Value: PKS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PKS is poor value based on its PE Ratio (101.7x) compared to the XX Healthcare Services industry average (57.8x).

PE vs Market: PKS is poor value based on its PE Ratio (101.7x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: PKS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: PKS is good value based on its PB Ratio (2x) compared to the AU Healthcare Services industry average (5.6x).


Next Steps

Future Growth

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

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKS's forecast earnings growth (46.9% per year) is above the savings rate (2.3%).

Earnings vs Market: PKS's earnings (46.9% per year) are forecast to grow faster than the Australian market (17.7% per year).

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

Revenue vs Market: PKS's revenue (33.3% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: PKS's revenue (33.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PKS's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has PKS Holdings performed over the past 5 years?

1,255.5%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: PKS has a large one-off gain of A$135.9K impacting its June 30 2020 financial results.

Growing Profit Margin: PKS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PKS's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: PKS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare Services industry (-10.5%).


Return on Equity

High ROE: PKS's Return on Equity (1.3%) is considered low.


Next Steps

Financial Health

How is PKS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PKS's short term assets (A$5.5M) exceed its short term liabilities (A$2.8M).

Long Term Liabilities: PKS's short term assets (A$5.5M) exceed its long term liabilities (A$218.7K).


Debt to Equity History and Analysis

Debt Level: PKS is debt free.

Reducing Debt: PKS has not had any debt for past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

What is PKS Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

1.4yrs

Average board tenure


CEO

Tim Kelsey

no data

Tenure

Mr. Tim Kelsey has been Commercial Director at Telstra Health since July 1, 2016. Mr. Kelsey serves as the Chief Executive Officer at PKS Holdings Limited since October 2020. Mr. Kelsey served as the Chief ...


Board Members

NamePositionTenureCompensationOwnership
Andrew James Gray
Independent Non-Executive Director1.42yrsAU$104.65k0.72%
A$ 418.5k
Ronald Van Der Pluijm
Non-Executive Director1.42yrsAU$365.37k0.13%
A$ 77.5k
Brad Lancken
Non-Executive Director1yrAU$45.45k0.53%
A$ 310.0k
Michael Hill
Independent Non-Executive Chairman1.42yrsAU$80.00k0.73%
A$ 423.8k
Paul Williams
Independent Non-Executive Director1.42yrsAU$68.93k0.13%
A$ 77.5k
Stephen Borness
Non-Executive Director0.33yrAU$5.00k5.31%
A$ 3.1m

1.4yrs

Average Tenure

Experienced Board: PKS's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PKS 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 54.7%.


Top Shareholders

Company Information

PKS Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PKS Holdings Limited
  • Ticker: PKS
  • Exchange: ASX
  • Founded: 1996
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: AU$58.085m
  • Shares outstanding: 187.37m
  • Website: https://www.pks.com.au

Number of Employees


Location

  • PKS Holdings Limited
  • 50 Holt Street
  • 3rd floor
  • Surry Hills
  • New South Wales
  • 2010
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2019
PKSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2019

Biography

PKS Holdings Limited, a healthcare technology company, engages in the development and provision of software services for the healthcare industry in Australia, Europe, the Americas, and internationally. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 10:35
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.