ASX:PSQ

Stock Analysis Report

Pacific Smiles Group

Executive Summary

Pacific Smiles Group Limited, together with its subsidiaries, owns and operates dental centers under the Pacific Smiles Dental and nib Dental Care brand names in Eastern Australia.

Snowflake

Fundamentals

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Pacific Smiles Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

PSQ

1.2%

AU Healthcare

0.9%

AU Market


1 Year Return

29.6%

PSQ

28.9%

AU Healthcare

16.3%

AU Market

Return vs Industry: PSQ matched the Australian Healthcare industry which returned 28.9% over the past year.

Return vs Market: PSQ exceeded the Australian Market which returned 16.3% over the past year.


Shareholder returns

PSQIndustryMarket
7 Day-0.6%1.2%0.9%
30 Day3.6%3.6%1.9%
90 Day40.0%5.4%5.1%
1 Year35.0%29.6%33.0%28.9%23.0%16.3%
3 Year-9.4%-19.0%16.8%6.1%41.6%22.3%
5 Year5.4%-10.3%50.5%29.5%57.7%22.5%

Price Volatility Vs. Market

How volatile is Pacific Smiles Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pacific Smiles Group undervalued compared to its fair value and its price relative to the market?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSQ (A$1.75) is trading below our estimate of fair value (A$1.88)

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


Price To Earnings Ratio

PE vs Industry: PSQ is poor value based on its PE Ratio (31x) compared to the Healthcare industry average (18.1x).

PE vs Market: PSQ is poor value based on its PE Ratio (31x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: PSQ is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: PSQ is overvalued based on its PB Ratio (6.5x) compared to the AU Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Pacific Smiles Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSQ's forecast earnings growth (11.5% per year) is above the savings rate (2.3%).

Earnings vs Market: PSQ's earnings (11.5% per year) are forecast to grow faster than the Australian market (9.7% per year).

High Growth Earnings: PSQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: PSQ's revenue (10.3% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: PSQ's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSQ's Return on Equity is forecast to be high in 3 years time (31.2%)


Next Steps

Past Performance

How has Pacific Smiles Group performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSQ has high quality earnings.

Growing Profit Margin: PSQ's current net profit margins (7%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: PSQ's earnings have declined by -0.7% per year over the past 5 years.

Accelerating Growth: PSQ's earnings growth over the past year (29.8%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: PSQ earnings growth over the past year (29.8%) exceeded the Healthcare industry 1.8%.


Return on Equity

High ROE: PSQ's Return on Equity (20.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pacific Smiles Group's financial position?


Financial Position Analysis

Short Term Liabilities: PSQ's short term assets (A$12.3M) do not cover its short term liabilities (A$17.6M)

Long Term Liabilities: PSQ's short term assets (A$12.3M) do not cover its long term liabilities (25.1M)


Debt to Equity History and Analysis

Debt Level: PSQ's debt to equity ratio (41.4%) is considered high.

Reducing Debt: PSQ's debt to equity ratio has reduced from 50% to 41.4% over the past 5 years.

Debt Coverage: PSQ's debt is well covered by operating cash flow (123.7%).

Interest Coverage: PSQ's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: PSQ's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Pacific Smiles Group's current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.4%markettop25%5.6%industryaverage2.8%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: PSQ's dividend (3.31%) is higher than the bottom 25% of dividend payers in the Australian market (2.37%).

High Dividend: PSQ's dividend (3.31%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PSQ has been paying a dividend for less than 10 years.

Growing Dividend: PSQ's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.8%), PSQ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSQ's dividends in 3 years are not forecast to be well covered by earnings (101.8% payout ratio).


Next Steps

Management

What is the CEO of Pacific Smiles Group's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Phil McKenzie 0

1.1yrs

Tenure

AU$550,791

Compensation

Mr. Philip McKenzie, also known as Phil, has been Managing Director, Chief Executive and Director at Pacific Smiles Group Limited since October 29, 2018. He is Chief Executive Officer of Audiology Manageme ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD375.15K) is about average for companies of similar size in the Australian market ($USD467.36K).

Compensation vs Earnings: Insufficient data to compare Phil's compensation with company performance.


Management Age and Tenure

2.6yrs

Average Tenure

Experienced Management: PSQ's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Board: PSQ's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellAU$873,07513 Nov 19
Australian Ethical Investment Ltd
EntityCompany
Shares500,000
Max PriceAU$1.75
BuyAU$392,42013 Nov 19
Australian Ethical Investment Ltd
EntityCompany
Shares312,750
Max PriceAU$1.26
SellAU$3,000,00104 Oct 19
Alexander Abrahams
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares2,000,000
Max PriceAU$1.50
BuyAU$15,37916 Sep 19
Zita Peach
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares9,493
Max PriceAU$1.62
SellAU$750,00002 Sep 19
Alexander Abrahams
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares500,000
Max PriceAU$1.50
BuyAU$15,14201 Sep 19
Hilton Brett
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares11,738
Max PriceAU$1.29
BuyAU$1,638,54330 Aug 19
TDM Growth Partners
EntityCompany
Shares1,231,987
Max PriceAU$1.33
BuyAU$1,526,56718 Jul 19
Australian Ethical Investment Ltd
EntityCompany
Shares1,318,441
Max PriceAU$1.20
SellAU$2,300,00026 Jun 19
Alexander Abrahams
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares2,000,000
Max PriceAU$1.15
BuyAU$31,99418 Apr 19
TDM Growth Partners
EntityCompany
Shares27,345
Max PriceAU$1.17
BuyAU$71,11111 Apr 19
Hilton Brett
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares61,836
Max PriceAU$1.15
BuyAU$3,469,70911 Apr 19
TDM Growth Partners
EntityCompany
Shares3,017,140
Max PriceAU$1.15
BuyAU$15,152,82507 Mar 19
Australian Ethical Investment Ltd
EntityCompany
Shares9,032,599
Max PriceAU$1.68
BuyAU$9,83005 Dec 18
Zita Peach
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares7,185
Max PriceAU$1.37
BuyAU$1,609,52504 Dec 18
TDM Growth Partners
EntityCompany
Shares1,192,240
Max PriceAU$1.35
BuyAU$22,19104 Dec 18
Hilton Brett
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares16,438
Max PriceAU$1.35
BuyAU$208,82023 Nov 18
Alexander Abrahams
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares154,000
Max PriceAU$1.39

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Licciardo (55yo)

    Joint Company Secretary

    • Tenure: 2.6yrs
  • Paul Robertson

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: AU$266.11k
  • Alison Hughes

    Co-Founder

    • Tenure: 4.2yrs
    • Compensation: AU$194.49k
  • Emma McKenny

    Executive Manager of People & Culture

    • Tenure: 4.4yrs
    • Compensation: AU$203.85k
  • Belinda Cleminson

    Joint Company Secretary

    • Tenure: 2.6yrs
  • Allanna Ryan

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: AU$264.87k
  • Phil McKenzie

    Chief Executive

    • Tenure: 1.1yrs
    • Compensation: AU$550.79k
  • Ciara Rocks

    Chief Marketing Officer

    • Tenure: 0.7yrs
    • Compensation: AU$220.32k

Board Members

  • Mark Bloom (60yo)

    Additional Non-Executive Director

    • Tenure: 0.08yrs
  • Bob Cameron (69yo)

    Non-Executive Chairman

    • Tenure: 16.8yrs
    • Compensation: AU$120.00k
  • Hilton Brett

    Non Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$58.15k
  • Simon Rutherford

    Independent Non Executive Director

    • Tenure: 16.8yrs
    • Compensation: AU$70.00k
  • Ben Gisz (42yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$70.00k
  • Zita Peach (54yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$70.00k
  • Alex Abrahams

    Non Executive Director

    • Tenure: 17.8yrs
    • Compensation: AU$55.48k
  • Phil McKenzie

    Chief Executive

    • Tenure: 1.1yrs
    • Compensation: AU$550.79k

Company Information

Pacific Smiles Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Smiles Group Limited
  • Ticker: PSQ
  • Exchange: ASX
  • Founded: 2002
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: AU$268.268m
  • Shares outstanding: 151.99m
  • Website: https://www.pacificsmilesgroup.com.au

Number of Employees


Location

  • Pacific Smiles Group Limited
  • 6 Molly Morgan Drive
  • Level 1
  • Greenhills
  • New South Wales
  • 2323
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2014
PSQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2014

Biography

Pacific Smiles Group Limited, together with its subsidiaries, owns and operates dental centers under the Pacific Smiles Dental and nib Dental Care brand names in Eastern Australia. The company provides gen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 10:41
End of Day Share Price2019/11/17 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.