NOT FOR DISTRIBUTION
Header cover image

Pacific Smiles Group

Market Cap

AU$436.0m

Last Updated

2021/04/17 08:12 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Proven track record with moderate growth potential.

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

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


Market Performance


7 Day Return

2.9%

PSQ

-0.06%

AU Healthcare

1.0%

AU Market


1 Year Return

141.5%

PSQ

22.3%

AU Healthcare

33.5%

AU Market

Return vs Industry: PSQ exceeded the Australian Healthcare industry which returned 22.3% over the past year.

Return vs Market: PSQ exceeded the Australian Market which returned 33.5% over the past year.


Shareholder returns

PSQIndustryMarket
7 Day2.9%-0.06%1.0%
30 Day9.6%5.2%4.0%
90 Day9.2%10.8%5.0%
1 Year143.8%141.5%24.3%22.3%40.5%33.5%
3 Year93.1%74.8%30.4%20.5%36.3%16.1%
5 Year74.1%48.4%35.5%17.6%67.0%31.3%

Long-Term 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?

36.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSQ (A$2.85) is trading above our estimate of fair value (A$1.47)

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


Price To Earnings Ratio

PE vs Industry: PSQ is poor value based on its PE Ratio (36x) compared to the AU Healthcare industry average (21.2x).

PE vs Market: PSQ is poor value based on its PE Ratio (36x) compared to the Australian market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: PSQ is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: PSQ is overvalued based on its PB Ratio (9.3x) compared to the AU Healthcare industry average (1.8x).


Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSQ's forecast earnings growth (11% per year) is above the savings rate (2%).

Earnings vs Market: PSQ's earnings (11% per year) are forecast to grow slower than the Australian market (14.5% per year).

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

Revenue vs Market: PSQ's revenue (14.5% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: PSQ's revenue (14.5% 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 (26.6%)


Past Performance

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

-3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSQ has a large one-off gain of A$7.3M impacting its December 31 2020 financial results.

Growing Profit Margin: PSQ's current net profit margins (9.3%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: PSQ's earnings have declined by 3.1% per year over the past 5 years.

Accelerating Growth: PSQ's earnings growth over the past year (43.2%) exceeds its 5-year average (-3.1% per year).

Earnings vs Industry: PSQ earnings growth over the past year (43.2%) exceeded the Healthcare industry 25.5%.


Return on Equity

High ROE: PSQ's Return on Equity (25.8%) is considered high.


Financial Health

How is Pacific Smiles Group's financial position?


Financial Position Analysis

Short Term Liabilities: PSQ's short term assets (A$15.1M) do not cover its short term liabilities (A$37.3M).

Long Term Liabilities: PSQ's short term assets (A$15.1M) do not cover its long term liabilities (A$63.2M).


Debt to Equity History and Analysis

Debt Level: PSQ's debt to equity ratio (6.4%) is considered satisfactory.

Reducing Debt: PSQ's debt to equity ratio has increased from 0.7% to 6.4% over the past 5 years.

Debt Coverage: PSQ's debt is well covered by operating cash flow (1321.6%).

Interest Coverage: PSQ's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Dividend

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

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSQ's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2%).

High Dividend: PSQ's dividend (1.68%) is low compared to the top 25% of dividend payers in the Australian market (5.28%).


Stability and Growth of Payments

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

Growing Dividend: PSQ's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), PSQ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSQ's dividends in 3 years are forecast to be covered by earnings (67% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Phil McKenzie

2.5yrs

Tenure

AU$740,732

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 ($USD572.75K) is about average for companies of similar size in the Australian market ($USD718.01K).

Compensation vs Earnings: Phil's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: PSQ's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: PSQ's board of directors are not considered experienced ( 2.5 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: 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 5%.


Top Shareholders

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$435.984m
  • Shares outstanding: 159.58m
  • Website: https://www.pacificsmilesgroup.com.au

Number of Employees


Location

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

Listings


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 Analysis2021/04/17 08:12
End of Day Share Price2021/04/16 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.