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 Analysis

Proven 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.2%

PSQ

-6.4%

AU Healthcare

-7.1%

AU Market


1 Year Return

41.5%

PSQ

13.4%

AU Healthcare

6.7%

AU Market

Return vs Industry: PSQ exceeded the Australian Healthcare industry which returned 17.9% over the past year.

Return vs Market: PSQ exceeded the Australian Market which returned 7.9% over the past year.


Shareholder returns

PSQIndustryMarket
7 Day-10.2%-6.4%-7.1%
30 Day3.4%-6.0%-5.3%
90 Day10.8%-2.1%-3.2%
1 Year47.5%41.5%17.0%13.4%11.3%6.7%
3 Year-4.2%-14.4%17.7%7.0%28.2%11.2%
5 Year-10.3%-23.7%16.8%0.5%40.9%9.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSQ (A$1.84) is trading below our estimate of fair value (A$3.88)

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


Price To Earnings Ratio

PE vs Industry: PSQ is poor value based on its PE Ratio (33x) compared to the Healthcare industry average (19.5x).

PE vs Market: PSQ is poor value based on its PE Ratio (33x) compared to the Australian market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: PSQ is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: PSQ is overvalued based on its PB Ratio (7.7x) compared to the AU Healthcare industry average (1.7x).


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?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSQ's forecast earnings growth (19.5% per year) is above the savings rate (1.1%).

Earnings vs Market: PSQ's earnings (19.5% per year) are forecast to grow faster than the Australian market (9.4% per year).

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

Revenue vs Market: PSQ's revenue (11.2% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: PSQ's revenue (11.2% 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 (31.9%)


Next Steps

Past Performance

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

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSQ has high quality earnings.

Growing Profit Margin: PSQ's current net profit margins (6.5%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: PSQ's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: PSQ's earnings growth over the past year (5.3%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: PSQ earnings growth over the past year (5.3%) exceeded the Healthcare industry 3.2%.


Return on Equity

High ROE: PSQ's Return on Equity (23.4%) 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$16.7M) do not cover its short term liabilities (A$29.5M).

Long Term Liabilities: PSQ's short term assets (A$16.7M) do not cover its long term liabilities (A$78.9M).


Debt to Equity History and Analysis

Debt Level: PSQ's debt to equity ratio (56.8%) is considered high.

Reducing Debt: PSQ's debt to equity ratio has increased from 1.3% to 56.8% over the past 5 years.

Debt Coverage: PSQ's debt is well covered by operating cash flow (139.3%).

Interest Coverage: PSQ's interest payments on its debt are well covered by EBIT (7x 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 0.8x debt).


Next Steps

Dividend

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

3.15%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Pacific Smiles Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.2%marketbottom25%2.5%markettop25%5.8%industryaverage2.7%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: PSQ's dividend (3.15%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: PSQ's dividend (3.15%) is low compared to the top 25% of dividend payers in the Australian market (5.72%).


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 (105.9%), PSQ's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSQ's dividends in 3 years are forecast to be covered by earnings (82.9% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Phil McKenzie 0

1.3yrs

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 ($USD361.44K) is about average for companies of similar size in the Australian market ($USD506.62K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Philip McKenzie
Chief Executive1.3yrsAU$550.79kno data
Alison Hughes
Co-Founder4.4yrsAU$194.49k10.43% A$29.2m
Allanna Ryan
Chief Financial Officer2.9yrsAU$264.87kno data
Paul Robertson
Chief Operating Officer0yrsAU$266.11k0.20% A$552.0k
Ciara Rocks
Chief Marketing Officer0.9yrsAU$220.32kno data
Emma McKenny
Executive Manager of People & Culture4.7yrsAU$203.85kno data
Mark Licciardo
Joint Company Secretary2.8yrsno datano data
Belinda Cleminson
Joint Company Secretary2.8yrsno datano data

2.8yrs

Average Tenure

Experienced Management: PSQ's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip McKenzie
Chief Executive1.3yrsAU$550.79kno data
Mark Bloom
Non-Executive Director0.3yrsno data0.066% A$184.0k
Hilton Brett
Non Executive Director1.5yrsAU$58.15k0.42% A$1.2m
Simon Rutherford
Independent Non Executive Director17.1yrsAU$70.00k1.15% A$3.2m
Benjamin Gisz
Non-Executive Director8.1yrsAU$70.00kno data
Zita Peach
Non-Executive Chairman0yrsAU$70.00k0.014% A$40.2k
Alexander Abrahams
Non Executive Director18.1yrsAU$55.48k27.95% A$78.2m

4.8yrs

Average Tenure

54yo

Average Age

Experienced Board: PSQ's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PSQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


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$279.668m
  • Shares outstanding: 151.99m
  • 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

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 general dentistry services, including check-ups, teeth cleaning, fillings, and extractions; dental treatments, such as crowns, bridges, fillings, and extractions; advanced dentistry comprising dental implants; and specialist dentistry, such as orthodontics, prosthodontics, endodontics, and periodontics, as well as other treatments under general anaesthetic and intravenous sedation. As of December 31, 2019, it operated 93 centers. Pacific Smiles Group Limited was incorporated in 2002 and is headquartered in East Maitland, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 10:51
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.