ASX:PTL

Stock Analysis Report

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Executive Summary

Pental Limited manufactures and distributes personal, household, and commercial products in Australia, New Zealand, and Asia.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PTL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

PTL

2.3%

AU Household Products

0.2%

AU Market


1 Year Return

31.1%

PTL

18.8%

AU Household Products

-6.6%

AU Market

Return vs Industry: PTL exceeded the Australian Household Products industry which returned 18.8% over the past year.

Return vs Market: PTL exceeded the Australian Market which returned -6.6% over the past year.


Shareholder returns

PTLIndustryMarket
7 Day-1.7%2.3%0.2%
30 Day15.1%6.8%0.3%
90 Day5.3%15.3%13.7%
1 Year41.0%31.1%21.5%18.8%-2.8%-6.6%
3 Year-23.7%-35.5%38.5%28.8%18.6%2.9%
5 Year3.2%-21.6%70.5%51.1%36.9%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pental 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: PTL (A$0.4) is trading below our estimate of fair value (A$1.19)

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


Price To Earnings Ratio

PE vs Industry: PTL is poor value based on its PE Ratio (27.9x) compared to the XX Household Products industry average (25.6x).

PE vs Market: PTL is poor value based on its PE Ratio (27.9x) compared to the Australian market (15.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PTL is good value based on its PB Ratio (1x) compared to the XX Household Products industry average (2x).


Next Steps

Future Growth

How is Pental forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTL's forecast earnings growth (16.4% per year) is above the savings rate (2.3%).

Earnings vs Market: PTL's earnings (16.4% per year) are forecast to grow faster than the Australian market (14.7% per year).

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

Revenue vs Market: PTL's revenue (6.6% per year) is forecast to grow faster than the Australian market (4.1% per year).

High Growth Revenue: PTL's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTL's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Pental performed over the past 5 years?

-45.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTL has a large one-off loss of A$2.2M impacting its December 29 2019 financial results.

Growing Profit Margin: PTL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PTL has become profitable over the past 5 years, growing earnings by -45.2% per year.

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

Earnings vs Industry: PTL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Household Products industry (13.6%).


Return on Equity

High ROE: PTL's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Pental's financial position?


Financial Position Analysis

Short Term Liabilities: PTL's short term assets (A$39.8M) exceed its short term liabilities (A$18.5M).

Long Term Liabilities: PTL's short term assets (A$39.8M) exceed its long term liabilities (A$4.3M).


Debt to Equity History and Analysis

Debt Level: PTL is debt free.

Reducing Debt: PTL had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

What is Pental current dividend yield, its reliability and sustainability?

5.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PTL's dividend (5%) is higher than the bottom 25% of dividend payers in the Australian market (2.42%).

High Dividend: PTL's dividend (5%) is low compared to the top 25% of dividend payers in the Australian market (6.55%).


Stability and Growth of Payments

Stable Dividend: PTL's dividend payments have been volatile in the past 10 years.

Growing Dividend: PTL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (139.6%), PTL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PTL's dividends in 3 years are forecast to be covered by earnings (66.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Household industry.

Management

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

1.2yrs

Average board tenure


CEO

Charlie McLeish

6.58yrs

Tenure

AU$436,188

Compensation

Mr. Charlie McLeish has been the Chief Executive Officer at Pental Limited since January 1, 2014 and its Managing Director since April 6, 2020. He serves as Chief Executive Officer of Pental Products Pty L ...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD309.90K) is about average for companies of similar size in the Australian market ($USD269.11K).

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


Board Members

NamePositionTenureCompensationOwnership
Frederick Harrison
Non-Executive Director1yrno data0.18%
A$ 95.0k
John Etherington
Non-Executive Independent Director7.33yrsAU$60.00k0.12%
A$ 60.8k
Jeff Miciulis
Non-Executive Independent Director1.42yrsAU$20.00k0.59%
A$ 304.0k
Mark Hardgrave
Independent Chairman0.58yrAU$10.00k0.073%
A$ 38.0k

1.2yrs

Average Tenure

Experienced Board: PTL's board of directors are not considered experienced ( 1.2 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: PTL insiders have bought more shares than they have sold 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

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


Key Information

  • Name: Pental Limited
  • Ticker: PTL
  • Exchange: ASX
  • Founded:
  • Industry: Household Products
  • Sector: Household
  • Market Cap: AU$51.775m
  • Shares outstanding: 136.25m
  • Website: https://www.pental.com.au

Number of Employees


Location

  • Pental Limited
  • 390 St Kilda Road
  • Level 6
  • Melbourne
  • Victoria
  • 3004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2000
PTLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2000

Biography

Pental Limited manufactures and distributes personal, household, and commercial products in Australia, New Zealand, and Asia. The company provides soap products, bleaches, firelighters, laundry care produc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 10:43
End of Day Share Price2020/08/05 00:00
Earnings2019/12/29
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.