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PGH

Pact Group HoldingsASX:PGH Stock Report

Market Cap

AU$1.1b

7D

-8.4%

1Y

33.5%

Updated

16 Oct, 2021

Data

Company Financials +
PGH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends3/6

PGH Overview

Pact Group Holdings Ltd engages in the manufacture and supply of rigid plastic and metal packaging in Australia, New Zealand, and Asia.

Price History & Performance

Summary of all time highs, changes and price drops for Pact Group Holdings
Historical stock prices
Current Share PriceAU$3.15
52 Week HighAU$2.25
52 Week LowAU$4.63
Beta1.35
1 Month Change-22.41%
3 Month Change-10.77%
1 Year Change33.48%
3 Year Change-9.74%
5 Year Change-52.49%
Change since IPO-5.12%

Recent News & Updates

Oct 07
Should You Think About Buying Pact Group Holdings Ltd (ASX:PGH) Now?

Should You Think About Buying Pact Group Holdings Ltd (ASX:PGH) Now?

Pact Group Holdings Ltd ( ASX:PGH ), is not the largest company out there, but it saw significant share price movement...

Aug 23
Pact Group Holdings' (ASX:PGH) Shareholders Will Receive A Bigger Dividend Than Last Year

Pact Group Holdings' (ASX:PGH) Shareholders Will Receive A Bigger Dividend Than Last Year

Pact Group Holdings Ltd ( ASX:PGH ) has announced that it will be increasing its dividend on the 7th of October to...

Shareholder Returns

PGHAU PackagingAU Market
7D-8.4%0.7%0.9%
1Y33.5%21.5%20.2%

Return vs Industry: PGH exceeded the Australian Packaging industry which returned 21.5% over the past year.

Return vs Market: PGH exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is PGH's price volatile compared to industry and market?
PGH volatility
PGH Beta1.35
Industry Beta0.82
Market Beta1

Stable Share Price: PGH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PGH's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2002n/aSanjay Dayalhttps://pactgroup.com

Pact Group Holdings Ltd engages in the manufacture and supply of rigid plastic and metal packaging in Australia, New Zealand, and Asia. The company operates through Packaging and Sustainability, Materials Handling and Pooling, and Contract Manufacturing Services segments. The company offers packaging products for dairy and beverage, processed food, health and personal care, fresh food, household and industrial, and closures industries; reusable products, such as garment hangers, fresh produce crates, IBC’s, and steel drums for supply chain, environmental, infrastructure, and retail accessories applications.

Pact Group Holdings Fundamentals Summary

How do Pact Group Holdings's earnings and revenue compare to its market cap?
PGH fundamental statistics
Market CapAU$1.08b
Earnings (TTM)AU$87.53m
Revenue (TTM)AU$1.76b

12.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PGH income statement (TTM)
RevenueAU$1.76b
Cost of RevenueAU$734.18m
Gross ProfitAU$1.03b
ExpensesAU$939.86m
EarningsAU$87.53m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)0.25
Gross Margin58.32%
Net Profit Margin4.97%
Debt/Equity Ratio151.8%

How did PGH perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Pact Group Holdings 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: PGH (A$3.15) is trading below our estimate of fair value (A$11.36)

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


Price To Earnings Ratio

PE vs Industry: PGH is good value based on its PE Ratio (12.4x) compared to the Global Packaging industry average (15.3x).

PE vs Market: PGH is good value based on its PE Ratio (12.4x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: PGH is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: PGH is overvalued based on its PB Ratio (2.5x) compared to the XX Packaging industry average (1.5x).


Future Growth

How is Pact Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGH's forecast earnings growth (6% per year) is above the savings rate (1.9%).

Earnings vs Market: PGH's earnings (6% per year) are forecast to grow slower than the Australian market (11.8% per year).

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

Revenue vs Market: PGH's revenue (1.5% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: PGH's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGH's Return on Equity is forecast to be low in 3 years time (18.3%).


Past Performance

How has Pact Group Holdings performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGH has high quality earnings.

Growing Profit Margin: PGH's current net profit margins (5%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: PGH's earnings have declined by 6.3% per year over the past 5 years.

Accelerating Growth: PGH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PGH had negative earnings growth (-1.5%) over the past year, making it difficult to compare to the Packaging industry average (27.1%).


Return on Equity

High ROE: Whilst PGH's Return on Equity (20.27%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Pact Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PGH's short term assets (A$465.0M) do not cover its short term liabilities (A$491.2M).

Long Term Liabilities: PGH's short term assets (A$465.0M) do not cover its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: PGH's debt to equity ratio (151.8%) is considered high.

Reducing Debt: PGH's debt to equity ratio has increased from 145.9% to 151.8% over the past 5 years.

Debt Coverage: PGH's debt is well covered by operating cash flow (33.7%).

Interest Coverage: PGH's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

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

3.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PGH's dividend (3.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: PGH's dividend (3.81%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

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

Growing Dividend: PGH's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.2%), PGH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PGH's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Sanjay Dayal

2.5yrs

Tenure

AU$3,001,467

Compensation

Mr. Sanjay Dayal, B.Tech., Chemical Engineering has been Managing Director, Group Chief Executive Officer and Director of Pact Group Holdings Ltd. since April 3, 2019. He served as General Manager of Manuf...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD2.23M) is above average for companies of similar size in the Australian market ($USD997.89K).

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


Leadership Team

Experienced Management: PGH's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: PGH's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PGH 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

Pact Group Holdings Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Pact Group Holdings Ltd
  • Ticker: PGH
  • Exchange: ASX
  • Founded: 2002
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: AU$1.085b
  • Shares outstanding: 344.29m
  • Website: https://pactgroup.com

Number of Employees


Location

  • Pact Group Holdings Ltd
  • Building 3
  • 658 Church Street
  • Cremorne
  • Victoria
  • 3121
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.