Reported Earnings • Mar 03
First half 2025 earnings released: EPS: AU$0.041 (vs AU$0.023 loss in 1H 2024) First half 2025 results: EPS: AU$0.041 (up from AU$0.023 loss in 1H 2024). Revenue: AU$929.5m (up 3.5% from 1H 2024). Net income: AU$14.1m (up AU$22.1m from 1H 2024). Profit margin: 1.5% (up from net loss in 1H 2024). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. New Risk • Mar 02
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings have declined by 51% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Announcement • Oct 22
Pact Group Holdings Ltd Announces New Board Appointments Pact Group Holdings Ltd. announced effective 22 October 2024: the appointment of Mr. Raphael Geminder as Executive Chair and the appointment of Mr. Michael Wachtel as Deputy Chair. The Board believes that expanding Mr. Geminder's role to be an Executive Chair is in the best interests of the Company. In particular, the Board is of the view that Mr. Geminder brings strategic value to all aspects of the Pact business. Pact will continue to benefit from Mr.Geminder's long- standing experience of the Company's operations and business relationships as he formally expands his role to include an executive remit working alongside the CEO. The Board is conscious that there are a number of related party dealings between Pact and its controlled entities (the Group) and interests associated with Mr. Geminder. In addition, the Board recognises the potential for perceived or actual conflicts of interest to arise as a result of the recent appointment of Nick Perkins and Tristan Smith as Non-executive Directors (nominated by the Company's majority shareholder). Pact has robust systems in place to monitor and govern conflicts and related party transactions and to ensure compliance with the Corporations Act 2001 (Cth). With Mr. Geminder's appointment as Executive Chair, the Board has determined that independent Non-executive Director, Mr. Michael Wachtel, be appointed as Deputy Chair. Mr. Wachtel will fulfil the role of Chair when considering matters in which Mr. Geminder has an actual or perceived conflict of interest. Role type for Raphael Geminder is Part time. Key Responsibilities include: Guide Company strategy, oversee governance, and lead the Board. Focus on Company vision and values. Identify growth, M&A, partnership and alliance opportunities. Benchmark industry performance. General communication with key stakeholders government, industry, investors, Pact employees. Key Chair to Chair/CEO customer relationship maintenance. Oversee the CEO's performance and guide decisions. Indirect authority over operations. Announcement • Sep 25
Pact Group Holdings Ltd Announces Appointment of Non-Executive Directors Pact Group Holdings Ltd. announced, effective 25 September 2024, the appointment of Mr. Nicholas (Nick) Perkins and Mr. Tristan Smith as Non-executive Directors of the Company. Perkins and Smith are nominees of Kin Group Pty Ltd. (Kin Group), a company which is ultimately controlled by the Geminder family. The Company's Chair, Raphael Geminder, and associates (including Kin Group, Salvage Pty Ltd. and Bennamon Industries Pty Ltd) hold a relevant interest in Pact of 88.04%. Perkins is the Chief Executive Officer of Kin Group. Kin Group is a diversified, global, long-term focused investor with offices in Melbourne and New York. Mr. Perkins has held a variety of roles within Kin Group, and its subsidiary businesses, for over 19 years, including 10 years as the General Counsel of Pact Group. Mr. Perkins serves on the Board of The Reject Shop and is a member of their Audit & Risk Committee and People & Culture Committee. He also holds a number of advisory and board positions across Kin Group's portfolio investments. Mr. Perkins holds a Bachelor of Arts and Bachelor of Laws from the University of Melbourne and is a Graduate Member of the Australian Institute of Company Directors. Smith is a Chartered Accountant and the Chief Financial Officer of Kin Group. Smith joined Kin Group in 2019 after nearly 20 years working globally with Ernst & Young and holds a number of advisory and board positions across portfolio investments spanning Kin Group's packaging, food and property portfolios. Mr. Smith holds a Bachelor of Commerce degree and a Master of Commerce degree from Macquarie University and is a member of Chartered Accountants Australia and New Zealand. Following the appointments, the Board comprises six directors, including two independent Non-executive Directors, three Non-executive Directors and one Executive Director. Reported Earnings • Aug 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: AU$0.22 (up from AU$0.019 loss in FY 2023). Revenue: AU$1.80b (down 7.4% from FY 2023). Net income: AU$3.74m (up AU$10.3m from FY 2023). Profit margin: 0.2% (up from net loss in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to stay flat during the next 2 years compared to a 5.2% growth forecast for the Global Packaging industry. Over the last 3 years on average, earnings per share has fallen by 42% per year whereas the company’s share price has fallen by 43% per year. Buy Or Sell Opportunity • Jul 24
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to AU$0.75. The fair value is estimated to be AU$0.95, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.8% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jun 10
Raphael Geminder Fails to Wrap Up $234 Million Pact Buyout Billionaire Raphael Geminder's attempt to complete a $234 million off-market buyout of packaging company Pact Group Holdings Ltd. (ASX:PGH) is set to fail, despite 13 extensions of his offer. The bid was launched in September last year by Mr. Geminder's Bennamon Industries Pty Ltd, a wholly owned subsidiary of Kin Group, which is his family office. Mr. Geminder founded Pact Group and is the brother-in-law of Australia's richest man, -Anthony Pratt. At the time of the takeover bid, he owned 50% of the company's shares. The offer was improved in -December from 67.5¢ a share to 84¢ - a 24% premium on his original price. This allowed Mr. Geminder to build his stake to 87.86% on 07 June 2024, still under the 90% threshold needed for compulsory acquisition of the remaining shares. Pact shares ended trade at 84c each ahead of the offer's scheduled close at 7pm on 07 June 2024. The stock will be in focus when market trade resumes on June 11, 2024 morning. A major hurdle in the takeover bid has been the former owners of coat hangers and retail security tags company Tic Group, David Harris and Mark Gandur, who are in a long-running dispute with Pact over a $30 million earn-out payment. They have been accumulating shares and refused to sell their combined stake of 6% into the takeover. The dispute is headed for a trial in April 2025 in the Victorian Supreme Court. After the launch of the 14th offer on April 30, Kin Group said it was the ‘best and final offer’ and there would be no further extensions to the offer period. The company reiterated that it intended to seek to implement a number of significant changes to how Pact was governed and managed. Kin Group also intends to apply to delist Pact from the ASX which it will be able to do so in 2025. Given Kin Group owns more than 87% of the company it is likely that this resolution will be carried - irrespective of whether Pact Group has more than 150 shareholders with holdings of at least $500. Announcement • May 06
Geminder’s Pact Offer Set to End in Stalemate Billionaire packaging businessman Raphael Geminder has finally declared his long-running takeover offer for packaging company Pact Group Holdings Ltd. (ASX:PGH) as the “best and final” bid, to close on June 7, but that will leave him stranded on 87.42% of the company and just short of compulsory acquisition. Mr. Geminder had been powering towards the finishing line of gaining 90% of the company, intending to then delist it from the ASX and privatise it, but just before he could declare victory two businessmen – who are also involved in a separate legal dispute with the billionaire – scooped up a 6% stake and seem to have scuttled the entire takeover. Issuing his 13th supplementary offer after launching the $289 million takeover bid in September, Mr. Geminder’s Bennamon Industries on May 3, 2024 declared the offer final and said it would close on June 7. However, Mr. Geminder remains stuck at 87.42%, with rebel shareholders holding 6% and the remaining investors unwilling to sell at the takeover price of 84c per share. The intervention of business partners David Harris and Mark Gandur, who now control 6% of Pact, has been a thorn in the side of Mr. Geminder. Mr. Geminder’s 13th supplementary bidder’s statement said that if Bennamon Industries hadn’t secured 90% acceptance of the takeover offer by June 7, it would seek a shareholder vote 12 months after the bid ends to take the company private. This could leave the dwindling number of shareholders in Pact holding stock in an unlisted public company. If a vote was held 12 months after the takeover ends – around June 2025 – Mr. Geminder would be able to vote his stake in favour of a delisting. Shares in Pact last traded at 84.5c. Price Target Changed • Mar 20
Price target increased by 26% to AU$1.54 Up from AU$1.23, the current price target is an average from 2 analysts. New target price is 81% above last closing price of AU$0.85. The company is forecast to post earnings per share of AU$0.26 next year compared to a net loss per share of AU$0.019 last year. Reported Earnings • Feb 18
First half 2024 earnings released: AU$0.023 loss per share (vs AU$0.038 profit in 1H 2023) First half 2024 results: AU$0.023 loss per share (down from AU$0.038 profit in 1H 2023). Revenue: AU$897.8m (down 4.3% from 1H 2023). Net loss: AU$8.01m (down 161% from profit in 1H 2023). Revenue is expected to decline by 2.6% p.a. on average during the next 3 years, while revenues in the Global Packaging industry are expected to grow by 4.5%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Announcement • Feb 08
Pact Group Holdings Ltd(ASX:PGH) dropped from S&P Global BMI Index Pact Group Holdings Ltd(ASX:PGH) dropped from S&P Global BMI Index New Risk • Jan 24
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: AU$245k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risk Significant insider selling over the past 3 months (AU$245k sold). Board Change • Jan 13
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 1 highly experienced director. Independent Non Executive Director Michael Wachtel was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Dec 02
Morrison & Co Growth Infrastructure Fund managed by HRL Morrison & Co Limited completed the acquisition of 50% stake in Crate Pooling business of Pact Group from Pact Group Holdings Ltd (ASX:PGH). Morrison & Co Growth Infrastructure Fund managed by HRL Morrison & Co Limited signed an agreement to acquire 50% stake in Crate Pooling business of Pact Group from Pact Group Holdings Ltd (ASX:PGH) for AUD 180 million on August 16, 2023.RBC Capital Markets, LLC acted as Financial advisor to HRL Morrison & Co Limited.Completion of the agreement is expected later this year, subject to the satisfaction of customary conditions and approvals. Michael Ziegelaar, Stephen Dobbs, Alexander Mackinnon of Herbert Smith Freehills acted as legal advisor to Pact Group Holdings. Ashurst LLP acted as a legal advisor to Morrison & Co Growth Infrastructure Fund.Morrison & Co Growth Infrastructure Fund managed by HRL Morrison & Co Limited completed the acquisition of 50% stake in Crate Pooling business of Pact Group from Pact Group Holdings Ltd (ASX:PGH) on December 1, 2023. Announcement • Oct 14
Kin Group Pty Ltd cancelled the acquisition of Pact Group Holdings Ltd from Investors Mutual Limited and others Kin Group Pty Ltd made an offer to acquire Pact Group Holdings Ltd from Investors Mutual Limited and others for approximately AUD 120 million on September 13, 2023. Macquarie Capital is acting as financial adviser and Ashurst is acting as legal adviser to Kin Group. Rodd Levy of Herbert Smith Freehills acted as legal advisor to Pact Group Holdings Ltd.
Kin Group Pty Ltd cancelled the acquisition of Pact Group Holdings Ltd from Investors Mutual Limited and others on October 13, 2023. Announcement • Oct 12
Pact Group Holdings Ltd Announces No Final Dividend in Relation to the Year Ended 30 June 2023 Pact Group Holdings Ltd. announced that the Directors have determined that there will be no final dividend in relation to the year ended 30 June 2023 compared to Final Dividend 1.50 cents per ordinary share paid a year ago. Price Target Changed • Aug 18
Price target increased by 7.1% to AU$1.31 Up from AU$1.23, the current price target is an average from 4 analysts. New target price is 70% above last closing price of AU$0.77. Stock is down 58% over the past year. The company is forecast to post earnings per share of AU$0.17 next year compared to a net loss per share of AU$0.019 last year. Announcement • Aug 17
Morrison & Co Growth Infrastructure Fund managed by HRL Morrison & Co Limited signed an agreement to acquire 50% stake in Crate Pooling business of Pact Group from Pact Group Holdings Ltd (ASX:PGH) for AUD 180 million. Morrison & Co Growth Infrastructure Fund managed by HRL Morrison & Co Limited signed an agreement to acquire 50% stake in Crate Pooling business of Pact Group from Pact Group Holdings Ltd (ASX:PGH) for AUD 180 million on August 16, 2023.RBC Capital Markets, LLC acted as Financial advisor to HRL Morrison & Co Limited.Completion of the agreement is expected later this year, subject to the satisfaction of customary conditions and approvals. Reported Earnings • Aug 17
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: AU$0.019 loss per share (down from AU$0.035 profit in FY 2022). Revenue: AU$1.95b (up 6.0% from FY 2022). Net loss: AU$6.61m (down 154% from profit in FY 2022). Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to stay flat during the next 3 years compared to a 4.3% growth forecast for the Global Packaging industry. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Price Target Changed • Aug 09
Price target decreased by 7.9% to AU$1.23 Down from AU$1.33, the current price target is an average from 5 analysts. New target price is 64% above last closing price of AU$0.74. Stock is down 65% over the past year. The company is forecast to post earnings per share of AU$0.13 for next year compared to AU$0.035 last year. New Risk • Aug 03
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. Announcement • May 17
Pact Group Holdings Ltd Revises Earnings Guidance for the Financial Year 2023 Pact Group Holdings Ltd. revised earnings guidance for the financial year 2023. For the year, the company is updating its earnings guidance and now expects underlying Earnings before Interest and Tax (`EBIT') to be in the range of $142 million to $147 million Pact had previously given guidance in its 2023 Half-Year Results release on 15 February 2023 that underlying EBIT was expected to be slightly ahead of Financial Year 2022 underlying EBIT of $156.2 million, noting that the demand outlook was uncertain. Price Target Changed • May 16
Price target decreased by 29% to AU$1.33 Down from AU$1.88, the current price target is an average from 5 analysts. New target price is 72% above last closing price of AU$0.78. Stock is down 62% over the past year. The company is forecast to post earnings per share of AU$0.17 for next year compared to AU$0.035 last year. Price Target Changed • May 15
Price target decreased by 12% to AU$1.80 Down from AU$2.04, the current price target is an average from 5 analysts. New target price is 119% above last closing price of AU$0.82. Stock is down 61% over the past year. The company is forecast to post earnings per share of AU$0.15 for next year compared to AU$0.035 last year. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 1 highly experienced director. Independent Non Executive Director Michael Wachtel was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Apr 14
Price target decreased by 8.0% to AU$1.88 Down from AU$2.04, the current price target is an average from 4 analysts. New target price is 76% above last closing price of AU$1.07. Stock is down 54% over the past year. The company is forecast to post earnings per share of AU$0.16 for next year compared to AU$0.035 last year. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to AU$1.17, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 14x in the Packaging industry globally. Total loss to shareholders of 12% over the past three years. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to AU$1.19, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 15x in the Packaging industry globally. Total loss to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$2.33 per share. Reported Earnings • Feb 16
First half 2023 earnings released: EPS: AU$0.07 (vs AU$0.06 loss in 1H 2022) First half 2023 results: EPS: AU$0.07 (up from AU$0.06 loss in 1H 2022). Revenue: AU$998.2m (up 7.7% from 1H 2022). Net income: AU$23.9m (up AU$44.7m from 1H 2022). Profit margin: 2.4% (up from net loss in 1H 2022). The move to profitability was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 4.8% growth forecast for the Global Packaging industry. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment improved over the past week After last week's 16% share price gain to AU$1.22, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 13x in the Packaging industry globally. Total loss to shareholders of 53% over the past three years. Recent Insider Transactions • Nov 24
Independent Non-Executive Director recently bought AU$69k worth of stock On the 17th of November, Carmen Chua bought around 60k shares on-market at roughly AU$1.15 per share. This transaction amounted to 40% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth AU$441k. Insiders have collectively bought AU$536k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment deteriorated over the past week After last week's 17% share price decline to AU$1.10, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Packaging industry globally. Total loss to shareholders of 56% over the past three years. Announcement • Nov 16
Pact Group Holdings Ltd Announces Cessation of Directors Pact Group Holdings Ltd. announced the cessation of Jonathan Ling and Margaret (Lyndsey) Cattermole as directors. The date the director ceased to be a director is 16 November 2022. Price Target Changed • Nov 16
Price target decreased to AU$2.85 Down from AU$3.11, the current price target is an average from 6 analysts. New target price is 132% above last closing price of AU$1.23. Stock is down 61% over the past year. The company is forecast to post earnings per share of AU$0.22 for next year compared to AU$0.035 last year. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to AU$1.34, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Packaging industry globally. Total loss to shareholders of 41% over the past three years. Price Target Changed • Sep 19
Price target decreased to AU$2.85 Down from AU$3.11, the current price target is an average from 6 analysts. New target price is 78% above last closing price of AU$1.60. Stock is down 58% over the past year. The company is forecast to post earnings per share of AU$0.22 for next year compared to AU$0.035 last year. Recent Insider Transactions • Sep 13
Non-Executive Chairman recently bought AU$441k worth of stock On the 8th of September, Raphael Geminder bought around 300k shares on-market at roughly AU$1.47 per share. This transaction amounted to 8.2% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Raphael's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment deteriorated over the past week After last week's 23% share price decline to AU$1.67, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Packaging industry globally. Total loss to shareholders of 26% over the past three years. Reported Earnings • Aug 18
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: AU$0.035 (down from AU$0.25 in FY 2021). Revenue: AU$1.84b (up 4.3% from FY 2021). Net income: AU$12.2m (down 86% from FY 2021). Profit margin: 0.7% (down from 5.0% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Over the next year, revenue is forecast to grow 2.4%, compared to a 9.6% growth forecast for the Packaging industry in Australia. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Aug 17
Pact Group Holdings Ltd Announces Ordinary Distribution for the Six Months Ended June 30, 2022, Payable on October 6, 2022 Pact Group Holdings Ltd. announced ordinary distribution for the six months ended June 30, 2022 of AUD 0.01500000 per share. The distribution is payable on October 6, 2022 with Ex date of August 24, 2022 and Record date of August 25, 2022. Major Estimate Revision • Jul 21
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from AU$0.05 to AU$0.04 per share. Revenue forecast steady at AU$1.84b. Net income forecast to grow 186% next year vs 19% growth forecast for Packaging industry in Australia. Consensus price target down from AU$3.21 to AU$3.11. Share price rose 9.8% to AU$2.07 over the past week. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 15% share price decline to AU$1.89, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Packaging industry globally. Total loss to shareholders of 15% over the past three years. Announcement • Jun 01
Pact Group Holdings Ltd Appoints Kathryn de Bont as General Counsel and Company Secretary Pact Group Holdings Ltd. announced the appointment of Kathryn de Bont as the General Counsel and Company Secretary of the Company, effective 1 June 2022 with Jonathon West resigning from the Company Secretary role on the same day. Price Target Changed • May 25
Price target decreased to AU$3.35 Down from AU$3.66, the current price target is an average from 5 analysts. New target price is 57% above last closing price of AU$2.14. Stock is down 42% over the past year. The company is forecast to post earnings per share of AU$0.046 for next year compared to AU$0.25 last year. Announcement • May 20
Pact Group Holdings Ltd (ASX:PGH) agreed to acquire Synergy Packaging Pty Ltd. Pact Group Holdings Ltd (ASX:PGH) agreed to acquire Synergy Packaging Pty Ltd. on May 20, 2022. The deal has been approved by the Australian Competition and Consumer Commission. Major Estimate Revision • Feb 22
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from AU$1.79b to AU$1.84b. EPS estimate fell from AU$0.25 to AU$0.05 per share. Net income forecast to grow 214% next year vs 19% growth forecast for Packaging industry in Australia. Consensus price target down from AU$3.66 to AU$3.44. Share price rose 3.2% to AU$2.60 over the past week. Reported Earnings • Feb 17
First half 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First half 2022 results: AU$0.06 loss per share (down from AU$0.14 profit in 1H 2021). Revenue: AU$927.2m (up 3.7% from 1H 2021). Net loss: AU$20.8m (down 142% from profit in 1H 2021). Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) were also behind analyst expectations. Over the next year, revenue is forecast to grow 2.5%, compared to a 10% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Feb 16
Pact Group Holdings Ltd Announces Dividend for the Six Months Ended December 31, 2021, Payable on April 6, 2022 Pact Group Holdings Ltd. announced ordinary cash dividend of AUD 0.03500000 per share for the six months ended December 31, 2021. The record date is on February 25, 2022, ex date is on February 24, 2022, payable on April 6, 2022. Price Target Changed • Dec 06
Price target decreased to AU$3.78 Down from AU$4.08, the current price target is an average from 5 analysts. New target price is 54% above last closing price of AU$2.45. Stock is down 3.9% over the past year. The company is forecast to post earnings per share of AU$0.25 for next year compared to AU$0.25 last year. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment deteriorated over the past week After last week's 16% share price decline to AU$2.56, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Packaging industry globally. Total loss to shareholders of 26% over the past three years. Recent Insider Transactions • Nov 02
Non-Executive Chairman recently bought AU$5.1m worth of stock On the 26th of October, Raphael Geminder bought around 2m shares on-market at roughly AU$3.00 per share. This was the largest purchase by an insider in the last 3 months. This was Raphael's only on-market trade for the last 12 months. Recent Insider Transactions • Oct 23
MD, Group CEO & Director recently sold AU$92k worth of stock On the 18th of October, Sanjay Dayal sold around 29k shares on-market at roughly AU$3.23 per share. This was the largest sale by an insider in the last 3 months. This was Sanjay's only on-market trade for the last 12 months. Price Target Changed • Oct 06
Price target increased to AU$4.27 Up from AU$3.97, the current price target is an average from 4 analysts. New target price is 20% above last closing price of AU$3.55. Stock is up 52% over the past year. Reported Earnings • Aug 22
Full year 2021 earnings released: EPS AU$0.25 (vs AU$0.26 in FY 2020) The company reported a soft full year result with weaker earnings and revenues, although profit margins were improved. Full year 2021 results: Revenue: AU$1.76b (down 2.6% from FY 2020). Net income: AU$87.5m (down 1.5% from FY 2020). Profit margin: 5.0% (up from 4.9% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improved over the past week After last week's 16% share price gain to AU$4.55, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 17x in the Packaging industry globally. Total returns to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at AU$8.52 per share. Price Target Changed • Aug 19
Price target increased to AU$3.95 Up from AU$3.57, the current price target is an average from 5 analysts. New target price is 13% below last closing price of AU$4.55. Stock is up 84% over the past year. Major Estimate Revision • Aug 19
Consensus EPS estimates increase to AU$0.27 The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from AU$1.83b to AU$1.85b. EPS estimate increased from AU$0.24 to AU$0.27 per share. Net income forecast to shrink 16% next year vs 16% growth forecast for Packaging industry in Australia . Consensus price target up from AU$3.57 to AU$3.95. Share price rose 16% to AU$4.55 over the past week. Price Target Changed • Aug 09
Price target increased to AU$3.57 Up from AU$3.23, the current price target is an average from 5 analysts. New target price is 9.8% below last closing price of AU$3.96. Stock is up 74% over the past year. Price Target Changed • May 03
Price target increased to AU$3.23 Up from AU$2.90, the current price target is an average from 5 analysts. New target price is 11% below last closing price of AU$3.63. Stock is up 92% over the past year. Executive Departure • Apr 02
Chief Financial Officer has left the company On the 31st of March, Richard Betts' tenure as Chief Financial Officer ended after 5.8 years in the role. As of December 2020, Richard personally held only 9.28k shares (AU$25k worth at the time). A total of 2 executives have left over the last 12 months. Major Estimate Revision • Feb 24
Analysts update estimates The 2021 consensus earning per share (EPS) estimate increased from AU$0.18 to AU$0.23. Revenue estimate for the same period was approximately flat at AU$1.79b. Net income is expected to shrink by 22% next year compared to 20% growth forecast for the Packaging industry in Australia . The consensus price target increased from AU$2.90 to AU$3.15. Share price is up 16% to AU$3.25 over the past week. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improved over the past week After last week's 16% share price gain to AU$3.25, the stock is trading at a trailing P/E ratio of 10.8x, up from the previous P/E ratio of 9.3x. This compares to an average P/E of 16x in the Packaging industry. Total return to shareholders over the past three years is a loss of 38%. Price Target Changed • Feb 22
Price target raised to AU$3.15 Up from AU$2.90, the current price target is an average from 6 analysts. The new target price is close to the current share price of AU$3.08. As of last close, the stock is up 34% over the past year. Reported Earnings • Feb 20
First half 2021 earnings released: EPS AU$0.14 (vs AU$0.10 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: AU$894.4m (up 1.1% from 1H 2020). Net income: AU$49.9m (up 44% from 1H 2020). Profit margin: 5.6% (up from 3.9% in 1H 2020). Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings.