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PGH

Pact Group Holdings ASX:PGH Stock Report

Last Price

AU$2.23

Market Cap

AU$767.8m

7D

2.8%

1Y

-44.3%

Updated

14 Aug, 2022

Data

Company Financials +
PGH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends2/6

PGH Stock Overview

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

Pact Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pact Group Holdings
Historical stock prices
Current Share PriceAU$2.23
52 Week HighAU$4.63
52 Week LowAU$1.80
Beta1.36
1 Month Change15.25%
3 Month Change5.19%
1 Year Change-44.25%
3 Year Change0.45%
5 Year Change-59.08%
Change since IPO-32.83%

Recent News & Updates

Jul 20
Should You Investigate Pact Group Holdings Ltd (ASX:PGH) At AU$2.08?

Should You Investigate Pact Group Holdings Ltd (ASX:PGH) At AU$2.08?

While Pact Group Holdings Ltd ( ASX:PGH ) might not be the most widely known stock at the moment, it saw a double-digit...

Shareholder Returns

PGHAU PackagingAU Market
7D2.8%4.3%0.7%
1Y-44.3%-12.9%-8.5%

Return vs Industry: PGH underperformed the Australian Packaging industry which returned -12.9% over the past year.

Return vs Market: PGH underperformed the Australian Market which returned -8.5% over the past year.

Price Volatility

Is PGH's price volatile compared to industry and market?
PGH volatility
PGH Average Weekly Movement5.9%
Packaging Industry Average Movement5.3%
Market Average Movement10.6%
10% most volatile stocks in AU Market18.1%
10% least volatile stocks in AU Market4.6%

Stable Share Price: PGH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PGH's weekly volatility (6%) 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$767.77m
Earnings (TTM)AU$16.85m
Revenue (TTM)AU$1.79b

45.6x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PGH income statement (TTM)
RevenueAU$1.79b
Cost of RevenueAU$781.78m
Gross ProfitAU$1.01b
Other ExpensesAU$995.71m
EarningsAU$16.85m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)0.049
Gross Margin56.43%
Net Profit Margin0.94%
Debt/Equity Ratio169.7%

How did PGH perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

195%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PGH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PGH?

Other financial metrics that can be useful for relative valuation.

PGH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA8.8x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does PGH's PE Ratio compare to its peers?

PGH PE Ratio vs Peers
The above table shows the PE ratio for PGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.9x
ORA Orora
19.5x4.4%AU$2.9b
NMT Neometals
43.1x-120.3%AU$756.7m
DGL DGL Group
13.7x-3.9%AU$723.2m
29M 29Metals
7.4x33.0%AU$900.1m
PGH Pact Group Holdings
45.6x22.9%AU$767.8m

Price-To-Earnings vs Peers: PGH is expensive based on its Price-To-Earnings Ratio (45.6x) compared to the peer average (20.9x).


Price to Earnings Ratio vs Industry

How does PGH's PE Ratio compare vs other companies in the Global Packaging Industry?

Price-To-Earnings vs Industry: PGH is expensive based on its Price-To-Earnings Ratio (45.6x) compared to the Global Packaging industry average (14x)


Price to Earnings Ratio vs Fair Ratio

What is PGH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.6x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: PGH is expensive based on its Price-To-Earnings Ratio (45.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).


Share Price vs Fair Value

What is the Fair Price of PGH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PGH (A$2.23) is trading below our estimate of fair value (A$8.08)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Pact Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGH's forecast earnings growth (22.9% per year) is above the savings rate (1.8%).

Earnings vs Market: PGH's earnings (22.9% per year) are forecast to grow faster than the Australian market (6.1% per year).

High Growth Earnings: PGH's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PGH's revenue (2.1% per year) is forecast to grow slower than the Australian market (5.6% per year).

High Growth Revenue: PGH's revenue (2.1% 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 (16.9%).


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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PGH has a large one-off loss of A$69.9M impacting its December 31 2021 financial results.

Growing Profit Margin: PGH's current net profit margins (0.9%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: PGH's earnings have grown by 2.8% 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 (-83.8%) over the past year, making it difficult to compare to the Packaging industry average (10.3%).


Return on Equity

High ROE: PGH's Return on Equity (4.2%) is considered low.


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Financial Health

How is Pact Group Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PGH's short term assets (A$518.6M) exceed its short term liabilities (A$507.1M).

Long Term Liabilities: PGH's short term assets (A$518.6M) do not cover its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: PGH's net debt to equity ratio (151.4%) is considered high.

Reducing Debt: PGH's debt to equity ratio has reduced from 174.8% to 169.7% over the past 5 years.

Debt Coverage: PGH's debt is well covered by operating cash flow (27.6%).

Interest Coverage: PGH's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PGH's dividend (4.26%) is higher than the bottom 25% of dividend payers in the Australian market (2.56%).

High Dividend: PGH's dividend (4.26%) is low compared to the top 25% of dividend payers in the Australian market (6.36%).


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 has only been paying a dividend for 8 years, and since then payments have not increased.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (194.7%), PGH's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.1%), PGH's dividend payments are well covered by cash flows.


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Management

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

2.0yrs

Average management tenure


CEO

Sanjay Dayal

3.33yrs

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 ($USD2.13M) is above average for companies of similar size in the Australian market ($USD769.87K).

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 years average tenure).


Board Members

Experienced Board: PGH's board of directors are considered experienced (6.1 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
  • Implied Market Cap: AU$767.767m
  • Shares outstanding: 344.29m
  • Website: https://pactgroup.com

Number of Employees


Location

  • Pact Group Holdings Ltd
  • Building 1
  • Level 5
  • 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 Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
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.