Executive Summary
Pro-Pac Packaging Limited, together with its subsidiaries, manufactures and distributes industrial, flexible, and rigid packaging products in Australia, New Zealand, and Canada.
Rewards
Risk Analysis
Earnings have declined by -73.59% per year over past 5 years
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
Snowflake Analysis
Adequate balance sheet and fair value.
Share Price & News
How has Pro-Pac Packaging's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PPG's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.3%
PPG
8.8%
AU Packaging
13.4%
AU Market
1 Year Return
-38.5%
PPG
-16.5%
AU Packaging
-18.8%
AU Market
Return vs Industry: PPG underperformed the Australian Packaging industry which returned -16.5% over the past year.
Return vs Market: PPG underperformed the Australian Market which returned -18.8% over the past year.
Shareholder returns
| PPG | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.3% | 8.8% | 13.4% |
| 30 Day | -7.8% | -10.7% | -20.7% |
| 90 Day | -24.5% | -18.7% | -24.4% |
| 1 Year | -38.5%-38.5% | -14.3%-16.5% | -15.2%-18.8% |
| 3 Year | -73.7%-78.4% | -10.2%-16.6% | -2.8%-15.9% |
| 5 Year | -77.1%-83.4% | 1.7%-10.7% | 9.3%-15.3% |
Price Volatility Vs. Market
How volatile is Pro-Pac Packaging's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
What Kind Of Investor Owns Most Of Pro-Pac Packaging Limited (ASX:PPG)?1 month ago | Simply Wall St
Imagine Owning Pro-Pac Packaging (ASX:PPG) And Trying To Stomach The 77% Share Price Drop2 months ago | Simply Wall St
We Think Pro-Pac Packaging (ASX:PPG) Is Taking Some Risk With Its DebtValuation
Is Pro-Pac Packaging 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: PPG (A$0.08) is trading below our estimate of fair value (A$0.34)
Significantly Below Fair Value: PPG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PPG is unprofitable, so we can't compare its PE Ratio to the Packaging industry average.
PE vs Market: PPG is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PPG's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PPG is good value based on its PB Ratio (0.5x) compared to the XX Packaging industry average (0.8x).
Next Steps
Future Growth
How is Pro-Pac Packaging forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
13.4%
Forecasted Materials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pro-Pac Packaging has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine whether Pro-Pac Packaging is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Pro-Pac Packaging competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has Pro-Pac Packaging performed over the past 5 years?
-73.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PPG is currently unprofitable.
Growing Profit Margin: PPG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: PPG is unprofitable, and losses have increased over the past 5 years at a rate of -73.6% per year.
Accelerating Growth: Unable to compare PPG's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PPG is unprofitable, making it difficult to compare its past year earnings growth to the Packaging industry (10.6%).
Return on Equity
High ROE: PPG has a negative Return on Equity (-0.45%), as it is currently unprofitable.
Next Steps
Financial Health
How is Pro-Pac Packaging's financial position?
Financial Position Analysis
Short Term Liabilities: PPG's short term assets (A$193.6M) exceed its short term liabilities (A$110.9M).
Long Term Liabilities: PPG's short term assets (A$193.6M) exceed its long term liabilities (A$134.2M).
Debt to Equity History and Analysis
Debt Level: PPG's debt to equity ratio (68.5%) is considered high.
Reducing Debt: PPG's debt to equity ratio has increased from 27.2% to 68.5% over the past 5 years.
Balance Sheet
Inventory Level: PPG has a high level of physical assets or inventory.
Debt Coverage by Assets: PPG's debt is covered by short term assets (assets are 2x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable PPG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: PPG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 0.2% per year.
Next Steps
Dividend
What is Pro-Pac Packaging's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PPG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PPG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PPG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PPG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: PPG is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PPG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Tim Welsh
0.83
Tenure
AU$549,183
Compensation
Mr. Timothy Andrew Welsh, also known as Tim, served as Vice President of Australia & New Zealand and General Manager of Architectural Coatings - Australia & New Zealand at PPG Industries, Inc., since July ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD338.27K) is above average for companies of similar size in the Australian market ($USD245.57K).
Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 0.83yr | AU$549.18k | no data | |
| Chief Financial Officer | 1.42yrs | AU$696.03k | 0.074% A$48.0k | |
| Chief Information Officer | 1.42yrs | no data | no data | |
| Company Secretary & General Counsel | no data | no data | no data | |
| Chief Commercial Officer | 1.25yrs | no data | no data |
1.3yrs
Average Tenure
Experienced Management: PPG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 0.83yr | AU$549.18k | no data | |
| Independent Non-Executive Director | 2.25yrs | AU$88.62k | 0.64% A$413.2k | |
| Non-Executive Independent Chairman | 0.83yr | AU$41.43k | 0.17% A$112.4k | |
| Non-Executive Director | 1.58yrs | AU$92.22k | no data | |
| Non-Executive Director | 1.58yrs | AU$80.16k | 0.011% A$7.2k | |
| Non-Executive Director | 1.67yrs | AU$106.02k | 0.061% A$39.7k |
1.6yrs
Average Tenure
Experienced Board: PPG's board of directors are not considered experienced ( 1.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.2%.
Top Shareholders
Company Information
Pro-Pac Packaging Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Pro-Pac Packaging Limited
- Ticker: PPG
- Exchange: ASX
- Founded: 1987
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: AU$64.889m
- Shares outstanding: 811.11m
- Website: https://www.ppgaust.com.au
Number of Employees
Location
- Pro-Pac Packaging Limited
- 83-85 Banbury Road
- Reservoir
- Victoria
- 3073
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PPG | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Apr 2005 |
| PPG | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Apr 2005 |
Biography
Pro-Pac Packaging Limited, together with its subsidiaries, manufactures and distributes industrial, flexible, and rigid packaging products in Australia, New Zealand, and Canada. It operates through: Flexibles, Industrial, and Rigid segments. The Flexibles segment manufactures flexible packaging materials products, such as stretch and shrink wrap, agricultural silage packaging, fresh produce bags, barrier and lidding films, and industrial protective films. This segment also installs, supports, and maintains packaging machines. The Industrial segment sources and distributes industrial packaging materials and related consumer products. The Rigid segment manufactures, sources, and distributes containers and closures, as well as related products and services. It offers corrugated cartons, flexible films, pallet wraps, plastic bottles, lids and closures, food processing products, void fill solutions, packaging supplies and consumables, machinery and machine services, safety and PPE products, gloves, bags and liners, washroom and janitorial products, cleaning supplies, labels and warehouse products, signs, and safety products. The company supplies a range of products and services to industry segments comprising primary produce, food and food processing, and warehousing and logistics, as well as agricultural, industrial, and commercial markets; and retail and FMCG markets. Pro-Pac Packaging Limited was founded in 1987 and is headquartered in Reservoir, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 10:36 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.