| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
PPG Overview
Pro-Pac Packaging Limited, together with its subsidiaries, manufactures and distributes industrial, flexible, and rigid packaging products in Australia and New Zealand.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$0.20 |
| 52 Week High | AU$0.16 |
| 52 Week Low | AU$0.24 |
| Beta | 0.45 |
| 1 Month Change | -9.09% |
| 3 Month Change | 8.11% |
| 1 Year Change | -11.11% |
| 3 Year Change | -11.11% |
| 5 Year Change | -56.52% |
| Change since IPO | -55.56% |
Recent News & Updates
Pro-Pac Packaging (ASX:PPG) Seems To Use Debt Quite Sensibly
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| PPG | AU Packaging | AU Market | |
|---|---|---|---|
| 7D | -4.8% | 0.2% | 0.7% |
| 1Y | -11.1% | 24.6% | 21.4% |
Return vs Industry: PPG underperformed the Australian Packaging industry which returned 24.6% over the past year.
Return vs Market: PPG underperformed the Australian Market which returned 21.4% over the past year.
Price Volatility
| PPG volatility | |
|---|---|
| PPG Beta | 0.45 |
| Industry Beta | 0.82 |
| Market Beta | 1 |
Stable Share Price: PPG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: PPG's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | n/a | Tim Welsh | https://www.ppgaust.com.au |
Pro-Pac Packaging Limited, together with its subsidiaries, manufactures and distributes industrial, flexible, and rigid packaging products in Australia and New Zealand. 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.
Pro-Pac Packaging Fundamentals Summary
| PPG fundamental statistics | |
|---|---|
| Market Cap | AU$162.22m |
| Earnings (TTM) | AU$7.84m |
| Revenue (TTM) | AU$440.15m |
20.7x
P/E Ratio0.4x
P/S RatioIs PPG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PPG income statement (TTM) | |
|---|---|
| Revenue | AU$440.15m |
| Cost of Revenue | AU$243.34m |
| Gross Profit | AU$196.81m |
| Expenses | AU$188.98m |
| Earnings | AU$7.84m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.0097 |
| Gross Margin | 44.72% |
| Net Profit Margin | 1.78% |
| Debt/Equity Ratio | 40.6% |
How did PPG perform over the long term?
See historical performance and comparisonDividends
3.0%
Current Dividend Yield57%
Payout RatioValuation
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$0.2) is trading below our estimate of fair value (A$0.63)
Significantly Below Fair Value: PPG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PPG is poor value based on its PE Ratio (20.7x) compared to the Global Packaging industry average (14.6x).
PE vs Market: PPG is poor value based on its PE Ratio (20.7x) compared to the Australian market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: PPG is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: PPG is good value based on its PB Ratio (1.1x) compared to the XX Packaging industry average (1.4x).
Future Growth
How is Pro-Pac Packaging forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
16.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PPG's forecast earnings growth (16.4% per year) is above the savings rate (1.9%).
Earnings vs Market: PPG's earnings (16.4% per year) are forecast to grow faster than the Australian market (11.5% per year).
High Growth Earnings: PPG's earnings are forecast to grow, but not significantly.
Revenue vs Market: PPG's revenue (2.1% per year) is forecast to grow slower than the Australian market (5.3% per year).
High Growth Revenue: PPG'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: PPG's Return on Equity is forecast to be low in 3 years time (12.6%).
Past Performance
How has Pro-Pac Packaging performed over the past 5 years?
-8.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PPG has a large one-off gain of A$3.4M impacting its June 30 2021 financial results.
Growing Profit Margin: PPG's current net profit margins (1.8%) are higher than last year (1.4%).
Past Earnings Growth Analysis
Earnings Trend: PPG has become profitable over the past 5 years, growing earnings by -8.6% per year.
Accelerating Growth: PPG's earnings growth over the past year (18%) exceeds its 5-year average (-8.6% per year).
Earnings vs Industry: PPG earnings growth over the past year (18%) underperformed the Packaging industry 27.1%.
Return on Equity
High ROE: PPG's Return on Equity (5.4%) is considered low.
Financial Health
How is Pro-Pac Packaging's financial position?
Financial Position Analysis
Short Term Liabilities: PPG's short term assets (A$168.1M) exceed its short term liabilities (A$112.1M).
Long Term Liabilities: PPG's short term assets (A$168.1M) exceed its long term liabilities (A$105.8M).
Debt to Equity History and Analysis
Debt Level: PPG's debt to equity ratio (40.6%) is considered high.
Reducing Debt: PPG's debt to equity ratio has increased from 25.6% to 40.6% over the past 5 years.
Debt Coverage: PPG's debt is well covered by operating cash flow (46.5%).
Interest Coverage: PPG's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Dividend
What is Pro-Pac Packaging current dividend yield, its reliability and sustainability?
3.00%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PPG's dividend (3%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).
High Dividend: PPG's dividend (3%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).
Stability and Growth of Payments
Stable Dividend: PPG's dividend payments have been volatile in the past 10 years.
Growing Dividend: PPG's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (56.9%), PPG's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PPG's dividends in 3 years are forecast to be well covered by earnings (39.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Tim Welsh
2.42yrs
Tenure
AU$1,112,630
Compensation
Mr. Timothy Andrew Welsh, also known as Tim, served as Vice President of Australia & New Zealand and General Manager of Architectural Coatings - Australia & New Zealand at PPG Industries, Inc., since July...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD833.24K) is above average for companies of similar size in the Australian market ($USD303.33K).
Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: PPG's management team is considered experienced (2.9 years average tenure).
Board Members
Experienced Board: PPG's board of directors are considered experienced (3.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PPG 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
Pro-Pac Packaging Limited's 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$162.221m
- Shares outstanding: 811.11m
- Website: https://www.ppgaust.com.au
Location
- Pro-Pac Packaging Limited
- 83-85 Banbury Road
- Reservoir
- Victoria
- 3073
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/22 07:05 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.