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PPG

Pro-Pac PackagingASX:PPG Stock Report

Last Price

AU$1.49

Market Cap

AU$120.9m

7D

4.2%

1Y

-21.6%

Updated

20 Jan, 2022

Data

Company Financials +
PPG fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance3/6
Financial Health4/6
Dividends3/6

PPG Stock 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

Summary of all time highs, changes and price drops for Pro-Pac Packaging
Historical stock prices
Current Share PriceAU$1.49
52 Week HighAU$2.30
52 Week LowAU$1.32
Beta-3.39
1 Month Change7.97%
3 Month Change-25.50%
1 Year Change-21.58%
3 Year Change-23.59%
5 Year Change-65.35%
Change since IPO-66.89%

Recent News & Updates

Dec 21
These 4 Measures Indicate That Pro-Pac Packaging (ASX:PPG) Is Using Debt Extensively

These 4 Measures Indicate That Pro-Pac Packaging (ASX:PPG) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

PPGAU PackagingAU Market
7D4.2%-0.3%-1.7%
1Y-21.6%13.4%7.7%

Return vs Industry: PPG underperformed the Australian Packaging industry which returned 13.4% over the past year.

Return vs Market: PPG underperformed the Australian Market which returned 7.7% over the past year.

Price Volatility

Is PPG's price volatile compared to industry and market?
PPG volatility
PPG Average Weekly Movement8.3%
Packaging Industry Average Movement4.9%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.3%
10% least volatile stocks in AU Market3.6%

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

FoundedEmployeesCEOWebsite
1987n/aTim Welshhttps://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

How do Pro-Pac Packaging's earnings and revenue compare to its market cap?
PPG fundamental statistics
Market CapAU$120.85m
Earnings (TTM)AU$7.84m
Revenue (TTM)AU$440.15m

15.4x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPG income statement (TTM)
RevenueAU$440.15m
Cost of RevenueAU$243.34m
Gross ProfitAU$196.81m
ExpensesAU$188.98m
EarningsAU$7.84m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 25, 2022

Earnings per share (EPS)0.097
Gross Margin44.72%
Net Profit Margin1.78%
Debt/Equity Ratio40.6%

How did PPG perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

57%

Payout Ratio

Valuation

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$1.49) is trading below our estimate of fair value (A$5.56)

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


Price To Earnings Ratio

PE vs Industry: PPG is good value based on its PE Ratio (15.4x) compared to the Global Packaging industry average (15.7x).

PE vs Market: PPG is good value based on its PE Ratio (15.4x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: PPG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: PPG is good value based on its PB Ratio (0.8x) compared to the XX Packaging industry average (1.5x).


Future Growth

How is Pro-Pac Packaging forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPG's forecast earnings growth (36.2% per year) is above the savings rate (1.9%).

Earnings vs Market: PPG's earnings (36.2% per year) are forecast to grow faster than the Australian market (11.4% per year).

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

Revenue vs Market: PPG's revenue (2% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: PPG's revenue (2% 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 (13.2%).


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 23.7%.


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 net debt to equity ratio (32.8%) is considered satisfactory.

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?

4.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPG's dividend (4.03%) is higher than the bottom 25% of dividend payers in the Australian market (2.21%).

High Dividend: PPG's dividend (4.03%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


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 (39.9% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Tim Welsh

2.67yrs

Tenure

AU$1,348,765

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 ($USD973.91K) is above average for companies of similar size in the Australian market ($USD290.00K).

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 (3.2 years average tenure).


Board Members

Experienced Board: PPG's board of directors are considered experienced (3.4 years average tenure).


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 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
  • Implied Market Cap: AU$120.855m
  • Shares outstanding: 81.11m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 16:02
End of Day Share Price2022/01/20 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.