ASX:PPG

Stock Analysis Report

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.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.0%

PPG

-1.9%

AU Packaging

-3.6%

AU Market


1 Year Return

-34.0%

PPG

2.6%

AU Packaging

10.9%

AU Market

Return vs Industry: PPG underperformed the Australian Packaging industry which returned 2.6% over the past year.

Return vs Market: PPG underperformed the Australian Market which returned 10.9% over the past year.


Shareholder returns

PPGIndustryMarket
7 Day-10.0%-1.9%-3.6%
30 Day-5.7%-4.8%-3.7%
90 Day-17.5%-1.7%-0.2%
1 Year-34.0%-34.0%5.3%2.6%15.6%10.9%
3 Year-70.5%-76.4%7.2%-0.3%34.1%16.0%
5 Year-71.0%-79.4%24.6%9.1%44.9%12.6%

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

Valuation

Is Pro-Pac Packaging undervalued compared to its fair value and its price relative to the market?

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPG (A$0.1) is trading below our estimate of fair value (A$0.15)

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 (0.6x) compared to the AU Packaging industry average (2.4x).


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?

15.2%

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

Past Performance

How has Pro-Pac Packaging performed over the past 5 years?

-87.6%

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 -87.6% 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 (8.6%).


Return on Equity

High ROE: PPG has a negative Return on Equity (-112.02%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pro-Pac Packaging's financial position?


Financial Position Analysis

Short Term Liabilities: PPG's short term assets (A$202.4M) exceed its short term liabilities (A$103.8M).

Long Term Liabilities: PPG's short term assets (A$202.4M) exceed its long term liabilities (A$99.1M).


Debt to Equity History and Analysis

Debt Level: PPG's debt to equity ratio (77.5%) is considered high.

Reducing Debt: PPG's debt to equity ratio has increased from 19.7% to 77.5% 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 1.9x 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, even with free cash flow being positive and shrinking by -11% per year.


Next Steps

Dividend

What is Pro-Pac Packaging's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.5%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

0.8yrs

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 ($USD362.62K) is above average for companies of similar size in the Australian market ($USD250.90K).

Compensation vs Earnings: Insufficient data to compare Tim's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Welsh
CEO, MD & Director0.8yrsAU$549.18kno data
Rick Rostolis
Chief Financial Officer1.3yrsAU$696.03k0.074% A$59.4k
Charles Miller
Chief Information Officer1.3yrsno datano data
Kathleen Forbes
Company Secretary & General Counsel0yrsno datano data
David Chin
Chief Commercial Officer1.3yrsno datano 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

NamePositionTenureCompensationOwnership
Timothy Welsh
CEO, MD & Director0.8yrsAU$549.18kno data
Rupert Harrington
Independent Non-Executive Director2.3yrsAU$88.62k0.64% A$511.3k
Jonathan Ling
Non-Executive Independent Chairman0.8yrsAU$41.43k0.17% A$139.1k
Marina Go
Non-Executive Director1.5yrsAU$92.22kno data
Leonie Valentine
Non-Executive Director1.5yrsAU$80.16k0.011% A$8.9k
Darren Brown
Non-Executive Director1.6yrsAU$106.02k0.061% A$49.1k

1.5yrs

Average Tenure

Experienced Board: PPG's board of directors are not considered experienced ( 1.5 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 substantially diluted in the past year, with total shares outstanding growing by 73.1%.


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$80.300m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2005
PPGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 10:37
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.