ASX:PPG

Stock Analysis Report

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Executive Summary

Pro-Pac Packaging Limited, together with its subsidiaries, engages in the manufacture and distribution of industrial, flexible, and rigid packaging products in Australia, New Zealand, and Canada. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

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

5.0%

PPG

0.5%

AU Packaging

0.01%

AU Market


1 Year Return

55.6%

PPG

15.1%

AU Packaging

-5.7%

AU Market

Return vs Industry: PPG exceeded the Australian Packaging industry which returned 15.6% over the past year.

Return vs Market: PPG exceeded the Australian Market which returned -5.6% over the past year.


Shareholder returns

PPGIndustryMarket
7 Day5.0%0.5%0.01%
30 Day27.3%4.7%5.4%
90 Day35.5%10.7%4.0%
1 Year59.7%55.6%18.0%15.1%-2.4%-5.7%
3 Year-42.6%-48.1%13.1%4.6%18.0%3.0%
5 Year-31.8%-50.0%38.1%21.0%42.1%13.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPG (A$0.21) is trading below our estimate of fair value (A$7.99)

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 (25.6x) compared to the XX Packaging industry average (15.6x).

PE vs Market: PPG is poor value based on its PE Ratio (25.6x) compared to the Australian market (21.4x).


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 overvalued based on its PB Ratio (1.2x) compared to the XX Packaging industry average (1.1x).


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?

22.2%

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?

-52.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPG has a large one-off gain of A$5.5M impacting its June 30 2020 financial results.

Growing Profit Margin: PPG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PPG has become profitable over the past 5 years, growing earnings by -52.6% per year.

Accelerating Growth: PPG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PPG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Packaging industry (5.9%).


Return on Equity

High ROE: PPG's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Pro-Pac Packaging's financial position?


Financial Position Analysis

Short Term Liabilities: PPG's short term assets (A$172.6M) exceed its short term liabilities (A$107.9M).

Long Term Liabilities: PPG's short term assets (A$172.6M) exceed its long term liabilities (A$113.9M).


Debt to Equity History and Analysis

Debt Level: PPG's debt to equity ratio (47.6%) is considered high.

Reducing Debt: PPG's debt to equity ratio has increased from 25.9% to 47.6% over the past 5 years.

Debt Coverage: PPG's debt is well covered by operating cash flow (80.4%).

Interest Coverage: PPG's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPG's dividend (1.9%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.13%).

High Dividend: PPG's dividend (1.9%) is low compared to the top 25% of dividend payers in the Australian market (5.51%).


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 reasonably low payout ratio (48.8%), PPG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Tim Welsh

1.42yrs

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 ($USD788.43K) is above average for companies of similar size in the Australian market ($USD277.02K).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Welsh
CEO, MD & Director1.42yrsAU$1.11m0.031%
A$ 52.2k
Iona MacPherson
Chief Financial Officer0.58yrAU$212.62kno data
Charles Miller
Chief Information Officer2yrsno datano data
Kathleen Forbes
Company Secretary & General Counsel2yrsno datano data
David Chin
Chief Commercial Officer1.92yrsno datano data

1.9yrs

Average Tenure

Experienced Management: PPG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Timothy Welsh
CEO, MD & Director1.42yrsAU$1.11m0.031%
A$ 52.2k
Rupert Harrington
Independent Non-Executive Director2.92yrsAU$98.55k0.76%
A$ 1.3m
Jonathan Ling
Non-Executive Independent Chairman1.5yrsAU$180.00k0.17%
A$ 295.1k
Marina Go
Independent Non-Executive Director2.17yrsAU$120.45k0.010%
A$ 17.1k
Leonie Valentine
Independent Non-Executive Director2.17yrsAU$87.60k0.054%
A$ 92.8k
Darren Brown
Independent Non-Executive Director2.25yrsAU$109.50k0.087%
A$ 147.5k

2.2yrs

Average Tenure

Experienced Board: PPG's board of directors are not considered experienced ( 2.2 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: 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 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$170.333m
  • 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, engages in the manufacture and distribution of industrial, flexible, and rigid packaging products in Australia, New Zealand, and Canada. It operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 10:33
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.