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PAL

Palla PharmaASX:PAL Stock Report

Market Cap

AU$55.1m

7D

13.3%

1Y

-52.8%

Updated

21 Oct, 2021

Data

Company Financials +
PAL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

PAL Overview

Palla Pharma Limited, a vertically integrated pharmaceutical company, produces and distributes narcotic raw materials, active pharmaceutical ingredients, and finished dosage formulations for pharmaceutical markets in Australia and Norway.

Price History & Performance

Summary of all time highs, changes and price drops for Palla Pharma
Historical stock prices
Current Share PriceAU$0.34
52 Week HighAU$0.23
52 Week LowAU$0.88
Beta1.39
1 Month Change28.30%
3 Month Change-8.11%
1 Year Change-52.78%
3 Year Change-75.89%
5 Year Change-89.27%
Change since IPO-91.28%

Recent News & Updates

Mar 24
Auditors Have Doubts About Palla Pharma (ASX:PAL)

Auditors Have Doubts About Palla Pharma (ASX:PAL)

The harsh reality for Palla Pharma Limited ( ASX:PAL ) shareholders is that its auditors, KPMG LLP - Klynveld Peat...

Mar 18
Palla Pharma's (ASX:PAL) Shareholders Are Down 82% On Their Shares

Palla Pharma's (ASX:PAL) Shareholders Are Down 82% On Their Shares

Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Spare a thought for...

Shareholder Returns

PALAU Life SciencesAU Market
7D13.3%7.3%0.7%
1Y-52.8%5.8%21.4%

Return vs Industry: PAL underperformed the Australian Life Sciences industry which returned 4.9% over the past year.

Return vs Market: PAL underperformed the Australian Market which returned 21.1% over the past year.

Price Volatility

Is PAL's price volatile compared to industry and market?
PAL volatility
PAL Beta1.39
Industry Beta0.95
Market Beta1

Stable Share Price: PAL is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: PAL's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2004n/aGiles Mosshttps://www.pallapharma.com

Palla Pharma Limited, a vertically integrated pharmaceutical company, produces and distributes narcotic raw materials, active pharmaceutical ingredients, and finished dosage formulations for pharmaceutical markets in Australia and Norway. It also produces and distributes poppy seeds to culinary markets. The company was formerly known as TPI Enterprises Limited and changed its name to Palla Pharma Limited in June 2019.

Palla Pharma Fundamentals Summary

How do Palla Pharma's earnings and revenue compare to its market cap?
PAL fundamental statistics
Market CapAU$55.05m
Earnings (TTM)-AU$58.85m
Revenue (TTM)AU$16.74m

3.3x

P/S Ratio

-0.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAL income statement (TTM)
RevenueAU$16.74m
Cost of RevenueAU$34.71m
Gross Profit-AU$17.97m
ExpensesAU$40.88m
Earnings-AU$58.85m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.36
Gross Margin-107.34%
Net Profit Margin-351.48%
Debt/Equity Ratio75.0%

How did PAL perform over the long term?

See historical performance and comparison

Valuation

Is Palla Pharma undervalued compared to its fair value and its price relative to the market?

2.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PAL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PAL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PAL is unprofitable, so we can't compare its PE Ratio to the Global Life Sciences industry average.

PE vs Market: PAL 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 PAL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PAL is good value based on its PB Ratio (2.7x) compared to the AU Life Sciences industry average (5x).


Future Growth

How is Palla Pharma forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

166.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: PAL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PAL's is expected to become profitable in the next 3 years.

Revenue vs Market: PAL's revenue (64.7% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: PAL's revenue (64.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PAL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Palla Pharma performed over the past 5 years?

-20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAL is currently unprofitable.

Growing Profit Margin: PAL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PAL is unprofitable, and losses have increased over the past 5 years at a rate of 20.3% per year.

Accelerating Growth: Unable to compare PAL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PAL is unprofitable, making it difficult to compare its past year earnings growth to the Life Sciences industry (59.8%).


Return on Equity

High ROE: PAL has a negative Return on Equity (-293.25%), as it is currently unprofitable.


Financial Health

How is Palla Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: PAL's short term assets (A$30.7M) exceed its short term liabilities (A$28.1M).

Long Term Liabilities: PAL's short term assets (A$30.7M) exceed its long term liabilities (A$1.7M).


Debt to Equity History and Analysis

Debt Level: PAL's debt to equity ratio (75%) is considered high.

Reducing Debt: PAL's debt to equity ratio has reduced from 130.3% to 75% over the past 5 years.


Balance Sheet


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: PAL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PAL has less than a year of cash runway if free cash flow continues to grow at historical rates of 5.9% each year.


Dividend

What is Palla Pharma current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PAL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PAL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PAL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PAL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PAL'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?

1.1yrs

Average management tenure


CEO

Giles Moss

0.083

Tenure

Mr. Giles Moss serves as Vice President and General Manager of Europe at GW Pharmaceuticals. He has been central to the rapid successful ex-US launch of a new highly regulated orphan medicine for epilepsy....


Leadership Team

Experienced Management: PAL's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: PAL'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: 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 28.6%.


Top Shareholders

Company Information

Palla Pharma Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Palla Pharma Limited
  • Ticker: PAL
  • Exchange: ASX
  • Founded: 2004
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$55.051m
  • Shares outstanding: 161.91m
  • Website: https://www.pallapharma.com

Location

  • Palla Pharma Limited
  • Tower 4
  • 727 Collins Street
  • Melbourne
  • Victoria
  • 3008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:18
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.