ASX:PAL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Palla Pharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

PAL

-3.6%

AU Life Sciences

0.02%

AU Market


1 Year Return

-11.6%

PAL

7.8%

AU Life Sciences

14.6%

AU Market

Return vs Industry: PAL underperformed the Australian Life Sciences industry which returned 7.8% over the past year.

Return vs Market: PAL underperformed the Australian Market which returned 14.6% over the past year.


Shareholder returns

PALIndustryMarket
7 Day0%-3.6%0.02%
30 Day-16.8%0.9%0.2%
90 Day-1.2%5.5%5.4%
1 Year-5.6%-11.6%10.6%7.8%19.7%14.6%
3 Year-67.0%-69.3%-8.0%-16.2%38.7%20.2%
5 Yearn/a-62.5%-73.7%50.6%17.1%

Price Volatility Vs. Market

How volatile is Palla Pharma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Palla Pharma 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: PAL (A$0.84) is trading below our estimate of fair value (A$1.74)

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


Price To Earnings Ratio

PE vs Industry: PAL is unprofitable, so we can't compare its PE Ratio to the 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 (1.5x) compared to the AU Life Sciences industry average (8.6x).


Next Steps

Future Growth

How is Palla Pharma forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

87.6%

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 (1.1%).

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 (16.9% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: PAL's revenue (16.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PAL's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Palla Pharma performed over the past 5 years?

18.9%

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, but has reduced losses over the past 5 years at a rate of 18.9% 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 (12.7%).


Return on Equity

High ROE: PAL has a negative Return on Equity (-15.45%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Palla Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: PAL's short term assets (A$47.7M) exceed its short term liabilities (A$14.5M).

Long Term Liabilities: PAL's short term assets (A$47.7M) exceed its long term liabilities (A$33.5M).


Debt to Equity History and Analysis

Debt Level: PAL's debt to equity ratio (68.2%) is considered high.

Reducing Debt: PAL's debt to equity ratio has reduced from 169.6% to 68.2% over the past 5 years.


Balance Sheet

Inventory Level: PAL has a high level of physical assets or inventory.

Debt Coverage by Assets: PAL's debt is covered by short term assets (assets are 1.5x 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: PAL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PAL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PAL'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 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?

3.7yrs

Average board tenure


CEO

Jarrod Ritchie 0

AU$904,475

Compensation

Mr. Jarrod Ritchie, BSc (Hons) serves as the Chief Executive Officer and Managing Director of TPI Enterprises Ltd. Mr. Ritchie founded TPI Enterprises Ltd in 2004 and has been its Executive Director since  ...


CEO Compensation Analysis

Compensation vs Market: Jarrod's total compensation ($USD600.14K) is above average for companies of similar size in the Australian market ($USD251.50K).

Compensation vs Earnings: Jarrod's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Jarrod Ritchie
Founder0yrsAU$904.48k1.68% A$1.8m
Simon Moore
Independent Non-Executive Chairman1.8yrsAU$111.04k2.4% A$2.6m
Susan MacLeman
Independent Non-Executive Director1.3yrsAU$5.31kno data
Todd Barlow
Non Executive Director4.7yrsAU$76.65kno data
Stuart Black
Independent Non-Executive Director3.7yrsAU$87.60k0.019% A$20.2k

3.7yrs

Average Tenure

52yo

Average Age

Experienced Board: PAL's board of directors are considered experienced (3.7 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

Palla Pharma Limited's company bio, 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$107.056m
  • Shares outstanding: 125.95m
  • Website: https://www.tpienterprises.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PALASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2015
PALCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2015

Biography

Palla Pharma Limited 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. The company was founded in 2004 and is based in Docklands, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 11:02
End of Day Share Price2020/02/24 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.