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PBP

ProbiotecASX:PBP Stock Report

Last Price

AU$2.36

Market Cap

AU$191.9m

7D

-0.8%

1Y

-1.7%

Updated

19 Jan, 2022

Data

Company Financials +
PBP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends2/6

PBP Stock Overview

Probiotec Limited engages in the development, manufacture, packing, and sale of pharmaceuticals, consumer health, and fast moving consumer products in Australia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Probiotec
Historical stock prices
Current Share PriceAU$2.36
52 Week HighAU$2.45
52 Week LowAU$1.92
Beta0.51
1 Month Change6.31%
3 Month Change9.77%
1 Year Change-1.67%
3 Year Change57.33%
5 Year Change337.04%
Change since IPO104.33%

Recent News & Updates

Shareholder Returns

PBPAU PharmaceuticalsAU Market
7D-0.8%-2.5%-1.7%
1Y-1.7%-12.9%7.7%

Return vs Industry: PBP exceeded the Australian Pharmaceuticals industry which returned -11% over the past year.

Return vs Market: PBP underperformed the Australian Market which returned 9.7% over the past year.

Price Volatility

Is PBP's price volatile compared to industry and market?
PBP volatility
PBP Average Weekly Movement4.0%
Pharmaceuticals Industry Average Movement8.3%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.3%
10% least volatile stocks in AU Market3.6%

Stable Share Price: PBP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PBP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996n/aWes Stringerhttps://www.probiotec.com.au

Probiotec Limited engages in the development, manufacture, packing, and sale of pharmaceuticals, consumer health, and fast moving consumer products in Australia and internationally. The company provides contract manufacturing services for solid dose tablets, capsules, and caplets; tablets coating; blister packing; liquids, creams, gels, ointments, and suspensions; powders and powder blending; and sprays, as well as manufactures and packages finished doses. It also offers analytical and stability testing services; new product formulation and production trials, and ongoing research and development services; and packaging options for human and animal nutrition products, as well as manufactures and exports a range of nutraceuticals and functional ingredient raw materials.

Probiotec Fundamentals Summary

How do Probiotec's earnings and revenue compare to its market cap?
PBP fundamental statistics
Market CapAU$191.92m
Earnings (TTM)AU$5.07m
Revenue (TTM)AU$120.51m

37.9x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PBP income statement (TTM)
RevenueAU$120.51m
Cost of RevenueAU$81.81m
Gross ProfitAU$38.70m
ExpensesAU$33.63m
EarningsAU$5.07m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.062
Gross Margin32.11%
Net Profit Margin4.21%
Debt/Equity Ratio72.8%

How did PBP perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

76%

Payout Ratio

Valuation

Is Probiotec 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: PBP (A$2.36) is trading below our estimate of fair value (A$30.24)

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


Price To Earnings Ratio

PE vs Industry: PBP is poor value based on its PE Ratio (37.9x) compared to the Global Pharmaceuticals industry average (24.4x).

PE vs Market: PBP is poor value based on its PE Ratio (37.9x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: PBP is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PBP is good value based on its PB Ratio (2.8x) compared to the AU Pharmaceuticals industry average (3x).


Future Growth

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

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBP's forecast earnings growth (27.3% per year) is above the savings rate (1.9%).

Earnings vs Market: PBP's earnings (27.3% per year) are forecast to grow faster than the Australian market (11.3% per year).

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

Revenue vs Market: PBP's revenue (12.7% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: PBP's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PBP's Return on Equity is forecast to be low in 3 years time (18.2%).


Past Performance

How has Probiotec performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBP has high quality earnings.

Growing Profit Margin: PBP's current net profit margins (4.2%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: PBP's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: PBP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PBP had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (16.3%).


Return on Equity

High ROE: PBP's Return on Equity (7.4%) is considered low.


Financial Health

How is Probiotec's financial position?


Financial Position Analysis

Short Term Liabilities: PBP's short term assets (A$67.8M) exceed its short term liabilities (A$44.4M).

Long Term Liabilities: PBP's short term assets (A$67.8M) do not cover its long term liabilities (A$117.8M).


Debt to Equity History and Analysis

Debt Level: PBP's net debt to equity ratio (31.4%) is considered satisfactory.

Reducing Debt: PBP's debt to equity ratio has increased from 13.2% to 72.8% over the past 5 years.

Debt Coverage: PBP's debt is well covered by operating cash flow (48.8%).

Interest Coverage: PBP's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

What is Probiotec current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PBP's dividend (2.12%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: PBP's dividend (2.12%) is low compared to the top 25% of dividend payers in the Australian market (5.36%).


Stability and Growth of Payments

Stable Dividend: PBP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PBP's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), PBP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PBP's dividends in 3 years are forecast to be well covered by earnings (44.7% payout ratio).


Next Steps

Management

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

1.6yrs

Average board tenure


CEO

Wes Stringer

6.5yrs

Tenure

AU$872,983

Compensation

Mr. Wesley Stringer, also known as Wes, B.Comm (Accounting, Finance), LLB (Hons), CPA, has been the Chief Executive Officer of Probiotec Limited since July 1, 2015 and serves as its managing Director. Mr....


CEO Compensation Analysis

Compensation vs Market: Wes's total compensation ($USD627.05K) is above average for companies of similar size in the Australian market ($USD290.45K).

Compensation vs Earnings: Wes's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

Experienced Board: PBP's board of directors are not considered experienced ( 1.6 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 diluted in the past year, with total shares outstanding growing by 3.6%.


Top Shareholders

Company Information

Probiotec Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Probiotec Limited
  • Ticker: PBP
  • Exchange: ASX
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: AU$191.923m
  • Shares outstanding: 81.32m
  • Website: https://www.probiotec.com.au

Location

  • Probiotec Limited
  • 83 Cherry Lane
  • Laverton North
  • Victoria
  • 3026
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 15:39
End of Day Share Price2022/01/19 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.