ASX:PBP

Stock Analysis Report

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Executive Summary

Probiotec Limited engages in the development, manufacture and sale of pharmaceuticals, consumer health, and nutraceutical products in Australia and internationally. More Details


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PBP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

PBP

-2.8%

AU Pharmaceuticals

1.2%

AU Market


1 Year Return

-5.1%

PBP

-27.7%

AU Pharmaceuticals

-10.3%

AU Market

Return vs Industry: PBP exceeded the Australian Pharmaceuticals industry which returned -26.4% over the past year.

Return vs Market: PBP exceeded the Australian Market which returned -11.1% over the past year.


Shareholder returns

PBPIndustryMarket
7 Day-3.8%-2.8%1.2%
30 Day-17.2%-0.2%-2.3%
90 Day-6.3%0.9%3.0%
1 Year-3.2%-5.1%-27.6%-27.7%-7.1%-10.3%
3 Year244.4%217.9%-26.7%-28.0%18.6%3.4%
5 Year699.2%584.6%-28.8%-32.7%46.1%15.4%

Price Volatility Vs. Market

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


Simply Wall St News

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$1.78) is trading below our estimate of fair value (A$3.58)

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


Price To Earnings Ratio

PE vs Industry: PBP is good value based on its PE Ratio (19.5x) compared to the XO Pharmaceuticals industry average (48.6x).

PE vs Market: PBP is good value based on its PE Ratio (19.5x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: PBP is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PBP is good value based on its PB Ratio (2.2x) compared to the AU Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

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

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBP's forecast earnings growth (17.4% per year) is above the savings rate (2.3%).

Earnings vs Market: PBP's earnings (17.4% per year) are forecast to grow slower than the Australian market (18% per year).

High Growth Earnings: PBP's earnings are forecast to grow, but not significantly.

Revenue vs Market: PBP's revenue (13.5% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: PBP's revenue (13.5% 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 (14.7%).


Next Steps

Past Performance

How has Probiotec performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBP has high quality earnings.

Growing Profit Margin: PBP's current net profit margins (6%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: PBP's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: PBP's earnings growth over the past year (71.9%) exceeds its 5-year average (29.4% per year).

Earnings vs Industry: PBP earnings growth over the past year (71.9%) underperformed the Pharmaceuticals industry 117.8%.


Return on Equity

High ROE: PBP's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Probiotec's financial position?


Financial Position Analysis

Short Term Liabilities: PBP's short term assets (A$46.2M) exceed its short term liabilities (A$25.7M).

Long Term Liabilities: PBP's short term assets (A$46.2M) do not cover its long term liabilities (A$47.9M).


Debt to Equity History and Analysis

Debt Level: PBP's debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: PBP's debt to equity ratio has reduced from 29.4% to 18.7% over the past 5 years.

Debt Coverage: PBP's debt is well covered by operating cash flow (90%).

Interest Coverage: PBP's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PBP's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: PBP's dividend (2.53%) is low compared to the top 25% of dividend payers in the Australian market (5.67%).


Stability and Growth of Payments

Stable Dividend: PBP's dividend payments have been volatile in the past 10 years.

Growing Dividend: PBP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.2%), PBP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PBP's dividends in 3 years are forecast to be well covered by earnings (45.4% payout ratio).


Next Steps

Management

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

1.9yrs

Average board tenure


CEO

Wes Stringer

5.17yrs

Tenure

AU$535,288

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 ($USD375.51K) is above average for companies of similar size in the Australian market ($USD279.49K).

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


Board Members

NamePositionTenureCompensationOwnership
Wesley Stringer
CEO, MD & Executive Director5.17yrsAU$535.29k6.59%
A$ 8.8m
Alexander Damien Beard
Independent Chairman0.17yrAU$53.33k0.24%
A$ 319.6k
Gregory Lan
Independent Non-Executive Director3.58yrsAU$54.67k0.15%
A$ 202.5k
Jonathan Wenig
Non-Executive Director0.25yrAU$4.83k0.064%
A$ 84.5k

1.9yrs

Average Tenure

Experienced Board: PBP's board of directors are not considered experienced ( 1.9 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 24.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Probiotec Limited
  • Ticker: PBP
  • Exchange: ASX
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$133.106m
  • Shares outstanding: 74.78m
  • Website: https://www.probiotec.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2006
PBPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2006

Biography

Probiotec Limited engages in the development, manufacture and sale of pharmaceuticals, consumer health, and nutraceutical products in Australia and internationally. The company provides contract manufactur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 19:59
End of Day Share Price2020/09/25 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.