ASX:PBP

Stock Analysis Report

Executive Summary

Probiotec Limited manufactures, markets, and distributes a range of prescription and over-the-counter pharmaceuticals, complementary medicines, and specialty ingredients in Australia and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

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

4.7%

PBP

20.2%

AU Pharmaceuticals

7.1%

AU Market


1 Year Return

18.6%

PBP

-35.4%

AU Pharmaceuticals

-19.4%

AU Market

Return vs Industry: PBP exceeded the Australian Pharmaceuticals industry which returned -35.9% over the past year.

Return vs Market: PBP exceeded the Australian Market which returned -18.8% over the past year.


Shareholder returns

PBPIndustryMarket
7 Day4.7%20.2%7.1%
30 Day-11.2%-24.1%-21.3%
90 Day-2.6%-34.4%-24.8%
1 Year20.9%18.6%-35.3%-35.4%-15.8%-19.4%
3 Year364.4%315.2%-60.7%-60.9%-2.4%-15.8%
5 Year1211.6%1023.5%-46.5%-49.4%8.4%-16.0%

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?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PBP (A$2.02) is trading below our estimate of fair value (A$2.87)

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 (26.7x) compared to the Pharmaceuticals industry average (17.7x).

PE vs Market: PBP is poor value based on its PE Ratio (26.7x) compared to the Australian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: PBP is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: PBP is overvalued based on its PB Ratio (2.6x) compared to the AU Pharmaceuticals industry average (2x).


Next Steps

Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBP's forecast earnings growth (21.5% per year) is above the savings rate (1.1%).

Earnings vs Market: PBP's earnings (21.5% per year) are forecast to grow faster than the Australian market (9.7% per year).

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

Revenue vs Market: PBP's revenue (14.8% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: PBP's revenue (14.8% 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?

34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBP has high quality earnings.

Growing Profit Margin: PBP's current net profit margins (5.3%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: PBP has become profitable over the past 5 years, growing earnings by 34.2% per year.

Accelerating Growth: PBP's earnings growth over the past year (24.7%) is below its 5-year average (34.2% per year).

Earnings vs Industry: PBP earnings growth over the past year (24.7%) exceeded the Pharmaceuticals industry 11.7%.


Return on Equity

High ROE: PBP's Return on Equity (8.1%) 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$40.0M) exceed its short term liabilities (A$22.7M).

Long Term Liabilities: PBP's short term assets (A$40.0M) do not cover its long term liabilities (A$48.8M).


Debt to Equity History and Analysis

Debt Level: PBP's debt to equity ratio (20.6%) is considered satisfactory.

Reducing Debt: PBP's debt to equity ratio has reduced from 32.1% to 20.6% over the past 5 years.

Debt Coverage: PBP's debt is well covered by operating cash flow (67.1%).

Interest Coverage: PBP's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: PBP's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

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

2.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PBP's dividend (1.98%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (3.22%).

High Dividend: PBP's dividend (1.98%) is low compared to the top 25% of dividend payers in the Australian market (8.38%).


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 reasonable payout ratio (52.9%), PBP's dividend 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 (47.9% payout ratio).


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Wes Stringer

4.75s

Tenure

AU$439,858

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 ($USD270.93K) is about average for companies of similar size in the Australian market ($USD245.57K).

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


Board Members

NamePositionTenureCompensationOwnership
Wesley Stringer
CEO, MD & Executive Director4.75yrsAU$439.86k6.59% A$10.0m
Alexander Damien Beard
Non-Executive Director2.42yrsAU$48.00k0.24% A$362.7k
Gregory Lan
Non-Executive Director3.17yrsAU$48.00k0.13% A$202.3k
Geoffrey Pearce
Chairman3.42yrsAU$75.00k3.92% A$5.9m

3.3yrs

Average Tenure

Experienced Board: PBP's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PBP insiders have only sold shares 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

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


Key Information

  • Name: Probiotec Limited
  • Ticker: PBP
  • Exchange: ASX
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$151.053m
  • 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 manufactures, markets, and distributes a range of prescription and over-the-counter pharmaceuticals, complementary medicines, and specialty ingredients in Australia and internationally. The company is involved in the contract manufacturing of solid dose tablets, capsules, and caplets; liquids, powders, creams and ointments, and lotions and gels; and tablet coatings. It also provides packaging options, including blister packs, bottles, sachets, tubs, and tubes; 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 Limited was founded in 1997 and is headquartered in Laverton North, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 10:35
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.