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PPS

PraemiumASX:PPS Stock Report

Market Cap

AU$700.5m

7D

0.7%

1Y

94.4%

Updated

03 Dec, 2021

Data

Company Financials +
PPS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

PPS Stock Overview

Praemium Limited, together with its subsidiaries, provides managed accounts platform, investment management, portfolio administration, and reporting and financial planning software in Australia and internationally.

Praemium Competitors

Iress

ASX:IRE

AU$2.3b

Commonwealth Bank of Australia

ASX:CBA

AU$164.7b

Westpac Banking

ASX:WBC

AU$75.8b

Price History & Performance

Summary of all time highs, changes and price drops for Praemium
Historical stock prices
Current Share PriceAU$1.38
52 Week HighAU$1.61
52 Week LowAU$0.60
Beta1.71
1 Month Change-12.10%
3 Month Change16.95%
1 Year Change94.37%
3 Year Change100.00%
5 Year Change224.71%
Change since IPO181.63%

Recent News & Updates

Nov 06
These 4 Measures Indicate That Praemium (ASX:PPS) Is Using Debt Reasonably Well

These 4 Measures Indicate That Praemium (ASX:PPS) Is Using Debt Reasonably Well

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Oct 18
Is It Time To Consider Buying Praemium Limited (ASX:PPS)?

Is It Time To Consider Buying Praemium Limited (ASX:PPS)?

While Praemium Limited ( ASX:PPS ) might not be the most widely known stock at the moment, it led the ASX gainers with...

Shareholder Returns

PPSAU SoftwareAU Market
7D0.7%0.5%-0.7%
1Y94.4%16.2%9.8%

Return vs Industry: PPS exceeded the Australian Software industry which returned 16.2% over the past year.

Return vs Market: PPS exceeded the Australian Market which returned 9.8% over the past year.

Price Volatility

Is PPS's price volatile compared to industry and market?
PPS volatility
PPS Average Weekly Movement6.8%
Software Industry Average Movement8.6%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.7%
10% least volatile stocks in AU Market3.7%

Stable Share Price: PPS is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PPS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001n/aAnthony Wamstekerhttps://www.praemium.com.au

Praemium Limited, together with its subsidiaries, provides managed accounts platform, investment management, portfolio administration, and reporting and financial planning software in Australia and internationally. It offers managed accounts platform that enables advisers and wealth managers to construct the managed account solutions for their clients; virtual managed accounts (VMA) and VMA administration services; and WealthCraft, a CRM and financial planning software. The company also provides advice solutions comprising practice management, report building and plan generation, remuneration, lead generation, and client engagement services; and investments related products.

Praemium Fundamentals Summary

How do Praemium's earnings and revenue compare to its market cap?
PPS fundamental statistics
Market CapAU$700.46m
Earnings (TTM)AU$1.54m
Revenue (TTM)AU$64.87m

457.0x

P/E Ratio

10.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPS income statement (TTM)
RevenueAU$64.87m
Cost of RevenueAU$43.20m
Gross ProfitAU$21.67m
ExpensesAU$20.13m
EarningsAU$1.54m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.003
Gross Margin33.40%
Net Profit Margin2.37%
Debt/Equity Ratio17.0%

How did PPS perform over the long term?

See historical performance and comparison

Valuation

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

27.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPS (A$1.38) is trading below our estimate of fair value (A$1.89)

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


Price To Earnings Ratio

PE vs Industry: PPS is poor value based on its PE Ratio (457x) compared to the Australian Software industry average (40.7x).

PE vs Market: PPS is poor value based on its PE Ratio (457x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: PPS is poor value based on its PEG Ratio (11.3x)


Price to Book Ratio

PB vs Industry: PPS is overvalued based on its PB Ratio (8.7x) compared to the AU Software industry average (5.1x).


Future Growth

How is Praemium forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPS's forecast earnings growth (40.4% per year) is above the savings rate (1.9%).

Earnings vs Market: PPS's earnings (40.4% per year) are forecast to grow faster than the Australian market (11.8% per year).

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

Revenue vs Market: PPS's revenue (17.3% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: PPS's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPS's Return on Equity is forecast to be low in 3 years time (16.9%).


Past Performance

How has Praemium performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPS has a large one-off loss of A$3.4M impacting its June 30 2021 financial results.

Growing Profit Margin: PPS's current net profit margins (2.4%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: PPS's earnings have grown significantly by 44.3% per year over the past 5 years.

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

Earnings vs Industry: PPS had negative earnings growth (-68.4%) over the past year, making it difficult to compare to the Software industry average (28.9%).


Return on Equity

High ROE: PPS's Return on Equity (1.9%) is considered low.


Financial Health

How is Praemium's financial position?


Financial Position Analysis

Short Term Liabilities: PPS's short term assets (A$38.9M) exceed its short term liabilities (A$19.8M).

Long Term Liabilities: PPS's short term assets (A$38.9M) exceed its long term liabilities (A$11.9M).


Debt to Equity History and Analysis

Debt Level: PPS has more cash than its total debt.

Reducing Debt: Insufficient data to determine if PPS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PPS's debt is well covered by operating cash flow (43.4%).

Interest Coverage: PPS's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

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

0.63%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PPS'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 PPS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PPS'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 PPS'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?

8.1yrs

Average management tenure


CEO

Anthony Wamsteker

0.58

Tenure

AU$865,332

Compensation

Mr. Anthony Stewart Wamsteker, BEc, SF Fin, serves as Executive Director at Praemium Limited since November 23, 2020 and served as its Interim Chief Executive Officer since May 20, 2021 until August 16, 20...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD614.67K) is about average for companies of similar size in the Australian market ($USD774.87K).

Compensation vs Earnings: Insufficient data to compare Anthony's compensation with company performance.


Leadership Team

Experienced Management: PPS's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: PPS's board of directors are considered experienced (4.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Praemium Limited
  • Ticker: PPS
  • Exchange: ASX
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$700.463m
  • Shares outstanding: 507.58m
  • Website: https://www.praemium.com.au

Number of Employees


Location

  • Praemium Limited
  • 367 Collins Street
  • Level 19
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 16:03
End of Day Share Price2021/12/03 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.