DB:OZV2

Stock Analysis Report

Executive Summary

PPC Ltd, together with its subsidiaries, manufactures and sells cement, aggregates, readymix, lime and limestone, and fly ash products in South Africa, Botswana, Mozambique, Zimbabwe, Rwanda, and the Democratic Republic of the Congo.

Snowflake

Fundamentals

Good value with reasonable growth potential.

Risks

  • PPC has significant price volatility in the past 3 months.
  • PPC is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.7%

DB:OZV2

0.6%

DE Basic Materials

0.8%

DE Market


1 Year Return

-32.3%

DB:OZV2

-8.0%

DE Basic Materials

-10.9%

DE Market

OZV2 underperformed the Basic Materials industry which returned -8% over the past year.

OZV2 underperformed the Market in Germany which returned -10.9% over the past year.


Share holder returns

OZV2IndustryMarket
7 Day-5.7%0.6%0.8%
30 Day-17.4%-6.8%-5.0%
90 Day-24.4%-4.5%-2.9%
1 Year-32.3%-32.3%-5.1%-8.0%-8.1%-10.9%
3 Year-31.3%-54.3%-3.1%-10.9%10.4%0.9%
5 Year-82.7%-89.2%10.9%-3.2%25.5%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is PPC undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

PPC's share price is below the future cash flow value, and at a moderate discount (> 20%).

PPC's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

PPC is overvalued based on earnings compared to the Europe Basic Materials industry average.

PPC is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

PPC is good value based on expected growth next year.


Price Based on Value of Assets

PPC is good value based on assets compared to the Europe Basic Materials industry average.


Next Steps

Future Growth

How is PPC expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

48.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PPC's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

PPC's earnings are expected to grow significantly at over 20% yearly.

PPC's revenue growth is expected to exceed the Germany market average.

PPC's earnings growth is expected to exceed the Germany market average.

PPC's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

PPC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PPC performed over the past 5 years?

-37.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PPC's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

PPC's 1-year earnings growth exceeds its 5-year average (57.7% vs -37.4%)

PPC's earnings growth has exceeded the Europe Basic Materials industry average in the past year (57.7% vs 17.8%).


Return on Equity

PPC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PPC used its assets less efficiently than the Europe Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

PPC's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PPC's financial position?


Financial Position Analysis

PPC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

PPC's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

PPC's level of debt (53.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (281.4% vs 53.5% today).

Debt is well covered by operating cash flow (25.1%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

12.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate PPC's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate PPC's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as PPC has not reported any payouts.

Unable to verify if PPC's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as PPC has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of PPC's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Johannes Claassen (59yo)

2.1yrs

Tenure

SAR6,978,000

Compensation

Mr. Johannes Theodorus Claassen, B.Eng (Mech), Pr Eng, has been Executive Director of PPC Ltd since July 24, 2017 and has been its Chief Executive Officer since February 14, 2018. Mr. Claassen served as In ...


CEO Compensation Analysis

Johannes's remuneration is lower than average for companies of similar size in Germany.

Johannes's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

48.5yo

Average Age

The tenure for the PPC management team is about average.


Board Age and Tenure

1.8yrs

Average Tenure

59.5yo

Average Age

The average tenure for the PPC board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuySAR894,30123 Aug 19
Value Capital Partners
EntityCompany
Shares3,567,792
Max PriceSAR0.25
BuySAR89,19006 Aug 19
Value Capital Partners
EntityCompany
Shares304,535
Max PriceSAR0.30
BuySAR134,45601 Aug 19
Value Capital Partners
EntityCompany
Shares432,623
Max PriceSAR0.31
BuySAR742,17329 Jul 19
Value Capital Partners
EntityCompany
Shares2,466,705
Max PriceSAR0.30
BuySAR1,641,03424 Jul 19
Value Capital Partners
EntityCompany
Shares5,359,805
Max PriceSAR0.32
BuySAR233,72712 Jul 19
Value Capital Partners
EntityCompany
Shares741,527
Max PriceSAR0.32
BuySAR1,321,55003 Jul 19
Value Capital Partners
EntityCompany
Shares4,488,169
Max PriceSAR0.31
SellSAR17,15103 Dec 18
Mmakeaya Magoro Ramano
EntityIndividual
Role
Member of the Board of Directors
CFO, Financial Director & Executive Director
Shares50,000
Max PriceSAR0.34
SellSAR46,75226 Sep 18
Johannes Claassen
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares120,000
Max PriceSAR0.39

Ownership Breakdown


Management Team

  • Johannes Claassen (59yo)

    CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: SAR6.98m
  • Mmakeaya Magoro Ramano (47yo)

    CFO, Financial Director & Executive Director

    • Tenure: 8.0yrs
    • Compensation: SAR5.03m
  • Anashrin Pillay

    Head of Investor Relations

    • Tenure: 2.2yrs
  • F. Molefe (46yo)

    Chief Information Officer

    • Tenure: 0.0yrs
    • Compensation: SAR1.11m
  • Njombo Lekula (50yo)

    Managing Director of SA Cement & Materials

    • Tenure: 3.8yrs
    • Compensation: SAR7.25m
  • Rob Rein (42yo)

    Sales & Marketing Executive

    • Tenure: 0.0yrs
    • Compensation: SAR1.57m
  • Hardie de Beer (53yo)

    Technical Executive

    • Tenure: 3.4yrs
    • Compensation: SAR208.00k
  • Siobhan McCarthy

    Group Manager of Corporate Affairs

    • Tenure: 0.0yrs
  • Mokate Ramafoko (45yo)

    Managing Director of Rest of Africa Cement

    • Tenure: 1.5yrs
    • Compensation: SAR6.13m
  • Phindokuhle Mohlala (51yo)

    Group Human Resources Executive

    • Tenure: 0.0yrs

Board Members

  • Mark Thompson (67yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Johannes Claassen (59yo)

    CEO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: SAR6.98m
  • Todd Moyo (61yo)

    Independent Non Executive Director

    • Tenure: 5.8yrs
    • Compensation: SAR804.00k
  • Charles Naude (61yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: SAR821.00k
  • Jabu Moleketi (62yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: SAR1.43m
  • Mmakeaya Magoro Ramano (47yo)

    CFO, Financial Director & Executive Director

    • Tenure: 8.0yrs
    • Compensation: SAR5.03m
  • Nonku Gobodo (59yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: SAR1.00m
  • Mojanku Gumbi (59yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: SAR433.00k
  • Noluvuyo Mkhondo (35yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: SAR729.00k
  • Anthony Ball (60yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: SAR410.00k

Company Information

PPC Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PPC Ltd
  • Ticker: OZV2
  • Exchange: DB
  • Founded: 1892
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: SAR6.595b
  • Listing Market Cap: SAR389.995m
  • Shares outstanding: 1.51b
  • Website: https://www.ppc.co.za

Number of Employees


Location

  • PPC Ltd
  • 148 Katherine Street
  • Cnr Grayston Drive
  • Johannesburg
  • Gauteng
  • 2146
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPCJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
OZV2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
PPCZMSE (Zimbabwe Stock Exchange)YesOrdinary SharesZWZWLJan 1992
PPCL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMay 2008

Biography

PPC Ltd, together with its subsidiaries, manufactures and sells cement, aggregates, readymix, lime and limestone, and fly ash products in South Africa, Botswana, Mozambique, Zimbabwe, Rwanda, and the Democ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 21:13
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.