LSE:PZC

Stock Analysis Report

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Executive Summary

PZ Cussons Plc manufactures, distributes, markets, and sells personal care, home care, food and nutrition, and electrical products in Europe, the Americas, the Asia Pacific, and Africa. More Details


Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

PZC

-4.8%

GB Household Products

-5.1%

GB Market


1 Year Return

14.6%

PZC

-0.06%

GB Household Products

-20.0%

GB Market

Return vs Industry: PZC exceeded the UK Household Products industry which returned 0.8% over the past year.

Return vs Market: PZC exceeded the UK Market which returned -19.3% over the past year.


Shareholder returns

PZCIndustryMarket
7 Day-4.3%-4.8%-5.1%
30 Day-1.3%-9.5%-4.3%
90 Day21.8%-7.6%-4.5%
1 Year17.8%14.6%2.4%-0.06%-17.0%-20.0%
3 Year-21.4%-28.9%-5.7%-12.1%-13.6%-24.3%
5 Year-12.2%-24.5%8.8%-2.3%10.2%-14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PZC (£2.32) is trading above our estimate of fair value (£1.57)

Significantly Below Fair Value: PZC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PZC is poor value based on its PE Ratio (41.5x) compared to the XE Household Products industry average (18x).

PE vs Market: PZC is poor value based on its PE Ratio (41.5x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PZC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: PZC is overvalued based on its PB Ratio (2.5x) compared to the XE Household Products industry average (1.9x).


Next Steps

Future Growth

How is PZ Cussons forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZC's forecast earnings growth (21.5% per year) is above the savings rate (1.2%).

Earnings vs Market: PZC's earnings (21.5% per year) are forecast to grow slower than the UK market (23.8% per year).

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

Revenue vs Market: PZC's revenue (2.3% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: PZC's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PZC's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has PZ Cussons performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PZC has a large one-off loss of £47.4M impacting its May 31 2020 financial results.

Growing Profit Margin: PZC's current net profit margins (4%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: PZC's earnings have declined by 14.6% per year over the past 5 years.

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

Earnings vs Industry: PZC had negative earnings growth (-27.8%) over the past year, making it difficult to compare to the Household Products industry average (22.1%).


Return on Equity

High ROE: PZC's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is PZ Cussons's financial position?


Financial Position Analysis

Short Term Liabilities: PZC's short term assets (£318.5M) exceed its short term liabilities (£218.3M).

Long Term Liabilities: PZC's short term assets (£318.5M) exceed its long term liabilities (£214.4M).


Debt to Equity History and Analysis

Debt Level: PZC's debt to equity ratio (30.8%) is considered satisfactory.

Reducing Debt: PZC's debt to equity ratio has reduced from 53.9% to 30.8% over the past 5 years.

Debt Coverage: PZC's debt is well covered by operating cash flow (90.3%).

Interest Coverage: PZC's interest payments on its debt are well covered by EBIT (22.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PZC's dividend (2.5%) is higher than the bottom 25% of dividend payers in the UK market (1.87%).

High Dividend: PZC's dividend (2.5%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

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

Growing Dividend: PZC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.7%), PZC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PZC's dividends in 3 years are forecast to be well covered by earnings (44.1% payout ratio).


Next Steps

Management

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

2.4yrs

Average board tenure


CEO

Jonathan Myers (50 yo)

0.42

Tenure

UK£581,670

Compensation

Mr. Jonathan Myers has been Chief Executive Officer of and Director PZ Cussons Plc since May 1, 2020. He was Executive Vice President and Chief Operating Officer at Avon Products, Inc. since September 01, ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD753.60K) is below average for companies of similar size in the UK market ($USD1.72M).

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


Board Members

NamePositionTenureCompensationOwnership
Jonathan Myers
CEO & Director0.42yrUK£581.67kno data
Tamara Minick-Scokalo
Non-Executive Director (Leave of Absence)2.42yrsUK£23.79kno data
Jeremy Townsend
Non-Executive Director0.50yrUK£8.75kno data
Caroline Silver
Non-Executive Chair3.75yrsUK£295.81k0.010%
£ 98.6k
Helen Owers
Independent Non-Executive Director8.75yrsUK£65.44k0.00024%
£ 2.3k
John Ross Nicolson
Senior Independent Directorno dataUK£65.57kno data
A. Bashforth
Non-Executive Director0.92yrUK£31.04k0.0012%
£ 11.6k
Dariusz Kucz
Independent Non-Executive Director2.42yrsUK£61.73k0.0018%
£ 17.4k

2.4yrs

Average Tenure

57yo

Average Age

Experienced Board: PZC's board of directors are not considered experienced ( 2.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PZ Cussons Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PZ Cussons Plc
  • Ticker: PZC
  • Exchange: LSE
  • Founded: 1884
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£970.581m
  • Shares outstanding: 418.35m
  • Website: https://www.pzcussons.com

Number of Employees


Location

  • PZ Cussons Plc
  • Manchester Business Park
  • 3500 Aviator Way
  • Manchester
  • Greater Manchester
  • M22 5TG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PZCLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
PZCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
1ZQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
PZCU.YOTCPK (Pink Sheets LLC)ADSUSUSDMar 2011

Biography

PZ Cussons Plc manufactures, distributes, markets, and sells personal care, home care, food and nutrition, and electrical products in Europe, the Americas, the Asia Pacific, and Africa. The company offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 21:51
End of Day Share Price2020/10/30 00:00
Earnings2020/05/31
Annual Earnings2020/05/31


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.