LSE:PZC

Stock Analysis Report

Executive Summary

PZ Cussons Plc manufactures and distributes personal care, home care, food and nutrition, and electrical products worldwide.


Snowflake Analysis

Adequate balance sheet average dividend payer.

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

-7.1%

PZC

2.8%

GB Household Products

-3.3%

GB Market


1 Year Return

-5.5%

PZC

-7.9%

GB Household Products

-25.0%

GB Market

Return vs Industry: PZC exceeded the UK Household Products industry which returned -7.9% over the past year.

Return vs Market: PZC exceeded the UK Market which returned -25% over the past year.


Shareholder returns

PZCIndustryMarket
7 Day-7.1%2.8%-3.3%
30 Day-5.5%-2.7%-19.5%
90 Day-13.5%-9.8%-28.9%
1 Year-1.5%-5.5%-5.6%-7.9%-21.0%-25.0%
3 Year-37.9%-44.0%-23.9%-28.7%-14.7%-25.8%
5 Year-39.2%-47.9%-9.0%-17.6%-1.5%-24.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PZC (£1.8) is trading below our estimate of fair value (£4.38)

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


Price To Earnings Ratio

PE vs Industry: PZC is good value based on its PE Ratio (20.3x) compared to the Household Products industry average (20.7x).

PE vs Market: PZC is poor value based on its PE Ratio (20.3x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: PZC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: PZC is overvalued based on its PB Ratio (1.8x) compared to the XE Household Products industry average (1.7x).


Next Steps

Future Growth

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

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PZC's forecast earnings growth (10.3% per year) is above the savings rate (0.5%).

Earnings vs Market: PZC's earnings (10.3% per year) are forecast to grow slower than the UK market (15.6% per year).

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

Revenue vs Market: PZC's revenue (0.8% per year) is forecast to grow slower than the UK market (2.4% per year).

High Growth Revenue: PZC's revenue (0.8% 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 (11.3%).


Next Steps

Past Performance

How has PZ Cussons performed over the past 5 years?

-15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PZC has a large one-off loss of £33.1M impacting its November 30 2019 financial results.

Growing Profit Margin: PZC's current net profit margins (5.5%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: PZC's earnings have declined by -15.3% 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 (-2.6%) over the past year, making it difficult to compare to the Household Products industry average (8.3%).


Return on Equity

High ROE: PZC's Return on Equity (8.2%) 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 (£311.7M) exceed its short term liabilities (£183.0M).

Long Term Liabilities: PZC's short term assets (£311.7M) exceed its long term liabilities (£266.4M).


Debt to Equity History and Analysis

Debt Level: PZC's debt to equity ratio (40.7%) is considered high.

Reducing Debt: PZC's debt to equity ratio has increased from 36% to 40.7% over the past 5 years.

Debt Coverage: PZC's debt is well covered by operating cash flow (27.7%).

Interest Coverage: PZC's interest payments on its debt are well covered by EBIT (16.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: PZC's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

4.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PZC's dividend (4.59%) is higher than the bottom 25% of dividend payers in the UK market (2.67%).

High Dividend: PZC's dividend (4.59%) is low compared to the top 25% of dividend payers in the UK market (7.36%).


Stability and Growth of Payments

Stable Dividend: PZC's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.1%), 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 covered by earnings (69.2% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

G. Kanellis (54yo)

13.83s

Tenure

UK£802,335

Compensation

Mr. G. Alex Kanellis serves as Group Chief Executive Officer of PZ Cussons plc since June 1, 2006 and serves as Group Chief Executive Officer at PZ Cussons Nigeria Plc since June 1, 2006. Mr. Kanellis serv ...


CEO Compensation Analysis

Compensation vs Market: G.'s total compensation ($USD995.56K) is about average for companies of similar size in the UK market ($USD1.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Caroline Silver
Executive Chairman3.25yrsUK£255.20k0.0072% £54.1k
G. Kanellis
Group Chief Executive Officer13.83yrsUK£802.34k0.17% £1.3m
Alan Bergin
Interim CFO & Commercial Finance Director0.83yrno datano data
Jola Gillespie
Chief Information Officerno datano datano data
Cathy Doyle-Heffernan
Group Human Resources Directorno datano datano data
Christos Giannopoulos
Chief Executive Officer of PZ Cussons Africano datano datano data
Sam. Plant
Corporate Services Director & Company Secretaryno datano datano data
C. Nicoloulias
Regional Director of Pacificno dataUK£486.60kno data

0.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: PZC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Caroline Silver
Executive Chairman3.25yrsUK£255.20k0.0072% £54.1k
Jeremy Maiden
Non-Executive Director3.42yrsUK£64.59k0.00024% £1.8k
Helen Owers
Non-Executive Director8.25yrsUK£65.94k0.00024% £1.8k
John Ross Nicolson
Senior Independent Directorno dataUK£67.34kno data
Paul Grimwood
Non-Executive Director0.42yrno datano data
A. Bashforth
Non-Executive Director0.42yrno datano data
Dariusz Kucz
Non-Executive Director1.92yrsUK£59.45k0.0018% £13.5k

2.6yrs

Average Tenure

57yo

Average Age

Experienced Board: PZC's board of directors are not considered experienced ( 2.6 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.


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: 1879
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£754.686m
  • Shares outstanding: 418.34m
  • 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
PZCU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 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 and distributes personal care, home care, food and nutrition, and electrical products worldwide. It offers personal care products, including bar soaps, liquid hand washes, shower gels, and skincare and haircare products under the St.Tropez, Sanctuary Spa, and Being by Sanctuary Spa brands; dish care products under the Morning Fresh brand name, as well as beauty care products; and laundry soaps, and bulk and packaged washing powders under the Canoe, Zip, and Tempo brands, as well as fragrances. The company also provides dairy products, such as organic yoghurts, and granolas and smoothies under the Nunu and Olympic brands; cooking oils under the brands of Mamador and Devon King’s; edible oils, spreads, vinegars, and cheeses under the Minerva brand name; and baby foods comprising snacks under the Rafferty’s Garden brand name. In addition, it offers computing and mobile products, televisions, DVD players, home entertainment systems, refrigerators, freezers, air conditioners, generators, inverters, stabilizers, automatic voltage regulators, fans, air coolers, washing machines, water dispensers, water heaters, gas cookers, and microwaves under the Haier Thermocool brand, as well as pharmaceuticals and fats. The company was formerly known as Paterson Zochonis Plc and changed its name to PZ Cussons Plc in 2002. PZ Cussons Plc was founded in 1879 and is headquartered in Manchester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 22:20
End of Day Share Price2020/04/02 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.