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PPC

PPCJSE:PPC Stock Report

Last Price

R4.35

Market Cap

R6.6b

7D

-19.4%

1Y

180.6%

Updated

25 Jan, 2022

Data

Company Financials
PPC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

PPC Stock Overview

PPC Ltd, together with its subsidiaries, manufactures, distributes, and supplies cement, aggregates, ready mix concrete, lime and limestone, and fly ash products in South Africa, Botswana, Mozambique, Zimbabwe, and Rwanda.

PPC Competitors

Sephaku Holdings

JSE:SEP

R450.4m

CRH

ISE:CRG

€33.1b

HeidelbergCement

XTRA:HEI

€11.8b

Dangote Cement

NGSE:DANGCEM

₦4.8t

Price History & Performance

Summary of all time highs, changes and price drops for PPC
Historical stock prices
Current Share PriceR4.35
52 Week HighR5.91
52 Week LowR1.48
Beta0.71
1 Month Change-14.37%
3 Month Change-20.04%
1 Year Change180.64%
3 Year Change-19.89%
5 Year Change-36.50%
Change since IPO8.75%

Recent News & Updates

Shareholder Returns

PPCZA Basic MaterialsZA Market
7D-19.4%1.5%-1.7%
1Y180.6%15.2%10.4%

Return vs Industry: PPC exceeded the ZA Basic Materials industry which returned 16.1% over the past year.

Return vs Market: PPC exceeded the ZA Market which returned 9.3% over the past year.

Price Volatility

Is PPC's price volatile compared to industry and market?
PPC volatility
PPC Average Weekly Movement7.1%
Basic Materials Industry Average Movement5.0%
Market Average Movement5.7%
10% most volatile stocks in ZA Market11.4%
10% least volatile stocks in ZA Market3.3%

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

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

About the Company

FoundedEmployeesCEOWebsite
1892n/aRoland van Wijnenhttps://www.ppc.co.za

PPC Ltd, together with its subsidiaries, manufactures, distributes, and supplies cement, aggregates, ready mix concrete, lime and limestone, and fly ash products in South Africa, Botswana, Mozambique, Zimbabwe, and Rwanda. It also offers stone, sand, road layer materials, burnt dolomite, dry mortar mix, and special aggregate-related products. The company was formerly known as Pretoria Portland Cement Company Limited and changed its name to PPC Ltd in October 2012.

PPC Fundamentals Summary

How do PPC's earnings and revenue compare to its market cap?
PPC fundamental statistics
Market CapR6.55b
Earnings (TTM)R1.88b
Revenue (TTM)R9.80b

3.5x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPC income statement (TTM)
RevenueR9.80b
Cost of RevenueR7.64b
Gross ProfitR2.16b
ExpensesR281.00m
EarningsR1.88b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.25
Gross Margin22.02%
Net Profit Margin19.15%
Debt/Equity Ratio30.2%

How did PPC perform over the long term?

See historical performance and comparison

Valuation

Is PPC 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: PPC (ZAR4.35) is trading below our estimate of fair value (ZAR12.68)

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


Price To Earnings Ratio

PE vs Industry: PPC is good value based on its PE Ratio (3.5x) compared to the African Basic Materials industry average (11.2x).

PE vs Market: PPC is good value based on its PE Ratio (3.5x) compared to the ZA market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PPC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PPC is good value based on its PB Ratio (0.8x) compared to the XF Basic Materials industry average (1.6x).


Future Growth

How is PPC forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PPC has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has PPC performed over the past 5 years?

52.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPC has a large one-off gain of ZAR1.5B impacting its September 30 2021 financial results.

Growing Profit Margin: PPC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PPC's earnings have grown significantly by 52.3% per year over the past 5 years.

Accelerating Growth: PPC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PPC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (54.2%).


Return on Equity

High ROE: PPC's Return on Equity (20.8%) is considered high.


Financial Health

How is PPC's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets (ZAR5.7B) do not cover its short term liabilities (ZAR5.8B).

Long Term Liabilities: PPC's short term assets (ZAR5.7B) exceed its long term liabilities (ZAR3.1B).


Debt to Equity History and Analysis

Debt Level: PPC's net debt to equity ratio (22.2%) is considered satisfactory.

Reducing Debt: PPC's debt to equity ratio has reduced from 158.2% to 30.2% over the past 5 years.

Debt Coverage: PPC's debt is well covered by operating cash flow (56.6%).

Interest Coverage: PPC's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PPC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PPC is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PPC's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Roland van Wijnen (50 yo)

2.25yrs

Tenure

R30,321,000

Compensation

Mr. Roland van Wijnen has been Chief Executive Officer of PPC Ltd since October 1, 2019 and has been its Executive Director since October 2019. He held various senior leadership and Chief Executive Officer...


CEO Compensation Analysis

Compensation vs Market: Roland's total compensation ($USD1.99M) is above average for companies of similar size in the ZA market ($USD715.09K).

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


Leadership Team

Experienced Management: PPC's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: PPC's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PPC 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

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


Key Information

  • Name: PPC Ltd
  • Ticker: PPC
  • Exchange: JSE
  • Founded: 1892
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: R6.555b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/25 21:36
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.