JSE:PPC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PPC is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PPC's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of ZA stocks.


Market Performance


7 Day Return

-6.2%

PPC

0.6%

ZA Basic Materials

-0.2%

ZA Market


1 Year Return

-74.8%

PPC

16.0%

ZA Basic Materials

-5.3%

ZA Market

Return vs Industry: PPC underperformed the ZA Basic Materials industry which returned 15% over the past year.

Return vs Market: PPC underperformed the ZA Market which returned -4% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day-6.2%0.6%-0.2%
30 Day43.4%18.3%8.2%
90 Day-7.3%31.9%4.0%
1 Year-74.8%-74.8%24.4%16.0%0.5%-5.3%
3 Year-89.2%-89.2%-10.6%-24.7%-2.0%-22.3%
5 Year-91.8%-94.6%15.3%-15.2%29.1%-7.6%

Long-Term 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

Valuation

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

0.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PPC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PPC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PPC is unprofitable, so we can't compare its PE Ratio to the XF Basic Materials industry average.

PE vs Market: PPC is unprofitable, so we can't compare its PE Ratio to the ZA market.


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 (0.1x) compared to the XF Basic Materials industry average (0.7x).


Next Steps

Future Growth

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

8.9%

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.


Next Steps

Past Performance

How has PPC performed over the past 5 years?

-66.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPC is currently unprofitable.

Growing Profit Margin: PPC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PPC is unprofitable, and losses have increased over the past 5 years at a rate of 66.7% per year.

Accelerating Growth: Unable to compare PPC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PPC is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (-7.9%).


Return on Equity

High ROE: PPC has a negative Return on Equity (-31.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is PPC's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets (ZAR3.4B) do not cover its short term liabilities (ZAR6.9B).

Long Term Liabilities: PPC's short term assets (ZAR3.4B) exceed its long term liabilities (ZAR2.6B).


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (77.1%) is considered high.

Reducing Debt: PPC's debt to equity ratio has reduced from 252.9% to 77.1% over the past 5 years.

Debt Coverage: PPC's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: PPC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

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?

2.8yrs

Average management tenure


CEO

Roland Wijnen

1.08yrs

Tenure

R10,429,000

Compensation

Mr. Roland Van Wijnen has been Chief Executive Officer of PPC Ltd since October 1, 2019 and also it's Director since 2019. He held various senior leadership and CEO roles across the Holcim group over a 17-...


CEO Compensation Analysis

Compensation vs Market: Roland's total compensation ($USD674.28K) is above average for companies of similar size in the ZA market ($USD309.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roland Wijnen
CEO & Executive Director1.08yrsR10.43m0.28%
ZAR 3.4m
Ronel van Dijk
CFO & Executive Director1yrR4.69mno data
Phindokuhle Mohlala
Group Human Resources Executive3.08yrsR3.00mno data
Mmakeaya Magoro Ramano
Consultant1.08yrsR10.58m0%
ZAR 0
Njombo Lekula
Managing Director of SA Cement & Materials5yrsR5.42m0%
ZAR 0
Anthony Ball
Executive Director2.67yrsR546.00kno data
Mokate Ramafoko
Managing Director of Rest of Africa Cement2.75yrsR4.53m0%
ZAR 0
Everhardus de Beer
Technical Executive4.67yrsR208.00kno data
F. Molefe
Chief Information Officerno dataR1.11mno data
Anashrin Pillay
Head of Investor Relations3.42yrsno datano data
Siobhan McCarthy
Group Manager of Corporate Affairsno datano datano data
Rob Rein
Sales & Marketing Executiveno dataR1.57mno data

2.8yrs

Average Tenure

48yo

Average Age

Experienced Management: PPC's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roland Wijnen
CEO & Executive Director1.08yrsR10.43m0.28%
ZAR 3.4m
Ronel van Dijk
CFO & Executive Director1yrR4.69mno data
Anthony Ball
Executive Director2.67yrsR546.00kno data
Mark Thompson
Independent Non-Executive Director1.5yrsR613.00kno data
Todd Moyo
Independent Non Executive Director7yrsR603.00kno data
Charles Naude
Independent Non-Executive Director5.83yrsR867.00kno data
Phillip Moleketi
Independent Chairman of the Board2.67yrsR1.32mno data
Nonkululeko Gobodo
Independent Non-Executive Director3.75yrsR857.00kno data
Mojankunyane Gumbi
Non-Executive Director2.58yrsR529.00kno data
Noluvuyo Mkhondo
Independent Non-Executive Director2.67yrsR775.00kno data

2.7yrs

Average Tenure

60yo

Average Age

Experienced Board: PPC's board of directors are not considered experienced ( 2.7 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

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


Key Information

  • Name: PPC Ltd
  • Ticker: PPC
  • Exchange: JSE
  • Founded: 1892
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: R1.223b
  • 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)SPON ADR EACH REP 2 ORDUSUSDMay 2008
OZVABST (Boerse-Stuttgart)SPON ADR EACH REP 2 ORDDEEURMay 2008

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 17:01
End of Day Share Price2020/12/01 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.