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Pro-Pac Packaging Limited (AU:PPG)
ASX:PPG
Australian Market

Pro-Pac Packaging Limited (PPG) AI Stock Analysis

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AU

Pro-Pac Packaging Limited

(Sydney:PPG)

Rating:40Underperform
Price Target:
AU$0.00
▼(-100.00%Downside)
Pro-Pac Packaging Limited's overall stock score is primarily driven by its poor financial performance and negative valuation metrics. Despite being in a competitive industry, the stock's technical indicators also suggest a lack of positive momentum, reinforcing the need for strategic changes to improve its financial health.

Pro-Pac Packaging Limited (PPG) vs. iShares MSCI Australia ETF (EWA)

Pro-Pac Packaging Limited Business Overview & Revenue Model

Company DescriptionPro-Pac Packaging Limited (PPG) is an Australian company specializing in the manufacture and distribution of a wide range of packaging solutions. The company operates across various sectors, including industrial, agricultural, and consumer markets, providing comprehensive packaging products and services. Its core offerings include flexible, rigid, and industrial packaging solutions designed to meet diverse customer needs.
How the Company Makes MoneyPro-Pac Packaging Limited makes money through the sale of its diverse range of packaging products and solutions. The company's revenue model is primarily based on manufacturing and distributing flexible and rigid packaging materials, as well as providing bespoke packaging solutions to a variety of industries. Key revenue streams include direct sales to businesses in sectors such as food and beverage, agriculture, and industrial manufacturing. Additionally, Pro-Pac Packaging benefits from strategic partnerships and a robust supply chain network, enabling it to offer competitive pricing and customized solutions, which further contribute to its earnings.

Pro-Pac Packaging Limited Financial Statement Overview

Summary
The financial performance of Pro-Pac Packaging Limited is weak, characterized by declining revenues, negative profitability margins, and increasing financial leverage. The negative cash flow further exacerbates the company's financial challenges.
Income Statement
35
Negative
Pro-Pac Packaging Limited has experienced a decline in total revenue from 2020 to 2024, with notable drops in gross profit margins and consistent net losses. The EBIT and EBITDA margins have been negative for the past few years, indicating operational challenges and profitability issues. The revenue growth rate is negative, suggesting the company is struggling to maintain its market position.
Balance Sheet
45
Neutral
The company has a moderate debt-to-equity ratio, which has increased over the years, indicating rising leverage. Return on equity is negative due to net losses, pointing to inefficiency in generating returns for shareholders. The equity ratio has declined, reflecting increased reliance on debt financing, which could pose risks if not managed effectively.
Cash Flow
40
Negative
Pro-Pac Packaging Limited's cash flow situation is concerning, with negative free cash flow and fluctuating operating cash flows. The free cash flow growth rate is negative, highlighting challenges in managing cash effectively. The operating and free cash flow to net income ratios indicate cash flow issues, exacerbated by consistent net losses.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue279.17M295.18M339.10M358.71M372.17M478.20M
Gross Profit69.44M127.99M48.63M46.24M68.72M80.02M
EBITDA-33.45M-21.30M11.65M-23.52M29.84M41.46M
Net Income-83.61M-53.76M-10.17M-39.93M7.84M6.64M
Balance Sheet
Total Assets208.18M237.34M289.85M315.89M388.43M384.51M
Cash, Cash Equivalents and Short-Term Investments2.75M3.80M8.32M1.32M7.88M21.38M
Total Debt78.08M70.05M52.81M66.45M119.56M125.18M
Total Liabilities162.59M156.24M154.07M199.20M243.48M244.96M
Stockholders Equity45.59M81.09M135.78M116.70M144.95M139.55M
Cash Flow
Free Cash Flow-10.72M-7.23M-10.72M-10.73M12.06M46.93M
Operating Cash Flow-3.43M4.58M-3.02M6.54M27.37M53.45M
Investing Cash Flow-3.18M-6.93M-206.00K33.24M-17.23M-7.09M
Financing Cash Flow4.76M-4.89M10.18M-46.42M-23.48M-48.03M

Pro-Pac Packaging Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.02
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
0.02
Negative
Market Momentum
MACD
<0.01
Negative
RSI
59.15
Neutral
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PPG, the sentiment is Neutral. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:PPG.

Pro-Pac Packaging Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUATP
81
Outperform
AU$71.94M3.0240.23%12.50%-18.16%-9.88%
AUORA
75
Outperform
$2.58B13.954.78%4.95%-13.90%0.56%
AUAMC
69
Neutral
AU$34.60B17.5720.24%5.32%-1.42%25.16%
AUPGH
63
Neutral
€275.43M9.175.38%-0.69%
62
Neutral
AU$2.85B27.305.13%5.36%2.35%-31.70%
AUPPG
40
Underperform
AU$3.09M-96.46%-11.30%-609.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PPG
Pro-Pac Packaging Limited
0.02
-0.11
-84.62%
AU:ORA
Orora
2.06
0.23
12.69%
AU:PGH
Pact Group Holdings
0.80
0.02
2.56%
AU:ATP
Atlas Pearls Ltd
0.16
0.08
100.00%
AU:AMC
Amcor PLC Shs Chess Depository Interests
15.14
1.64
12.15%

Pro-Pac Packaging Limited Corporate Events

Pro-Pac Packaging Limited Announces Cessation of Performance Rights
Jun 30, 2025

Pro-Pac Packaging Limited announced the cessation of 2,826,965 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may impact the company’s operational strategy and stakeholder interests by potentially altering the company’s equity structure and future incentive plans.

Pro-Pac Packaging Initiates Strategic Review for Enhanced Profitability
May 6, 2025

Pro-Pac Packaging Limited is undergoing a strategic review aimed at enhancing profitability, optimizing capital allocation, and evaluating funding arrangements. The company has engaged Flagstaff Partners to assist with this process, which could potentially involve the sale of certain assets, although no decisions have been made yet. This review is part of Pro-Pac’s efforts to strengthen its market position and ensure sustainable growth, with updates to be provided as necessary.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025