Pro-Pac Packaging Limited (PPG) AI Stock Analysis

• Market Cap: AU$3.09M
• Dividend Yield: N/A
• Average Volume (3M): 68.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: -11.30%
• EPS Growth: -609.09%
• Country: AU
• Employees: 399
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Packaging & Containers
• EPS (TTM): -0.20
• Shares Outstanding: 181,687,710
• 10 Day Avg. Volume: 80,926
• 30 Day Avg. Volume: 68,951
• PEG Ratio: <0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• 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 Business Overview & Revenue Model

Company Description

Pro-Pac Packaging Limited, together with its subsidiaries, manufactures and distributes flexible, industrial, and rigid packaging products in Australia and New Zealand. It operates through Flexibles and Industrial segments. The Flexibles segment manufactures flexible packaging materials products, such as stretch and shrink wrap, agricultural silage packaging, fresh produce bags, barrier and lidding films, and industrial protective films. The Industrial segment sources and distributes industrial packaging materials and related consumer products. It offers corrugated cartons, flexible films, plastic bottles, lids and closures, food processing products, packaging supplies and consumables, machinery and machine service, industrial and protective packaging products, strapping and wrapping machines, stretch and pallet wrapping machines, safety and PPE products, gloves, and washroom and janitorial products. The company also provides void fill solutions; bags and liners; cleaning supplies; and labels and signs. It supplies a range of products and services to produce, food and food processing, and warehousing and logistics, as well as agricultural, industrial, and commercial markets; and retail and FMCG markets. Pro-Pac Packaging Limited was founded in 1987 and is based in Reservoir, Australia.

How the Company Makes Money

Pro-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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	279.17M	295.18M	339.10M	358.71M	372.17M	478.20M
Gross Profit	69.44M	127.99M	48.63M	46.24M	68.72M	80.02M
EBITDA	-33.45M	-21.30M	11.65M	-23.52M	29.84M	41.46M
Net Income	-83.61M	-53.76M	-10.17M	-39.93M	7.84M	6.64M
Balance Sheet
Total Assets	208.18M	237.34M	289.85M	315.89M	388.43M	384.51M
Cash, Cash Equivalents and Short-Term Investments	2.75M	3.80M	8.32M	1.32M	7.88M	21.38M
Total Debt	78.08M	70.05M	52.81M	66.45M	119.56M	125.18M
Total Liabilities	162.59M	156.24M	154.07M	199.20M	243.48M	244.96M
Stockholders Equity	45.59M	81.09M	135.78M	116.70M	144.95M	139.55M
Cash Flow
Free Cash Flow	-10.72M	-7.23M	-10.72M	-10.73M	12.06M	46.93M
Operating Cash Flow	-3.43M	4.58M	-3.02M	6.54M	27.37M	53.45M
Investing Cash Flow	-3.18M	-6.93M	-206.00K	33.24M	-17.23M	-7.09M
Financing Cash Flow	4.76M	-4.89M	10.18M	-46.42M	-23.48M	-48.03M

Pro-Pac Packaging Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	€20.32B	9.51	7.83%	3.45%	0.45%	-40.36%
PPG	42 Neutral	AU$3.09M	―	-96.46%	―	-11.30%	-609.09%
ORRAF		$1.64B	11.73	4.78%	5.54%	―	―
27P		€142.25M	7.07	5.38%	―	―	―
ATP	84 Outperform	AU$71.94M	3.02	40.23%	12.12%	-18.16%	-9.88%
MCO		AU$7.22M	―	-57.29%	―	―	―
AMC	69 Neutral	AU$34.29B	17.56	20.24%	5.35%	-1.42%	25.16%

Pro-Pac Packaging Limited Corporate Events

Pro-Pac Packaging Limited Announces Cessation of Performance Rights

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

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.