Pro-Pac Packaging Limited (PPG) AI Stock Analysis

• Market Cap: AU$3.63M
• Dividend Yield: N/A
• Average Volume (3M): 236.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: -11.30%
• EPS Growth: -609.09%
• Country: AU
• Employees: 399
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Packaging & Containers
• EPS (TTM): -0.46
• Shares Outstanding: 181,687,710
• 10 Day Avg. Volume: 101,745
• 30 Day Avg. Volume: 236,776
• 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

Pro-Pac Packaging Limited faces significant financial and operational challenges, reflected in its poor financial performance and negative cash flow. The technical analysis suggests bearish momentum, and the valuation metrics indicate unattractiveness to investors. These factors contribute to a low overall stock score, highlighting the company's need for strategic improvements.

Pro-Pac Packaging Limited Business Overview & Revenue Model

Company Description

Pro-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 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
	EBIT
-18.95M	-19.67M	-8.24M	-7.46M	16.70M	19.74M
	EBITDA
-33.45M	-21.30M	11.65M	-23.52M	29.84M	41.46M
	Net Income Common Stockholders
-83.61M	-53.76M	-10.17M	-39.93M	7.84M	6.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.75M	3.80M	8.32M	1.32M	7.88M	21.38M
	Total Assets
208.18M	237.34M	289.85M	315.89M	388.43M	384.51M
	Total Debt
78.08M	70.05M	52.81M	66.45M	119.56M	125.18M
	Net Debt
77.45M	68.97M	44.49M	65.13M	111.67M	103.80M
	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: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PPG, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.80 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
ORA	69 Neutral	$2.45B	13.12	4.78%	5.90%	-13.90%	0.56%
AMC	68 Neutral	AU$32.73B	16.74	20.24%	5.45%	-1.42%	25.16%
CSL	64 Neutral	$113.86B	27.33	15.38%	1.85%	8.00%	9.09%
Sector *	61 Neutral	$6.92B	11.84	3.00%	3.95%	2.60%	-21.94%
PGH	57 Neutral	€285.76M	9.57	5.38%	―	-0.69%	―
VRS	47 Neutral	AU$22.38M	―		―	-5.87%	-750.00%
PPG	39 Underperform	AU$3.63M	―	-96.46%	―	-11.30%	-609.09%

Pro-Pac Packaging Limited Corporate Events

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.

Leaders on Demand Acquires Substantial Stake in Pro-Pac Packaging

Leaders on Demand Pty Ltd has become a substantial holder in Pro-Pac Packaging Limited, acquiring a 5.65% voting power through the purchase of 10,261,424 ordinary shares. This acquisition, completed on April 1, 2025, signifies a strategic investment in Pro-Pac Packaging, potentially impacting its market position and stakeholder interests.

Pro-Pac Packaging Director Acquires Significant Shares

Pro-Pac Packaging Limited announced a change in the director’s interest, with Mark Blackburn acquiring 9,084,386 ordinary shares through an off-market trade. This acquisition, valued at $45,421.92, reflects a significant increase in Blackburn’s indirect interest in the company, potentially impacting the company’s governance and shareholder dynamics.

Meb Pty Ltd Acquires Substantial Stake in Pro-Pac Packaging

Meb Pty Ltd, as trustee for the Meb Superannuation Fund, has become a substantial holder in Pro-Pac Packaging Limited, acquiring a 5% voting power through the purchase of 9,084,386 ordinary shares. This acquisition could impact Pro-Pac Packaging’s shareholder structure and influence its future strategic decisions.

Pro-Pac Packaging Limited Announces Director’s Share Acquisition

Pro-Pac Packaging Limited announced a change in the director’s interest, with John Joseph Cerini acquiring 9,084,386 ordinary shares and the lapsing of 5,942,857 performance rights. This off-market trade increases Cerini’s holdings to 10,097,695 ordinary shares, potentially impacting the company’s governance and signaling confidence in its future prospects.

Pro-Pac Packaging Announces Cessation of Performance Rights

Pro-Pac Packaging Limited announced the cessation of 6,104,635 performance rights due to unmet conditions as of March 31, 2025. This cessation may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic focus.

Pro-Pac Packaging Limited Appoints New Director

Pro-Pac Packaging Limited has announced the appointment of Gavin Black as a director effective March 31, 2025. This announcement, which includes the initial director’s interest notice, indicates that Gavin Black currently holds no relevant interests in securities or contracts related to the company. The appointment is a strategic move that could potentially impact the company’s governance and future direction, although no immediate implications for stakeholders are noted.

Pro-Pac Packaging Limited Announces Strategic Review and Board Changes

Pro-Pac Packaging Limited has announced an update to its strategic review following underperformance in the first quarter of 2025. The company has engaged Leaders on Demand, appointing David Hewish as Chief Transformation Officer to assist in implementing the review aimed at improving profitability and addressing funding requirements. Additionally, board changes include the appointment of Gavin Black as a non-executive director, and major shareholder Bennamon Pty Limited is supporting Pro-Pac by providing necessary funds and restructuring share ownership to align with the company’s long-term vision.

Pro-Pac Packaging Limited Releases FY25 Half-Year Results

Pro-Pac Packaging Limited has released its half-year results for FY25, highlighting the company’s financial performance and operational activities. The announcement provides insights into the company’s current market positioning and the challenges it faces, such as resin price fluctuations and labor pressures, which could impact future performance.

Pro-Pac Packaging Faces Revenue Decline Amid Challenging Market Conditions

Pro-Pac Packaging Limited reported a 10.1% decline in revenue for the first half of 2025, primarily due to a significant reduction in sales to a major customer in the Middle East and challenging market conditions affecting its Flexibles business. The company experienced a pre-tax loss of $12.8 million and an EBITDA loss of $6.4 million, prompting a strategic review to improve profitability and explore long-term funding solutions. Despite these challenges, the company received continued support from its major shareholder, who extended a $13.0 million facility.

Pro-Pac Packaging Reports Significant Financial Losses for H2 2024

Pro-Pac Packaging Limited reported a significant downturn in its financial performance for the half-year ended December 2024, with a 10.1% decline in revenue from continuing operations and a net loss of $36.781 million, marking an increase of over 100% in losses compared to the previous period. The company’s net tangible assets per ordinary security also decreased substantially, reflecting challenges in its operational efficiency and market positioning, which could have implications for its stakeholders.