Pro-Pac Packaging Limited (PPG) AI Stock Analysis

• Market Cap: AU$3.27M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -11.30%
• EPS Growth: -609.09%
• Country: AU
• Employees: 399
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): N/A
• Shares Outstanding: 181,687,710
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -3.52
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.02 ▼(-15.00% Downside)

The overall stock score reflects significant financial performance challenges, negative valuation metrics, and moderate technical analysis indicators. The company's negative profitability and lack of dividend yield are the most impactful factors, with technical analysis offering some positive momentum, though offset by overvaluation concerns.

Positive Factors

Revenue Growth

The slight increase in revenue indicates potential stabilization in the company's financial performance, suggesting a possible turnaround in its market position.

Strategic Review

The strategic review could lead to improved profitability and market position, as it focuses on optimizing capital allocation and evaluating funding arrangements.

Government Grant

The government grant for the recycling plant project provides financial support and aligns with sustainable practices, potentially enhancing long-term growth.

Negative Factors

Rising Debt Levels

Increasing reliance on debt financing could strain financial flexibility and pose risks if not managed effectively, impacting long-term stability.

Declining Revenue

The consistent decline in revenue over several years indicates challenges in maintaining market position and competitiveness, affecting long-term growth prospects.

Negative Cash Flow

Negative free cash flow highlights difficulties in managing cash effectively, which could limit the company's ability to invest in growth and sustain operations long-term.

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 primarily through the sale of its packaging products and solutions. The company's revenue streams include the manufacturing and distribution of custom packaging products tailored to specific industry requirements. PPG leverages its extensive distribution network to reach a broad customer base across different sectors. Additionally, the company engages in strategic partnerships with suppliers and manufacturers to enhance its product offerings and maintain competitive pricing. The combination of diverse product offerings, industry-specific solutions, and a wide distribution network is key to PPG's revenue generation.

Pro-Pac Packaging Limited Financial Statement Overview

Summary

Pro-Pac Packaging Limited exhibits concerning financial health with declining revenues, consistent net losses, and increased financial leverage. The negative EBIT and EBITDA margins highlight significant operational 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	295.18M	339.10M	358.71M	372.17M	478.20M
Gross Profit	127.99M	48.63M	46.24M	68.72M	80.02M
EBITDA	-21.30M	9.23M	-23.52M	29.84M	41.46M
Net Income	-53.76M	-10.17M	-39.93M	7.84M	6.64M
Balance Sheet
Total Assets	237.34M	289.85M	315.89M	388.43M	384.51M
Cash, Cash Equivalents and Short-Term Investments	3.80M	8.32M	1.32M	7.88M	21.38M
Total Debt	70.05M	52.81M	66.45M	119.56M	125.18M
Total Liabilities	156.24M	154.07M	199.20M	243.48M	244.96M
Stockholders Equity	81.09M	135.78M	116.70M	144.95M	139.55M
Cash Flow
Free Cash Flow	-7.23M	-10.72M	-10.73M	12.06M	46.93M
Operating Cash Flow	4.58M	-3.02M	6.54M	27.37M	53.45M
Investing Cash Flow	-6.93M	-206.00K	33.24M	-17.23M	-7.09M
Financing Cash Flow	-4.89M	10.18M	-46.42M	-23.48M	-48.03M

Pro-Pac Packaging Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.16 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 Positive 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
ATP	76 Outperform	AU$80.66M	3.79	34.61%	17.89%	6.15%	-32.02%
AMC	63 Neutral	AU$29.74B	24.10	7.73%	6.34%	31.27%	-33.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ORA	59 Neutral	AU$2.73B	20.91	2.55%	4.50%	-55.50%	-25.65%
PPG	44 Neutral	AU$3.27M	-0.04	―	―	-11.30%	-609.09%

Pro-Pac Packaging Limited Corporate Events

Pro-Pac Packaging Enters Voluntary Administration, CEO Role Made Redundant

Pro-Pac Packaging Limited has entered voluntary administration, leading to the redundancy of its CEO, Ian Shannon. The Federal Court of Australia and the High Court of New Zealand have extended the period for convening creditor meetings by six months, impacting the company’s restructuring process and stakeholder engagement.

Pro-Pac Packaging Defers Financial Reporting Amid Administration

Pro-Pac Packaging Limited has announced the appointment of McGrathNicol partners as Joint and Several Voluntary Administrators, following financial difficulties. The company plans to defer its financial reporting obligations and Annual General Meeting (AGM) as per the relief provided by ASIC Instrument 2025/584, allowing a deferral period of up to 24 months. This move is expected to impact the company’s operations and its stakeholders, as it provides Pro-Pac with time to address its financial challenges without the immediate pressure of compliance with reporting obligations.

Pro-Pac Packaging Faces Continued Suspension on ASX

Pro-Pac Packaging Limited’s securities remain suspended from quotation on the ASX due to the company’s failure to submit a required periodic report and the appointment of voluntary administrators. The ASX has determined that Pro-Pac’s financial condition does not meet the necessary requirements for the continued quotation of its securities, impacting the company’s market presence and stakeholders.

Pro-Pac Packaging Announces Director Resignation

Pro-Pac Packaging Limited announced the resignation of Ian Shannon from his position as a director, effective October 10, 2025. The notice indicates that Shannon holds no relevant interests in securities or contracts with the company, suggesting a clean departure. This change in the board may impact the company’s strategic direction and stakeholder relations.

Pro-Pac Packaging Appoints Voluntary Administrators Amid Financial Restructuring

Pro-Pac Packaging Limited has appointed McGrathNicol as voluntary administrators to stabilize its operations amid financial difficulties. The administrators are engaging with stakeholders to explore options for recapitalization or sale of the company’s business units, aiming to maintain employment and continue providing high-quality packaging solutions.

Pro-Pac Packaging Announces Leadership Change with Secretary Resignation

Pro-Pac Packaging Limited has announced the resignation of its Company Secretary and General Counsel, Kathleen Forbes, leading to the termination of its contract with Inhouse Out, the company providing secretarial services. The company will initiate a tender process to find a new Company Secretary, with CEO Ian Shannon temporarily assuming the role’s responsibilities, supported by current legal advisors. This change in leadership may impact the company’s operations and stakeholder relations as they transition to a new Company Secretary.