PPK Group Limited (PPK) AI Stock Analysis

• Market Cap: $32.98M
• Dividend Yield: N/A
• Average Volume (3M): 92.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 5.79%
• EPS Growth: -99.62%
• Country: AU
• Employees: 421
• Sector: Industrials
• Sector Strength: 89
• Industry: Agricultural - Machinery
• EPS (TTM): -0.17
• Shares Outstanding: 90,812,500
• 10 Day Avg. Volume: 127,131
• 30 Day Avg. Volume: 92,778
• PEG Ratio: -0.49
• Price to Book (P/B): 6.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -46.76
• 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: $0.50
• Price Target Upside: 56.62% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: AU$0.50 ▲(56.25%Upside)

PPK Group Limited has significant financial challenges with ongoing losses and negative cash flow, making financial performance the most impactful factor. Technical analysis suggests a neutral trend, while valuation concerns arise from a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

PPK Group Limited Business Overview & Revenue Model

Company Description

PPK Group Limited, together with its subsidiaries, manufactures and sells boron nitride nanotubes in Australia. It also offers lithium sulphur batteries, white graphene, and body armour; and digital platform for proactive road safety analytics and management. The company was formerly known as Plaspak Group Limited and changed its name to PPK Group Limited in September 2006. The company was founded in 1979 and is headquartered in Brisbane, Australia.

How the Company Makes Money

PPK Group Limited generates revenue through a diversified model that includes the sale of mining equipment and services, licensing of proprietary technologies, and manufacturing of advanced materials such as boron nitride nanotubes (BNNT). Key revenue streams for the company include contracts with mining companies for equipment and services, partnerships with technology firms for the development and commercialization of BNNT applications, and government contracts for defense-related products. PPK's strategic collaborations and joint ventures play a significant role in expanding its market reach and enhancing its technological offerings, thereby contributing to its financial performance.

PPK Group Limited Financial Statement Overview

Summary

PPK Group Limited faces significant financial challenges with persistent losses despite revenue growth. The balance sheet shows low leverage but declining equity and concerning cash flow issues with negative cash flow from operations and investments.

Income Statement

PPK Group Limited has shown fluctuating revenue trends with a significant increase in revenue from 2023 to 2024. However, the company continues to operate at a loss, with negative EBIT and Net Income indicating challenges in operational efficiency and profitability. The negative margins point towards an ongoing struggle to turn revenue into profit.

Balance Sheet

The balance sheet shows a relatively healthy debt-to-equity ratio, suggesting manageable leverage. However, the declining stockholders' equity over recent years indicates potential financial stress. Despite this, the company maintains a strong equity ratio, indicating that a significant portion of its assets is financed by equity rather than debt.

Cash Flow

Cash flow analysis reveals consistent negative free cash flow, indicating cash outflows exceed inflows in operations and capital expenditure. The operating cash flow is also negative, reflecting challenges in generating cash from core business activities. This could strain liquidity if the trend continues.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	23.81M	28.19M	6.35M	1.65M	0.00	39.85M
Gross Profit	6.83M	8.02M	1.23M	-8.94M	-66.00K	10.21M
EBITDA	-11.74M	-12.26M	-10.58M	-14.89M	-5.41M	11.23M
Net Income	-6.63M	-10.74M	-7.82M	-2.56M	-5.48M	8.27M
Balance Sheet
Total Assets	101.92M	122.85M	135.58M	120.98M	96.60M	64.24M
Cash, Cash Equivalents and Short-Term Investments	5.48M	28.35M	40.00M	53.01M	30.36M	5.34M
Total Debt	11.31M	10.41M	9.67M	4.06M	399.00K	3.83M
Total Liabilities	36.24M	28.93M	29.87M	8.39M	8.34M	10.05M
Stockholders Equity	60.94M	67.74M	75.58M	81.51M	76.65M	52.09M
Cash Flow
Free Cash Flow	-13.26M	-18.49M	-16.68M	-15.53M	-5.47M	1.13M
Operating Cash Flow	-9.46M	-9.91M	-9.55M	-7.83M	-2.39M	3.31M
Investing Cash Flow	-17.92M	-2.53M	-3.73M	-3.81M	-6.41M	-5.63M
Financing Cash Flow	-16.00K	793.00K	272.00K	34.28M	34.37M	6.67M

PPK Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.32
• 50DMA: Positive
• 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:PPK, the sentiment is Neutral. The current price of 0.32 is above the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.32, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 63.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:PPK.

PPK Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPG	73 Outperform	AU$326.63M	12.46	17.40%	3.96%	46.40%	26.20%
RDG	65 Neutral	AU$26.56M	1.72	13.01%	―	66.22%	20.83%
Sector *	65 Neutral	$10.82B	15.59	5.20%	1.89%	3.09%	-26.84%
WWG	58 Neutral	AU$26.78M	26.23	5.21%	2.50%	37.72%	-4.69%
DEM	54 Neutral	AU$30.81M	―	-22.62%	―	6.37%	20.31%
AVA	51 Neutral	AU$31.95M	―	-10.45%	―	13.25%	13.71%
PPK	48 Neutral	$32.98M	―	-21.65%	―	5.79%	-99.62%

PPK Group Limited Corporate Events

PPK Group CEO Resigns, Transition Plan Underway

PPK Group Limited, a company listed on the Australian Securities Exchange under the code PPK, has announced the resignation of its Chief Executive Officer, Marc Fenton. He has provided the required six months’ notice, and the company is preparing a management transition plan. The Board expressed gratitude for Mr. Fenton’s contributions and will provide further updates in due course.