Pacific Smiles Group Ltd (PSQ) AI Stock Analysis

• Market Cap: AU$255.35M
• Dividend Yield: 3.38%
• Average Volume (3M): 408.00
• Price to Earnings (P/E): 128.5
• Beta (1Y): 0.50
• Revenue Growth: 9.05%
• EPS Growth: -75.79%
• Country: AU
• Employees: 800
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.02
• Shares Outstanding: 161,615,450
• 10 Day Avg. Volume: 6
• 30 Day Avg. Volume: 408
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: AU$1.50
• Price Target Upside: -5.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: AU$1.50 ▼(-5.06% Downside)

The overall stock score is primarily influenced by the company's strong cash flow generation and revenue growth, which are offset by challenges in profitability and high leverage. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. The dividend yield provides a slight positive aspect in valuation.

Pacific Smiles Group Ltd Business Overview & Revenue Model

Company Description

Pacific Smiles Group Limited, together with its subsidiaries, owns and operates dental centers under the Pacific Smiles Dental Centres and nib Dental Care Centres names in Eastern Australia. It provides services and equipped facilities to dentists, including support staff, materials, marketing, and administrative services. The company also offers dental services, such as cosmetic dentistry, child dental care, dental check-ups, emergency dental, endodontics, gum disease treatment, Invisalign, orthodontics, periodontics, prosthodontics, root canal treatment, sleep dentistry, teeth cleaning, teeth whitening, tele dentistry, tooth extraction, and wisdom teeth removal, as well as offers dental crowns, dental implants, dentures, veneers, and SmileStyler clear aligners. It operates 127 dental centers. Pacific Smiles Group Limited was incorporated in 2002 and is based in East Maitland, Australia.

How the Company Makes Money

Pacific Smiles Group Ltd generates revenue primarily through the provision of dental services. The company's key revenue streams include general dentistry, preventive care, orthodontics, and cosmetic dental procedures. Revenue is generated from fees for services performed at its dental centers, which are staffed by a network of qualified dentists. Additionally, the company may engage in partnerships with dental professionals and other healthcare providers to expand its service offerings and improve patient reach. The combination of a broad range of dental services and strategic partnerships allows Pacific Smiles Group to maintain a steady flow of income while catering to a diverse patient base.

Pacific Smiles Group Ltd Financial Statement Overview

Summary

Pacific Smiles Group Ltd exhibits positive revenue growth and strong cash flow generation, but faces challenges in profitability and high leverage. The company needs to focus on improving profit margins and reducing debt levels to enhance financial stability. While the cash flow position is robust, the balance sheet requires attention to ensure long-term sustainability.

Income Statement

Pacific Smiles Group Ltd has shown consistent revenue growth over the years, with a 2.54% increase in the latest period. However, the company's profitability margins, such as the net profit margin (1.02%) and EBIT margin (1.98%), are relatively low, indicating challenges in converting revenue into profit. The gross profit margin is strong at 88.19%, suggesting efficient cost management at the gross level. Overall, while revenue growth is positive, profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio of 1.10 indicates a high level of leverage, which could pose financial risks if not managed properly. The equity ratio is relatively low, suggesting a reliance on debt financing. Return on equity has improved from negative to positive, but remains modest. The balance sheet reflects a need for improved financial stability and reduced leverage.

Cash Flow

Pacific Smiles Group Ltd has demonstrated strong free cash flow growth of 30.74%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.64, showing that operating cash flow adequately covers net income. The free cash flow to net income ratio is 0.80, highlighting effective cash conversion. Overall, the cash flow position is strong, with positive growth and adequate coverage ratios.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	196.03M	193.65M	177.91M	165.32M	139.47M	153.18M
Gross Profit	73.72M	170.78M	85.74M	32.91M	21.39M	34.99M
EBITDA	35.70M	32.31M	41.48M	38.68M	23.64M	44.79M
Net Income	1.97M	1.97M	8.04M	2.42M	-4.53M	12.95M
Balance Sheet
Total Assets	163.53M	163.53M	171.98M	188.11M	190.63M	161.27M
Cash, Cash Equivalents and Short-Term Investments	21.42M	21.42M	17.66M	18.57M	11.80M	10.95M
Total Debt	65.70M	65.70M	75.33M	93.00M	105.88M	70.38M
Total Liabilities	104.03M	104.03M	111.42M	126.84M	132.11M	100.09M
Stockholders Equity	59.50M	59.50M	60.56M	61.27M	58.51M	61.18M
Cash Flow
Free Cash Flow	23.03M	23.03M	28.97M	29.80M	-5.48M	13.34M
Operating Cash Flow	28.76M	28.76M	32.81M	40.87M	17.90M	38.93M
Investing Cash Flow	-5.33M	-5.33M	-3.36M	-10.55M	-22.13M	-25.18M
Financing Cash Flow	-19.67M	-19.67M	-30.36M	-23.56M	5.09M	-18.08M

Pacific Smiles Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PSQ, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.61, and below the 200-day MA of 1.80, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 1.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PSQ.

Pacific Smiles Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MVF	55 Neutral	264.95M	10.51	0.00%	7.50%	6.65%	0.00%
PSQ	55 Neutral	AU$255.35M	128.46	3.28%	3.38%	9.05%	-75.79%
RAC	54 Neutral	448.41M	-93.82	0.00%	―	0.00%	67.26%
ALC	53 Neutral	134.30M	83.33	0.00%	―	10.06%	0.00%
EMV	46 Neutral	175.31M	-17.87	0.00%	―	0.00%	-257.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Pacific Smiles Group Ltd Corporate Events

Pacific Smiles Initiates Minimum Holding Buy-Back to Streamline Costs

Pacific Smiles Group Ltd has announced a ‘minimum holding buy-back’ initiative for shareholders with less than a marketable parcel of shares. This move aims to streamline administrative costs and involves buying back shares at a set price without brokerage fees, affecting a small percentage of the company’s total shares.

The most recent analyst rating on (AU:PSQ) stock is a Hold with a A$1.95 price target. To see the full list of analyst forecasts on Pacific Smiles Group Ltd stock, see the AU:PSQ Stock Forecast page.