Pacific Smiles Group Ltd (PSQ) AI Stock Analysis

• Market Cap: AU$284.46M
• Dividend Yield: 3.04%
• Average Volume (3M): 1.39K
• Price to Earnings (P/E): 169.2
• Beta (1Y): 0.85
• Revenue Growth: 8.64%
• EPS Growth: -74.88%
• Country: AU
• Employees: 800
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Care Facilities
• EPS (TTM): 0.01
• Shares Outstanding: 161,623,980
• 10 Day Avg. Volume: 711
• 30 Day Avg. Volume: 1,393
• PEG Ratio: 0.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$1.95
• Price Target Upside: 10.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Pacific Smiles Group Ltd has a moderate overall stock score. The company's financial performance shows consistent growth, but high leverage is a risk. The technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation, although the dividend yield is a positive aspect.

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 primarily generates revenue through the provision of dental services at its clinics. The company charges patients for various dental treatments and services, which are the core of its revenue model. Additionally, Pacific Smiles partners with dental practitioners by providing them with the infrastructure and support necessary to offer their services, creating a mutually beneficial relationship. This partnership model allows the company to earn a share of the revenue generated by the practitioners. Pacific Smiles may also benefit from partnerships with health insurance providers, which can facilitate patient access to services and potentially increase patient volumes. Revenue is further supported by the company's expansion strategy, which involves opening new clinics to reach more patients and capture a larger share of the dental services market in Australia.

Pacific Smiles Group Ltd Financial Statement Overview

Summary

Pacific Smiles Group Ltd demonstrates consistent growth in revenue and profitability. The company's improvements in profitability and equity position are positive, but the high leverage remains a risk factor. Strong cash flow generation supports operational stability.

Income Statement

Pacific Smiles Group Ltd has shown a positive trend in revenue growth, with a 7.6% increase from 2023 to 2024. The gross profit margin improved significantly, indicating better cost management, and the net profit margin has increased, reflecting enhanced profitability. However, EBIT and EBITDA margins indicate room for improvement in operational efficiency compared to previous years.

Balance Sheet

The company's debt-to-equity ratio remains relatively high, indicating higher leverage which poses potential risk. However, the equity ratio improved, showcasing a stronger equity position relative to total assets. Return on equity has increased, signaling improved profitability from shareholders' perspective.

Cash Flow

The free cash flow is positive and shows stability, although it slightly decreased from the previous year. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. The company maintains a solid position in generating cash to support operations and investments.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
177.91M	165.32M	139.47M	153.18M	120.06M
	Gross Profit
85.74M	32.91M	21.39M	34.99M	22.06M
	EBIT
13.56M	5.76M	-4.01M	13.69M	4.09M
	EBITDA
41.48M	38.68M	23.64M	44.79M	32.94M
	Net Income Common Stockholders
8.04M	2.42M	-4.53M	12.95M	6.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.66M	18.57M	11.80M	10.95M	15.28M
	Total Assets
171.98M	188.11M	190.63M	161.27M	147.62M
	Total Debt
75.33M	93.00M	105.88M	70.38M	85.20M
	Net Debt
57.68M	74.42M	94.07M	59.43M	69.92M
	Total Liabilities
111.42M	126.84M	132.11M	100.09M	110.73M
	Stockholders Equity
60.56M	61.27M	58.51M	61.18M	36.89M
Cash Flow		Free Cash Flow
28.97M	29.80M	-5.48M	13.34M	18.47M
	Operating Cash Flow
32.81M	40.87M	17.90M	38.93M	28.58M
	Investing Cash Flow
-3.36M	-10.55M	-22.13M	-25.18M	-9.68M
	Financing Cash Flow
-30.36M	-23.56M	5.09M	-18.08M	-10.56M

Pacific Smiles Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 1.76 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.89, and below the 200-day MA of 1.89, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 15.92 is Positive, neither overbought nor oversold. The STOCH value of 2.56 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
SHL	73 Outperform	AU$12.56B	22.85	6.86%	4.05%	10.15%	6.20%
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%
PSQ	52 Neutral	AU$284.46M	169.23	2.84%	3.04%	8.64%	-74.88%
MVF	48 Neutral	AU$315.60M	―	-0.87%	6.22%	14.24%	-109.59%

Pacific Smiles Group Ltd Corporate Events

Pacific Smiles Appoints Martin White as Permanent CFO

Pacific Smiles Group Limited has announced the appointment of Martin White as its new permanent Chief Financial Officer. Mr. White, who has been serving as Acting CFO since January 2025, was chosen for his commitment, expertise, and leadership within the company, which is expected to strengthen Pacific Smiles’ financial and strategic operations.

Pacific Smiles Group Releases FY25 Half-Year Financial Results

Pacific Smiles Group Ltd has released its half-year financial results for FY25, highlighting the company’s ongoing commitment to transparency and performance evaluation. The announcement underscores the use of non-IFRS financial measures to provide a clearer picture of the company’s operational performance, aiding stakeholders in making informed comparisons with previous periods. The release does not constitute an offer for securities and emphasizes the inherent risks and uncertainties associated with forward-looking statements.

Pacific Smiles Group Achieves Strong Financial Growth in 1H25

Pacific Smiles Group Ltd reported strong financial results for the first half of fiscal year 2025, with a 9% increase in patient fees and a 16.8% rise in underlying EBITDA compared to the previous corresponding period. The company attributes its success to strategic efforts in maximizing the value of existing centers, effective cost management, and improved labor productivity. Despite inflationary pressures, Pacific Smiles managed to enhance profitability and operational efficiency, with significant improvements in EBITDA margins and NPAT. The company also invested in center refurbishments to boost patient experience and operational capacity, maintaining a high patient satisfaction score. Looking forward, the company reaffirms its full-year guidance, projecting continued growth in patient fees and EBITDA.

Pacific Smiles Reports Loss Amid Strategic Adjustments and Takeover

Pacific Smiles Group Limited reported a statutory loss of $1.991 million for the half-year ended December 2024, a significant decline from the profit of $4.407 million in the previous corresponding period. Despite this, the company’s underlying profit increased by 52% to $6.713 million, reflecting adjustments for non-recurring expenses related to a successful takeover bid by Genesis Capital Manager I Pty Ltd. The absence of an interim dividend and the adjustments made for strategic initiatives and takeover costs indicate a focus on long-term strategic positioning and operational clarity.

Pacific Smiles Group Discloses Top 20 Shareholders

Pacific Smiles Group Ltd has released information about its top 20 shareholders following a recently completed offer. The announcement, authorized by the Managing Director and CEO, highlights Beam Dental Bidco Pty Ltd as the largest shareholder, holding a significant 87.11% of shares. This information reflects the current ownership structure and may impact the company’s strategic decisions and stakeholder interests.

Pacific Smiles Group Announces New Share Distribution Structure

Pacific Smiles Group Ltd has released a distribution schedule following the completion of a recent offer. As per the report, the majority of the company’s shares, 99.38%, are held by a small group of stakeholders, indicating a concentrated ownership structure, which may impact shareholder influence and decision-making.