Pacific Smiles Group Ltd (PSQ) AI Stock Analysis

• Market Cap: AU$265.87M
• Dividend Yield: 23.71%
• Average Volume (3M): 927.00
• Price to Earnings (P/E): 158.2
• Beta (1Y): 0.68
• Revenue Growth: 8.64%
• EPS Growth: -74.88%
• Country: AU
• Employees: 800
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Care Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 161,623,980
• 10 Day Avg. Volume: 1,467
• 30 Day Avg. Volume: 927
• PEG Ratio: -2.20
• Price to Book (P/B): 5.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.20
• 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: 18.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: AU$1.50 ▼(-8.54%Downside)

The overall stock score for Pacific Smiles Group Ltd is primarily impacted by mixed financial performance with strong revenue growth and profitability improvements but high leverage. The technical analysis indicates a bearish trend with possible oversold conditions. The valuation reflects a high P/E ratio suggesting overvaluation, partially offset by an exceptionally high dividend yield.

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 demonstrates a consistent growth trajectory in revenue and profitability. While there are improvements in profitability and equity position, the company remains highly leveraged, which could impose risks in a volatile economic environment. Nonetheless, the strong cash flow generation supports its 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
EBITDA	41.48M	38.68M	23.64M	44.79M	32.94M
Net Income	8.04M	2.42M	-4.53M	12.95M	6.38M
Balance Sheet
Total Assets	171.98M	188.11M	190.63M	161.27M	147.62M
Cash, Cash Equivalents and Short-Term Investments	17.66M	18.57M	11.80M	10.95M	15.28M
Total Debt	75.33M	93.00M	105.88M	70.38M	85.20M
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: 1.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.64 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.73, and below the 200-day MA of 1.87, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 45.99 is Neutral, 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
Sector *	65 Neutral	CHF27.11B	20.00	9.37%	2.29%	35.94%	-1.97%
PSQ	56 Neutral	AU$265.87M	158.17	2.84%	23.71%	8.64%	-74.88%
MVF	55 Neutral	AU$294.17M	―	-0.87%	6.93%	14.24%	-109.59%
RAC	54 Neutral	AU$201.54M	―	-37.20%	―	―	32.02%
ALC	53 Neutral	AU$147.72M	―	-5.63%	―	-11.96%	7.50%
EMV	48 Neutral	AU$151.79M	―	-58.61%	―	―	-74.88%

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.