PZ Cussons (PZC) AI Stock Analysis

• Market Cap: £299.10M
• Dividend Yield: 2.1%
• Average Volume (3M): 639.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: -16.16%
• EPS Growth: 80.50%
• Country: UK
• Employees: 2,600
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Household & Personal Products
• EPS (TTM): -0.01
• Shares Outstanding: 428,724,950
• 10 Day Avg. Volume: 1,164,854
• 30 Day Avg. Volume: 639,841
• PEG Ratio: -0.61
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.38
• 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: £110.00
• Price Target Upside: 50.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: 72.00p ▼(-1.64%Downside)

PZ Cussons faces significant financial and technical challenges with declining revenues and bearish technical indicators. However, strategic corporate actions such as asset sales and management's alignment with shareholders offer some positive outlooks.

PZ Cussons Business Overview & Revenue Model

Company Description

PZ Cussons Plc manufactures, distributes, markets, and sells baby, beauty, and hygiene products in Europe, the Americas, the Asia Pacific, and Africa. It offers toiletries, pharmaceuticals, electrical goods, fats and spreads, nutritional products, shampoos, body washes, toothpastes, toothbrushes, skin and hair care, food pouches, cereals, snacks, flavors, and fragrances; beauty soaps, lotions, wipes, creams, shower gels, foam-bursts, bar soaps, deodorants, bath infusions, handwashes, and conditioners; dishwashing liquids, dishwasher tablets, dishwasher gels, dishwasher capsules, rinse aids, liquid detergents, laundry soaps, and laundry solutions; and cooking and vegetable oils. The company also provides refrigerators, freezers and air conditioners, washing machines, microwaves, table and standing cookers, generators, stabilizers, TVs, DVDs, and home theatres. It sells its products under the Cussons Kids, Rafferty's Garden, Cussons Baby, St.Tropez, Sanctuary Spa, Fudge Professional, Charles Worthington, Fudge Urban, Venus for You, Carex, Imperial Leather, Original Source, Premier Cool, Joy, Premier Cool, Haier Thermocool, Morning Fresh, Bayley's of Bond Street, Canoe, Zip, Robb, Radiant, Mamador, and Devon King's brand names. The company was formerly known as Paterson Zochonis Plc and changed its name to PZ Cussons Plc in 2002. PZ Cussons Plc was incorporated in 1884 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

PZ Cussons generates revenue primarily through the sale of its consumer goods across three main categories: personal care, home care, and nutrition. The company's revenue model involves manufacturing and distributing branded products such as soaps, shampoos, lotions, and baby care items, which are sold through various retail channels including supermarkets, pharmacies, and online platforms. Key revenue streams include direct sales to retailers and distributors, as well as partnerships with major retail chains. Furthermore, PZ Cussons invests in marketing and brand development to strengthen its market position and drive sales growth. Strategic acquisitions and innovation in product development also contribute significantly to its earnings.

PZ Cussons Financial Statement Overview

Summary

PZ Cussons is facing financial challenges with declining revenues, negative margins, and net losses. The balance sheet shows moderate leverage but negative ROE, while cash flow generation has weakened, impacting investment capabilities.

Income Statement

PZ Cussons has faced significant challenges in its latest period, with a negative EBIT and EBITDA indicating operational difficulties. The revenue decreased by approximately 19.55% compared to the previous year, and the net profit margin has turned negative, reflecting a net loss. These factors highlight the company's struggle with profitability and cost management.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.74, suggesting a balanced approach to leveraging. However, the return on equity (ROE) is negative due to the net loss, which is a concern for shareholders. The equity ratio stands at 37.30%, indicating a reasonable level of financial stability despite recent losses.

Cash Flow

Operating cash flow remains positive, but has decreased significantly from the previous year, indicating reduced cash generation capability. The free cash flow growth is negative, reflecting the company's struggle to generate surplus cash after capital expenditures. The operating cash flow to net income ratio is not favorable due to the net loss.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	500.10M	527.90M	656.30M	592.80M	603.30M	587.20M
Gross Profit	197.50M	131.10M	238.20M	207.30M	216.30M	201.60M
EBITDA	37.60M	-55.30M	86.10M	81.50M	89.80M	45.30M
Net Income	-6.60M	-57.00M	36.40M	47.90M	36.90M	10.20M
Balance Sheet
Total Assets	886.50M	649.60M	988.40M	941.90M	780.50M	855.00M
Cash, Cash Equivalents and Short-Term Investments	41.80M	51.30M	256.90M	164.30M	87.30M	79.00M
Total Debt	187.90M	178.70M	264.20M	191.00M	129.80M	142.00M
Total Liabilities	449.40M	414.40M	566.30M	493.00M	409.00M	433.80M
Stockholders Equity	410.80M	242.30M	395.60M	427.00M	352.70M	395.80M
Cash Flow
Free Cash Flow	17.60M	6.80M	51.50M	44.90M	43.10M	100.80M
Operating Cash Flow	22.30M	12.90M	58.20M	53.10M	52.00M	107.50M
Investing Cash Flow	3.10M	12.40M	7.70M	-8.40M	1.20M	36.80M
Financing Cash Flow	-83.10M	-109.70M	46.10M	26.60M	-38.60M	-117.10M

PZ Cussons Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.20
• 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 GB:PZC, the sentiment is Negative. The current price of 73.2 is below the 20-day moving average (MA) of 78.12, below the 50-day MA of 80.93, and below the 200-day MA of 80.82, indicating a bearish trend. The MACD of -2.88 indicates Positive momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 21.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PZC.

PZ Cussons Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULVR	79 Outperform	£108.79B	22.72	30.27%	2.92%	-0.76%	-12.83%
W7L	77 Outperform	£343.35M	18.11	30.36%	2.67%	13.41%	30.17%
RKT	74 Outperform	£33.96B	24.56	18.88%	4.87%	-3.00%	-11.12%
MCB	69 Neutral	£256.74M	6.43	64.21%	―	0.81%	125.55%
Sector *	65 Neutral	$27.29B	15.33	-4.01%	3.21%	1.02%	-0.84%
CRL	57 Neutral	£27.24M	―	-10.61%	1.13%	-6.61%	-319.08%
PZC	50 Neutral	£299.10M	―	-2.48%	2.10%	-16.16%	80.50%

PZ Cussons Corporate Events

PZ Cussons Retains St. Tropez Brand, Forms Strategic Partnership with Emerson Group

PZ Cussons has decided to retain the St. Tropez brand, reversing its previous intention to sell, due to a challenging business environment and a decline in revenue in FY25. The company plans to rejuvenate the brand by forming a strategic partnership with The Emerson Group to enhance market execution and brand activation in the US. This partnership aims to address the sub-scale operations in the US and leverage Emerson’s distribution capabilities to return St. Tropez to growth. Despite this strategic shift, PZ Cussons expects to record a non-cash impairment in its FY25 results.

The most recent analyst rating on (GB:PZC) stock is a Hold with a £1.25 price target. To see the full list of analyst forecasts on PZ Cussons stock, see the GB:PZC Stock Forecast page.

PZ Cussons Executives Engage in Share Incentive Transactions

PZ Cussons has announced a series of transactions involving its top executives, including the CEO, CFO, Chief Supply Chain Officer, and Company Secretary. These transactions are part of the company’s Share Incentive Plan 2020, where executives purchased partnership shares and were granted matching shares. This move reflects the company’s commitment to aligning management interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:PZC) stock is a Hold with a £1.25 price target. To see the full list of analyst forecasts on PZ Cussons stock, see the GB:PZC Stock Forecast page.

PZ Cussons Sells Stake in Nigerian JV and Reports FY25 Growth

PZ Cussons has announced the sale of its 50% stake in the Nigerian joint venture PZ Wilmar to Wilmar International for $70 million, as part of a strategic portfolio transformation aimed at maximizing shareholder value. This move is expected to reduce the company’s exposure to the volatile Nigerian market and improve its financial metrics by reducing gross debt. The company also reported an 8% like-for-like revenue growth for FY25, driven by strong performance in Africa and a return to growth in APAC, despite challenges in the US market. The sale is anticipated to complete in late 2025, pending approvals, and will allow PZ Cussons to focus on strengthening its core brands and achieving sustainable growth.

The most recent analyst rating on (GB:PZC) stock is a Hold with a £1.25 price target. To see the full list of analyst forecasts on PZ Cussons stock, see the GB:PZC Stock Forecast page.

PZ Cussons Executives Engage in Share Incentive Transactions

PZ Cussons has announced transactions involving its top executives, including the CEO, CFO, Chief Supply Chain Officer, and Company Secretary, under the Share Incentive Plan 2020. These transactions, which include the purchase of partnership shares and the grant of matching shares, reflect the company’s commitment to aligning management interests with shareholder value, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (GB:PZC) stock is a Hold with a £1.25 price target. To see the full list of analyst forecasts on PZ Cussons stock, see the GB:PZC Stock Forecast page.

PZ Cussons Executives Engage in Share Transactions Under Incentive Plan

PZ Cussons has announced a series of transactions involving the purchase and grant of shares under its Share Incentive Plan 2020. Key executives, including the CEO, CFO, Chief Supply Chain Officer, and Company Secretary, participated in these transactions, acquiring partnership shares and receiving matching shares. This move is part of the company’s efforts to align management interests with shareholder value, potentially impacting the company’s market position and stakeholder relations.

PZ Cussons Executives Reinvest in Company Shares

PZ Cussons has announced transactions involving its Chief Financial Officer, Sarah Pollard, and Chief Supply Chain Officer, Steve Noble, who have both reinvested dividends and purchased ordinary shares in the company. These transactions reflect a commitment from the company’s leadership to align with shareholder interests and could potentially strengthen stakeholder confidence in PZ Cussons’ strategic direction.

PZ Cussons Executives Reinvest Dividends in Company Shares

PZ Cussons plc announced the reinvestment of dividends by key executives, including the CEO, CFO, Chief Supply Chain Officer, and General Counsel, to acquire dividend shares under the Share Incentive Plan 2020. This move signifies a commitment by the company’s leadership to align their interests with shareholders, potentially enhancing stakeholder confidence and reinforcing the company’s market position.