PEOPLEIN LIMITED (PPE)
Share Price Analysis and Chart

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PPE - PEOPLEIN LIMITED

FNArena Sector : Jobs & Skilled Labour Services

Year End: June

GICS Industry Group : Commercial & Professional Services

Debt/EBITDA: 2.15

Index:

LAST PRICE	CHANGE +/-	CHANGE %	VOLUME
$0.925 22 Jul 2024	-0.020 OPEN $0.93	-2.12% HIGH $0.95	56,123 LOW $0.93

LAST PRICE

CHANGE +/-

CHANGE %

VOLUME

$0.925

22 Jul
2024

-0.020

OPEN

$0.93

-2.12%

HIGH

$0.95

56,123

LOW

$0.93

TARGET

$1.255

35.7% upside

Franking for last dividend paid out: 100%

OTHER COMPANIES IN THE SAME SECTOR
APM . LVH . SEK . SIO . XF1 .

FNARENA'S MARKET CONSENSUS FORECASTS

Title	FY22 Actual	FY23 Actual	FY24 Forecast	FY25 Forecast
EPS (cps)	xxx	18.8	13.1	xxx
DPS (cps)	xxx	14.0	5.8	xxx
EPS Growth	xxx	1.1%	- 30.6%	xxx
DPS Growth	xxx	N/A	- 58.6%	xxx
PE Ratio	xxx	N/A	7.0	xxx
Dividend Yield	xxx	N/A	6.3%	xxx
Div Pay Ratio(%)	xxx	74.5%	44.4%	xxx

Dividend yield today if purchased 3 years ago: 3.24%

DIVIDEND YIELD CALCULATOR

Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 04/03 - ex-div 3c (franking 100%)

HISTORICAL DATA ARE ALL IN AUD

Copyright © 2024 FactSet UK Limited. All rights reserved

Title	2018	2019	2020	2021	2022	2023
EPS Basic	xxx	xxx	xxx	xxx	xxx	18.8
DPS All	xxx	xxx	xxx	xxx	xxx	14.0
Sales/Revenue	xxx	xxx	xxx	xxx	xxx	1,182.7 M
Book Value Per Share	xxx	xxx	xxx	xxx	xxx	154.2
Net Operating Cash Flow	xxx	xxx	xxx	xxx	xxx	64.5 M
Net Profit Margin	xxx	xxx	xxx	xxx	xxx	1.60 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title	2018	2019	2020	2021	2022	2023
Return on Capital Employed	xxx	xxx	xxx	xxx	xxx	12.79 %
Return on Invested Capital	xxx	xxx	xxx	xxx	xxx	8.42 %
Return on Assets	xxx	xxx	xxx	xxx	xxx	4.77 %
Return on Equity	xxx	xxx	xxx	xxx	xxx	12.79 %
Return on Total Capital	xxx	xxx	xxx	xxx	xxx	13.51 %
Free Cash Flow ex dividends	xxx	xxx	xxx	xxx	xxx	47.5 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title	2018	2019	2020	2021	2022	2023
Short-Term Debt	xxx	xxx	xxx	xxx	xxx	34 M
Long Term Debt	xxx	xxx	xxx	xxx	xxx	79 M
Total Debt	xxx	xxx	xxx	xxx	xxx	113 M
Goodwill - Gross	xxx	xxx	xxx	xxx	xxx	149 M
Cash & Equivalents - Generic	xxx	xxx	xxx	xxx	xxx	40 M
Price To Book Value	xxx	xxx	xxx	xxx	xxx	1.52

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title	2018	2019	2020	2021	2022	2023
Capex	xxx	xxx	xxx	xxx	xxx	9.1 M
Capex % of Sales	xxx	xxx	xxx	xxx	xxx	0.77 %
Cost of Goods Sold	xxx	xxx	xxx	xxx	xxx	-
Selling, General & Admin. Exp & Other	xxx	xxx	xxx	xxx	xxx	1,130 M
Research & Development	xxx	xxx	xxx	xxx	xxx	-
Investments - Total	xxx	xxx	xxx	xxx	xxx	0 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
EXTRA COVERAGE

EXPERT VIEWS

Display All Commentary

Sentiment Indicator

0.5

No. Of Recommendations

BROKER	DATE	RATING	RECOMMENDATION	TARGET PRICE	% TO REACH TARGET	COMMENTARY
Ord Minnett	xx/xx/xxxx	1	xxx	$xx.xx	xx.xx%	Broker commentary and detailed analysis is available for Full Members Only. Login above or Get a Free Trial
Morgans	27/02/2024	3	Downgrade to Hold from Add	$1.05	13.51%	Margins continue to decline in the 1H for PeopleIN due to a challenging economic environment, explains Morgans. By way of explanation, management noted a decline in contract rates, permanent recruitment fees and government subsidies. While these explanations are not new to the broker, the level of margin degradation quarter-on-quarter has surprised, largely due to the declining contract rate. As conditions are unlikely to improve in the next year, the rating is downgraded to Hold from Add. While in line with the consensus forecast, earnings (EBITDA) for the half fell by -38% on the previous corresponding period. No quantitative guidance was provided. The target falls to $1.05 from $1.85. FORECAST Morgans forecasts a full year FY24 dividend of 6.10 cents and EPS of 13.20 cents. Morgans forecasts a full year FY25 dividend of 6.60 cents and EPS of 11.90 cents.

BROKER

DATE

RATING

RECOMMENDATION

TARGET PRICE

% TO REACH TARGET

COMMENTARY

Ord Minnett

xx/xx/xxxx

xxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Morgans

27/02/2024

Downgrade to Hold from Add

$1.05

13.51%

Margins continue to decline in the 1H for PeopleIN due to a challenging economic environment, explains Morgans. By way of explanation, management noted a decline in contract rates, permanent recruitment fees and government subsidies.

While these explanations are not new to the broker, the level of margin degradation quarter-on-quarter has surprised, largely due to the declining contract rate. As conditions are unlikely to improve in the next year, the rating is downgraded to Hold from Add.

While in line with the consensus forecast, earnings (EBITDA) for the half fell by -38% on the previous corresponding period. No quantitative guidance was provided.

The target falls to $1.05 from $1.85.

FORECAST
Morgans forecasts a full year FY24 dividend of 6.10 cents and EPS of 13.20 cents.
Morgans forecasts a full year FY25 dividend of 6.60 cents and EPS of 11.90 cents.

EXTRA COVERAGE

Display All Commentary

No. Of Recommendations

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER	DATE	RATING	RECOMMENDATION	TARGET PRICE	% TO REACH TARGET	COMMENTARY
Wilsons	xx/xx/xxxx	3	xxxxxx xxxxxx	$xx.xx	xx.xx%	Broker commentary and detailed analysis is available for Full Members Only. Login above or Get a Free Trial
Petra Capital	07/03/2024	1	Buy	$1.80	94.59%	While PeopleIN's underlying 1H earnings (EBITDA) of $20.2m were nearly half Petra Capital's $40.6m forecast for FY24, materially negative operating cash flow (OCF) drove a corresponding increase in gearing. The analyst's net debt to earnings forecast for June 30 this year is 2.0 times compared to 1.5 times previously, which is at the top end of Petra Capital's comfort range, but still well below the company's debt covenants. Reflecting changes in business mix to lower margin work across all divisions, the earnings margin fell by -210bps to 3.3%. Higher margin private sector work declined in Health & Community, while permanent recruitment in Professional Services also weakened. The broker anticipates improved 2H cash flows and relatively stable earnings. The Buy rating is maintained and the target falls to $1.80 from $1.90. FORECAST Petra Capital forecasts a full year FY24 dividend of 6.50 cents and EPS of 21.20 cents. Petra Capital forecasts a full year FY25 dividend of 9.00 cents and EPS of 21.60 cents.

BROKER

DATE

RATING

RECOMMENDATION

TARGET PRICE

% TO REACH TARGET

COMMENTARY

Wilsons

xx/xx/xxxx

xxxxxx xxxxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Petra Capital

07/03/2024

Buy

$1.80

94.59%

While PeopleIN's underlying 1H earnings (EBITDA) of $20.2m were nearly half Petra Capital's $40.6m forecast for FY24, materially negative operating cash flow (OCF) drove a corresponding increase in gearing.

The analyst's net debt to earnings forecast for June 30 this year is 2.0 times compared to 1.5 times previously, which is at the top end of Petra Capital's comfort range, but still well below the company's debt covenants.

Reflecting changes in business mix to lower margin work across all divisions, the earnings margin fell by -210bps to 3.3%. Higher margin private sector work declined in Health & Community, while permanent recruitment in Professional Services also weakened.

The broker anticipates improved 2H cash flows and relatively stable earnings. The Buy rating is maintained and the target falls to $1.80 from $1.90.

FORECAST
Petra Capital forecasts a full year FY24 dividend of 6.50 cents and EPS of 21.20 cents.
Petra Capital forecasts a full year FY25 dividend of 9.00 cents and EPS of 21.60 cents.

Access Stockbroker Research History >

PPE STOCK CHART

FNArena News on PPE

1	Australian Broker Call Extra Edition – Mar 07, 2024 Mar 07 2024 - Daily Market Reports

2	Weekly Ratings, Targets, Forecast Changes – 01-03-24 Mar 04 2024 - Weekly Reports

3	FNArena Corporate Results Monitor – 27-02-2024 Feb 27 2024 - Australia

4	Australian Broker Call Extra Edition – Dec 14, 2023 Dec 14 2023 - Daily Market Reports

5	In Case You Missed It – BC Extra Upgrades & Downgrades – 08-12-23 Dec 08 2023 - Weekly Reports

Latest Jobs & Skilled Labour Services News

1	Treasure Chest: Seek Jun 19 2024 - Treasure Chest

2	PeopleIN Stays The Course Jun 08 2023 - Small Caps

3	Seek(ing) Out Opportunity in Asia Mar 30 2023 - Australia

4	PeopleIN Undervalued, Brokers Find Feb 22 2023 - Small Caps

5	Seek’s Underrated Pricing Switch Mar 17 2022 - Australia

6	Elmo Software: Progress And Accounting Feb 17 2022 - Australia

7	Rocky Self-Funding Pathway For Elmo Software Aug 10 2021 - Australia

8	The Evolving Recruitment Game Jun 30 2021 - Weekly Reports

9	People Infrastructure Emerges With Growth Mar 05 2021 - Small Caps

10	My Up Close And Personal View On ELMO Software Aug 19 2020 - FYI

Dividend Yield Today On Last Actual Payout :	15.22
Estimated Dividend Growth (Average Of Past Three Years)	%
Amount Invested	$
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PEOPLEIN LIMITED (PPE)
Share Price Analysis and Chart