Fact based stock research
PPB Group (KLSE:PPB)

MYL4065OO008

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

PPB Group stock research in summary

ppbgroup.com

ANALYSIS: With an Obermatt Combined Rank of 44 (worse than 56% compared with investment alternatives), PPB Group (Packaged Foods & Meats, Malaysia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of PPB Group are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives), are safely financed (Safety Rank of 60, which means low debt burdens), but show below-average growth (Growth Rank of 21). ...read more

RECOMMENDATION: A Combined Rank of 44, is a hold recommendation based on PPB Group's financial characteristics. As the company PPB Group's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 21) while being safely financed (Obermatt Safety Rank of 60), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 55% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	55
Growth Rank	21
Safety Rank	60
Combined Rank	44

Country	Malaysia
Industry	Packaged Foods & Meats
Index	Independent Boards Growth Markets
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: PPB Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	43	45	55
GROWTH
GROWTH	26	35	39	21
SAFETY
SAFETY	87	51	45	60
SENTIMENT
SENTIMENT	n/a	95	55	^new
360° VIEW
360° VIEW	n/a	61	31	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better PPB Group is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	43	45	55
GROWTH
GROWTH	26	35	39	21
SAFETY
SAFETY	87	51	45	60
COMBINED
COMBINED	58	35	29	44

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of PPB Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), PPB Group shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for PPB Group. Price-to-Profit (also referred to as price-earnings, P/E) is 55 which means that the stock price compared with what market professionals expect for future profits is lower than for 55% of comparable companies, indicating a good value concerning PPB Group's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 95, which means that the stock price is lower as regards to invested capital than for 95% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 83% of alternatives (only 17% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 53% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on PPB Group's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	18	13	16	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	75	46	55	55
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	85	95	93	95
DIVIDEND YIELD
DIVIDEND YIELD	60	29	37	47
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	73	43	45	55

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of PPB Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), PPB Group shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for PPB Group. Only Capital Growth has a good rank of 54, which means that currently professionals expect the company to grow its invested capital more than 15% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 32 which means that currently professionals expect the company to grow less than 68% of its competitors. Profit Growth with a rank of 15 and Stock Returns with a rank of 35 are also low (below 65% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for PPB Group is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	33	16	92	32
PROFIT GROWTH
PROFIT GROWTH	44	53	16	15
CAPITAL GROWTH
CAPITAL GROWTH	n/a	73	57	54
STOCK RETURNS
STOCK RETURNS	31	21	19	35
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	26	35	39	21

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of PPB Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company PPB Group has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of PPB Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for PPB Group and the other two below average. Leverage is at a rank of 92 meaning the company has a below-average debt-to-equity ratio. It has less debt than 92% of its competitors.Refinancing is at a rank of 49, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. Liquidity is at a rank of 36, meaning that the company generates less profit to service its debt than 64% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), PPB Group has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of PPB Group are on the safer side. Investors may have a short-term debt challenge and liquidity issues with PPB Group and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	77	96	90	92
REFINANCING
REFINANCING	35	47	51	49
LIQUIDITY
LIQUIDITY	69	18	10	36
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87	51	45	60

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of PPB Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	84	71	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	10	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	85	34	^new
MARKET PULSE
MARKET PULSE	n/a	63	90	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	95	55	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for PPB Group.
Upgrade to a Premium Account to access the latest ranks.