People Incorporated Fundamental Analysis (NASDAQ: PPLI)
People Incorporated Fundamental Analysis (NASDAQ: PPLI)
People Incorporated (NASDAQ: PPLI) shows moderate financial fundamentals with a PE ratio of 8.24, profit margin of 16.18%, and ROE of 7.08%. The company generates $2.1B in annual revenue with weak year-over-year growth of -37.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PPLI's fundamental strength across five key dimensions:
Efficiency Score
WeakPPLI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPPLI trades at attractive valuation levels.
Growth Score
ModeratePPLI shows steady but slowing expansion.
Financial Health Score
ExcellentPPLI maintains a strong and stable balance sheet.
Profitability Score
ModeratePPLI maintains healthy but balanced margins.
Key Financial Metrics
Is PPLI Expensive or Cheap?
P/E Ratio
PPLI trades at 8.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PPLI's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values People Incorporated at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.08 times EBITDA. This is generally considered low.
How Well Does PPLI Make Money?
Net Profit Margin
For every $100 in sales, People Incorporated keeps $16.18 as profit after all expenses.
Operating Margin
Core operations generate 0.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.08 in profit for every $100 of shareholder equity.
ROA
People Incorporated generates $4.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
People Incorporated generates limited operating cash flow of $111.09M, signaling weaker underlying cash strength.
Free Cash Flow
People Incorporated produces free cash flow of $82.02M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.10 in free cash annually.
FCF Yield
PPLI converts 2.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.003
vs 25 benchmark
How PPLI Stacks Against Its Sector Peers
| Metric | PPLI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.24 | 19.70 | Better (Cheaper) |
| ROE | 7.08% | 561.00% | Weak |
| Net Margin | 16.18% | 488.00% | Weak |
| Debt/Equity | 0.28 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 3.69 | 1.91 | Strong Liquidity |
| ROA | 4.51% | -18.00% (disorted) | Weak |
PPLI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews People Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.66%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-141.14%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-57.72%
Industry Style: Growth, Technology, Streaming
Declining