PeopleIn: Growth continues, but at a moderated pace

About the author:

Author name:

By Liam Schofield

Job title:

Analyst

Date posted:

28 August 2023, 8:00 AM

Sectors Covered:

Industrials

• Whilst the result was a slight miss against guidance and Factset consensus, PeopleIn (ASX:PPE) continued to deliver earnings growth (FY23 EBITDA: +29.5%) through a combination of organic growth (+8.3%) and acquisitions (acquired c.$15m of EBITDA in FY22). Despite FY23 presenting a number of operational challenges (nurse visa approval rates | IT recruitment), the company continued to see demand for its services, driven by continued low levels of unemployment, solid wage inflation and jobs growth across its diversified exposure to what remains a range of high demand sectors.
• At an FY24f PER (NPATA) of c.7.3x (8.8x NPAT), +90% cash conversion and growing organically at c.8% pa (plus acquisition growth) PPE remains cheap. It is on this basis that we retain our ADD rating with a slightly reduced target price of (login to view).

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