ASX:CIM

Stock Analysis Report

Executive Summary

CIMIC Group Limited provides construction, mining, mineral processing, engineering, and operation and maintenance services to the infrastructure, resource, and property markets.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has CIMIC Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

CIM

1.0%

AU Construction

0.4%

AU Market


1 Year Return

-30.4%

CIM

-23.4%

AU Construction

9.8%

AU Market

Return vs Industry: CIM underperformed the Australian Construction industry which returned -23.4% over the past year.

Return vs Market: CIM underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

CIMIndustryMarket
7 Day0.2%1.0%0.4%
30 Day0.7%-0.3%-1.1%
90 Day-11.1%-9.0%-0.6%
1 Year-27.4%-30.4%-20.3%-23.4%16.1%9.8%
3 Year17.5%6.0%24.3%12.8%36.1%17.9%
5 Year85.9%54.3%49.1%17.1%49.4%15.7%

Price Volatility Vs. Market

How volatile is CIMIC Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CIMIC Group undervalued compared to its fair value and its price relative to the market?

13.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CIM (A$32.52) is trading above our estimate of fair value (A$25.46)

Significantly Undervalued: CIM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CIM is good value based on its PE Ratio (13.4x) compared to the Construction industry average (13.8x).

PE vs Market: CIM is good value based on its PE Ratio (13.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: CIM is poor value based on its PEG Ratio (7x)


Price to Book Ratio

PB vs Industry: CIM is overvalued based on its PB Ratio (4.2x) compared to the AU Construction industry average (1.1x).


Next Steps

Future Growth

How is CIMIC Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIM's forecast earnings growth (1.9% per year) is below the savings rate (2.3%).

Earnings vs Market: CIM's earnings (1.9% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: CIM's earnings are forecast to grow, but not significantly.

Revenue vs Market: CIM's revenue (4.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: CIM's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CIM's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has CIMIC Group performed over the past 5 years?

32.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CIM's earnings have grown significantly by 32.7% per year over the past 5 years.

Accelerating Growth: CIM's earnings growth over the past year (5.7%) is below its 5-year average (32.7% per year).

Earnings vs Industry: CIM earnings growth over the past year (5.7%) underperformed the Construction industry 5.7%.


Return on Equity

High ROE: CIM's Return on Equity (32%) is considered high.


Return on Assets

ROA vs Industry: CIM has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: CIM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CIMIC Group's financial position?


Financial Position Analysis

Short Term Liabilities: CIM's short term assets (A$6.4B) do not cover its short term liabilities (A$7.0B)

Long Term Liabilities: CIM's short term assets (6.4B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: CIM's debt to equity ratio (28.5%) is considered satisfactory

Reducing Debt: CIM's debt to equity ratio has reduced from 74.6% to 28.5% over the past 5 years.

Debt Coverage: CIM's debt is well covered by operating cash flow (185.4%).

Interest Coverage: CIM's interest payments on its debt are well covered by EBIT (87x coverage).


Balance Sheet

Inventory Level: CIM has a high level of physical assets or inventory.

Debt Coverage by Assets: CIM's debt is covered by short term assets (assets are 9.199190x debt).


Next Steps

Dividend

What is CIMIC Group's current dividend yield, its reliability and sustainability?

4.83%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CIM's dividend (4.83%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: CIM's dividend (4.83%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

Stable Dividend: CIM's dividend payments have been volatile in the past 10 years.

Growing Dividend: CIM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.9%), CIM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIM's dividends in 3 years are forecast to be covered by earnings (66% payout ratio).


Next Steps

Management

What is the CEO of CIMIC Group's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Michael Wright 0

1.8yrs

Tenure

AU$2,698,506

Compensation

Mr. Michael Wright, BE (Civil), MEngSc, FIEAust has been Chief Executive Officer and Managing Director of CIMIC Group Limited since December 1, 2017. Mr. Wright served as Deputy Chief Executive Officer of  ...


CEO Compensation Analysis

Compensation vs. Market: Michael has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

53yo

Average Age

Experienced Management: CIM's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

67yo

Average Age

Experienced Board: CIM's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: CIM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$368,01229 Jul 19
Michael Wright
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Director
Shares10,000
Max PriceAU$36.80
BuyAU$36,58025 Jul 19
Kathryn Spargo
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,000
Max PriceAU$36.58
BuyAU$42,55021 Nov 18
Kathryn Spargo
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,000
Max PriceAU$42.55

Ownership Breakdown


Management Team

  • Marcelino Fernandez Verdes (64yo)

    Executive Chairman

    • Tenure: 5.3yrs
  • Ignacio Segura Suriñach (53yo)

    Deputy CEO & COO

    • Tenure: 1.9yrs
    • Compensation: AU$2.09m
  • Michael Wright

    CEO, MD & Director

    • Tenure: 1.8yrs
    • Compensation: AU$2.70m
  • Stefan Camphausen (41yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: AU$1.45m
  • Fiona Tyndall

    General Manager of Communications

    • Tenure: 0yrs
  • Roman Garrido

    CIMIC Group Chief Safety

    • Tenure: 0yrs
  • Lisa Interligi

    Chief Human Resources & Corporate Services Officer

    • Tenure: 0yrs
  • Juan Santamaria

    Managing Director of CPB Contractors

    • Tenure: 0yrs
  • Glen Mace

    Managing Director of EIC Activities

    • Tenure: 0yrs
  • George Sassine

    Executive General Manager of Investment & Group Property

    • Tenure: 2.8yrs

Board Members

  • Peter-Wilhelm Sassenfeld (53yo)

    Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: AU$220.00k
  • Kate Spargo (68yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$250.29k
  • Trevor Gerber (61yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$302.29k
  • David Robinson (60yo)

    Non-Executive Director

    • Tenure: 28.8yrs
    • Compensation: AU$334.95k
  • Pedro Jose López Jiménez (74yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: AU$231.00k
  • Marcelino Fernandez Verdes (64yo)

    Executive Chairman

    • Tenure: 5.3yrs
  • Peter McMorrow (69yo)

    Executive Chairman of Broad Group Holdings

    • Tenure: 9.1yrs
    • Compensation: AU$373.71k
  • Russell Chenu (67yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$307.67k
  • Michael Wright

    CEO, MD & Director

    • Tenure: 1.8yrs
    • Compensation: AU$2.70m
  • Riad T. Sadik (76yo)

    Chairman of Habtoor Leighton Group

    • Tenure: 0yrs

Company Information

CIMIC Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CIMIC Group Limited
  • Ticker: CIM
  • Exchange: ASX
  • Founded: 1949
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$10.528b
  • Shares outstanding: 323.73m
  • Website: https://www.cimic.com.au

Number of Employees


Location

  • CIMIC Group Limited
  • 177 Pacific Highway
  • Level 25
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGTH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CIMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
LTHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CIMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

CIMIC Group Limited provides construction, mining, mineral processing, engineering, and operation and maintenance services to the infrastructure, resource, and property markets. The company operates throug ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.