ASX:MND

Stock Analysis Report

Executive Summary

Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to the resources, energy, and infrastructure sectors in Australia, New Zealand, Mongolia, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MND has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

MND

-2.6%

AU Construction

0.7%

AU Market


1 Year Return

14.6%

MND

-12.6%

AU Construction

17.7%

AU Market

Return vs Industry: MND exceeded the Australian Construction industry which returned -12.6% over the past year.

Return vs Market: MND underperformed the Australian Market which returned 17.7% over the past year.


Shareholder returns

MNDIndustryMarket
7 Day2.8%-2.6%0.7%
30 Day3.4%1.2%2.0%
90 Day-2.3%3.2%4.9%
1 Year17.9%14.6%-9.2%-12.6%24.5%17.7%
3 Year62.8%46.0%32.2%19.3%40.5%21.3%
5 Year123.9%66.4%95.3%61.2%57.1%22.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MND (A$16.02) is trading below our estimate of fair value (A$20.73)

Significantly Below Fair Value: MND is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MND is poor value based on its PE Ratio (29.8x) compared to the Construction industry average (14.4x).

PE vs Market: MND is poor value based on its PE Ratio (29.8x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MND is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: MND is overvalued based on its PB Ratio (3.8x) compared to the AU Construction industry average (1.6x).


Next Steps

Future Growth

How is Monadelphous Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MND's forecast earnings growth (20.3% per year) is above the savings rate (2.3%).

Earnings vs Market: MND's earnings (20.3% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MND's revenue (13.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MND's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MND's Return on Equity is forecast to be high in 3 years time (21.8%)


Next Steps

Past Performance

How has Monadelphous Group performed over the past 5 years?

-18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MND has a high level of non-cash earnings.

Growing Profit Margin: MND's current net profit margins (3.4%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: MND's earnings have declined by -18.5% per year over the past 5 years.

Accelerating Growth: MND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MND had negative earnings growth (-29.3%) over the past year, making it difficult to compare to the Construction industry average (11%).


Return on Equity

High ROE: MND's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Monadelphous Group's financial position?


Financial Position Analysis

Short Term Liabilities: MND's short term assets (A$521.1M) exceeds its short term liabilities (A$258.3M)

Long Term Liabilities: MND's short term assets (A$521.1M) exceeds its long term liabilities (32.0M)


Debt to Equity History and Analysis

Debt Level: MND's debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: MND's debt to equity ratio has reduced from 1.6% to 0.8% over the past 5 years.

Debt Coverage: MND's debt is well covered by operating cash flow (483.8%).

Interest Coverage: MND's interest payments on its debt are well covered by EBIT (37.3x coverage).


Balance Sheet

Inventory Level: MND has a low level of unsold assets or inventory.

Debt Coverage by Assets: MND's debt is covered by short term assets (assets are 157.9x debt).


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.3%markettop25%5.6%industryaverage4.2%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: MND's dividend (3%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: MND's dividend (3%) is low compared to the top 25% of dividend payers in the Australian market (5.63%).


Stability and Growth of Payments

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

Growing Dividend: MND's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.4%), MND's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MND's dividends in 3 years are forecast to be covered by earnings (84.3% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Rob Velletri 0

16.5yrs

Tenure

AU$1,195,375

Compensation

Mr. Robert Velletri, also known as Rob, has been Managing Director of Monadelphous Group Limited since May 30, 2003 and has been its Executive Director since August 26, 1992. Mr. Velletri joined Monadelpho ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD816.18K) is about average for companies of similar size in the Australian market ($USD997.39K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: MND's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

61yo

Average Age

Experienced Board: MND's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$42,684,50215 Nov 19
Pendal Group Limited
EntityCompany
Shares2,519,055
Max PriceAU$16.97
BuyAU$25,268,71415 Nov 19
Pendal Group Limited
EntityCompany
Shares1,544,131
Max PriceAU$16.64
BuyAU$3,725,27426 May 19
The Vanguard Group, Inc.
EntityCompany
Shares193,423
Max PriceAU$19.31
SellAU$988,57626 May 19
The Vanguard Group, Inc.
EntityCompany
Shares53,643
Max PriceAU$18.98
BuyAU$3,034,60315 May 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares166,421
Max PriceAU$19.31
BuyAU$470,40615 May 19
Realindex Investments Pty Limited
EntityCompany
Shares25,171
Max PriceAU$18.69
SellAU$1,870,84611 Apr 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares101,777
Max PriceAU$18.38
BuyAU$813,97611 Apr 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares46,544
Max PriceAU$17.99
BuyAU$180,91511 Apr 19
Realindex Investments Pty Limited
EntityCompany
Shares10,174
Max PriceAU$17.78
SellAU$40,02011 Apr 19
Realindex Investments Pty Limited
EntityCompany
Shares2,316
Max PriceAU$17.28
SellAU$7,261,54810 Apr 19
Challenger Limited
EntityCompany
Shares406,224
Max PriceAU$17.88
BuyAU$92,57310 Apr 19
Challenger Limited
EntityCompany
Shares5,186
Max PriceAU$17.85
BuyAU$125,62426 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares7,278
Max PriceAU$17.43
BuyAU$782,64626 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares45,000
Max PriceAU$17.53
BuyAU$178,34119 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares10,000
Max PriceAU$17.83
BuyAU$113,82318 Mar 19
BlackRock, Inc.
EntityCompany
Shares621,474
Max PriceAU$17.96
SellAU$58,47118 Mar 19
BlackRock, Inc.
EntityCompany
Shares1,766,910
Max PriceAU$17.85
BuyAU$4,061,48918 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares232,961
Max PriceAU$17.81
SellAU$43,07401 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares2,451
Max PriceAU$17.57
BuyAU$4,57701 Mar 19
Realindex Investments Pty Limited
EntityCompany
Shares257
Max PriceAU$17.81
BuyAU$57,04301 Mar 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares3,237
Max PriceAU$17.62
BuyAU$793,92722 Feb 19
Challenger Limited
EntityCompany
Shares57,172
Max PriceAU$13.89
SellAU$15,654,10222 Feb 19
Challenger Limited
EntityCompany
Shares1,032,231
Max PriceAU$15.17
BuyAU$199,33722 Feb 19
Realindex Investments Pty Limited
EntityCompany
Shares13,395
Max PriceAU$14.88
BuyAU$658,08722 Feb 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares44,874
Max PriceAU$14.67
BuyAU$116,19822 Feb 19
ASB Group Investments Ltd.
EntityCompany
Shares7,517
Max PriceAU$15.46
BuyAU$13,782,73108 Jan 19
Pendal Group Limited
EntityCompany
Shares966,194
Max PriceAU$14.35
SellAU$199,99524 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares14,457
Max PriceAU$13.86
BuyAU$28,51224 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares2,231
Max PriceAU$12.78
BuyAU$87,36224 Dec 18
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares6,850
Max PriceAU$12.75
BuyAU$10,539,85214 Dec 18
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares731,586
Max PriceAU$16.10
BuyAU$4,132,27814 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares288,451
Max PriceAU$14.33
SellAU$3,673,29228 Nov 18
Challenger Limited
EntityCompany
Shares262,895
Max PriceAU$13.97
BuyAU$137,54328 Nov 18
Christopher Michelmore
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$13.75
BuyAU$55,99022 Nov 18
Helen Gillies
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,000
Max PriceAU$14.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rob Velletri

    MD & Executive Director

    • Tenure: 16.5yrs
    • Compensation: AU$1.20m
  • John Rubino

    Executive Chairman of the Board

    • Tenure: 16.5yrs
    • Compensation: AU$499.06k
  • Dino Foti

    Executive General Manager of Engineering Construction

    • Tenure: 0yrs
    • Compensation: AU$986.73k
  • Phil Trueman

    CFO & Company Secretary

    • Tenure: 5yrs
    • Compensation: AU$661.68k
  • Zoran Bebic

    Executive General Manager of Maintenance & Industrial Services Division

    • Tenure: 5.2yrs
    • Compensation: AU$934.72k
  • Kristy Glasgow

    Company Secretary

    • Tenure: 4.9yrs
  • Ella McCarthy

    Group Manager of Marketing & Communications

    • Tenure: 0yrs

Board Members

  • Rob Velletri

    MD & Executive Director

    • Tenure: 16.5yrs
    • Compensation: AU$1.20m
  • John Rubino

    Executive Chairman of the Board

    • Tenure: 16.5yrs
    • Compensation: AU$499.06k
  • Peter Dempsey (72yo)

    Lead Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: AU$165.59k
  • Susan Murphy (61yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
    • Compensation: AU$6.49k
  • Chris Michelmore

    Independent Non-Executive Director

    • Tenure: 12.1yrs
    • Compensation: AU$145.59k
  • Helen Gillies (54yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$135.59k
  • Dietmar Voss

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: AU$135.59k

Company Information

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


Key Information

  • Name: Monadelphous Group Limited
  • Ticker: MND
  • Exchange: ASX
  • Founded: 1972
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: AU$1.512b
  • Shares outstanding: 94.39m
  • Website: https://www.monadelphous.com.au

Number of Employees


Location

  • Monadelphous Group Limited
  • 59 Albany Highway
  • Victoria Park
  • Perth
  • Western Australia
  • 6100
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MDPH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
8MPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MNDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
MOPH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2010

Biography

Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to the resources, energy, and infrastructure sectors in Australia, New Zealand, Mongolia, and i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 10:31
End of Day Share Price2019/11/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.