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.

Snowflake

Fundamentals

Flawless balance sheet with reasonable 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


Market Performance


7 Day Return

-1.5%

ASX:MND

-1.7%

AU Construction

0.2%

AU Market


1 Year Return

29.2%

ASX:MND

4.9%

AU Construction

5.7%

AU Market

MND outperformed the Construction industry which returned 4.9% over the past year.

MND outperformed the Market in Australia which returned 5.7% over the past year.


Share holder returns

MNDIndustryMarket
7 Day-1.5%-1.7%0.2%
30 Day-2.9%-3.2%3.2%
90 Day8.5%-5.9%7.5%
1 Year33.9%29.2%8.6%4.9%11.9%5.7%
3 Year196.0%159.6%54.8%40.6%46.4%27.5%
5 Year61.1%16.6%81.0%39.7%46.3%13.8%

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 based on future cash flows and its price relative to the stock market?

27.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Monadelphous Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Monadelphous Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Monadelphous Group is overvalued based on earnings compared to the AU Construction industry average.

Monadelphous Group is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Monadelphous Group is poor value based on expected growth next year.


Price Based on Value of Assets

Monadelphous Group is overvalued based on assets compared to the AU Construction industry average.


Next Steps

Future Growth

How is Monadelphous Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Monadelphous Group's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).

Monadelphous Group's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).

Monadelphous Group's revenue growth is expected to exceed the Australia market average.

Monadelphous Group's earnings growth is expected to exceed the Australia market average.

Monadelphous Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Monadelphous Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Monadelphous Group performed over the past 5 years?

-21.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Monadelphous Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Monadelphous Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Monadelphous Group's 1-year earnings growth is negative, it can't be compared to the AU Construction industry average.


Return on Equity

Monadelphous Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Monadelphous Group used its assets more efficiently than the AU Construction industry average last year based on Return on Assets.


Return on Capital Employed

Monadelphous Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Monadelphous Group's financial position?


Financial Position Analysis

Monadelphous Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Monadelphous Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Monadelphous Group's level of debt (6.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (13.2% vs 6.8% today).

Debt is well covered by operating cash flow (170.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 125.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 19.4x debt.


Next Steps

Dividend

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

3.75%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Monadelphous Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.59%).

Monadelphous Group's dividend is below the markets top 25% of dividend payers in Australia (5.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Rob Velletri

16.1yrs

Tenure

AU$1,135,365

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

Rob's remuneration is lower than average for companies of similar size in Australia.

Rob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.7yrs

Average Tenure

The tenure for the Monadelphous Group management team is about average.


Board Age and Tenure

11.7yrs

Average Tenure

60yo

Average Age

The average tenure for the Monadelphous Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


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Ownership Breakdown


Management Team

  • Rob Velletri

    MD & Executive Director

    • Tenure: 16.1yrs
    • Compensation: A$1.14m
  • John Battista Rubino

    Chairman

    • Compensation: A$488.80k
  • Dino Foti

    Executive General Manager of Engineering Construction

    • Compensation: A$862.41k
  • Phil Trueman

    CFO & Company Secretary

    • Tenure: 4.6yrs
    • Compensation: A$574.29k
  • Zoran Bebic

    Executive General Manager of Maintenance & Industrial Services Division

    • Tenure: 4.8yrs
    • Compensation: A$776.65k
  • Kristy Glasgow

    Company Secretary

    • Tenure: 4.5yrs

Board Members

  • Rob Velletri

    MD & Executive Director

    • Tenure: 26.8yrs
    • Compensation: A$1.14m
  • John Battista Rubino

    Chairman

    • Tenure: 16.1yrs
    • Compensation: A$488.80k
  • Peter Dempsey (71yo)

    Lead Independent Non-Executive Director

    • Compensation: A$147.75k
  • Sue Murphy (60yo)

    Non-Executive Director

  • Chris Michelmore

    Independent Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: A$126.65k
  • Helen Gillies (53yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: A$116.09k
  • Dietmar Voss

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: A$116.09k

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$1.751b
  • Shares outstanding: 94.20m
  • Website: Click here

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
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. It operates through Engineer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/26 10:33
End of Day Share Price2019/06/26 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.