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Market Cap

AU$1.1b

Last Updated

2021/04/21 08:09 UTC

Data Sources

Company Financials +

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, Chile, Mongolia, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MND's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.5%

MND

-1.3%

AU Construction

-0.4%

AU Market


1 Year Return

11.9%

MND

-7.6%

AU Construction

41.0%

AU Market

Return vs Industry: MND exceeded the Australian Construction industry which returned -9.1% over the past year.

Return vs Market: MND underperformed the Australian Market which returned 41.7% over the past year.


Shareholder returns

MNDIndustryMarket
7 Day6.5%-1.3%-0.4%
30 Day5.6%-2.8%3.5%
90 Day-22.2%-24.9%2.2%
1 Year15.6%11.9%-6.5%-7.6%45.3%41.0%
3 Year-22.0%-29.3%-49.2%-52.9%32.8%16.9%
5 Year87.4%54.3%-30.9%-39.0%63.1%31.4%

Long-Term 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?

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MND (A$11.28) is trading below our estimate of fair value (A$20.67)

Significantly Below Fair Value: MND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MND is poor value based on its PE Ratio (26.9x) compared to the AU Construction industry average (17.9x).

PE vs Market: MND is poor value based on its PE Ratio (26.9x) compared to the Australian market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: MND is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: MND is overvalued based on its PB Ratio (2.7x) compared to the AU Construction industry average (2.2x).


Future Growth

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

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MND's forecast earnings growth (12.9% per year) is above the savings rate (2%).

Earnings vs Market: MND's earnings (12.9% per year) are forecast to grow slower than the Australian market (15.1% per year).

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

Revenue vs Market: MND's revenue (8% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: MND's revenue (8% 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 (20.9%)


Past Performance

How has Monadelphous Group performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MND has high quality earnings.

Growing Profit Margin: MND's current net profit margins (2.5%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: MND's earnings have declined by 11.5% 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 (-17.9%) over the past year, making it difficult to compare to the Construction industry average (4.3%).


Return on Equity

High ROE: MND's Return on Equity (10.1%) is considered low.


Financial Health

How is Monadelphous Group's financial position?


Financial Position Analysis

Short Term Liabilities: MND's short term assets (A$600.2M) exceed its short term liabilities (A$325.9M).

Long Term Liabilities: MND's short term assets (A$600.2M) exceed its long term liabilities (A$89.9M).


Debt to Equity History and Analysis

Debt Level: MND's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: MND's debt to equity ratio has reduced from 0.4% to 0.4% over the past 5 years.

Debt Coverage: MND's debt is well covered by operating cash flow (4165.2%).

Interest Coverage: MND's interest payments on its debt are well covered by EBIT (14.3x coverage).


Balance Sheet


Dividend

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

3.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MND's dividend (3.28%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: MND's dividend (3.28%) is low compared to the top 25% of dividend payers in the Australian market (5.29%).


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 (88.3%), 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 (81.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Rob Velletri

17.92yrs

Tenure

AU$1,208,696

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 ($USD935.16K) is about average for companies of similar size in the Australian market ($USD852.19K).

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


Leadership Team

Experienced Management: MND's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: MND's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.090b
  • Shares outstanding: 94.76m
  • Website: https://www.monadelphous.com.au

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/21 08:09
End of Day Share Price2021/04/21 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.