ASX:MAD

Stock Analysis Report

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Executive Summary

Mader Group Limited, a contracting company, provides specialized contract labor for maintenance and support of mobile and fixed plant equipment in the resources sector in Australia and internationally. More Details


Snowflake Analysis

Undervalued with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MAD is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MAD's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

MAD

-1.4%

AU Commercial Services

-0.3%

AU Market


1 Year Return

-16.5%

MAD

-15.4%

AU Commercial Services

-1.6%

AU Market

Return vs Industry: MAD underperformed the Australian Commercial Services industry which returned -15.4% over the past year.

Return vs Market: MAD underperformed the Australian Market which returned -1.6% over the past year.


Shareholder returns

MADIndustryMarket
7 Day-2.2%-1.4%-0.3%
30 Day-7.1%-0.4%1.5%
90 Day-3.2%2.8%9.2%
1 Year-13.8%-16.5%-12.6%-15.4%1.7%-1.6%
3 Yearn/a4.9%0.2%26.2%10.7%
5 Yearn/a30.2%17.0%68.7%35.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAD (A$0.91) is trading below our estimate of fair value (A$2.89)

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


Price To Earnings Ratio

PE vs Industry: MAD is good value based on its PE Ratio (10.4x) compared to the AU Commercial Services industry average (26.1x).

PE vs Market: MAD is good value based on its PE Ratio (10.4x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: MAD is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MAD is overvalued based on its PB Ratio (3.8x) compared to the AU Commercial Services industry average (2.5x).


Next Steps

Future Growth

How is Mader Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAD's forecast earnings growth (15.9% per year) is above the savings rate (2%).

Earnings vs Market: MAD's earnings (15.9% per year) are forecast to grow slower than the Australian market (18.1% per year).

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

Revenue vs Market: MAD's revenue (13% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: MAD's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAD's Return on Equity is forecast to be high in 3 years time (28.7%)


Next Steps

Past Performance

How has Mader Group performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAD has high quality earnings.

Growing Profit Margin: MAD's current net profit margins (6.4%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: MAD's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: MAD's earnings growth over the past year (17.5%) is below its 5-year average (27.3% per year).

Earnings vs Industry: MAD earnings growth over the past year (17.5%) exceeded the Commercial Services industry 2.6%.


Return on Equity

High ROE: MAD's Return on Equity (36.4%) is considered high.


Next Steps

Financial Health

How is Mader Group's financial position?


Financial Position Analysis

Short Term Liabilities: MAD's short term assets (A$63.2M) exceed its short term liabilities (A$37.7M).

Long Term Liabilities: MAD's short term assets (A$63.2M) exceed its long term liabilities (A$14.9M).


Debt to Equity History and Analysis

Debt Level: MAD's debt to equity ratio (51.8%) is considered high.

Reducing Debt: MAD's debt to equity ratio has increased from 0.3% to 51.8% over the past 5 years.

Debt Coverage: MAD's debt is well covered by operating cash flow (81.9%).

Interest Coverage: MAD's interest payments on its debt are well covered by EBIT (17.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAD's dividend (3.3%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: MAD's dividend (3.3%) is low compared to the top 25% of dividend payers in the Australian market (5.03%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MAD's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MAD's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), MAD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAD's dividends in 3 years are forecast to be well covered by earnings (36.5% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Pat Conway

2.17yrs

Tenure

AU$477,544

Compensation

Mr. Patrick Conway, also known as Pat, BBUS, CPA, GACG, serves as the Chief Executive Officer and Executive Director at Mader Group Limited since November 08, 2018. Mr. Conway has been with MADER GROUP LIM...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD368.59K) is about average for companies of similar size in the Australian market ($USD294.38K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Conway
CEO & Executive Director2.17yrsAU$477.54k0.057%
A$ 103.6k
John Greville
Chief Operating Officer2.42yrsAU$541.52k0.083%
A$ 151.7k
Luke Mader
Executive Directorno dataAU$166.07k56.65%
A$ 103.1m
Paul Hegarty
Chief Financial Officer0.33yrno datano data
Shannon Coates
Company Secretaryno datano datano data

2.2yrs

Average Tenure

Experienced Management: MAD's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Conway
CEO & Executive Director2.17yrsAU$477.54k0.057%
A$ 103.6k
Luke Mader
Executive Directorno dataAU$166.07k56.65%
A$ 103.1m
Craig Burton
Non-Executive Directorno dataAU$65.70k19.9%
A$ 36.2m
James Walker
Independent Non-Executive Chairman2yrsAU$120.45k0.033%
A$ 60.7k
Justin Nuich
Independent Non-Executive Director2yrsAU$60.00k0.033%
A$ 60.7k

2.0yrs

Average Tenure

Experienced Board: MAD's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Mader Group Limited
  • Ticker: MAD
  • Exchange: ASX
  • Founded: 2005
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$182.000m
  • Shares outstanding: 200.00m
  • Website: https://www.madergroup.com.au

Number of Employees


Location

  • Mader Group Limited
  • Hkew Alpha Building
  • Suite A1
  • Perth
  • Western Australia
  • 6105
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MADASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2019

Biography

Mader Group Limited, a contracting company, provides specialized contract labor for maintenance and support of mobile and fixed plant equipment in the resources sector in Australia and internationally. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 07:10
End of Day Share Price2021/01/18 00:00
Earnings2020/06/30
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.