ASX:MSG

Stock Analysis Report

Executive Summary

MCS Services Limited provides guard security and related services in Australia.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.

Risks

  • MCS Services has significant price volatility in the past 3 months.
  • MCS Services is not covered by any analysts.

Share Price & News

How has MCS Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.7%

ASX:MSG

-4.6%

AU Commercial Services

1.9%

AU Market


1 Year Return

38.9%

ASX:MSG

3.8%

AU Commercial Services

2.3%

AU Market

MSG outperformed the Commercial Services industry which returned 3.8% over the past year.

MSG outperformed the Market in Australia which returned 2.3% over the past year.


Share holder returns

MSGIndustryMarket
7 Day8.7%-4.6%1.9%
30 Day56.3%-8.7%-4.2%
90 Day78.6%-1.8%1.2%
1 Year38.9%38.9%6.6%3.8%8.0%2.3%
3 Year-41.7%-50.0%18.7%9.1%32.9%15.6%
5 Year-87.4%-90.5%63.6%41.2%39.3%8.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MCS Services undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MCS Services's share price is below the future cash flow value, and at a moderate discount (> 20%).

MCS Services's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

MCS Services is loss making, we can't compare its value to the AU Commercial Services industry average.

MCS Services is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for MCS Services, we can't assess if its growth is good value.


Price Based on Value of Assets

MCS Services is overvalued based on assets compared to the AU Commercial Services industry average.


Next Steps

Future Growth

How is MCS Services expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MCS Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has MCS Services performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MCS Services does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare MCS Services's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare MCS Services's 1-year growth to the AU Commercial Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if MCS Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if MCS Services has efficiently used its assets last year compared to the AU Commercial Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if MCS Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is MCS Services's financial position?


Financial Position Analysis

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

MCS Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

MCS Services's level of debt (24.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if MCS Services's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 28.7x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making MCS Services has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making MCS Services has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -72% per year.


Next Steps

Dividend

What is MCS Services's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate MCS Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate MCS Services's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as MCS Services has not reported any payouts.

Unable to verify if MCS Services's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as MCS Services has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Paul Simmons 0

0.1yrs

Tenure

AU$219,992

Compensation

Mr. Paul Simmons has been Managing Director of MCS Services Limited since July 1, 2019. Mr. Simmons is the Chief Executive Officer at MCS Security Group Pty Ltd since November 1, 2015. He has a wealth of e ...


CEO Compensation Analysis

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

Paul's compensation has increased whilst company is loss making.


Management Age and Tenure

2.5yrs

Average Tenure

The tenure for the MCS Services management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

The average tenure for the MCS Services board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by MCS Services individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$27,28612 Aug 19
Capital H Unit Trust
EntityCompany
Shares1,187,954
Max PriceAU$0.023
BuyAU$47,82812 Aug 19
Capital H Management Pty Ltd
EntityCompany
Shares1,991,267
Max PriceAU$0.024
BuyAU$259,98002 Aug 19
Capital H Management Pty Ltd
EntityCompany
Shares14,000,000
Max PriceAU$0.019
BuyAU$36,99402 Aug 19
Capital H Unit Trust
EntityCompany
Shares2,000,000
Max PriceAU$0.018
BuyAU$13,17507 Jun 19
Paul Simmons
EntityIndividual
Role
Chief Executive Officer
Managing Director
Shares915,000
Max PriceAU$0.014
BuyAU$32,10531 May 19
Bull Equities Pty Ltd
EntityCompany
Shares2,293,204
Max PriceAU$0.014
BuyAU$49,00127 May 19
Bull Equities Pty Ltd
EntityCompany
Shares3,500,000
Max PriceAU$0.014
BuyAU$113,68427 May 19
Gabriel Hewitt
EntityIndividual
Shares7,500,000
Max PriceAU$0.015
SellAU$003 May 19
Three Hundred Capital Pty Ltd
EntityCompany
Shares9,000,000
Max PriceAU$0.022
SellAU$15,00003 May 19
Westferry Road Pty Ltd
EntityCompany
Shares1,000,000
Max PriceAU$0.015
BuyAU$12,00016 Apr 19
Westferry Road Pty Ltd
EntityCompany
Shares1,000,000
Max PriceAU$0.012
BuyAU$016 Apr 19
Three Hundred Capital Pty Ltd
EntityCompany
Shares3,000,000
Max PriceAU$0.013
BuyAU$180,00426 Mar 19
Three Hundred Capital Pty Ltd
EntityCompany
Shares9,000,000
Max PriceAU$0.02
SellAU$78,93118 Mar 19
Westferry Road Pty Ltd
EntityCompany
Shares4,384,934
Max PriceAU$0.018
SellAU$118,80418 Mar 19
Three Hundred Capital Pty Ltd
EntityCompany
Shares6,600,000
Max PriceAU$0.018
BuyAU$4,42305 Mar 19
Westferry Road Pty Ltd
EntityCompany
Shares1,640,188
Max PriceAU$0.0027
BuyAU$4,26405 Mar 19
Three Hundred Capital Pty Ltd
EntityCompany
Shares1,600,000
Max PriceAU$0.0027
BuyAU$9,71708 Jan 19
Westferry Road Pty Ltd
EntityCompany
Shares2,045,361
Max PriceAU$0.018
SellAU$174,25012 Sep 18
Zw Family Trust
EntityCompany
Shares10,250,000
Max PriceAU$0.017

Ownership Breakdown


Management Team

  • Jonathan Asquith (63yo)

    Company Secretary

    • Tenure: 2.5yrs
    • Compensation: AU$61.00k
  • Miguel Huarachi

    Project Chief

    • Tenure: 0.0yrs
  • Paul Simmons

    Managing Director

    • Tenure: 0.1yrs
    • Compensation: AU$219.99k
  • Mark Englebert

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: AU$208.20k

Board Members

  • Bob Kucera

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: AU$68.93k
  • Matthew Ward

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$66.43k
  • Geoff Martin

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$65.10k

Company Information

MCS Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MCS Services Limited
  • Ticker: MSG
  • Exchange: ASX
  • Founded:
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: AU$4.689m
  • Shares outstanding: 187.54m
  • Website: https://mcssecurity.com.au

Number of Employees


Location

  • MCS Services Limited
  • 3/108, Winton Road
  • Joondalup
  • Western Australia
  • 6027
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2011
MSGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2011

Biography

MCS Services Limited provides guard security and related services in Australia. It offers uniformed security at retail shopping centers, government offices, health facilities, commercial properties, constr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 10:35
End of Day Share Price2019/08/23 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.