MSG

MCS ServicesASX:MSG Stock Report

Market Cap

AU$11.2m

7D

-7.7%

1Y

200.0%

Updated

23 Sep, 2021

Data

Company Financials
MSG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

MSG Overview

MCS Services Limited, together with its subsidiaries, provides guard security and related services in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for MCS Services
Historical stock prices
Current Share PriceAU$0.06
52 Week HighAU$0.019
52 Week LowAU$0.078
Beta1.2
1 Month Change-13.04%
3 Month Change-6.25%
1 Year Change200.00%
3 Year Change252.94%
5 Year Change114.29%
Change since IPO-99.15%

Recent News & Updates

Jun 14
If You Like EPS Growth Then Check Out MCS Services (ASX:MSG) Before It's Too Late

If You Like EPS Growth Then Check Out MCS Services (ASX:MSG) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Mar 01
With EPS Growth And More, MCS Services (ASX:MSG) Is Interesting

With EPS Growth And More, MCS Services (ASX:MSG) Is Interesting

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Jan 13
Is MCS Services Limited's(ASX:MSG) Recent Stock Performance Tethered To Its Strong Fundamentals?

Is MCS Services Limited's(ASX:MSG) Recent Stock Performance Tethered To Its Strong Fundamentals?

MCS Services' (ASX:MSG) stock is up by a considerable 114% over the past three months. Given that the market rewards...

Shareholder Returns

MSGAU Commercial ServicesAU Market
7D-7.7%-0.4%-2.3%
1Y200.0%14.1%25.4%

Return vs Industry: MSG exceeded the Australian Commercial Services industry which returned 14.1% over the past year.

Return vs Market: MSG exceeded the Australian Market which returned 25.4% over the past year.

Price Volatility

Is MSG's price volatile compared to industry and market?
MSG volatility
MSG Beta1.2
Industry Beta0.89
Market Beta1

Stable Share Price: MSG is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: MSG's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2005500Paul Simmonshttps://mcssecurity.com.au

MCS Services Limited, together with its subsidiaries, provides guard security and related services in Australia. It offers uniformed unarmed guards at retail shopping centers, government offices, health facilities, commercial properties, sports stadia, and events in the Perth metropolitan area and Western Australia. The company also provides covert security, mobile patrol, and response vehicle services.

MCS Services Fundamentals Summary

How do MCS Services's earnings and revenue compare to its market cap?
MSG fundamental statistics
Market CapAU$11.18m
Earnings (TTM)AU$1.56m
Revenue (TTM)AU$38.08m

7.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MSG income statement (TTM)
RevenueAU$38.08m
Cost of RevenueAU$31.10m
Gross ProfitAU$6.99m
ExpensesAU$5.43m
EarningsAU$1.56m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0083
Gross Margin18.34%
Net Profit Margin4.08%
Debt/Equity Ratio0%

How did MSG perform over the long term?

See historical performance and comparison

Valuation

Is MCS Services 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: MSG (A$0.06) is trading below our estimate of fair value (A$0.81)

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


Price To Earnings Ratio

PE vs Industry: MSG is good value based on its PE Ratio (7.2x) compared to the Australian Commercial Services industry average (21.8x).

PE vs Market: MSG is good value based on its PE Ratio (7.2x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MSG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MSG is overvalued based on its PB Ratio (4.2x) compared to the AU Commercial Services industry average (2.5x).


Future Growth

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

11.3%

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.


Past Performance

How has MCS Services performed over the past 5 years?

81.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSG has high quality earnings.

Growing Profit Margin: MSG's current net profit margins (4.1%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: MSG has become profitable over the past 5 years, growing earnings by 81% per year.

Accelerating Growth: MSG's earnings growth over the past year (392.1%) exceeds its 5-year average (81% per year).

Earnings vs Industry: MSG earnings growth over the past year (392.1%) exceeded the Commercial Services industry 7.9%.


Return on Equity

High ROE: MSG's Return on Equity (57.8%) is considered outstanding.


Financial Health

How is MCS Services's financial position?


Financial Position Analysis

Short Term Liabilities: MSG's short term assets (A$7.7M) exceed its short term liabilities (A$5.1M).

Long Term Liabilities: MSG's short term assets (A$7.7M) exceed its long term liabilities (A$377.0K).


Debt to Equity History and Analysis

Debt Level: MSG is debt free.

Reducing Debt: MSG has no debt compared to 5 years ago when its debt to equity ratio was 0.2%.

Debt Coverage: MSG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MSG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MSG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MSG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MSG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MSG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MSG is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MSG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Paul Simmons

2.17yrs

Tenure

AU$252,600

Compensation

Mr. Paul Robert Simmons has been The Chief Executive Officer, Managing Director and Director at MCS Services Limited since July 1, 2019. Mr. Simmons is the Chief Executive Officer at MCS Security Group Pty...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD183.43K) is below average for companies of similar size in the Australian market ($USD281.32K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MSG's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: MSG's board of directors are considered experienced (4.5 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

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


Key Information

  • Name: MCS Services Limited
  • Ticker: MSG
  • Exchange: ASX
  • Founded: 2005
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: AU$11.176m
  • Shares outstanding: 186.27m
  • Website: https://mcssecurity.com.au

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 16:03
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.