ASX:MCP

Stock Analysis Report

Executive Summary

McPherson's Limited provides health, wellness, and beauty products in Australia, New Zealand, Asia, and internationally.

Rewards

Trading at 26.5% below its fair value

Earnings are forecast to grow 11.29% per year

Earnings grew by 20.8% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MCP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

MCP

0.08%

AU Consumer Durables

0.5%

AU Market


1 Year Return

89.7%

MCP

38.2%

AU Consumer Durables

19.0%

AU Market

Return vs Industry: MCP exceeded the Australian Consumer Durables industry which returned 38.2% over the past year.

Return vs Market: MCP exceeded the Australian Market which returned 19% over the past year.


Shareholder returns

MCPIndustryMarket
7 Day0%0.08%0.5%
30 Day-11.1%-2.5%0.2%
90 Day7.1%1.0%0.4%
1 Year104.3%89.7%41.7%38.2%24.9%19.0%
3 Year179.1%129.7%54.4%42.0%37.0%18.2%
5 Year184.7%100.0%117.7%90.3%58.6%22.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is McPherson's undervalued compared to its fair value and its price relative to the market?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCP (A$2.4) is trading below our estimate of fair value (A$3.27)

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


Price To Earnings Ratio

PE vs Industry: MCP is poor value based on its PE Ratio (18.4x) compared to the Consumer Durables industry average (15.5x).

PE vs Market: MCP is poor value based on its PE Ratio (18.4x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MCP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: MCP is good value based on its PB Ratio (2.6x) compared to the AU Consumer Durables industry average (4.8x).


Next Steps

Future Growth

How is McPherson's forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCP's forecast earnings growth (11.3% per year) is above the savings rate (1.1%).

Earnings vs Market: MCP's earnings (11.3% per year) are forecast to grow faster than the Australian market (9.3% per year).

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

Revenue vs Market: MCP's revenue (4.6% per year) is forecast to grow faster than the Australian market (3.5% per year).

High Growth Revenue: MCP's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCP's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has McPherson's performed over the past 5 years?

48.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCP has high quality earnings.

Growing Profit Margin: MCP's current net profit margins (6.5%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: MCP has become profitable over the past 5 years, growing earnings by 48% per year.

Accelerating Growth: MCP's earnings growth over the past year (20.8%) is below its 5-year average (48% per year).

Earnings vs Industry: MCP earnings growth over the past year (20.8%) exceeded the Consumer Durables industry 4.3%.


Return on Equity

High ROE: MCP's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is McPherson's's financial position?


Financial Position Analysis

Short Term Liabilities: MCP's short term assets (A$82.8M) exceed its short term liabilities (A$42.7M).

Long Term Liabilities: MCP's short term assets (A$82.8M) exceed its long term liabilities (A$25.8M).


Debt to Equity History and Analysis

Debt Level: MCP's debt to equity ratio (18.6%) is considered satisfactory.

Reducing Debt: MCP's debt to equity ratio has reduced from 86.8% to 18.6% over the past 5 years.

Debt Coverage: MCP's debt is well covered by operating cash flow (110.3%).

Interest Coverage: MCP's interest payments on its debt are well covered by EBIT (23.8x coverage).


Balance Sheet

Inventory Level: MCP has a high level of physical assets or inventory.

Debt Coverage by Assets: MCP's debt is covered by short term assets (assets are 4.6x debt).


Next Steps

Dividend

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

4.17%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: MCP's dividend (4.17%) is higher than the bottom 25% of dividend payers in the Australian market (2.41%).

High Dividend: MCP's dividend (4.17%) is low compared to the top 25% of dividend payers in the Australian market (5.6%).


Stability and Growth of Payments

Stable Dividend: MCP's dividend payments have been volatile in the past 10 years.

Growing Dividend: MCP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.8%), MCP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCP's dividends in 3 years are forecast to be covered by earnings (67.4% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Laurie McAllister 0

3.1yrs

Tenure

AU$1,105,331

Compensation

Mr. Laurie McAllister, also known as Laurie, has been Managing Director of McPherson's Limited since November 21, 2016 and serves as its Director. Mr. McAllister served as Managing Director at Sanofi-avent ...


CEO Compensation Analysis

Compensation vs Market: Laurie's total compensation ($USD762.67K) is above average for companies of similar size in the Australian market ($USD488.82K).

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


Management Age and Tenure

7.8yrs

Average Tenure

Experienced Management: MCP's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

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


Insider Trading

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


Recent Insider Transactions

BuyAU$1,602,37212 Mar 19
Investors Mutual Limited
EntityCompany
Shares1,101,080
Max PriceAU$1.46
BuyAU$6,21828 Feb 19
Jane McKellar
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,717
Max PriceAU$1.32
BuyAU$15,76525 Feb 19
Alison Mew
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares12,000
Max PriceAU$1.31

Ownership Breakdown

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


Management Team

  • Phil Bennett

    Joint Company Secretary

    • Tenure: 7.8yrs
    • Compensation: AU$481.97k
  • Sammy Chan

    Managing Director of McPherson's Hong Kong Limited

    • Tenure: 0yrs
    • Compensation: AU$632.41k
  • Paul Witheridge

    CFO & Joint Company Secretary

    • Tenure: 8yrs
    • Compensation: AU$451.05k
  • Laurie McAllister

    MD & Director

    • Tenure: 3.1yrs
    • Compensation: AU$1.11m
  • Lori Pirozzi

    International Sales Director

    • Tenure: 0yrs
    • Compensation: AU$296.92k
  • Donna Chan

    Marketing Director

    • Tenure: 0yrs
  • David Fielding

    Director of Strategy

    • Tenure: 0yrs
  • Mary Pearce

    R&D Director

    • Tenure: 0yrs

Board Members

  • Graham Cubbin (71yo)

    Independent Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: AU$164.52k
  • Alison Mew (61yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$77.93k
  • Grant Peck

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$93.46k
  • Laurie McAllister

    MD & Director

    • Tenure: 3.1yrs
    • Compensation: AU$1.11m
  • Jane McKellar

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$100.03k
  • Geoff Pearce

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$82.92k

Company Information

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


Key Information

  • Name: McPherson's Limited
  • Ticker: MCP
  • Exchange: ASX
  • Founded: 1860
  • Industry: Housewares and Specialties
  • Sector: Consumer Durables
  • Market Cap: AU$256.424m
  • Shares outstanding: 106.84m
  • Website: https://www.mcphersons.com.au

Number of Employees


Location

  • McPherson's Limited
  • 105 Vanessa Street
  • Kingsgrove
  • New South Wales
  • 2208
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MCPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
M5CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

McPherson's Limited provides health, wellness, and beauty products in Australia, New Zealand, Asia, and internationally. The company offers beauty care, hair care, skin care, and fragrance products; kitche ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 10:33
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.