ASX:MTS

Stock Analysis Report

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Market Cap

AU$4.1b

Last Updated

2021/07/25 08:04 UTC

Data Sources

Company Financials +

Executive Summary

Metcash Limited operates as a wholesale distribution and marketing company in Australia and New Zealand. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: MTS's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

MTS

2.8%

AU Consumer Retailing

0.5%

AU Market


1 Year Return

45.8%

MTS

3.3%

AU Consumer Retailing

26.1%

AU Market

Return vs Industry: MTS exceeded the Australian Consumer Retailing industry which returned 3.3% over the past year.

Return vs Market: MTS exceeded the Australian Market which returned 26.1% over the past year.


Shareholder returns

MTSIndustryMarket
7 Day2.8%2.8%0.5%
30 Day9.6%5.2%2.0%
90 Day5.2%-0.9%4.4%
1 Year52.8%45.8%18.0%3.3%30.7%26.1%
3 Year76.5%52.5%68.8%29.7%32.9%16.7%
5 Year129.3%85.6%126.4%62.4%64.4%32.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTS (A$4.01) is trading above our estimate of fair value (A$3.33)

Significantly Below Fair Value: MTS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTS is good value based on its PE Ratio (17.1x) compared to the Oceanic Consumer Retailing industry average (22.4x).

PE vs Market: MTS is good value based on its PE Ratio (17.1x) compared to the Australian market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: MTS is poor value based on its PEG Ratio (18.8x)


Price to Book Ratio

PB vs Industry: MTS is good value based on its PB Ratio (3.2x) compared to the AU Consumer Retailing industry average (5.3x).


Future Growth

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

0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTS's forecast earnings growth (0.9% per year) is below the savings rate (1.9%).

Earnings vs Market: MTS's earnings (0.9% per year) are forecast to grow slower than the Australian market (12.5% per year).

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

Revenue vs Market: MTS's revenue (1.7% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: MTS's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTS's Return on Equity is forecast to be low in 3 years time (18.5%).


Past Performance

How has Metcash performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTS has high quality earnings.

Growing Profit Margin: MTS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MTS's earnings have declined by 3.8% per year over the past 5 years.

Accelerating Growth: MTS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MTS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (15.1%).


Return on Equity

High ROE: MTS's Return on Equity (18.7%) is considered low.


Financial Health

How is Metcash's financial position?


Financial Position Analysis

Short Term Liabilities: MTS's short term assets (A$2.8B) exceed its short term liabilities (A$2.4B).

Long Term Liabilities: MTS's short term assets (A$2.8B) exceed its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: MTS is debt free.

Reducing Debt: MTS has no debt compared to 5 years ago when its debt to equity ratio was 22.6%.

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

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


Balance Sheet


Dividend

What is Metcash current dividend yield, its reliability and sustainability?

4.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTS's dividend (4.74%) is higher than the bottom 25% of dividend payers in the Australian market (2.01%).

High Dividend: MTS's dividend (4.74%) is low compared to the top 25% of dividend payers in the Australian market (5%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.8%), MTS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTS's dividends in 3 years are forecast to be covered by earnings (70.4% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Jeff Adams

3.58yrs

Tenure

AU$3,163,638

Compensation

Mr. Jeffery K. Adams, also known as Jeff, BA (Business Administration and Management) has been Group Chief Executive Officer and Executive Director of Metcash Limited since December 5, 2017. Mr. Adams has...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD2.33M) is above average for companies of similar size in the Australian market ($USD1.70M).

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


Leadership Team

Experienced Management: MTS's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: MTS's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MTS 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

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


Key Information

  • Name: Metcash Limited
  • Ticker: MTS
  • Exchange: ASX
  • Founded: 1920
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: AU$4.100b
  • Shares outstanding: 1.02b
  • Website: https://www.metcash.com

Number of Employees


Location

  • Metcash Limited
  • 1 Thomas Holt Drive
  • Macquarie Park
  • New South Wales
  • 2113
  • Australia

Listings


Biography

Metcash Limited operates as a wholesale distribution and marketing company in Australia and New Zealand. It operates through Food, Liquor, and Hardware segments. The Food segment distributes a range of pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/25 08:04
End of Day Share Price2021/07/23 00:00
Earnings2021/04/30
Annual Earnings2021/04/30


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.