ASX:MTS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.3%

MTS

-0.7%

AU Consumer Retailing

-1.0%

AU Market


1 Year Return

3.7%

MTS

10.4%

AU Consumer Retailing

16.2%

AU Market

Return vs Industry: MTS underperformed the Australian Consumer Retailing industry which returned 10.4% over the past year.

Return vs Market: MTS underperformed the Australian Market which returned 16.2% over the past year.


Shareholder returns

MTSIndustryMarket
7 Day-6.3%-0.7%-1.0%
30 Day1.1%0.3%-0.2%
90 Day-3.7%6.3%2.2%
1 Year9.4%3.7%12.9%10.4%21.9%16.2%
3 Year61.3%43.3%33.1%23.9%36.3%17.7%
5 Year26.1%8.4%45.2%28.5%52.7%18.3%

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?

15.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTS (A$2.83) is trading below our estimate of fair value (A$3.34)

Significantly Below Fair Value: MTS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MTS is good value based on its PE Ratio (13.6x) compared to the Consumer Retailing industry average (20x).

PE vs Market: MTS is good value based on its PE Ratio (13.6x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MTS is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: MTS is overvalued based on its PB Ratio (2.1x) compared to the XX Consumer Retailing industry average (1.5x).


Next Steps

Future Growth

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

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTS's forecast earnings growth (2.6% per year) is above the savings rate (2.3%).

Earnings vs Market: MTS's earnings (2.6% per year) are forecast to grow slower than the Australian market (9.6% per year).

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

Revenue vs Market: MTS's revenue (1.3% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: MTS's revenue (1.3% 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 (14.6%).


Next Steps

Past Performance

How has Metcash performed over the past 5 years?

4.7%

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 grown by 4.7% 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 (2%).


Return on Equity

High ROE: MTS's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Metcash's financial position?


Financial Position Analysis

Short Term Liabilities: MTS's short term assets (A$2.4B) exceeds its short term liabilities (A$2.1B)

Long Term Liabilities: MTS's short term assets (A$2.4B) exceeds its long term liabilities (302.7M)


Debt to Equity History and Analysis

Debt Level: MTS's debt to equity ratio (14.2%) is considered satisfactory.

Reducing Debt: MTS's debt to equity ratio has reduced from 52.1% to 14.2% over the past 5 years.

Debt Coverage: MTS's debt is well covered by operating cash flow (137.5%).

Interest Coverage: MTS's interest payments on its debt are well covered by EBIT (21.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: MTS's debt is covered by short term assets (assets are 13.6x debt).


Next Steps

Dividend

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

4.77%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.4%markettop25%5.6%industryaverage2.0%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: MTS's dividend (4.77%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: MTS's dividend (4.77%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


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 (65%), 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 (60.3% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Jeff Adams 0

1.9yrs

Tenure

AU$3,654,068

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 ($USD2.48M) is above average for companies of similar size in the Australian market ($USD1.39M).

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


Management Age and Tenure

4.2yrs

Average Tenure

Experienced Management: MTS's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

54.5yo

Average Age

Experienced Board: MTS's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: MTS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$2,180,02513 Nov 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares745,886
Max PriceAU$2.94
BuyAU$1,091,83613 Nov 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares369,052
Max PriceAU$2.97
BuyAU$307,17708 Nov 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares110,430
Max PriceAU$2.78
SellAU$664,74108 Nov 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares237,440
Max PriceAU$2.81
SellAU$37,270,75907 Nov 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares12,982,156
Max PriceAU$2.87
BuyAU$40,483,43507 Nov 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares14,064,924
Max PriceAU$2.90
BuyAU$11,663,80224 Oct 19
Pendal Group Limited
EntityCompany
Shares4,022,321
Max PriceAU$2.91
SellAU$30,715,81824 Oct 19
Pendal Group Limited
EntityCompany
Shares1,404,036
Max PriceAU$1.69
BuyAU$119,90024 Sep 19
Peter Birtles
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares40,000
Max PriceAU$3.00
BuyAU$26,151,42516 Aug 19
Pendal Group Limited
EntityCompany
Shares9,255,532
Max PriceAU$2.83
SellAU$428,37616 Aug 19
Pendal Group Limited
EntityCompany
Shares152,447
Max PriceAU$2.81
SellAU$11,326,67322 Jul 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares4,080,246
Max PriceAU$2.78
BuyAU$18,572,88622 Jul 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares6,734,810
Max PriceAU$2.79
BuyAU$24,757,67616 Jul 19
Pendal Group Limited
EntityCompany
Shares9,333,299
Max PriceAU$2.68
SellAU$36,96916 Jul 19
Pendal Group Limited
EntityCompany
Shares13,743
Max PriceAU$2.69
BuyAU$1,290,62908 Jul 19
Lazard Asset Management LLC
EntityCompany
Shares473,712
Max PriceAU$2.72
BuyAU$478,93708 Jul 19
Vinva Investment Management
EntityCompany
Shares160,012
Max PriceAU$2.99
SellAU$714,18108 Jul 19
Vinva Investment Management
EntityCompany
Shares255,069
Max PriceAU$2.80
SellAU$327,04804 Jul 19
Lazard Asset Management LLC
EntityCompany
Shares126,626
Max PriceAU$2.58
BuyAU$477,40002 Jul 19
Lazard Asset Management LLC
EntityCompany
Shares181,137
Max PriceAU$2.65
SellAU$63,156,91220 Jun 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares22,835,498
Max PriceAU$2.77
BuyAU$68,171,56520 Jun 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares24,499,737
Max PriceAU$2.78
SellAU$28,115,80114 Jun 19
Pendal Group Limited
EntityCompany
Shares8,947,099
Max PriceAU$3.15
BuyAU$1,254,11807 Jun 19
Pendal Group Limited
EntityCompany
Shares475,045
Max PriceAU$2.64
SellAU$29,535,17107 Jun 19
Pendal Group Limited
EntityCompany
Shares10,545,735
Max PriceAU$2.83
BuyAU$20,127,25903 Jun 19
Vinva Investment Management
EntityCompany
Shares7,125,140
Max PriceAU$2.82
SellAU$16,889,94603 Jun 19
Vinva Investment Management
EntityCompany
Shares6,628,023
Max PriceAU$2.55
SellAU$19,415,51329 May 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares7,154,721
Max PriceAU$3.03
BuyAU$28,99129 May 19
M Fund, Inc. - M International Equity Fund
EntityCompany
Shares12,504
Max PriceAU$2.32
BuyAU$5,769,44529 May 19
Dimensional Fund Advisors L.P.
EntityCompany
Shares2,092,339
Max PriceAU$3.14
SellAU$35,974,89307 Mar 19
Pendal Group Limited
EntityCompany
Shares13,329,152
Max PriceAU$2.73
BuyAU$1,105,42107 Mar 19
Pendal Group Limited
EntityCompany
Shares433,740
Max PriceAU$2.55
BuyAU$95,440,49207 Mar 19
Lazard Asset Management LLC
EntityCompany
Shares37,128,956
Max PriceAU$2.57
BuyAU$1,350,18428 Feb 19
The Vanguard Group, Inc.
EntityCompany
Shares517,294
Max PriceAU$2.65
SellAU$887,04628 Feb 19
The Vanguard Group, Inc.
EntityCompany
Shares345,410
Max PriceAU$2.61
BuyAU$34,761,51105 Feb 19
UBS Asset Management
EntityCompany
Shares14,348,687
Max PriceAU$2.42
SellAU$30,368,42105 Feb 19
UBS Asset Management
EntityCompany
Shares12,489,183
Max PriceAU$2.43
SellAU$6,633,52931 Jan 19
Vinva Investment Management
EntityCompany
Shares2,657,164
Max PriceAU$2.50
BuyAU$2,282,64031 Jan 19
Vinva Investment Management
EntityCompany
Shares926,381
Max PriceAU$2.46
SellAU$40,888,59029 Jan 19
Pendal Group Limited
EntityCompany
Shares14,950,573
Max PriceAU$2.74
BuyAU$14,052,39929 Jan 19
Pendal Group Limited
EntityCompany
Shares4,865,663
Max PriceAU$2.91
BuyAU$36,641,77407 Jan 19
UBS Asset Management
EntityCompany
Shares15,445,292
Max PriceAU$2.37
SellAU$35,905,88307 Jan 19
UBS Asset Management
EntityCompany
Shares15,140,315
Max PriceAU$2.37
SellAU$5,411,81226 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,953,475
Max PriceAU$2.92
BuyAU$4,937,94026 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares1,660,719
Max PriceAU$2.98
SellAU$14,155,52007 Dec 18
UBS Asset Management
EntityCompany
Shares5,808,350
Max PriceAU$2.44
BuyAU$11,440,12207 Dec 18
UBS Asset Management
EntityCompany
Shares4,691,099
Max PriceAU$2.44
SellAU$19,197,06206 Dec 18
Orbis Investment Management Limited
EntityCompany
Shares4,001,810
Max PriceAU$7.93
BuyAU$14,831,08906 Dec 18
Orbis Investment Management Limited
EntityCompany
Shares5,615,276
Max PriceAU$4.99
SellAU$93,476,45105 Dec 18
UBS Asset Management
EntityCompany
Shares33,445,575
Max PriceAU$2.79
BuyAU$82,847,49905 Dec 18
UBS Asset Management
EntityCompany
Shares29,617,363
Max PriceAU$2.80

Ownership Breakdown

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


Management Team

  • Brad Soller

    Group Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: AU$1.51m
  • Jeff Adams

    Group CEO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$3.65m
  • Mark Laidlaw

    Chief Executive Officer of Independent Hardware Group

    • Tenure: 0yrs
    • Compensation: AU$1.58m
  • Penny Coates

    Chief People & Culture Officer

    • Tenure: 4.2yrs
  • Edwin Gear

    Chief Information Officer

    • Tenure: 4.6yrs
  • Kerrie Holmes

    Head of Legal - Liquor & Assistant Company Secretary

    • Tenure: 0yrs
  • Scott Marshall

    Chief Executive Officer of Food

    • Tenure: 0yrs
    • Compensation: AU$1.61m
  • Julie Hutton

    Company Secretary & GM of Legal

    • Tenure: 3.4yrs
  • Steve Ashe

    Head of Corporate Affairs & Investor Relations

    • Tenure: 0yrs
  • Haiyun Chen

    Head of China Export Development

    • Tenure: 0yrs

Board Members

  • Rob Murray (54yo)

    Independent Non-Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: AU$429.98k
  • Wai Tang

    Non-Executive Director

    • Tenure: 0.3yrs
  • Tonianne Dwyer (57yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$177.71k
  • Jeff Adams

    Group CEO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$3.65m
  • Murray Jordan

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$177.04k
  • Peter Birtles (55yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Helen Elizabeth Nash (47yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$161.38k

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$2.573b
  • Shares outstanding: 909.26m
  • Website: https://www.metcash.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1994
MCSH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
MG9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
MTSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1994
MHTL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2005

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 Analysis2019/11/22 10:34
End of Day Share Price2019/11/22 00:00
Earnings2019/04/30
Annual Earnings2019/04/30


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.