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MCL

Mighty CraftASX:MCL Stock Report

Market Cap

AU$96.8m

7D

0%

1Y

-17.8%

Updated

22 Oct, 2021

Data

Company Financials +
MCL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends0/6

MCL Overview

Mighty Craft Limited acquires and operates various breweries, distilleries, bars, and restaurants in Australia.

Mighty Craft Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mighty Craft
Historical stock prices
Current Share PriceAU$0.30
52 Week HighAU$0.25
52 Week LowAU$0.44
Beta0
1 Month Change3.45%
3 Month Change1.70%
1 Year Change-17.81%
3 Year Changen/a
5 Year Changen/a
Change since IPO-38.78%

Recent News & Updates

Shareholder Returns

MCLAU HospitalityAU Market
7D0%-1.1%0.7%
1Y-17.8%38.2%21.4%

Return vs Industry: MCL underperformed the Australian Hospitality industry which returned 38.2% over the past year.

Return vs Market: MCL underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is MCL's price volatile compared to industry and market?
MCL volatility
MCL Beta0
Industry Beta1.23
Market Beta1

Stable Share Price: MCL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MCL's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2017n/aMark Haysmanhttps://www.mightycraft.com.au

Mighty Craft Limited acquires and operates various breweries, distilleries, bars, and restaurants in Australia. It operates under the Jetty Road, Slipstream, Foghorn, Ballistic, Kangaroo Island Spirits, Torquay Beverage Co, Seven Seasons, Sparkke, and Hidden Lake brands. The company was formerly known as Founders First Limited and changed its name to Mighty Craft Limited in November 2020.

Mighty Craft Fundamentals Summary

How do Mighty Craft's earnings and revenue compare to its market cap?
MCL fundamental statistics
Market CapAU$96.84m
Earnings (TTM)-AU$15.00m
Revenue (TTM)AU$29.28m

3.3x

P/S Ratio

-6.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCL income statement (TTM)
RevenueAU$29.28m
Cost of RevenueAU$35.77m
Gross Profit-AU$6.48m
ExpensesAU$8.52m
Earnings-AU$15.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.046
Gross Margin-22.14%
Net Profit Margin-51.23%
Debt/Equity Ratio26.4%

How did MCL perform over the long term?

See historical performance and comparison

Valuation

Is Mighty Craft 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: MCL (A$0.3) is trading below our estimate of fair value (A$1.3)

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


Price To Earnings Ratio

PE vs Industry: MCL is unprofitable, so we can't compare its PE Ratio to the Australian Hospitality industry average.

PE vs Market: MCL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MCL's PB Ratio (3.8x) is in line with the AU Hospitality industry average.


Future Growth

How is Mighty Craft forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

107.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MCL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MCL's is expected to become profitable in the next 3 years.

Revenue vs Market: MCL's revenue (41.4% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: MCL's revenue (41.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Mighty Craft performed over the past 5 years?

-76.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MCL is currently unprofitable.

Growing Profit Margin: MCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MCL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare MCL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MCL is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (4.2%).


Return on Equity

High ROE: MCL has a negative Return on Equity (-60.05%), as it is currently unprofitable.


Financial Health

How is Mighty Craft's financial position?


Financial Position Analysis

Short Term Liabilities: MCL's short term assets (A$14.3M) exceed its short term liabilities (A$11.2M).

Long Term Liabilities: MCL's short term assets (A$14.3M) do not cover its long term liabilities (A$20.6M).


Debt to Equity History and Analysis

Debt Level: MCL's debt to equity ratio (26.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MCL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: MCL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MCL has less than a year of cash runway if free cash flow continues to reduce at historical rates of 69.7% each year


Dividend

What is Mighty Craft current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MCL'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 MCL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCL'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?

3.7yrs

Average board tenure


CEO

Mark Haysman

2.92yrs

Tenure

AU$416,440

Compensation

Mr. Mark Haysman serves as Chief Executive Officer and Managing Director and Director at Founders First since November 19, 2018. He served as the Chief Executive Officer of Port Adelaide Football Club Lim...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD311.87K) is about average for companies of similar size in the Australian market ($USD303.33K).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Board Members

Experienced Board: MCL's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 127.6%.


Top Shareholders

Company Information

Mighty Craft Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Mighty Craft Limited
  • Ticker: MCL
  • Exchange: ASX
  • Founded: 2017
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: AU$96.841m
  • Shares outstanding: 322.80m
  • Website: https://www.mightycraft.com.au

Location

  • Mighty Craft Limited
  • 123 Camberwell Road
  • Level 1
  • Hawthorn East
  • Victoria
  • 3123
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:51
End of Day Share Price2021/10/22 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.