ASX:MFD

Stock Analysis Report

Executive Summary

Mayfield Childcare Limited owns and operates childcare centers in Victoria, Australia.


Snowflake Analysis

Very undervalued average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MFD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.5%

MFD

-10.1%

AU Consumer Services

0.1%

AU Market


1 Year Return

-34.9%

MFD

-36.7%

AU Consumer Services

-22.8%

AU Market

Return vs Industry: MFD exceeded the Australian Consumer Services industry which returned -36.7% over the past year.

Return vs Market: MFD underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

MFDIndustryMarket
7 Day-9.5%-10.1%0.1%
30 Day-42.4%-44.8%-28.8%
90 Day-42.4%-37.0%-30.1%
1 Year-29.9%-34.9%-34.8%-36.7%-19.4%-22.8%
3 Year-42.5%-54.4%-30.3%-37.4%-9.5%-21.7%
5 Yearn/a-49.2%-58.1%2.1%-20.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mayfield Childcare 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: MFD (A$0.57) is trading below our estimate of fair value (A$1.84)

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


Price To Earnings Ratio

PE vs Industry: MFD is good value based on its PE Ratio (5.4x) compared to the Consumer Services industry average (15.3x).

PE vs Market: MFD is good value based on its PE Ratio (5.4x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: MFD is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: MFD is good value based on its PB Ratio (0.6x) compared to the AU Consumer Services industry average (1.3x).


Next Steps

Future Growth

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

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFD's forecast earnings growth (14.4% per year) is above the savings rate (1.1%).

Earnings vs Market: MFD's earnings (14.4% per year) are forecast to grow faster than the Australian market (10% per year).

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

Revenue vs Market: MFD's revenue (6.3% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MFD's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFD's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Mayfield Childcare performed over the past 5 years?

33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFD has high quality earnings.

Growing Profit Margin: MFD's current net profit margins (9.3%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: MFD's earnings have grown significantly by 33.3% per year over the past 5 years.

Accelerating Growth: MFD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MFD had negative earnings growth (-21.7%) over the past year, making it difficult to compare to the Consumer Services industry average (-1.1%).


Return on Equity

High ROE: MFD's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Mayfield Childcare's financial position?


Financial Position Analysis

Short Term Liabilities: MFD's short term assets (A$2.2M) do not cover its short term liabilities (A$7.4M).

Long Term Liabilities: MFD's short term assets (A$2.2M) do not cover its long term liabilities (A$34.1M).


Debt to Equity History and Analysis

Debt Level: MFD's debt to equity ratio (44.8%) is considered high.

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

Debt Coverage: MFD's debt is well covered by operating cash flow (59.4%).

Interest Coverage: MFD's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: MFD's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

13.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFD's dividend (13.53%) is higher than the bottom 25% of dividend payers in the Australian market (3.37%).

High Dividend: MFD's dividend (13.53%) is in the top 25% of dividend payers in the Australian market (8.57%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MFD has been paying a dividend for less than 10 years.

Growing Dividend: MFD's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.9%), MFD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MFD's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Dean Clarke

3.33s

Tenure

AU$201,571

Compensation

Mr. Dean Clarke serves as Chief Executive Officer of Mayfield Childcare Limited since November 28, 2016 and has been its Director since March 16, 2016. Since 2005, Mr. Clarke has overseen the identificatio ...


CEO Compensation Analysis

Compensation vs Market: Dean's total compensation ($USD123.63K) is below average for companies of similar size in the Australian market ($USD242.11K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dean Clarke
CEO & Executive Director3.33yrsAU$201.57kno data
Glenn Raines
Chief Financial Officer3.33yrsAU$180.46k0.42% A$77.0k
Michelle Clarke
Executive Director3.33yrsAU$160.00k0.31% A$57.0k
Andrew Draffin
Company Secretary3.33yrsno datano data

3.3yrs

Average Tenure

Experienced Management: MFD's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dean Clarke
CEO & Executive Director3.33yrsAU$201.57kno data
Michelle Clarke
Executive Director3.33yrsAU$160.00k0.31% A$57.0k
Peter Lowe
Chairman3.58yrsAU$80.00k0.81% A$147.4k

3.6yrs

Average Tenure

Experienced Board: MFD'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Mayfield Childcare Limited
  • Ticker: MFD
  • Exchange: ASX
  • Founded: 2015
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: AU$18.145m
  • Shares outstanding: 31.83m
  • Website: https://www.mayfieldchildcare.com.au

Number of Employees


Location

  • Mayfield Childcare Limited
  • 275 Wattletree Road
  • Suite 3
  • Malvern
  • Victoria
  • 3144
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2016
MFDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2016

Biography

Mayfield Childcare Limited owns and operates childcare centers in Victoria, Australia. The company owns 20 long day childcare centers. Mayfield Childcare Limited was incorporated in 2015 and is based in Malvern, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:56
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.