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MAI

Mainstream Group HoldingsASX:MAI Stock Report

Market Cap

AU$389.6m

7D

0%

1Y

264.7%

Updated

15 Oct, 2021

Data

Company Financials +
MAI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

MAI Overview

Mainstream Group Holdings Limited provides fund administration and custodian services for the financial services industry in the Asia Pacific, Americas, and Europe.

Rewards

Earnings are forecast to grow 79.07% per year

Risk Analysis

No risks detected for MAI from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Mainstream Group Holdings
Historical stock prices
Current Share PriceAU$2.79
52 Week HighAU$0.75
52 Week LowAU$2.87
Beta1.16
1 Month Change0.72%
3 Month Change2.20%
1 Year Change264.71%
3 Year Change332.56%
5 Year Change329.23%
Change since IPO580.49%

Recent News & Updates

Shareholder Returns

MAIAU Capital MarketsAU Market
7D0%-0.08%0.1%
1Y264.7%19.3%19.3%

Return vs Industry: MAI exceeded the Australian Capital Markets industry which returned 19.3% over the past year.

Return vs Market: MAI exceeded the Australian Market which returned 19.3% over the past year.

Price Volatility

Is MAI's price volatile compared to industry and market?
MAI volatility
MAI Beta1.16
Industry Beta0.98
Market Beta1

Stable Share Price: MAI is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: MAI's weekly volatility has decreased from 10% to 1% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006349Martin Smithhttps://www.mainstreamgroup.com

Mainstream Group Holdings Limited provides fund administration and custodian services for the financial services industry in the Asia Pacific, Americas, and Europe. Its services include investment administration and fund, fund accounting, unit registry, middle office, distressed assets administration, and corporate services to fund managers and listed companies. The company also provides superannuation services comprising member administration, unit pricing, and accounting services to industry funds, corporate superannuation funds, and retail superannuation master trusts, as well as manages accumulation funds, defined benefit funds, hybrid funds, account based pensions and transition to retirement pensions, existing fund takeover, mapping of member data between systems, communication to members, new fund establishment, design consultation, product disclosure statement design and production, and communications program.

Mainstream Group Holdings Fundamentals Summary

How do Mainstream Group Holdings's earnings and revenue compare to its market cap?
MAI fundamental statistics
Market CapAU$389.65m
Earnings (TTM)-AU$11.26m
Revenue (TTM)AU$61.78m

6.3x

P/S Ratio

-34.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAI income statement (TTM)
RevenueAU$61.78m
Cost of RevenueAU$34.49m
Gross ProfitAU$27.29m
ExpensesAU$38.55m
Earnings-AU$11.26m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.081
Gross Margin44.17%
Net Profit Margin-18.22%
Debt/Equity Ratio23.6%

How did MAI perform over the long term?

See historical performance and comparison

Valuation

Is Mainstream Group Holdings undervalued compared to its fair value and its price relative to the market?

12.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MAI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MAI's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: MAI 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 MAI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MAI is overvalued based on its PB Ratio (12.1x) compared to the AU Capital Markets industry average (1.4x).


Future Growth

How is Mainstream Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

79.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MAI's revenue (12.1% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: MAI's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAI's Return on Equity is forecast to be low in 3 years time (19.4%).


Past Performance

How has Mainstream Group Holdings performed over the past 5 years?

-61.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAI is currently unprofitable.

Growing Profit Margin: MAI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MAI is unprofitable, and losses have increased over the past 5 years at a rate of 61.9% per year.

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

Earnings vs Industry: MAI is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (12.8%).


Return on Equity

High ROE: MAI has a negative Return on Equity (-34.93%), as it is currently unprofitable.


Financial Health

How is Mainstream Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MAI's short term assets (A$28.0M) exceed its short term liabilities (A$23.9M).

Long Term Liabilities: MAI's short term assets (A$28.0M) exceed its long term liabilities (A$5.4M).


Debt to Equity History and Analysis

Debt Level: MAI's debt to equity ratio (23.6%) is considered satisfactory.

Reducing Debt: MAI's debt to equity ratio has increased from 0.7% to 23.6% 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: Whilst unprofitable MAI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MAI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.1% per year.


Dividend

What is Mainstream Group Holdings's current dividend yield, its reliability and sustainability?

1.25%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: MAI is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MAI'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 management tenure


CEO

Martin Smith

4.42yrs

Tenure

AU$992,102

Compensation

Mr. Martin Charles Smith, Co-Founded Mainstream Group Holdings Limited (formerly known as MainstreamBPO Limited) (a/k/a, MainstreamBPO Pty Ltd.) in 2006. He is a director of a number of Mainstream’s wholly...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD735.71K) is above average for companies of similar size in the Australian market ($USD551.68K).

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


Leadership Team

Experienced Management: MAI's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: MAI's board of directors are considered experienced (3.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Mainstream Group Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Mainstream Group Holdings Limited
  • Ticker: MAI
  • Exchange: ASX
  • Founded: 2006
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: AU$389.647m
  • Shares outstanding: 139.66m
  • Website: https://www.mainstreamgroup.com

Number of Employees


Location

  • Mainstream Group Holdings Limited
  • 51-57 Pitt Street
  • Level 1
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 07:03
End of Day Share Price2021/10/15 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.