ASX:MAI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential unattractive dividend payer.

Share Price & News

How has Mainstream Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.2%

MAI

0.5%

AU Capital Markets

0.1%

AU Market


1 Year Return

-31.5%

MAI

19.9%

AU Capital Markets

11.9%

AU Market

Return vs Industry: MAI underperformed the Australian Capital Markets industry which returned 19.9% over the past year.

Return vs Market: MAI underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

MAIIndustryMarket
7 Day-8.2%0.5%0.1%
30 Day-12.7%0.9%-1.1%
90 Day-13.6%1.1%-1.4%
1 Year-29.9%-31.5%25.3%19.9%18.5%11.9%
3 Year-21.8%-27.0%87.8%62.6%36.4%18.1%
5 Yearn/a185.0%123.8%50.9%16.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MAI (A$0.45) is trading above our estimate of fair value (A$0.21)

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


Price To Earnings Ratio

PE vs Industry: MAI is unprofitable, so we can't compare its PE Ratio to the 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 good value based on its PB Ratio (1.6x) compared to the AU Capital Markets industry average (2x).


Next Steps

Future Growth

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

65.6%

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 (2.3%).

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

High Growth Earnings: MAI's loss is forecast to worsen by 0% next year.

Revenue vs Market: MAI's revenue (12.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MAI's revenue (12.2% 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 (12.9%).


Next Steps

Past Performance

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

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MAI is unprofitable, but has reduced losses over the past 5 years at a rate of 10.9% 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 (-2.9%).


Return on Equity

High ROE: MAI has a negative Return on Equity (-3.25%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MAI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MAI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Mainstream Group Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MAI has a low level of unsold assets or inventory.

Debt Coverage by Assets: MAI's debt is covered by short term assets (assets are 3.234180x debt).


Financial Institutions Analysis

Asset Level: MAI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MAI has a sufficient allowance for bad loans.

Low Risk Liabilities: MAI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MAI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MAI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MAI has an appropriate level of bad loans.


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.4%markettop25%5.6%industryaverage3.8%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MAI's dividend (2.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: MAI's dividend (2.81%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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

Growing Dividend: MAI's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: MAI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: MAI's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Martin Smith 0

2.4yrs

Tenure

AU$826,687

Compensation

Mr. Martin Smith Co-Founded MainstreamBPO Limited (a/k/a, MainstreamBPO Pty Ltd.) in 2006. Mr. Smith has been Chief Executive Officer of MainstreamBPO Limited since May 1, 2017 and serves as an Executive D ...


CEO Compensation Analysis

Compensation vs. Market: Martin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

2.0yrs

Average Tenure

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


Board Age and Tenure

1.9yrs

Average Tenure

Experienced Board: MAI's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyAU$31,15727 Sep 19
JoAnna Fisher
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares62,270
Max PriceAU$0.50
BuyAU$19,04220 Sep 19
JoAnna Fisher
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares37,734
Max PriceAU$0.51
SellAU$11,00131 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares22,003
Max PriceAU$0.50
BuyAU$19,67930 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares36,442
Max PriceAU$0.54
SellAU$36,22730 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares67,548
Max PriceAU$0.54
SellAU$78,89716 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares151,724
Max PriceAU$0.52
BuyAU$24,28216 Jul 19
Macquarie Investment Management Limited
EntityCompany
Shares42,472
Max PriceAU$0.57
BuyAU$125,23624 Jun 19
Macquarie Investment Management Limited
EntityCompany
Shares250,472
Max PriceAU$0.50
SellAU$024 Jun 19
Macquarie Investment Management Limited
EntityCompany
Shares44,562
Max PriceAU$0.53
BuyAU$501,70117 Jun 19
Macquarie Investment Management Limited
EntityCompany
Shares669,400
Max PriceAU$0.75
SellAU$1,065,63317 Jun 19
Macquarie Investment Management Limited
EntityCompany
Shares1,522,333
Max PriceAU$0.70
SellAU$1,664,09728 Mar 19
Regal Funds Management Pty Limited
EntityCompany
Shares2,631,298
Max PriceAU$0.63
BuyAU$1,888,91728 Mar 19
Regal Funds Management Pty Limited
EntityCompany
Shares2,689,425
Max PriceAU$0.70
SellAU$629,99926 Mar 19
Martin Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares1,000,000
Max PriceAU$0.63
BuyAU$29,61802 Dec 18
Martin Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares45,000
Max PriceAU$0.67
BuyAU$10,50012 Nov 18
Martin Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares15,000
Max PriceAU$0.70
BuyAU$68,75402 Nov 18
Martin Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares110,000
Max PriceAU$0.65
BuyAU$92,83326 Oct 18
Martin Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares150,000
Max PriceAU$0.65

Ownership Breakdown


Management Team

  • Martin Smith

    Co-Founder

    • Tenure: 2.4yrs
    • Compensation: AU$826.69k
  • Clay Sullivan

    Head of Middle Office Services

    • Tenure: 0yrs
  • Aimee Birch

    Head of Risk & Compliance

    • Tenure: 0yrs
  • Alicia Gill

    Head of Marketing & Company Secretary

    • Tenure: 2.4yrs
  • Tony Hawker

    Head of IT & Projects

    • Tenure: 0yrs
  • Denise DePaola

    Chief Executive Officer of Americas

    • Tenure: 2yrs
    • Compensation: AU$670.64k
  • Nick Bradford

    Head of Client Services of Australia

    • Tenure: 0yrs
    • Compensation: AU$446.58k
  • John McCann

    Chief Executive Officer of Europe & Cayman

    • Tenure: 2.1yrs
    • Compensation: AU$460.89k
  • Rachel Parris

    Head of Human Resources

    • Tenure: 1.7yrs
  • Stacey Kelly

    Chief Financial Officer

    • Tenure: 1.6yrs

Board Members

  • John Plummer

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$60.00k
  • Byram Johnston

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: AU$463.05k
  • Martin Smith

    Co-Founder

    • Tenure: 2.4yrs
    • Compensation: AU$826.69k
  • Angela Nightingale

    Secretary & Director of Mainstream Fund Services (Cayman) Limited

    • Tenure: 1.9yrs
  • JoAnna Fisher

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$60.00k
  • Debbie Last

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Mainstream Group Holdings Limited's company bio, 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$57.351m
  • Shares outstanding: 131.84m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2015
MAICHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2015

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:40
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.