ASX:MAI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

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

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


Market Performance


7 Day Return

11.8%

MAI

-1.8%

AU Capital Markets

-2.5%

AU Market


1 Year Return

82.7%

MAI

-3.0%

AU Capital Markets

-8.9%

AU Market

Return vs Industry: MAI exceeded the Australian Capital Markets industry which returned -3% over the past year.

Return vs Market: MAI exceeded the Australian Market which returned -8.9% over the past year.


Shareholder returns

MAIIndustryMarket
7 Day11.8%-1.8%-2.5%
30 Day39.7%5.5%1.6%
90 Day39.7%3.0%2.4%
1 Year85.3%82.7%0.6%-3.0%-5.6%-8.9%
3 Year93.7%82.7%31.3%14.9%15.5%0.8%
5 Year77.8%61.0%64.0%30.0%42.4%12.7%

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?

228.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAI (A$0.95) is trading above our estimate of fair value (A$0.04)

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


Price To Earnings Ratio

PE vs Industry: MAI is poor value based on its PE Ratio (228.3x) compared to the AU Capital Markets industry average (21.3x).

PE vs Market: MAI is poor value based on its PE Ratio (228.3x) compared to the Australian market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: MAI is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: MAI is overvalued based on its PB Ratio (3.4x) compared to the AU Capital Markets industry average (1.2x).


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?

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAI's forecast earnings growth (46.9% per year) is above the savings rate (2.3%).

Earnings vs Market: MAI's earnings (46.9% per year) are forecast to grow faster than the Australian market (17.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MAI's revenue (14% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: MAI's revenue (14% 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 (12.2%).


Next Steps

Past Performance

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

-29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAI has high quality earnings.

Growing Profit Margin: MAI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MAI's earnings have declined by 29.8% per year over the past 5 years.

Accelerating Growth: MAI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MAI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (-7.9%).


Return on Equity

High ROE: MAI's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is Mainstream Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MAI's short term assets (A$25.7M) exceed its short term liabilities (A$11.3M).

Long Term Liabilities: MAI's short term assets (A$25.7M) exceed its long term liabilities (A$11.7M).


Debt to Equity History and Analysis

Debt Level: MAI's debt to equity ratio (17%) is considered satisfactory.

Reducing Debt: MAI's debt to equity ratio has reduced from 110.6% to 17% over the past 5 years.

Debt Coverage: MAI's debt is well covered by operating cash flow (158.8%).

Interest Coverage: MAI's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAI's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: MAI's dividend (1.05%) is low compared to the top 25% of dividend payers in the Australian market (5.49%).


Stability and Growth of Payments

Stable Dividend: MAI is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: MAI is not paying a notable dividend for the Australian market, therefore no need to check if payments are 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?

2.8yrs

Average management tenure


CEO

Martin Smith

3.42yrs

Tenure

AU$720,957

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 ($USD515.08K) is above average for companies of similar size in the Australian market ($USD277.88K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Smith
Co-Founder3.42yrsAU$720.96k15.08%
A$ 19.7m
Jay Maher
Chief Executive Officer of Americas2.75yrsAU$1.03mno data
Nicholas Happell
Chief Executive Officer of Mainstream Fund Services - Asia Pacificno dataAU$329.27k0.28%
A$ 361.2k
Stacey Kelly
Chief Financial Officer2.58yrsno datano data
Tony Hawker
Head of Technologyno datano datano data
Aimee Birch
Head of Risk & Complianceno datano datano data
Silva Jacotine
Head of Risk & General Counselno datano datano data
Alicia Gill
Head of Marketing & Company Secretary3.42yrsno datano data
Rachel Parris
Head of Human Resources2.67yrsno datano data
Jenny Elhassan
Head of Project Management Officeno datano datano data
Nicholas Bradford
Head of Client Services of Australiano dataAU$446.58k0.27%
A$ 347.1k
Amber Lo
Head of Fund Services & Country Manager of Hong Kong2.75yrsno datano data

2.8yrs

Average Tenure

Experienced Management: MAI's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Smith
Co-Founder3.42yrsAU$720.96k15.08%
A$ 19.7m
John Plummer
Non-Executive Director5.25yrsAU$55.50k9.54%
A$ 12.5m
Byram Johnston
Non-Executive Chairman3.42yrsAU$261.02k13.45%
A$ 17.6m
JoAnna Fisher
Independent Non-Executive Director2.42yrsAU$115.50k0.12%
A$ 161.5k
Debbie Last
Independent Non-Executive Director1.25yrsAU$134.00kno data

2.9yrs

Average Tenure

Experienced Board: MAI's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MAI 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 diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

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$130.615m
  • Shares outstanding: 137.49m
  • 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 Analysis2020/10/28 10:30
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.