ASX:MOE

Stock Analysis Report

Executive Summary

Moelis Australia Limited, together with its subsidiaries, provides various financial services.

Snowflake

Fundamentals

Reasonable growth potential with questionable track record.

Share Price & News

How has Moelis Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.8%

MOE

2.8%

AU Capital Markets

0.4%

AU Market


1 Year Return

-26.0%

MOE

17.8%

AU Capital Markets

9.8%

AU Market

Return vs Industry: MOE underperformed the Australian Capital Markets industry which returned 17.8% over the past year.

Return vs Market: MOE underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

MOEIndustryMarket
7 Day10.8%2.8%0.4%
30 Day11.1%2.9%-0.7%
90 Day6.5%2.6%-0.6%
1 Year-24.8%-26.0%23.2%17.8%16.1%9.8%
3 Yearn/a89.8%64.4%36.1%17.9%
5 Yearn/a188.1%126.2%49.4%15.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Moelis Australia undervalued compared to its fair value and its price relative to the market?

24.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MOE (A$4.1) is trading above our estimate of fair value (A$2.41)

Significantly Undervalued: MOE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MOE is poor value based on its PE Ratio (24.6x) compared to the Capital Markets industry average (19.3x).

PE vs Market: MOE is poor value based on its PE Ratio (24.6x) compared to the Australian market (18.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: MOE is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MOE is overvalued based on its PB Ratio (2.6x) compared to the AU Capital Markets industry average (1.7x).


Next Steps

Future Growth

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

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOE's forecast earnings growth (24.2% per year) is above the savings rate (2.3%).

Earnings vs Market: MOE's earnings (24.2% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: MOE's revenue (5.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MOE's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MOE's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Moelis Australia performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MOE's earnings have grown significantly by 40.2% per year over the past 5 years.

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

Earnings vs Industry: MOE had negative earnings growth (-18.8%) over the past year, making it difficult to compare to the Capital Markets industry average (-2.9%).


Return on Equity

High ROE: MOE's Return on Equity (11.1%) is considered low.


Return on Assets

ROA vs Industry: MOE has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MOE's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Moelis Australia'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: MOE has a low level of unsold assets or inventory.

Debt Coverage by Assets: MOE's debt is covered by short term assets (assets are 1.506720x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Moelis Australia's current dividend yield, its reliability and sustainability?

1.95%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.4%markettop25%5.6%industryaverage3.8%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MOE's dividend (1.95%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: MOE's dividend (1.95%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48%), MOE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MOE's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

What is the CEO of Moelis Australia's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average board tenure


CEO

Andrew Pridham (52yo)

0yrs

Tenure

AU$490,466

Compensation

Mr. Andrew Robert Pridham, AO, has been Chief Executive Officer and Executive Director at Moelis Australia Limited since May 25, 2010 and is its Managing Director. Mr. Pridham has been Managing Director &  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Andrew's total compensation is reasonable compared to companies of similar size in the Australian market.

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


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: MOE's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Andrew Pridham (52yo)

    MD, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$490.47k
  • Chris Wyke

    MD & Head of Corporate Advisory

    • Tenure: 0yrs
    • Compensation: AU$2.09m
  • Julian Biggins

    MD, Head of Real Estate Advisory & Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$1.95m
  • John Garrett

    Managing Director of Asset Management

    • Tenure: 0yrs
  • Janna Robertson

    COO & Company Secretary

    • Tenure: 0.8yrs
  • Hugh Thomson

    Managing Director

    • Tenure: 0yrs
    • Compensation: AU$742.09k
  • Peter Dixon

    General Counsel

    • Tenure: 0yrs
  • Amelia Hill

    Managing Director

    • Tenure: 0yrs
  • Steven Katz

    Managing Director

    • Tenure: 0yrs
  • Graham Lello

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Ken Moelis (60yo)

    Non-Executive Director

    • Tenure: 9.3yrs
  • Andrew Pridham (52yo)

    MD, CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$490.47k
  • Jeff Browne (66yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: AU$211.65k
  • Julian Biggins

    MD, Head of Real Estate Advisory & Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$1.95m
  • Joe Simon (60yo)

    Non-Executive Director

    • Tenure: 3.3yrs

Company Information

Moelis Australia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Moelis Australia Limited
  • Ticker: MOE
  • Exchange: ASX
  • Founded: 2010
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: AU$627.141m
  • Shares outstanding: 152.96m
  • Website: https://www.moelisaustralia.com

Number of Employees


Location

  • Moelis Australia Limited
  • Governor Phillip Tower
  • Level 27
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2017

Biography

Moelis Australia Limited, together with its subsidiaries, provides various financial services. It operates in two segments, Corporate Advisory and Equities; and Asset Management. The Corporate Advisory and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.