ASX:MQG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Macquarie Group Limited provides diversified financial services in Australia, the Americas, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.1%

MQG

3.2%

AU Capital Markets

1.8%

AU Market


1 Year Return

-4.8%

MQG

0.03%

AU Capital Markets

-8.3%

AU Market

Return vs Industry: MQG underperformed the Australian Capital Markets industry which returned -3.1% over the past year.

Return vs Market: MQG exceeded the Australian Market which returned -10.5% over the past year.


Shareholder returns

MQGIndustryMarket
7 Day4.1%3.2%1.8%
30 Day14.0%13.3%12.3%
90 Day-18.7%-9.1%-7.1%
1 Year-1.3%-4.8%3.8%0.03%-4.5%-8.3%
3 Year42.9%25.3%49.1%30.9%14.8%-0.4%
5 Year77.6%39.6%88.4%48.3%31.2%2.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MQG (A$110.49) is trading above our estimate of fair value (A$104.94)

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


Price To Earnings Ratio

PE vs Industry: MQG is good value based on its PE Ratio (14x) compared to the Capital Markets industry average (17.1x).

PE vs Market: MQG is good value based on its PE Ratio (14x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: MQG is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MQG is overvalued based on its PB Ratio (1.8x) compared to the AU Capital Markets industry average (1.7x).


Next Steps

Future Growth

How is Macquarie Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MQG's forecast earnings growth (9.7% per year) is above the savings rate (2.3%).

Earnings vs Market: MQG's earnings (9.7% per year) are forecast to grow slower than the Australian market (14.4% per year).

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

Revenue vs Market: MQG's revenue (6.5% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MQG's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MQG's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Macquarie Group performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MQG has high quality earnings.

Growing Profit Margin: MQG's current net profit margins (21.4%) are lower than last year (22.8%).


Past Earnings Growth Analysis

Earnings Trend: MQG's earnings have grown by 11.6% per year over the past 5 years.

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

Earnings vs Industry: MQG had negative earnings growth (-7.9%) over the past year, making it difficult to compare to the Capital Markets industry average (6.4%).


Return on Equity

High ROE: MQG's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is Macquarie Group'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


Financial Institutions Analysis

Asset Level: MQG's Assets to Equity ratio (11.7x) is moderate.

Allowance for Bad Loans: MQG has a low allowance for bad loans (46%).

Low Risk Liabilities: 71% of MQG's liabilities are made up of primarily higher risk sources of funding.

Loan Level: MQG has an appropriate level of Loans to Assets ratio (37%).

Low Risk Deposits: MQG's Loans to Deposits ratio (140%) is high.

Level of Bad Loans: MQG has a high level of bad loans (2.1%).


Next Steps

Dividend

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

3.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MQG's dividend (3.89%) is higher than the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: MQG's dividend (3.89%) is low compared to the top 25% of dividend payers in the Australian market (6.75%).


Stability and Growth of Payments

Stable Dividend: MQG's dividend payments have been volatile in the past 10 years.

Growing Dividend: MQG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.4%), MQG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MQG's dividends in 3 years are forecast to be covered by earnings (71.4% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Shemara Wikramanayake (58yo)

1.5yrs

Tenure

AU$14,905,737

Compensation

Ms. Shemara R. Wikramanayake, LLB, BCom (UNSW), has been an Executive Voting Director of Macquarie Group Limited and Macquarie Bank Ltd. since August 28, 2018. Ms. Wikramanayake has been Managing Director  ...


CEO Compensation Analysis

Compensation vs Market: Shemara's total compensation ($USD9.90M) is above average for companies of similar size in the Australian market ($USD3.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Shemara Wikramanayake
CEO, MD & Executive Voting Director1.5yrsAU$14.91m0.27% A$102.1m
Alexander Harvey
CFO, Head of Financial Mgt Group & Executive Chairman of Macquarie Group2.42yrsAU$5.57m0.013% A$4.9m
Nicole Sorbara
Executive Director7.42yrsAU$5.83m0.0028% A$1.0m
Gregory Ward
Head of Banking & Financial Services Group and Deputy MD8.5yrsAU$8.67mno data
Nicholas O'Kane
Head of Commodities & Global Markets13.42yrsAU$13.90m0.0014% A$531.1k
Patrick Upfold
Chief Risk Officer & Head of Risk Management Groupno dataAU$6.11m0.022% A$8.3m
Michael Silverton
Global Co-Head of Macquarie Capital6.67yrsAU$4.53m0.0058% A$2.2m
Florian Herold
Head of Principal Finance - Macquarie Capital1.5yrsAU$5.88mno data
Daniel Wong
Global Co-Head of Macquarie Capitalno dataAU$8.47m0.000050% A$18.7k
Martin Stephen William Stanley
Head of Macquarie Asset Management1.5yrsAU$19.20m0.013% A$5.0m

4.5yrs

Average Tenure

55yo

Average Age

Experienced Management: MQG's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shemara Wikramanayake
CEO, MD & Executive Voting Director1.5yrsAU$14.91m0.27% A$102.1m
Alan James
Chairman of US Interests14.5yrsno datano data
Michael Hawker
Independent Director10.25yrsAU$436.33k0.0022% A$819.0k
Diane Grady
Independent Director9.08yrsAU$373.00k0.0028% A$1.1m
Peter Erskine
Member of the Telecom Board and Member of IT Advisory Boardno datano datano data
Raymond Cosman
Vice Chairman of Macquarie Infrastructure and Real Assets (Mira) Limitedno datano datano data
Peter Warne
Independent Chairman of the Board4.17yrsAU$890.00k0.0044% A$1.6m
Glenn Stevens
Independent Voting Director ( leave of absence)2.58yrsAU$341.67k0.0011% A$430.1k
Nicola M. Evans
Independent Director6.33yrsAU$413.00k0.0020% A$762.9k
Michael Coleman
Independent Director7.58yrsAU$425.00k0.0022% A$804.1k

7.0yrs

Average Tenure

62yo

Average Age

Experienced Board: MQG's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MQG 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 4.9%.


Top Shareholders

Company Information

Macquarie Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Macquarie Group Limited
  • Ticker: MQG
  • Exchange: ASX
  • Founded: 1969
  • Industry: Diversified Capital Markets
  • Sector: Diversified Financials
  • Market Cap: AU$37.399b
  • Shares outstanding: 340.09m
  • Website: https://www.macquarie.com

Number of Employees


Location

  • Macquarie Group Limited
  • 50 Martin Place
  • Level 6
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MQGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 1996
4M4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1996
MCQE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1996
MQGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 1996
MQBK.DOTCPK (Pink Sheets LLC)ADR NEWUSUSDJan 2014
MQGPCASX (Australian Securities Exchange)FRN SUB PERP AUD1000AUAUDJun 2018

Biography

Macquarie Group Limited provides diversified financial services in Australia, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Macquarie Asset Management (MAM), Banking and Financial Services (BFS), Commodities and Global Markets (CMG), and Macquarie Capital segments. The MAM segment is involved in the asset management business, which specializes in the infrastructure and renewables, real estate, agriculture, transportation finance, private credit, equities, fixed income, and multi-asset solutions. The BFS segment offers personal banking products comprising home loans, credit cards, transaction and savings accounts, and vehicle finance; and wrap platform and cash management, financial advisory, and private banking and stockbroking services, as well as investment and superannuation products. It also provides deposit, lending, and payment solutions, as well as services to business clients, such as sole practitioners to corporate professional firms. The CGM segment offers products in the areas of equities, fixed income, foreign exchange, commodities and technology, media, and telecoms. The Macquarie Capital segment provides advisory and capital raising services. The company was founded in 1969 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 10:40
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.