ASX:MQG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


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


Market Performance


7 Day Return

5.5%

MQG

5.3%

AU Capital Markets

2.5%

AU Market


1 Year Return

14.9%

MQG

17.7%

AU Capital Markets

11.1%

AU Market

Return vs Industry: MQG underperformed the Australian Capital Markets industry which returned 17.7% over the past year.

Return vs Market: MQG exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

MQGIndustryMarket
7 Day5.5%5.3%2.5%
30 Day3.8%3.3%0.7%
90 Day5.0%3.3%1.4%
1 Year20.5%14.9%23.0%17.7%17.5%11.1%
3 Year88.5%62.0%89.6%64.2%37.8%19.4%
5 Year188.5%124.5%191.0%128.5%51.7%17.6%

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?

15.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MQG (A$133.65) is trading above our estimate of fair value (A$94.51)

Significantly Undervalued: 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 (15.1x) compared to the Capital Markets industry average (18.3x).

PE vs Market: MQG is good value based on its PE Ratio (15.1x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: MQG is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: MQG is overvalued based on its PB Ratio (2.4x) compared to the AU Capital Markets industry average (1.8x).


Next Steps

Future Growth

How is Macquarie Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MQG's forecast earnings growth (5% per year) is above the savings rate (2.3%).

Earnings vs Market: MQG's earnings (5% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: MQG's revenue (2.3% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: MQG's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MQG's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Macquarie Group performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MQG's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: MQG's earnings growth over the past year (17.1%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: MQG earnings growth over the past year (17.1%) exceeded the Capital Markets industry -2.9%.


Return on Equity

High ROE: MQG's Return on Equity (16.3%) is considered low.


Return on Assets

ROA vs Industry: MQG's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

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


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

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

Debt Coverage by Assets: MQG's debt is covered by short term assets (assets are 1.220170x debt).


Financial Institutions Analysis

Asset Level: MQG's level of assets compared to its equity is moderate.

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

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

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

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

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


Next Steps

Dividend

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

4.30%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.5%markettop25%5.6%industryaverage3.8%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MQG's dividend (4.3%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: MQG's dividend (4.3%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

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 (65.1%), 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 (69.4% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Shemara Wikramanayake (58yo)

0.9yrs

Tenure

AU$18,035,835

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. She has been Managing Director and Chief Exec ...


CEO Compensation Analysis

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

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


Management Age and Tenure

4.2yrs

Average Tenure

55yo

Average Age

Experienced Management: MQG's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MQG's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellAU$53,321,92802 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares391,663
Max PriceAU$136.30
BuyAU$73,944,07702 Oct 19
The Vanguard Group, Inc.
EntityCompany
Shares545,470
Max PriceAU$136.30
BuyAU$238,84012 Aug 19
Jillian Broadbent
EntityIndividual
Shares2,000
Max PriceAU$119.42
BuyAU$23,98009 Aug 19
Glenn Stevens
EntityIndividual
Shares200
Max PriceAU$119.90
BuyAU$5,558,36121 May 19
Shemara Wikramanayake
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Voting Director
Shares46,258
Max PriceAU$120.16
BuyAU$123,29316 May 19
Nicola M. Evans
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceAU$126.18
BuyAU$125,22510 May 19
Glenn Stevens
EntityIndividual
Shares1,000
Max PriceAU$125.30
SellAU$33,553,85514 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares253,938
Max PriceAU$132.80
BuyAU$131,487,54414 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares989,643
Max PriceAU$132.94
BuyAU$29,21203 Dec 18
Diane Grady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceAU$116.85
BuyAU$61,35008 Nov 18
Glenn Stevens
EntityIndividual
Shares500
Max PriceAU$122.70

Ownership Breakdown


Management Team

  • Greg Ward (51yo)

    Head of Banking & Financial Services Group and Deputy MD

    • Tenure: 7.8yrs
    • Compensation: AU$10.62m
  • Mary Reemst (61yo)

    CEO, MD & Director - Macquarie Bank Ltd

    • Tenure: 5.3yrs
    • Compensation: AU$6.18m
  • Florian Herold

    Head of Principal Finance - Macquarie Capital

    • Tenure: 0.8yrs
    • Compensation: AU$3.55m
  • Shemara Wikramanayake (58yo)

    CEO, MD & Executive Voting Director

    • Tenure: 0.9yrs
    • Compensation: AU$18.04m
  • John O'Connell (55yo)

    Chief Investment Officer

    • Tenure: 4.2yrs
  • Martin Stephen William Stanley (55yo)

    Head of Macquarie Asset Management

    • Tenure: 0.8yrs
    • Compensation: AU$5.92m
  • Alex Harvey

    CFO, Head of Financial Mgt Group & Executive Chairman of Macquarie Group

    • Tenure: 1.8yrs
    • Compensation: AU$6.63m
  • Nick O'Kane

    Head of Commodities & Global Markets

    • Tenure: 12.8yrs
    • Compensation: AU$17.96m
  • Patrick Upfold

    Chief Risk Officer & Head of Risk Management Group

    • Tenure: 0yrs
    • Compensation: AU$7.86m
  • Nicole Sorbara

    COO & Head of Corporate Operations Group

    • Tenure: 6.8yrs
    • Compensation: AU$7.53m

Board Members

  • Mike Hawker (60yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: AU$433.83k
  • Diane Grady (71yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: AU$370.50k
  • Peter Erskine (68yo)

    Member of the Telecom Board and Member of IT Advisory Board

    • Tenure: 0yrs
  • Ray Cosman

    Vice Chairman of Macquarie Infrastructure and Real Assets (Mira) Limited

    • Tenure: 0yrs
  • Peter Warne (63yo)

    Independent Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: AU$883.75k
  • Shemara Wikramanayake (58yo)

    CEO, MD & Executive Voting Director

    • Tenure: 0.9yrs
    • Compensation: AU$18.04m
  • Alan James

    Chairman of US Interests

    • Tenure: 13.8yrs
  • Nicola M. Evans (58yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: AU$410.50k
  • Michael Coleman (69yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: AU$428.50k
  • Gary Banks (69yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: AU$370.50k

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$45.389b
  • Shares outstanding: 338.04m
  • 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.YOTCPK (Pink Sheets LLC)ADR NEWUSUSDJan 2014
MQGPCASX (Australian Securities Exchange)FRN 12/2027 AUD1000AUAUDJun 2018

Biography

Macquarie Group Limited provides diversified financial services in Australia, Europe, the Middle East, Africa, Americas, and the Asia Pacific. The company operates in five segments: Macquarie Asset Managem ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:35
End of Day Share Price2019/10/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.