ASX:MQG

Stock Analysis Report

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Market Cap

AU$53.5b

Last Updated

2021/06/19 08:12 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MQG's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

MQG

1.7%

AU Capital Markets

0.3%

AU Market


1 Year Return

26.9%

MQG

20.1%

AU Capital Markets

27.8%

AU Market

Return vs Industry: MQG exceeded the Australian Capital Markets industry which returned 19.5% over the past year.

Return vs Market: MQG matched the Australian Market which returned 27.7% over the past year.


Shareholder returns

MQGIndustryMarket
7 Day1.8%1.7%0.3%
30 Day2.6%4.9%4.6%
90 Day3.7%6.5%9.0%
1 Year30.9%26.9%24.1%20.1%32.0%27.8%
3 Year41.6%26.4%41.1%25.2%34.0%18.0%
5 Year169.5%116.7%117.8%75.5%75.2%42.6%

Long-Term 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?

18.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MQG (A$154.26) is trading above our estimate of fair value (A$98.48)

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 (18.3x) compared to the Australian Capital Markets industry average (20.3x).

PE vs Market: MQG is good value based on its PE Ratio (18.3x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: MQG is poor value based on its PEG Ratio (3.3x)


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 (1.3x).


Future Growth

How is Macquarie Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MQG's forecast earnings growth (5.5% per year) is above the savings rate (1.9%).

Earnings vs Market: MQG's earnings (5.5% per year) are forecast to grow slower than the Australian market (13.5% per year).

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

Revenue vs Market: MQG's revenue (2.7% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: MQG's revenue (2.7% 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 (14.1%).


Past Performance

How has Macquarie Group performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MQG has a high level of non-cash earnings.

Growing Profit Margin: MQG's current net profit margins (22.6%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: MQG's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: MQG's earnings growth over the past year (10.6%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: MQG earnings growth over the past year (10.6%) exceeded the Capital Markets industry 0.9%.


Return on Equity

High ROE: MQG's Return on Equity (13.5%) is considered low.


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 (11x) is moderate.

Allowance for Bad Loans: MQG has a low allowance for bad loans (56%).

Low Risk Liabilities: 62% 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 (43%).

Low Risk Deposits: MQG's Loans to Deposits ratio (125%) is appropriate.

Level of Bad Loans: MQG has an appropriate level of bad loans (1.9%).


Dividend

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

3.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MQG's dividend (3.05%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: MQG's dividend (3.05%) is low compared to the top 25% of dividend payers in the Australian market (5.04%).


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 (55.8%), 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 (67.8% payout ratio).


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Shemara Wikramanayake (59 yo)

2.5yrs

Tenure

AU$15,967,268

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 ($USD11.95M) is above average for companies of similar size in the Australian market ($USD3.46M).

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


Leadership Team

Experienced Management: MQG's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: MQG's board of directors are considered experienced (4.4 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 not been meaningfully diluted in the past year.


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$53.494b
  • Shares outstanding: 346.78m
  • Website: https://www.macquarie.com

Number of Employees


Location

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

Listings


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 Asse...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 08:12
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.