ASX:MCE

Stock Analysis Report

Matrix Composites & Engineering

Executive Summary

Matrix Composites & Engineering Ltd, together with its subsidiaries, manufactures and supplies engineered products and services for the energy sector worldwide.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Risks

  • Matrix Composites & Engineering has significant price volatility in the past 3 months.
  • Matrix Composites & Engineering is covered by less than 3 analysts.

Share Price & News

How has Matrix Composites & Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.7%

ASX:MCE

1.8%

AU Energy Services

0.5%

AU Market


1 Year Return

-5.0%

ASX:MCE

-36.0%

AU Energy Services

6.3%

AU Market

MCE outperformed the Energy Services industry which returned -36% over the past year.

MCE underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

MCEIndustryMarket
7 Day2.7%1.8%0.5%
30 Day7.0%-1.4%4.5%
90 Day38.2%-1.3%2.5%
1 Year-5.0%-5.0%-31.3%-36.0%12.4%6.3%
3 Year-9.5%-9.5%87.2%70.6%41.3%22.3%
5 Year-58.6%-60.6%-20.3%-31.9%47.8%14.7%

Price Volatility Vs. Market

How volatile is Matrix Composites & Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Matrix Composites & Engineering undervalued based on future cash flows and its price relative to the stock market?

0.42x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Matrix Composites & Engineering to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Matrix Composites & Engineering to establish if it is available at substantial discount.


Price Based on Earnings

Matrix Composites & Engineering is loss making, we can't compare its value to the Global Energy Services industry average.

Matrix Composites & Engineering is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Matrix Composites & Engineering, we can't assess if its growth is good value.


Price Based on Value of Assets

Matrix Composites & Engineering is good value based on assets compared to the AU Energy Services industry average.


Next Steps

Future Growth

How is Matrix Composites & Engineering expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

37.0%

Forecasted Energy industry annual growth in earnings


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Matrix Composites & Engineering is high growth as no revenue estimate data is available.

Unable to determine if Matrix Composites & Engineering is high growth as no earnings estimate data is available.

Unable to compare Matrix Composites & Engineering's revenue growth to the Australia market average as no estimate data is available.

Unable to compare Matrix Composites & Engineering's earnings growth to the Australia market average as no estimate data is available.

Unable to compare Matrix Composites & Engineering's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Matrix Composites & Engineering will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Matrix Composites & Engineering performed over the past 5 years?

-49.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Matrix Composites & Engineering does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Matrix Composites & Engineering's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Matrix Composites & Engineering's 1-year growth to the Global Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Matrix Composites & Engineering has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Matrix Composites & Engineering has efficiently used its assets last year compared to the Global Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Matrix Composites & Engineering improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Matrix Composites & Engineering's financial position?


Financial Position Analysis

Matrix Composites & Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Matrix Composites & Engineering's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Matrix Composites & Engineering's level of debt (7.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (9.7% vs 7.8% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.8x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Matrix Composites & Engineering has sufficient cash runway for 1.3 years based on current free cash flow.

Matrix Composites & Engineering has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 76.6% each year.


Next Steps

Dividend

What is Matrix Composites & Engineering's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Matrix Composites & Engineering's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Matrix Composites & Engineering's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Matrix Composites & Engineering has not reported any payouts.

Unable to verify if Matrix Composites & Engineering's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Matrix Composites & Engineering has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Matrix Composites & Engineering's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

What is the CEO of Matrix Composites & Engineering's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Aaron Begley 0

10yrs

Tenure

AU$663,270

Compensation

Mr. Aaron Paul Begley has been the Chief Executive Officer of Matrix Composites & Engineering Limited since September 2009. Mr. Begley has been Managing Director of the Advanced Materials division since 19 ...


CEO Compensation Analysis

Aaron's remuneration is higher than average for companies of similar size in Australia.

Aaron's compensation has increased whilst company is loss making.


Management Age and Tenure

3.0yrs

Average Tenure

The tenure for the Matrix Composites & Engineering management team is about average.


Board Age and Tenure

9.8yrs

Average Tenure

The tenure for the Matrix Composites & Engineering board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$109,65010 Jan 19
Maxwell Begley
EntityIndividual
Shares296,351
Max PriceAU$0.37
BuyAU$109,65010 Jan 19
Maxwell Begley
EntityIndividual
Shares296,351
Max PriceAU$0.37
BuyAU$13,08607 Jan 19
Peter Hood
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares33,820
Max PriceAU$0.39
BuyAU$999,99721 Dec 18
Forager Funds Management Pty Ltd.
EntityCompany
Shares2,857,143
Max PriceAU$0.35
BuyAU$14,61520 Dec 18
Peter Hood
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares40,000
Max PriceAU$0.37
BuyAU$29,60018 Dec 18
Peter Hood
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares80,000
Max PriceAU$0.37

Ownership Breakdown


Management Team

  • Brendan Cocks

    CFO & Joint Company Secretary

    • Tenure: 3yrs
    • Compensation: AU$360.48k
  • Aaron Begley

    MD, CEO & Director

    • Tenure: 10yrs
    • Compensation: AU$663.27k
  • Julie Jones

    General Counsel & Joint Company Secretary

    • Tenure: 1.2yrs
  • Liz Hodgson

    Human Resource Manager

    • Tenure: 0yrs

Board Members

  • Peter Hood

    Independent Non-Executive Chairman

    • Tenure: 7.9yrs
    • Compensation: AU$80.00k
  • Steven Cole (68yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$50.00k
  • Aaron Begley

    MD, CEO & Director

    • Tenure: 10yrs
    • Compensation: AU$663.27k
  • Craig Duncan

    Independent Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: AU$50.00k

Company Information

Matrix Composites & Engineering Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Matrix Composites & Engineering Ltd
  • Ticker: MCE
  • Exchange: ASX
  • Founded: 1980
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: AU$40.417m
  • Shares outstanding: 102.32m
  • Website: https://www.matrixengineered.com

Number of Employees


Location

  • Matrix Composites & Engineering Ltd
  • 150 Quill Way
  • Henderson
  • Western Australia
  • 6166
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2009
8MEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
MCECHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2009

Biography

Matrix Composites & Engineering Ltd, together with its subsidiaries, manufactures and supplies engineered products and services for the energy sector worldwide. It offers riser buoyancy systems, including  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 10:35
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.