ASX:MCE

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Matrix Composites & Engineering

Executive Summary

Matrix Composites & Engineering Ltd, together with its subsidiaries, manufactures and supplies engineered products and services to the oil and gas, civil and infrastructure, resources, defense, and transportation industries in Australia and internationally.


Snowflake Analysis

Excellent balance sheet and overvalued.

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

Stable Share Price: MCE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

MCE

-6.3%

AU Energy Services

-1.5%

AU Market


1 Year Return

-51.4%

MCE

-46.9%

AU Energy Services

-12.2%

AU Market

Return vs Industry: MCE underperformed the Australian Energy Services industry which returned -46.9% over the past year.

Return vs Market: MCE underperformed the Australian Market which returned -12.2% over the past year.


Shareholder returns

MCEIndustryMarket
7 Day6.1%-6.3%-1.5%
30 Day2.9%-7.2%-1.4%
90 Day-7.9%3.0%13.2%
1 Year-51.4%-51.4%-45.2%-46.9%-8.7%-12.2%
3 Year-67.9%-67.9%-26.1%-34.3%16.8%1.4%
5 Year-57.9%-58.8%-3.2%-16.7%34.2%5.2%

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 compared to its fair value and its price relative to the market?

0.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MCE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MCE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MCE is unprofitable, so we can't compare its PE Ratio to the XX Energy Services industry average.

PE vs Market: MCE is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MCE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MCE is good value based on its PB Ratio (0.2x) compared to the AU Energy Services industry average (0.4x).


Next Steps

Future Growth

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

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MCE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MCE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MCE's revenue is expected to decline over the next 3 years (-11.2% per year).

High Growth Revenue: MCE's revenue is forecast to decline over the next 3 years (-11.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCE's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

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

-35.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCE is currently unprofitable.

Growing Profit Margin: MCE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCE is unprofitable, and losses have increased over the past 5 years at a rate of 35.6% per year.

Accelerating Growth: Unable to compare MCE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MCE is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (11.5%).


Return on Equity

High ROE: MCE has a negative Return on Equity (-8.5%), as it is currently unprofitable.


Next Steps

Financial Health

How is Matrix Composites & Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: MCE's short term assets (A$43.2M) exceed its short term liabilities (A$13.6M).

Long Term Liabilities: MCE's short term assets (A$43.2M) exceed its long term liabilities (A$25.9M).


Debt to Equity History and Analysis

Debt Level: MCE's debt to equity ratio (5.3%) is considered satisfactory.

Reducing Debt: MCE's debt to equity ratio has increased from 2.8% to 5.3% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: MCE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MCE has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 35.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MCE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MCE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MCE is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Aaron Begley

10.92yrs

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

Compensation vs Market: Aaron's total compensation ($USD475.29K) is above average for companies of similar size in the Australian market ($USD268.72K).

Compensation vs Earnings: Aaron's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Aaron Begley
MD, CEO & Director10.92yrsAU$663.27k6.48%
A$ 1.2m
Brendan Cocks
CFO & Joint Company Secretary3.92yrsAU$360.48k0.16%
A$ 28.5k
Robbie Stew
Head of Operationsno datano datano data
Julie Jones
General Counsel & Joint Company Secretary2.08yrsno datano data
Liz Hodgson
Human Resource Managerno datano datano data
Ian Phillips
Head of Program Managementno datano datano data

3.9yrs

Average Tenure

Experienced Management: MCE's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aaron Begley
MD, CEO & Director10.92yrsAU$663.27k6.48%
A$ 1.2m
Peter Hood
Independent Non-Executive Chairman8.83yrsAU$80.00k0.97%
A$ 174.3k
Steven Cole
Independent Non-Executive Director6.33yrsAU$50.00k0.020%
A$ 3.5k
Craig Duncan
Independent Non-Executive Director12.67yrsAU$50.00k0.58%
A$ 103.3k

10.8yrs

Average Tenure

Experienced Board: MCE's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MCE 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

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$17.906m
  • 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 to the oil and gas, civil and infrastructure, resources, defense, and transpo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 10:44
End of Day Share Price2020/07/31 00:00
Earnings2019/12/31
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.