ASX:MRM

Stock Analysis Report

Executive Summary

MMA Offshore Limited provides marine logistics and marine services to the offshore oil and gas industry in Australia and internationally.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has MMA Offshore's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

MRM

5.1%

AU Energy Services

0.1%

AU Market


1 Year Return

-24.0%

MRM

-22.6%

AU Energy Services

11.9%

AU Market

Return vs Industry: MRM underperformed the Australian Energy Services industry which returned -22.6% over the past year.

Return vs Market: MRM underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

MRMIndustryMarket
7 Day0%5.1%0.1%
30 Day-5.0%-0.8%-1.1%
90 Day-11.6%-10.3%-1.4%
1 Year-24.0%-24.0%-16.9%-22.6%18.5%11.9%
3 Year-26.7%-32.1%63.2%48.9%36.4%18.1%
5 Year-88.0%-89.8%-0.2%-14.7%50.9%16.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MMA Offshore undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRM (A$0.19) is trading below our estimate of fair value (A$1.23)

Significantly Below Fair Value: MRM is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: MRM 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 MRM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRM is good value based on its PB Ratio (0.5x) compared to the AU Energy Services industry average (0.7x).


Next Steps

Future Growth

How is MMA Offshore forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MRM's revenue (12.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MRM's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRM is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has MMA Offshore performed over the past 5 years?

-17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MRM is unprofitable, and losses have increased over the past 5 years at a rate of -17% per year.

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

Earnings vs Industry: MRM is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (13.4%).


Return on Equity

High ROE: MRM has a negative Return on Equity (-12.32%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MRM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MRM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is MMA Offshore's financial position?


Financial Position Analysis

Short Term Liabilities: MRM's short term assets (A$136.6M) exceeds its short term liabilities (A$47.4M)

Long Term Liabilities: MRM's short term assets (136.6M) do not cover its long term liabilities (268.3M)


Debt to Equity History and Analysis

Debt Level: MRM's debt to equity ratio (87.6%) is considered high

Reducing Debt: MRM's debt to equity ratio has increased from 58.4% to 87.6% over the past 5 years.


Balance Sheet

Inventory Level: MRM has a high level of physical assets or inventory.

Debt Coverage by Assets: MRM's debt is not covered by short term assets (assets are 0.5x 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.

Stable Cash Runway: Whilst unprofitable MRM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MRM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 67.2% per year.


Next Steps

Dividend

What is MMA Offshore's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

David Ross 0

0.3yrs

Tenure

AU$654,103

Compensation

Mr. David Ross has been the Chief Executive Officer of MMA Offshore Limited since July 1, 2019 and served as its Deputy Chief Executive Officer from June 30, 2009 to July 1, 2019. Mr. Ross served as the Ch ...


CEO Compensation Analysis

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

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


Management Age and Tenure

6.9yrs

Average Tenure

Experienced Management: MRM's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

Experienced Board: MRM's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$1,637,33128 May 19
Pinnacle Fund Services Limited
EntityCompany
Shares9,171,673
Max PriceAU$0.18
BuyAU$1,933,38129 Nov 18
First Samuel Limited
EntityCompany
Shares11,324,460
Max PriceAU$0.18
BuyAU$800,71528 Nov 18
Pinnacle Fund Services Limited
EntityCompany
Shares4,710,104
Max PriceAU$0.17
BuyAU$17,50026 Nov 18
Hugh Andrew Edwards
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares100,000
Max PriceAU$0.17
BuyAU$21,87523 Nov 18
Eva Howell
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares125,000
Max PriceAU$0.17
BuyAU$910,77323 Nov 18
Forager Funds Management Pty Ltd.
EntityCompany
Shares5,036,769
Max PriceAU$0.23
SellAU$3,513,32423 Nov 18
Paradice Investment Management Pty Ltd.
EntityCompany
Shares19,071,548
Max PriceAU$0.22
BuyAU$4,631,85822 Nov 18
First Samuel Limited
EntityCompany
Shares22,568,447
Max PriceAU$0.24
SellAU$1,987,66509 Nov 18
Paradice Investment Management Pty Ltd.
EntityCompany
Shares8,580,191
Max PriceAU$0.23
SellAU$705,99102 Nov 18
Pinnacle Fund Services Limited
EntityCompany
Shares2,942,998
Max PriceAU$0.24
BuyAU$2,919,47029 Oct 18
First Samuel Limited
EntityCompany
Shares11,927,885
Max PriceAU$0.25

Ownership Breakdown


Management Team

  • Dirk Verboon

    General Manager of Slipway

    • Tenure: 0yrs
    • Compensation: AU$290.19k
  • Jeff Weber

    MD & Executive Director

    • Tenure: 16.8yrs
    • Compensation: AU$878.52k
  • Shaun Lee

    Land Logistics Business Development Manager

    • Tenure: 0yrs
    • Compensation: AU$293.18k
  • David Ross

    Chief Executive Officer

    • Tenure: 0.3yrs
    • Compensation: AU$654.10k
  • Dylan Darbyshire-Roberts

    GM of Legal & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$372.16k
  • Liz Buckey

    Executive General Manager of Corporate Development

    • Tenure: 6.9yrs
    • Compensation: AU$208.33k
  • Darren Thomas

    Executive General Manager of People & Safety

    • Tenure: 0yrs
    • Compensation: AU$331.00k
  • Geoff Hebiton

    Financial Controller

    • Tenure: 13.8yrs
  • David Cavanagh

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: AU$360.00k

Board Members

  • Chiang Heng

    Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$119.84k
  • Jeff Weber

    MD & Executive Director

    • Tenure: 16.8yrs
    • Compensation: AU$878.52k
  • Eve Howell (74yo)

    Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: AU$109.98k
  • Andrew Edwards

    Independent Chairman of the Board

    • Tenure: 2yrs
    • Compensation: AU$180.00k
  • Peter Kennan

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$100.13k
  • Ajaib Dass

    Director Nominee

    • Tenure: 0yrs

Company Information

MMA Offshore Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MMA Offshore Limited
  • Ticker: MRM
  • Exchange: ASX
  • Founded: 1982
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: AU$163.035m
  • Shares outstanding: 858.08m
  • Website: https://www.mmaoffshore.com

Number of Employees


Location

  • MMA Offshore Limited
  • Endeavour Shed
  • 1 Mews Road
  • Fremantle
  • Western Australia
  • 6160
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1999
MRMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1999

Biography

MMA Offshore Limited provides marine logistics and marine services to the offshore oil and gas industry in Australia and internationally. The company offers offshore services, including offtake support; su ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/23 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.