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MRM

MMA OffshoreASX:MRM Stock Report

Market Cap

AU$152.7m

7D

6.3%

1Y

-30.3%

Updated

16 Oct, 2021

Data

Company Financials +
MRM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

MRM Overview

MMA Offshore Limited provides vessels, and marine and subsea services to the offshore energy, renewables, and wider maritime industries in Australia and internationally.

MMA Offshore Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MMA Offshore
Historical stock prices
Current Share PriceAU$0.42
52 Week HighAU$0.28
52 Week LowAU$0.69
Beta0.083
1 Month Change11.84%
3 Month Change14.87%
1 Year Change-30.33%
3 Year Change-81.52%
5 Year Change-86.72%
Change since IPO-91.83%

Recent News & Updates

Sep 06
There Are Some Reasons To Suggest That MMA Offshore's (ASX:MRM) Earnings A Poor Reflection Of Profitability

There Are Some Reasons To Suggest That MMA Offshore's (ASX:MRM) Earnings A Poor Reflection Of Profitability

Shareholders didn't seem to be thrilled with MMA Offshore Limited's ( ASX:MRM ) recent earnings report, despite healthy...

May 05
Is MMA Offshore (ASX:MRM) A Risky Investment?

Is MMA Offshore (ASX:MRM) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

MRMAU Energy ServicesAU Market
7D6.3%-1.2%0.9%
1Y-30.3%-1.3%20.2%

Return vs Industry: MRM underperformed the Australian Energy Services industry which returned -1.3% over the past year.

Return vs Market: MRM underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is MRM's price volatile compared to industry and market?
MRM volatility
MRM Beta0.083
Industry Beta1.95
Market Beta1

Stable Share Price: MRM is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MRM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19891,103David Rosshttps://www.mmaoffshore.com

MMA Offshore Limited provides vessels, and marine and subsea services to the offshore energy, renewables, and wider maritime industries in Australia and internationally. It operates through Vessel Services, Subsea Services, and Project Logistics segments. The company offers vessel services, including offtake support; supply operations; construction support; seismic and survey support; tug and barge operations; anchor handling and towing; dive and ROV support; installation support; and accommodation support services, as well as inspection, maintenance, and repair services.

MMA Offshore Fundamentals Summary

How do MMA Offshore's earnings and revenue compare to its market cap?
MRM fundamental statistics
Market CapAU$152.71m
Earnings (TTM)AU$2.42m
Revenue (TTM)AU$237.51m

63.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRM income statement (TTM)
RevenueAU$237.51m
Cost of RevenueAU$215.18m
Gross ProfitAU$22.33m
ExpensesAU$19.90m
EarningsAU$2.42m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0067
Gross Margin9.40%
Net Profit Margin1.02%
Debt/Equity Ratio56.5%

How did MRM perform over the long term?

See historical performance and comparison

Valuation

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

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRM (A$0.43) is trading below our estimate of fair value (A$0.58)

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


Price To Earnings Ratio

PE vs Industry: MRM is poor value based on its PE Ratio (63.1x) compared to the Global Energy Services industry average (16.3x).

PE vs Market: MRM is poor value based on its PE Ratio (63.1x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: MRM is poor value based on its PEG Ratio (4.2x)


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 (1.4x).


Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRM's forecast earnings growth (14.9% per year) is above the savings rate (1.9%).

Earnings vs Market: MRM's earnings (14.9% per year) are forecast to grow faster than the Australian market (11.8% per year).

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

Revenue vs Market: MRM's revenue (8.4% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: MRM's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRM's Return on Equity is forecast to be low in 3 years time (1.4%).


Past Performance

How has MMA Offshore performed over the past 5 years?

47.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRM has a large one-off gain of A$24.1M impacting its June 30 2021 financial results.

Growing Profit Margin: MRM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MRM has become profitable over the past 5 years, growing earnings by 47.9% per year.

Accelerating Growth: MRM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MRM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (1.3%).


Return on Equity

High ROE: MRM's Return on Equity (0.8%) is considered low.


Financial Health

How is MMA Offshore's financial position?


Financial Position Analysis

Short Term Liabilities: MRM's short term assets (A$183.1M) exceed its short term liabilities (A$82.9M).

Long Term Liabilities: MRM's short term assets (A$183.1M) exceed its long term liabilities (A$154.7M).


Debt to Equity History and Analysis

Debt Level: MRM's debt to equity ratio (56.5%) is considered high.

Reducing Debt: MRM's debt to equity ratio has reduced from 62% to 56.5% over the past 5 years.

Debt Coverage: MRM's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: Insufficient data to determine if MRM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MRM'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 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

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

6.4yrs

Average management tenure


CEO

David Ross

2.25yrs

Tenure

AU$908,206

Compensation

Mr. David Colin Ross has been Managing Director and Director of MMA Offshore Ltd. since January 13, 2020 and has been its Chief Executive Officer since July 1, 2019. He was Deputy Chief Executive Officer o...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD674.09K) is above average for companies of similar size in the Australian market ($USD302.45K).

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


Leadership Team

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


Board Members

Experienced Board: MRM's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 288.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: MMA Offshore Limited
  • Ticker: MRM
  • Exchange: ASX
  • Founded: 1989
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: AU$152.715m
  • Shares outstanding: 359.33m
  • Website: https://www.mmaoffshore.com

Number of Employees


Location

  • MMA Offshore Limited
  • 12-14 The Esplanade
  • EQ12, Level 10
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.