Matrix Composites & Engineering Ltd

CHIA:MCE Stock Report

Market Cap: AU$51.5m

Matrix Composites & Engineering Valuation

Is MCE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCE (A$0.22) is trading below our estimate of fair value (A$0.31)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCE?

Key metric: As MCE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MCE. This is calculated by dividing MCE's market cap by their current earnings.
What is MCE's PE Ratio?
PE Ratio14.1x
EarningsAU$3.65m
Market CapAU$51.48m

Price to Earnings Ratio vs Peers

How does MCE's PE Ratio compare to its peers?

The above table shows the PE ratio for MCE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
BRK Brookside Energy
3.1x49.1%AU$45.3m
JPR Jupiter Energy
24.8xn/aAU$45.9m
CUE Cue Energy Resources
4.9xn/aAU$69.2m
ECH Echelon Resources
22.9xn/aAU$80.6m
MCE Matrix Composites & Engineering
14.1x26.6%AU$51.5m

Price-To-Earnings vs Peers: MCE is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

How does MCE's PE Ratio compare vs other companies in the Global Energy Services Industry?

17 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MCE 14.1xIndustry Avg. 12.1xNo. of Companies29PE01020304050+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCE is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the Global Energy Services industry average (12x).

Price to Earnings Ratio vs Fair Ratio

What is MCE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.1x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: MCE is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (10x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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