ASX:MCP

Stock Analysis Report

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Executive Summary

McPherson's Limited provides health, wellness, and beauty products in Australia, New Zealand, Asia, and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MCP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.7%

MCP

3.0%

AU Personal Products

3.6%

AU Market


1 Year Return

118.9%

MCP

-16.6%

AU Personal Products

-10.3%

AU Market

Return vs Industry: MCP exceeded the Australian Personal Products industry which returned -16.6% over the past year.

Return vs Market: MCP exceeded the Australian Market which returned -10.3% over the past year.


Shareholder returns

MCPIndustryMarket
7 Day4.7%3.0%3.6%
30 Day2.1%-4.1%0.2%
90 Day28.3%5.4%16.4%
1 Year128.9%118.9%-15.7%-16.6%-6.6%-10.3%
3 Year155.4%116.4%-13.3%-19.3%18.2%2.5%
5 Year534.4%360.3%11.7%-4.4%35.7%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is McPherson's undervalued compared to its fair value and its price relative to the market?

22.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCP (A$2.9) is trading above our estimate of fair value (A$2.46)

Significantly Below Fair Value: MCP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCP is good value based on its PE Ratio (22.1x) compared to the Personal Products industry average (22.8x).

PE vs Market: MCP is poor value based on its PE Ratio (22.1x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: MCP is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: MCP is overvalued based on its PB Ratio (3.3x) compared to the AU Personal Products industry average (2.4x).


Next Steps

Future Growth

How is McPherson's forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCP's forecast earnings growth (13% per year) is above the savings rate (2.3%).

Earnings vs Market: MCP's earnings (13% per year) are forecast to grow slower than the Australian market (15.1% per year).

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

Revenue vs Market: MCP's revenue (4.6% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MCP's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCP's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has McPherson's performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCP has high quality earnings.

Growing Profit Margin: MCP's current net profit margins (6.6%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: MCP has become profitable over the past 5 years, growing earnings by 8.9% per year.

Accelerating Growth: MCP's earnings growth over the past year (28.6%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: MCP earnings growth over the past year (28.6%) exceeded the Personal Products industry -32%.


Return on Equity

High ROE: MCP's Return on Equity (14.9%) is considered low.


Next Steps

Financial Health

How is McPherson's's financial position?


Financial Position Analysis

Short Term Liabilities: MCP's short term assets (A$85.4M) exceed its short term liabilities (A$73.6M).

Long Term Liabilities: MCP's short term assets (A$85.4M) exceed its long term liabilities (A$15.6M).


Debt to Equity History and Analysis

Debt Level: MCP's debt to equity ratio (26.2%) is considered satisfactory.

Reducing Debt: MCP's debt to equity ratio has reduced from 75.3% to 26.2% over the past 5 years.

Debt Coverage: MCP's debt is well covered by operating cash flow (94.8%).

Interest Coverage: MCP's interest payments on its debt are well covered by EBIT (24.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCP's dividend (3.45%) is higher than the bottom 25% of dividend payers in the Australian market (2.51%).

High Dividend: MCP's dividend (3.45%) is low compared to the top 25% of dividend payers in the Australian market (6.39%).


Stability and Growth of Payments

Stable Dividend: MCP's dividend payments have been volatile in the past 10 years.

Growing Dividend: MCP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.4%), MCP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCP's dividends in 3 years are forecast to be covered by earnings (73.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Household industry.

Management

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

8.4yrs

Average management tenure


CEO

Laurie McAllister

3.67yrs

Tenure

AU$1,105,331

Compensation

Mr. Laurie McAllister, also known as Laurie, has been Managing Director of McPherson's Limited since November 21, 2016 and serves as its Director. Mr. McAllister served as Managing Director at Sanofi-avent ...


CEO Compensation Analysis

Compensation vs Market: Laurie's total compensation ($USD771.34K) is above average for companies of similar size in the Australian market ($USD516.55K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Laurence McAllister
MD & Director3.67yrsAU$1.11mno data
Paul Witheridge
CFO & Joint Company Secretary8.58yrsAU$451.05k0.093% A$299.0k
Lori Pirozzi
International Sales Directorno dataAU$296.92kno data
Donna Chan
Marketing Directorno datano datano data
Philip Bennett
Joint Company Secretary8.42yrsAU$481.97kno data
Sammy Chan
Managing Director of McPherson's Hong Kong Limitedno dataAU$632.41kno data
David Fielding
Director of Strategyno datano datano data
Mary Pearce
R&D Directorno datano datano data

8.4yrs

Average Tenure

Experienced Management: MCP's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Laurence McAllister
MD & Director3.67yrsAU$1.11mno data
Graham Cubbin
Independent Chairman of the Board5yrsAU$164.52k0.25% A$807.3k
Alison Mew
Independent Non-Executive Director2yrsAU$77.93k0.011% A$35.9k
Grant Peck
Independent Non-Executive Director2.58yrsAU$93.46k0.013% A$43.0k
Jane McKellar
Independent Non-Executive Director5.42yrsAU$100.03k0.0059% A$19.0k
Geoffrey Pearce
Independent Non-Executive Director2.42yrsAU$82.92k0.12% A$375.9k

2.6yrs

Average Tenure

Experienced Board: MCP's board of directors are not considered experienced ( 2.6 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: MCP insiders have only sold shares 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

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


Key Information

  • Name: McPherson's Limited
  • Ticker: MCP
  • Exchange: ASX
  • Founded: 1860
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: AU$320.721m
  • Shares outstanding: 107.26m
  • Website: https://www.mcphersons.com.au

Number of Employees


Location

  • McPherson's Limited
  • 105 Vanessa Street
  • Kingsgrove
  • New South Wales
  • 2208
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MCPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
M5CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

McPherson's Limited provides health, wellness, and beauty products in Australia, New Zealand, Asia, and internationally. The company offers beauty care, hair care, skin care, and fragrance products; kitchen essentials, such as baking papers, cling wraps, and aluminum foils; and personal care items, including facial wipes, cotton pads, and foot comfort products. The company offers its products primarily under the owned brands, including Manicare, Lady Jayne, Dr. LeWinn’s, A'kin, Swisspers, Moosehead, Maseur, and Multix, as well as partnered brands, such as Karen Murrell and Dr Wolff. It serves supermarkets, discount department stores, department stores, pharmacies, and independent housewares stores. The company was founded in 1860 and is based in Kingsgrove, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 10:34
End of Day Share Price2020/07/07 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.