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MAH

Macmahon HoldingsASX:MAH Stock Report

Market Cap

AU$430.5m

7D

0%

1Y

-16.3%

Updated

21 Oct, 2021

Data

Company Financials +
MAH fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends3/6

MAH Overview

Macmahon Holdings Limited provides mining and civil construction services to mining companies in Australia, Southeast Asia, and South Africa.

Macmahon Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Macmahon Holdings
Historical stock prices
Current Share PriceAU$0.20
52 Week HighAU$0.17
52 Week LowAU$0.28
Beta1.17
1 Month Change2.50%
3 Month Change-6.82%
1 Year Change-16.33%
3 Year Change-12.77%
5 Year Change118.09%
Change since IPO-76.71%

Recent News & Updates

Jun 29
Is Macmahon Holdings (ASX:MAH) Using Too Much Debt?

Is Macmahon Holdings (ASX:MAH) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

MAHAU Metals and MiningAU Market
7D0%-0.3%0.7%
1Y-16.3%12.5%21.4%

Return vs Industry: MAH underperformed the Australian Metals and Mining industry which returned 11.3% over the past year.

Return vs Market: MAH underperformed the Australian Market which returned 21.1% over the past year.

Price Volatility

Is MAH's price volatile compared to industry and market?
MAH volatility
MAH Beta1.17
Industry Beta0.97
Market Beta1

Stable Share Price: MAH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

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

About the Company

FoundedEmployeesCEOWebsite
19636,082Mick Finneganhttps://www.macmahon.com.au

Macmahon Holdings Limited provides mining and civil construction services to mining companies in Australia, Southeast Asia, and South Africa. The company operates in three segments: Surface Mining, Underground Mining, and International Mining. Its surface mining services include mine planning and analysis, drill and blast, bulk and selective mining, crushing and screening, fixed plant maintenance, water management, and equipment operation and maintenance.

Macmahon Holdings Fundamentals Summary

How do Macmahon Holdings's earnings and revenue compare to its market cap?
MAH fundamental statistics
Market CapAU$430.53m
Earnings (TTM)AU$77.23m
Revenue (TTM)AU$1.35b

5.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAH income statement (TTM)
RevenueAU$1.35b
Cost of RevenueAU$487.23m
Gross ProfitAU$867.76m
ExpensesAU$790.52m
EarningsAU$77.23m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.037
Gross Margin64.04%
Net Profit Margin5.70%
Debt/Equity Ratio17.9%

How did MAH perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

18%

Payout Ratio

Valuation

Is Macmahon Holdings 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: MAH (A$0.21) is trading below our estimate of fair value (A$0.8)

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


Price To Earnings Ratio

PE vs Industry: MAH is good value based on its PE Ratio (5.6x) compared to the Australian Metals and Mining industry average (14.3x).

PE vs Market: MAH is good value based on its PE Ratio (5.6x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: MAH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MAH is good value based on its PB Ratio (0.8x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Macmahon Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAH's earnings are forecast to decline over the next 3 years (-0.6% per year).

Earnings vs Market: MAH's earnings are forecast to decline over the next 3 years (-0.6% per year).

High Growth Earnings: MAH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MAH's revenue (4.8% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: MAH's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAH's Return on Equity is forecast to be low in 3 years time (10.2%).


Past Performance

How has Macmahon Holdings performed over the past 5 years?

48.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAH has high quality earnings.

Growing Profit Margin: MAH's current net profit margins (5.7%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: MAH's earnings have grown significantly by 48.3% per year over the past 5 years.

Accelerating Growth: MAH's earnings growth over the past year (18.9%) is below its 5-year average (48.3% per year).

Earnings vs Industry: MAH earnings growth over the past year (18.9%) underperformed the Metals and Mining industry 35.3%.


Return on Equity

High ROE: MAH's Return on Equity (14.1%) is considered low.


Financial Health

How is Macmahon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MAH's short term assets (A$497.7M) exceed its short term liabilities (A$400.0M).

Long Term Liabilities: MAH's short term assets (A$497.7M) exceed its long term liabilities (A$207.6M).


Debt to Equity History and Analysis

Debt Level: MAH's debt to equity ratio (17.9%) is considered satisfactory.

Reducing Debt: MAH had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: MAH's debt is well covered by operating cash flow (244.6%).

Interest Coverage: MAH's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

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

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAH's dividend (3.17%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: MAH's dividend (3.17%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.7%), MAH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAH's dividends in 3 years are forecast to be well covered by earnings (24.8% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Mick Finnegan (46 yo)

4.92yrs

Tenure

AU$1,538,963

Compensation

Mr. Michael John Finnegan, also known as Mick, has been the Chief Executive Officer of MacMahon Holdings Ltd. since November 2016. He has been Managing Director and Director of Macmahon Holdings Limited si...


CEO Compensation Analysis

Compensation vs Market: Mick's total compensation ($USD1.15M) is above average for companies of similar size in the Australian market ($USD734.81K).

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


Leadership Team

Experienced Management: MAH's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: MAH's board of directors are not considered experienced ( 2.2 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: MAH 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

Macmahon Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Macmahon Holdings Limited
  • Ticker: MAH
  • Exchange: ASX
  • Founded: 1963
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$430.530m
  • Shares outstanding: 2.10b
  • Website: https://www.macmahon.com.au

Number of Employees


Location

  • Macmahon Holdings Limited
  • 15 Hudswell Road
  • Perth Airport
  • Perth
  • Western Australia
  • 6105
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:04
End of Day Share Price2021/10/21 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.