ASX:MAH

Stock Analysis Report

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Executive Summary

Macmahon Holdings Limited provides mining and consulting services to mining companies in Australia, Southeast Asia, and South Africa. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MAH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

MAH

-2.7%

AU Metals and Mining

-1.6%

AU Market


1 Year Return

31.6%

MAH

9.8%

AU Metals and Mining

-10.9%

AU Market

Return vs Industry: MAH exceeded the Australian Metals and Mining industry which returned 9.8% over the past year.

Return vs Market: MAH exceeded the Australian Market which returned -10.9% over the past year.


Shareholder returns

MAHIndustryMarket
7 Day0%-2.7%-1.6%
30 Day-3.8%-4.4%-3.7%
90 Day-3.8%2.6%-1.4%
1 Year36.8%31.6%14.9%9.8%-7.7%-10.9%
3 Year15.5%11.1%60.4%38.3%16.2%1.3%
5 Year209.3%197.6%123.8%80.7%37.8%9.6%

Price Volatility Vs. Market

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


Simply Wall St News

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$0.25) is trading below our estimate of fair value (A$0.66)

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 (8.1x) compared to the AU Metals and Mining industry average (12.7x).

PE vs Market: MAH is good value based on its PE Ratio (8.1x) compared to the Australian market (20x).


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 (1.1x) compared to the AU Metals and Mining industry average (2.2x).


Next Steps

Future Growth

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

-0.5%

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 (-0.5% per year).

Earnings vs Market: MAH's earnings are forecast to decline over the next 3 years (-0.5% per year).

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

Revenue vs Market: MAH's revenue (3% per year) is forecast to grow slower than the Australian market (4.5% per year).

High Growth Revenue: MAH's revenue (3% 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 (10.4%).


Next Steps

Past Performance

How has Macmahon Holdings performed over the past 5 years?

78.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAH has high quality earnings.

Growing Profit Margin: MAH's current net profit margins (4.7%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: MAH has become profitable over the past 5 years, growing earnings by 78.2% per year.

Accelerating Growth: MAH's earnings growth over the past year (40.8%) is below its 5-year average (78.2% per year).

Earnings vs Industry: MAH earnings growth over the past year (40.8%) exceeded the Metals and Mining industry 19.4%.


Return on Equity

High ROE: MAH's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Macmahon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MAH's short term assets (A$402.6M) exceed its short term liabilities (A$268.6M).

Long Term Liabilities: MAH's short term assets (A$402.6M) exceed its long term liabilities (A$156.6M).


Debt to Equity History and Analysis

Debt Level: MAH's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: MAH's debt to equity ratio has reduced from 73.7% to 0.2% over the past 5 years.

Debt Coverage: MAH's debt is well covered by operating cash flow (23392.9%).

Interest Coverage: MAH's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.80%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MAH's dividend (2.8%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: MAH's dividend (2.8%) is low compared to the top 25% of dividend payers in the Australian market (5.7%).


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 (19.4%), 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 (19% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Mick Finnegan

3.92yrs

Tenure

AU$1,615,659

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 ($USD1.16M) is above average for companies of similar size in the Australian market ($USD706.05K).

Compensation vs Earnings: Mick's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Finnegan
CEO, MD & Director3.92yrsAU$1.62m0.24%
A$ 1.3m
Charles Roland Everist
Chief Financial Officer2.83yrsAU$996.72k0.0026%
A$ 13.7k
Gregory Gettingby
Chief Development Officer & Company Secretary2.75yrsAU$1.07m0.11%
A$ 611.4k
Chris Chong
Manager of Corporate Development & Investor Relationsno datano datano data
Katina Nadebaum
Company Secretary1.92yrsno datano data

2.8yrs

Average Tenure

Experienced Management: MAH's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Finnegan
CEO, MD & Director3.92yrsAU$1.62m0.24%
A$ 1.3m
Vyril Vella
Independent Non-Executive Director1.33yrsAU$40.18k0.089%
A$ 473.8k
Hamish Tyrwhitt
Independent Non-Executive Director1yrno data0.0022%
A$ 11.7k
Bruce Munro
Independent Non-Executive Director1yrno data0.029%
A$ 152.4k
Eva Desiree Skira
Independent Non-Executive Chair1.33yrsAU$116.01k0.016%
A$ 84.0k
Alexander Ramlie
Non-Independent Non-Executive Director3.17yrsAU$100.58k0.043%
A$ 227.6k
Arief Sidarto
Non-Independent Non-Executive Director3.17yrsAU$103.51k0.043%
A$ 227.6k

1.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MAH'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: 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 company bio, 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$534.128m
  • Shares outstanding: 2.09b
  • Website: https://www.macmahon.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MCHH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
MAHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
MA2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Macmahon Holdings Limited provides mining and consulting services to mining companies in Australia, Southeast Asia, and South Africa. It offers surface mining services, including mine planning and analysis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/01 10:38
End of Day Share Price2020/10/01 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.