ASX:MAH

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (12.8x) is below the Australian market (18.6x)

Earnings are forecast to grow 5.69% per year

Earnings grew by 47.3% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with acceptable track record.


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

0.4%

AU Metals and Mining

0.7%

AU Market


1 Year Return

7.7%

MAH

4.6%

AU Metals and Mining

15.8%

AU Market

Return vs Industry: MAH exceeded the Australian Metals and Mining industry which returned 4.6% over the past year.

Return vs Market: MAH underperformed the Australian Market which returned 15.8% over the past year.


Shareholder returns

MAHIndustryMarket
7 Day0%0.4%0.7%
30 Day1.8%-5.5%0.4%
90 Day24.4%6.5%6.5%
1 Year10.7%7.7%10.0%4.6%21.0%15.8%
3 Year91.9%86.7%51.7%33.0%37.4%19.1%
5 Year453.4%438.5%84.0%40.8%50.7%17.1%

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?

12.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAH (A$0.28) is trading above our estimate of fair value (A$0.1)

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


Price To Earnings Ratio

PE vs Industry: MAH is poor value based on its PE Ratio (12.8x) compared to the Metals and Mining industry average (12.3x).

PE vs Market: MAH is good value based on its PE Ratio (12.8x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: MAH is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: MAH is good value based on its PB Ratio (1.3x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Macmahon Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAH's forecast earnings growth (5.7% per year) is above the savings rate (1.1%).

Earnings vs Market: MAH's earnings (5.7% per year) are forecast to grow slower than the Australian market (9.2% per year).

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

Revenue vs Market: MAH's revenue (7.6% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MAH's revenue (7.6% 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 (9.7%).


Next Steps

Past Performance

How has Macmahon Holdings performed over the past 5 years?

60.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAH has high quality earnings.

Growing Profit Margin: MAH's current net profit margins (4.2%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: MAH has become profitable over the past 5 years, growing earnings by 60.9% per year.

Accelerating Growth: MAH's earnings growth over the past year (47.3%) is below its 5-year average (60.9% per year).

Earnings vs Industry: MAH earnings growth over the past year (47.3%) exceeded the Metals and Mining industry 18.2%.


Return on Equity

High ROE: MAH's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Macmahon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MAH's short term assets (A$349.7M) exceed its short term liabilities (A$240.6M).

Long Term Liabilities: MAH's short term assets (A$349.7M) exceed its long term liabilities (A$136.6M).


Debt to Equity History and Analysis

Debt Level: MAH is debt free.

Reducing Debt: MAH has no debt compared to 5 years ago when its debt to equity ratio was 37.8%.


Balance Sheet

Inventory Level: MAH has a high level of physical assets or inventory.

Debt Coverage by Assets: MAH's debt is covered by short term assets (assets are 1.2304291578813E+16x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MAH is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: MAH is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.79%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.3%markettop25%5.4%industryaverage4.4%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: MAH's dividend (1.79%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: MAH's dividend (1.79%) is low compared to the top 25% of dividend payers in the Australian market (5.42%).


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 (22.8%), 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 (32% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Mick Finnegan 0

3.3yrs

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 ($USD1.08M) is above average for companies of similar size in the Australian market ($USD708.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Finnegan
CEO, MD & Director3.3yrsAU$1.62m0.15% A$880.7k
Charles Roland Everist
Chief Financial Officer2.2yrsAU$996.72k0.0024% A$14.0k
Gregory Gettingby
Chief Development Officer & Company Secretary2.1yrsAU$1.07m0.035% A$204.6k
Chris Chong
Manager of Corporate Development & Investor Relations0yrsno datano data
Katherine Blacklock
Group Manager of People & Learning0.08yrsno datano data
Katina Nadebaum
Company Secretary1.3yrsno datano data

2.1yrs

Average Tenure

Experienced Management: MAH's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Finnegan
CEO, MD & Director3.3yrsAU$1.62m0.15% A$880.7k
Vyril Vella
Independent Non-Executive Director0.7yrsAU$40.18k0.089% A$520.2k
Hamish Tyrwhitt
Independent Non-Executive Director0.3yrsno datano data
Bruce Munro
Independent Non-Executive Director0.3yrsno data0.024% A$140.0k
Eva Desiree Skira
Independent Non-Executive Chair0.7yrsAU$116.01k0.0059% A$34.7k
Alexander Ramlie
Non-Independent Non-Executive Director2.5yrsAU$100.58k0.021% A$120.7k
Arief Sidarto
Non-Independent Non-Executive Director2.5yrsAU$103.51k0.021% A$120.7k

0.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MAH's board of directors are not considered experienced ( 0.7 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 been diluted in the past year, with total shares outstanding growing by 3.1%.


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$584.788m
  • 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, drill and blast, bulk and selective mining, crushing and screening, fixed plant maintenance, water management, and equipment operation and maintenance. The company also provides underground mining services, such as mine development and production, raise drilling, cablebolting, shotcreting, remote shaft lining, production drilling, and shaft sinking. In addition, it offers civil and rehabilitation services comprising topsoil and overburden stripping, bulk earthworks, road design and construction, and train loading facilities; water infrastructure, including dams, creek diversions, flood levies, and drainage structures; and revegetation, as well as rehabilitation monitoring and maintenance. Further, the company provides equipment maintenance and management support services; and performance enhancement services comprising operator coaching and training, and cultural change programs for employees, as well as advisory and assistance services with mine planning, maintenance, and employee engagement. Macmahon Holdings Limited was founded in 1963 and is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 10:34
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
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.