company background image
MGL

MagontecASX:MGL Stock Report

Market Cap

AU$36.8m

7D

52.4%

1Y

100.0%

Updated

26 Oct, 2021

Data

Company Financials
MGL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

MGL Overview

Magontec Limited, together with its subsidiaries, researches, develops, manufactures, and sells generic and specialist magnesium alloys in Asia, Europe, the Americas, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Magontec
Historical stock prices
Current Share PriceAU$0.48
52 Week HighAU$0.21
52 Week LowAU$1.14
Beta1.11
1 Month Change41.18%
3 Month Change88.24%
1 Year Change100.00%
3 Year Change28.00%
5 Year Change-15.79%
Change since IPO-100.00%

Recent News & Updates

Oct 04
Magontec (ASX:MGL) Has A Pretty Healthy Balance Sheet

Magontec (ASX:MGL) Has A Pretty Healthy Balance Sheet

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

May 18
It Looks Like Magontec Limited's (ASX:MGL) CEO May Expect Their Salary To Be Put Under The Microscope

It Looks Like Magontec Limited's (ASX:MGL) CEO May Expect Their Salary To Be Put Under The Microscope

Shareholders will probably not be too impressed with the underwhelming results at Magontec Limited ( ASX:MGL...

May 04
Here's Why Magontec (ASX:MGL) Has A Meaningful Debt Burden

Here's Why Magontec (ASX:MGL) Has A Meaningful Debt Burden

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 06
Here's What We Make Of Magontec's (ASX:MGL) Returns On Capital

Here's What We Make Of Magontec's (ASX:MGL) Returns On Capital

When researching a stock for investment, what can tell us that the company is in decline? More often than not, we'll...

Shareholder Returns

MGLAU Metals and MiningAU Market
7D52.4%-0.4%0.8%
1Y100.0%15.6%24.4%

Return vs Industry: MGL exceeded the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: MGL exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is MGL's price volatile compared to industry and market?
MGL volatility
MGL Beta1.11
Industry Beta0.97
Market Beta1

Stable Share Price: MGL is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 24% a week.

Volatility Over Time: MGL's weekly volatility (24%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1953325Nick Andrewshttps://magontec.com

Magontec Limited, together with its subsidiaries, researches, develops, manufactures, and sells generic and specialist magnesium alloys in Asia, Europe, the Americas, and internationally. The company manufactures and distributes magnesium and titanium cathodic corrosion protection (CCP) products, such as HyTonic anodes, Correx impressed current systems, CorroScout measuring systems, and S-Patron intelligent measuring and control systems. The CCP products are used in water storage vessels.

Magontec Fundamentals Summary

How do Magontec's earnings and revenue compare to its market cap?
MGL fundamental statistics
Market CapAU$36.83m
Earnings (TTM)AU$562.00k
Revenue (TTM)AU$99.95m

65.6x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGL income statement (TTM)
RevenueAU$99.95m
Cost of RevenueAU$86.01m
Gross ProfitAU$13.94m
ExpensesAU$13.38m
EarningsAU$562.00k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0073
Gross Margin13.95%
Net Profit Margin0.56%
Debt/Equity Ratio40.6%

How did MGL perform over the long term?

See historical performance and comparison

Valuation

Is Magontec undervalued compared to its fair value and its price relative to the market?

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGL (A$0.48) is trading below our estimate of fair value (A$0.69)

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


Price To Earnings Ratio

PE vs Industry: MGL is poor value based on its PE Ratio (65.6x) compared to the Australian Metals and Mining industry average (14.6x).

PE vs Market: MGL is poor value based on its PE Ratio (65.6x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MGL is good value based on its PB Ratio (1.2x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Magontec forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.5%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Magontec has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Magontec performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGL has a large one-off gain of A$533.0K impacting its June 30 2021 financial results.

Growing Profit Margin: MGL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MGL has become profitable over the past 5 years, growing earnings by -22.2% per year.

Accelerating Growth: MGL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MGL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: MGL's Return on Equity (1.8%) is considered low.


Financial Health

How is Magontec's financial position?


Financial Position Analysis

Short Term Liabilities: MGL's short term assets (A$47.9M) exceed its short term liabilities (A$24.1M).

Long Term Liabilities: MGL's short term assets (A$47.9M) exceed its long term liabilities (A$17.6M).


Debt to Equity History and Analysis

Debt Level: MGL's debt to equity ratio (40.6%) is considered high.

Reducing Debt: MGL's debt to equity ratio has reduced from 62% to 40.6% over the past 5 years.

Debt Coverage: MGL's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: MGL's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Dividend

What is Magontec current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MGL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MGL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MGL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Nick Andrews (64 yo)

no data

Tenure

AU$412,498

Compensation

Mr. Nicholas William Andrews, also known as Nick, B Ec.(Syd), MSDIA, MAICD serves as Executive Chairman of Magontec Limited since August 31, 2009 and serves as its Chief Executive. Mr. Andrews has 25 years...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD309.22K) is about average for companies of similar size in the Australian market ($USD301.38K).

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


Leadership Team

Experienced Management: MGL's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: MGL's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Magontec Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Magontec Limited
  • Ticker: MGL
  • Exchange: ASX
  • Founded: 1953
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$36.830m
  • Shares outstanding: 76.73m
  • Website: https://magontec.com

Number of Employees


Location

  • Magontec Limited
  • 46A Macleay Street
  • Suite 1.03
  • Potts Point
  • New South Wales
  • 2011
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:11
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.