ASX:MLD

Stock Analysis Report

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Executive Summary

MACA Limited engages in contract mining and crushing, civil construction, infrastructure, and mineral processing equipment business in Australia, Brazil, and South America.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

12.7%

MLD

-1.8%

AU Metals and Mining

3.8%

AU Market


1 Year Return

-11.0%

MLD

2.0%

AU Metals and Mining

-10.6%

AU Market

Return vs Industry: MLD underperformed the Australian Metals and Mining industry which returned 1.5% over the past year.

Return vs Market: MLD matched the Australian Market which returned -11.2% over the past year.


Shareholder returns

MLDIndustryMarket
7 Day12.7%-1.8%3.8%
30 Day20.3%11.6%9.9%
90 Day-8.2%2.4%-13.0%
1 Year-6.1%-11.0%7.2%2.0%-6.9%-10.6%
3 Year-34.7%-43.5%60.0%39.1%12.7%-2.1%
5 Year57.7%12.7%97.2%59.4%27.9%0.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MACA 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: MLD (A$0.89) is trading below our estimate of fair value (A$4.67)

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


Price To Earnings Ratio

PE vs Industry: MLD is good value based on its PE Ratio (9.7x) compared to the Metals and Mining industry average (10.1x).

PE vs Market: MLD is good value based on its PE Ratio (9.7x) compared to the Australian market (15x).


Price to Earnings Growth Ratio

PEG Ratio: MLD is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MLD is good value based on its PB Ratio (0.7x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLD's forecast earnings growth (8.5% per year) is above the savings rate (2.3%).

Earnings vs Market: MLD's earnings (8.5% per year) are forecast to grow slower than the Australian market (14.4% per year).

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

Revenue vs Market: MLD's revenue (3% per year) is forecast to grow slower than the Australian market (4.3% per year).

High Growth Revenue: MLD'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: MLD's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has MACA performed over the past 5 years?

-19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLD has high quality earnings.

Growing Profit Margin: MLD's current net profit margins (3.5%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: MLD's earnings have declined by -19.9% per year over the past 5 years.

Accelerating Growth: MLD's earnings growth over the past year (24.1%) exceeds its 5-year average (-19.9% per year).

Earnings vs Industry: MLD earnings growth over the past year (24.1%) exceeded the Metals and Mining industry -7.9%.


Return on Equity

High ROE: MLD's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is MACA's financial position?


Financial Position Analysis

Short Term Liabilities: MLD's short term assets (A$304.9M) exceed its short term liabilities (A$157.2M).

Long Term Liabilities: MLD's short term assets (A$304.9M) exceed its long term liabilities (A$113.7M).


Debt to Equity History and Analysis

Debt Level: MLD is debt free.

Reducing Debt: MLD has not had any debt for past 5 years.

Debt Coverage: MLD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MLD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

5.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MLD's dividend (5.62%) is higher than the bottom 25% of dividend payers in the Australian market (2.64%).

High Dividend: MLD's dividend (5.62%) is low compared to the top 25% of dividend payers in the Australian market (6.77%).


Stability and Growth of Payments

Stable Dividend: MLD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MLD has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.8%), MLD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MLD's dividends in 3 years are forecast to be well covered by earnings (45.1% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Mike Sutton

0.25

Tenure

Mr. Mike Sutton serves as Chief Executive Officer of MACA Limited since February 24, 2020. He served as Chief Operating Officer of Open Cut West - Downer Mining at Downer EDI Limited. Mr. Sutton joined Dow ...


Leadership Team

NamePositionTenureCompensationOwnership
Peter Gilford
CFO & Company Secretary5.83yrsAU$507.04k0.092% A$213.5k
Geoffrey Baker
Operations Director & Executive Director9.5yrsAU$705.65k4.8% A$11.2m
David Greig
Chief Operating Officer0.33yrAU$519.78kno data
Timothy Gooch
General Manager of Mining8.92yrsAU$565.59k0.062% A$143.5k
Mitchell Wallace
General Manager of Brazil Operations9.5yrsAU$558.54k0.11% A$252.5k
Mark Davidovic
General Manager of Civil & Infrastructure3.25yrsAU$585.35kno data
Mike Sutton
Chief Executive Officer0.25yrno datano data

5.8yrs

Average Tenure

Experienced Management: MLD's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Baker
Operations Director & Executive Director9.5yrsAU$705.65k4.8% A$11.2m
Christopher Sutherland
Independent Non Executive Director0.25yrno datano data
Andrew Edwards
Independent Non-Executive Chairmanno dataAU$155.00k0.0075% A$17.4k
Linton Kirk
Independent Non-Executive Director7.58yrsAU$112.81k0.043% A$100.1k
Robert Ryan
Independent Non-Executive Director4.75yrsAU$96.98k0.022% A$51.0k

6.2yrs

Average Tenure

Experienced Board: MLD's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MLD 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

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


Key Information

  • Name: MACA Limited
  • Ticker: MLD
  • Exchange: ASX
  • Founded: 2002
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$233.167m
  • Shares outstanding: 268.01m
  • Website: https://www.maca.net.au

Number of Employees


Location

  • MACA Limited
  • 45 Division Street
  • Welshpool
  • Western Australia
  • 6106
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2010
MKMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2010
MLDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2010

Biography

MACA Limited engages in contract mining and crushing, civil construction, infrastructure, and mineral processing equipment business in Australia, Brazil, and South America. The company offers loading and hauling services; and drilling and blasting services, including production drilling and blasting for surface mining operations or quarries, pre-split drilling, contour drilling and pioneering, blast hole sample drilling, probe drilling, pre-split and final wall blasting, drill and blast design, blasting solutions for civil construction, and controlled blasting. It also provides crushing and screening services to deliver tailored screening and sizing solutions, as well as materials handling solutions. In addition, the company provides a range of civil works, including construction of roads and bridges, bulk earthworks, aerodromes, drainage, and marine works. Further, it engages in the parks and gardens, verge, and safety barriers activities, as well as provision of specialist services. Further, it engages in mineral processing equipment business, including the delivery of small to large scale structural, mechanical, and piping projects. MACA Limited was incorporated in 2002 and is headquartered in Welshpool, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 12:11
End of Day Share Price2020/05/27 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.