MACA (ASX:MLD) - Share price, News & Analysis

MLD fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

MLD Stock Overview

MACA Limited engages in the contract mining, civil and infrastructure, and structural, mechanical, and piping businesses in Australia and Cambodia.

Rewards

Trading at 60.9% below our estimate of its fair value

Earnings are forecast to grow 18.37% per year

Became profitable this year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

MACA Peers

GR Engineering Services

ASX:GNG

AU$324.1m

Image Resources

ASX:IMA

AU$214.4m

Base Resources

ASX:BSE

AU$366.6m

Macmahon Holdings

ASX:MAH

AU$336.2m

Price History & Performance

Summary of all time highs, changes and price drops for MACA
Historical stock prices
Current Share Price	AU$0.79
52 Week High	AU$0.94
52 Week Low	AU$0.65
Beta	1.19
1 Month Change	-10.80%
3 Month Change	7.53%
1 Year Change	-5.42%
3 Year Change	-21.50%
5 Year Change	-53.69%
Change since IPO	-45.86%

Shareholder Returns

	MLD	AU Metals and Mining	AU Market
7D	1.3%	0.5%	0.7%
1Y	-5.4%	-0.2%	2.1%

Return vs Industry: MLD matched the Australian Metals and Mining industry which returned -4.8% over the past year.

Return vs Market: MLD underperformed the Australian Market which returned -0.2% over the past year.

Price Volatility

Is MLD's price volatile compared to industry and market?
MLD volatility
MLD Average Weekly Movement	4.5%
Metals and Mining Industry Average Movement	11.2%
Market Average Movement	9.4%
10% most volatile stocks in AU Market	16.7%
10% least volatile stocks in AU Market	4.3%

Stable Share Price: MLD is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MLD's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	3,700	Mike Sutton	https://www.maca.net.au

MACA Limited engages in the contract mining, civil and infrastructure, and structural, mechanical, and piping businesses in Australia and Cambodia. It offers bulk commodities loading and hauling services; 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; and materials handling services. The company also engages in the road construction and maintenance; parks and gardens management; vegetation management; and provision of bridge works, which include clearing existing vegetation and topsoil, foundation compaction, embankment construction, stormwater drainage installation and pavement construction, bituminous surfacing and guardrails, and rehabilitation and piling works, as well as reinforced concrete works, and heavy lifts and safety barrier works.

MACA Fundamentals Summary

How do MACA's earnings and revenue compare to its market cap?
MLD fundamental statistics
Market Cap	AU$268.24m
Earnings (TTM)	AU$31.09m
Revenue (TTM)	AU$1.55b

8.6x

P/E Ratio

0.2x

P/S Ratio

Is MLD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MLD income statement (TTM)
Revenue	AU$1.55b
Cost of Revenue	AU$1.39b
Gross Profit	AU$154.86m
Other Expenses	AU$123.77m
Earnings	AU$31.09m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.091
Gross Margin	10.01%
Net Profit Margin	2.01%
Debt/Equity Ratio	26.3%

How did MLD perform over the long term?

See historical performance and comparison

Dividends

6.4%

Current Dividend Yield

55%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLD's forecast earnings growth (18.4% per year) is above the savings rate (1.8%).

Earnings vs Market: MLD's earnings (18.4% per year) are forecast to grow faster than the Australian market (6.2% per year).

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

Revenue vs Market: MLD's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: MLD's revenue is forecast to decline over the next 3 years (-1.3% 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 (11.6%).

Past Performance

How has MACA performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MLD has high quality earnings.

Growing Profit Margin: MLD became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: MLD's earnings have declined by 11.8% per year over the past 5 years.

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

Earnings vs Industry: MLD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (57.8%).

Return on Equity

High ROE: MLD's Return on Equity (8.3%) is considered low.

Financial Health

How is MACA's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MLD's short term assets (A$473.7M) exceed its short term liabilities (A$397.6M).

Long Term Liabilities: MLD's short term assets (A$473.7M) exceed its long term liabilities (A$221.0M).

Debt to Equity History and Analysis

Debt Level: MLD has more cash than its total debt.

Reducing Debt: MLD's debt to equity ratio has increased from 0% to 26.3% over the past 5 years.

Debt Coverage: MLD's debt is well covered by operating cash flow (165.5%).

Interest Coverage: MLD's interest payments on its debt are well covered by EBIT (5.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MLD's dividend (6.37%) is higher than the bottom 25% of dividend payers in the Australian market (2.56%).

High Dividend: MLD's dividend (6.37%) is in the top 25% of dividend payers in the Australian market (6.12%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.6%), MLD's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

3.8yrs

Average management tenure

CEO

Mike Sutton

2.25yrs

Tenure

AU$824,250

Compensation

Mr. Michael Sutton, also known as Mike, B.Sc. (Civil Engineering), MAICD, MAusIMM serves as Managing Director and Director of MACA Limited since June 1, 2020. He serves as Chief Executive Officer of MACA L...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD578.26K) is about average for companies of similar size in the Australian market ($USD568.17K).

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

Leadership Team

Experienced Management: MLD's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: MLD's board of directors are not considered experienced ( 1.5 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: 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 been diluted in the past year, with total shares outstanding growing by 4.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30