ASX:MSV

Stock Analysis Report

Executive Summary

Mitchell Services Limited, together with its subsidiaries, provides exploration and mine site drilling services to the exploration, mining, and energy industries, primarily in Australia.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

MSV

0.05%

AU Metals and Mining

2.5%

AU Market


1 Year Return

28.3%

MSV

10.3%

AU Metals and Mining

11.1%

AU Market

Return vs Industry: MSV exceeded the Australian Metals and Mining industry which returned 10.3% over the past year.

Return vs Market: MSV exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

MSVIndustryMarket
7 Day0%0.05%2.5%
30 Day1.7%-5.6%0.7%
90 Day-13.2%-8.9%1.4%
1 Year30.4%28.3%17.9%10.3%17.5%11.1%
3 Year52.9%47.5%62.5%43.1%37.8%19.4%
5 Year105.8%73.5%56.0%20.7%51.7%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MSV (A$0.06) is trading below our estimate of fair value (A$0.21)

Significantly Undervalued: MSV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MSV is good value based on its PE Ratio (5.9x) compared to the Metals and Mining industry average (12.6x).

PE vs Market: MSV is good value based on its PE Ratio (5.9x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: MSV is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: MSV is overvalued based on its PB Ratio (2.7x) compared to the AU Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSV's forecast earnings growth (3.1% per year) is above the savings rate (2.3%).

Earnings vs Market: MSV's earnings (3.1% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: MSV's revenue (7.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MSV's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MSV's Return on Equity is forecast to be high in 3 years time (25.5%)


Next Steps

Past Performance

How has Mitchell Services performed over the past 5 years?

53.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MSV has become profitable over the past 5 years, growing earnings by 53.6% per year.

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

Earnings vs Industry: MSV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (1.3%).


Return on Equity

High ROE: MSV's Return on Equity (46.2%) is considered outstanding.


Return on Assets

ROA vs Industry: MSV has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: MSV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Mitchell Services's financial position?


Financial Position Analysis

Short Term Liabilities: MSV's short term assets (A$29.7M) exceeds its short term liabilities (A$26.5M)

Long Term Liabilities: MSV's short term assets (29.7M) exceeds its long term liabilities (6.1M)


Debt to Equity History and Analysis

Debt Level: MSV's debt to equity ratio (2.2%) is considered satisfactory

Reducing Debt: MSV's debt to equity ratio has reduced from 36.3% to 2.2% over the past 5 years.

Debt Coverage: MSV's debt is well covered by operating cash flow (2232.9%).

Interest Coverage: MSV's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: MSV's debt is covered by short term assets (assets are 36.406110x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage4.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: MSV is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Mitchell Services's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Andrew Elf 0

5.6yrs

Tenure

AU$671,261

Compensation

Mr. Andrew Michael Elf, B.Com, CPA, MBA, GAICD, FCPA, has been the Chief Executive Officer of Mitchell Services Limited since March 20, 2014. Mr. Elf serves as General Manager of Drilling Services and Gene ...


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD453.19K) is about average for companies of similar size in the Australian market ($USD257.34K).

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


Management Age and Tenure

2.7yrs

Average Tenure

Experienced Management: MSV's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

Experienced Board: MSV's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$762,04117 Jun 19
Washington H. Soul Pattinson and Company Limited
EntityCompany
Shares16,850,000
Max PriceAU$0.045
BuyAU$22,40001 Mar 19
Grant Moyle
EntityIndividual
Role
Alternate Director
Alternate Director
Shares400,000
Max PriceAU$0.056
SellAU$3,142,05003 Dec 18
Mason Stevens Limited
EntityCompany
Shares77,638,153
Max PriceAU$0.045
SellAU$194,38803 Dec 18
Mason Stevens Asset Management Pty Ltd
EntityCompany
Shares4,859,858
Max PriceAU$0.04
BuyAU$478,59522 Nov 18
Macquarie Investment Management Limited
EntityCompany
Shares9,592,204
Max PriceAU$0.05
SellAU$532,00322 Nov 18
Macquarie Investment Management Limited
EntityCompany
Shares10,640,069
Max PriceAU$0.05

Ownership Breakdown


Management Team

  • Nathan Mitchell

    Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: AU$87.60k
  • Andrew Elf

    Chief Executive Officer

    • Tenure: 5.6yrs
    • Compensation: AU$671.26k
  • Greg Switala

    Company Secretary & CFO

    • Tenure: 4.8yrs
    • Compensation: AU$383.21k
  • Josh Bryant

    General Manager of People & Risk

    • Tenure: 0.5yrs
  • Nigel White

    General Counsel

    • Tenure: 0.5yrs

Board Members

  • Neal O'Connor (56yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: AU$56.94k
  • Nathan Mitchell

    Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: AU$87.60k
  • Peter Miller

    Founder & Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: AU$39.42k
  • Rob Douglas

    Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: AU$39.42k
  • Grant Moyle

    Alternate Director

    • Tenure: 5.4yrs

Company Information

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


Key Information

  • Name: Mitchell Services Limited
  • Ticker: MSV
  • Exchange: ASX
  • Founded: 1969
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$102.801m
  • Shares outstanding: 1.74b
  • Website: https://www.mitchellservices.com.au

Number of Employees


Location

  • Mitchell Services Limited
  • 112 Bluestone Circuit
  • Seventeen Mile Rocks
  • Queensland
  • 4073
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2011
MSVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2011

Biography

Mitchell Services Limited, together with its subsidiaries, provides exploration and mine site drilling services to the exploration, mining, and energy industries, primarily in Australia. It offers coal exp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:35
End of Day Share Price2019/10/17 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.