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 Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MSV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

MSV

0.3%

AU Metals and Mining

0.02%

AU Market


1 Year Return

14.8%

MSV

5.8%

AU Metals and Mining

14.6%

AU Market

Return vs Industry: MSV exceeded the Australian Metals and Mining industry which returned 5.8% over the past year.

Return vs Market: MSV matched the Australian Market which returned 14.6% over the past year.


Shareholder returns

MSVIndustryMarket
7 Day1.6%0.3%0.02%
30 Day5.1%-4.3%0.2%
90 Day0%4.3%5.4%
1 Year16.8%14.8%11.3%5.8%19.7%14.6%
3 Year94.8%87.9%57.1%38.0%38.7%20.2%
5 Year145.1%106.7%83.6%40.5%50.6%17.1%

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

Below Fair Value: MSV (A$0.62) is trading below our estimate of fair value (A$3.04)

Significantly Below Fair Value: 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 (6.2x) compared to the Metals and Mining industry average (13x).

PE vs Market: MSV is good value based on its PE Ratio (6.2x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MSV is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MSV is overvalued based on its PB Ratio (2.9x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSV's forecast earnings growth (6.3% per year) is above the savings rate (1.1%).

Earnings vs Market: MSV's earnings (6.3% per year) are forecast to grow slower than the Australian market (9.3% per year).

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

Revenue vs Market: MSV's revenue (17% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MSV's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSV's Return on Equity is forecast to be high in 3 years time (24.9%)


Next Steps

Past Performance

How has Mitchell Services performed over the past 5 years?

53.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSV has a high level of non-cash earnings.

Growing Profit Margin: MSV became profitable in the past.


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 (14.8%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed its short term liabilities (A$26.5M).

Long Term Liabilities: MSV's short term assets (A$29.7M) exceed its long term liabilities (A$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.


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 36.4x 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: MSV is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.4%industryaverage4.4%forecastin3Years0%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

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

3.0yrs

Average management tenure


CEO

Andrew Elf 0

5.9yrs

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 ($USD445.40K) is above average for companies of similar size in the Australian market ($USD251.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nathan Mitchell
Executive Chairman5.9yrsAU$87.60k17.93% A$23.2m
Andrew Elf
Chief Executive Officer5.9yrsAU$671.26kno data
Gregory Switala
Company Secretary & CFO5.2yrsAU$383.21kno data
Nigel White
General Counsel0.8yrsno datano data
Josh Bryant
General Manager of People & Risk0.8yrsno datano data

3.0yrs

Average Tenure

Experienced Management: MSV's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathan Mitchell
Executive Chairman5.9yrsAU$87.60k17.93% A$23.2m
Neal O'Connor
Non-Executive Director4.3yrsAU$56.94k0.059% A$76.0k
Peter Miller
Founder & Non-Executive Director9yrsAU$39.42k1.2% A$1.6m
Robert Douglas
Non-Executive Director6.3yrsAU$39.42k0.11% A$143.7k
Grant Moyle
Alternate Director5.8yrsno data0.15% A$199.2k
Scott Tumbridge
Director0.3yrsno datano data

5.8yrs

Average Tenure

Experienced Board: MSV's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MSV 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 5.8%.


Top Shareholders

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$129.505m
  • Shares outstanding: 199.24m
  • 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

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 exploration, mineral exploration, mine services, large diameter, coal seam gas, directional drilling services, coal mine gas drainage, and wireline services. The company was formerly known as Drill Torque Limited and changed its name to Mitchell Services Limited in December 2013. Mitchell Services Limited was founded in 1969 and is headquartered in Seventeen Mile Rocks, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 10:40
End of Day Share Price2020/02/24 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.