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.

Risks

  • Mitchell Services is covered by less than 3 analysts.

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

-5.1%

MSV

1.5%

AU Metals and Mining

1.0%

AU Market


1 Year Return

12.0%

MSV

14.5%

AU Metals and Mining

6.9%

AU Market

MSV underperformed the Metals and Mining industry which returned 14.5% over the past year.

MSV outperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

MSVIndustryMarket
7 Day-5.1%1.5%1.0%
30 Day-12.5%6.2%4.2%
90 Day-6.7%-3.6%1.6%
1 Year13.9%12.0%22.6%14.5%13.0%6.9%
3 Year107.3%100.0%77.8%54.7%39.6%20.9%
5 Year62.0%36.6%61.7%25.2%52.8%18.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Mitchell Services's share price is below the future cash flow value, and at a moderate discount (> 20%).

Mitchell Services's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Mitchell Services is good value based on earnings compared to the AU Metals and Mining industry average.

Mitchell Services is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Mitchell Services is poor value based on expected growth next year.


Price Based on Value of Assets

Mitchell Services is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

How is Mitchell Services expected 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 Estimates


Future Annual Growth Analysis

Mitchell Services's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

Mitchell Services's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

Mitchell Services's revenue growth is expected to exceed the Australia market average.

Mitchell Services's earnings growth is positive but not above the Australia market average.

Mitchell Services's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Mitchell Services is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Mitchell Services has delivered over 20% year on year earnings growth in the past 5 years.

Mitchell Services has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Mitchell Services has become profitable in the last year making it difficult to compare the AU Metals and Mining industry average.


Return on Equity

Mitchell Services made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Mitchell Services used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Mitchell Services has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Mitchell Services's financial position?


Financial Position Analysis

Mitchell Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Mitchell Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Mitchell Services's level of debt (2.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (36.3% vs 2.2% today).

Debt is well covered by operating cash flow (2232.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 36.4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Mitchell Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Mitchell Services's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Mitchell Services has not reported any payouts.

Unable to verify if Mitchell Services's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Mitchell Services has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Mitchell Services's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Andrew Elf 0

5.5yrs

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

Andrew's remuneration is higher than average for companies of similar size in Australia.

Andrew's compensation has increased in line with Mitchell Services recently becoming profitable.


Management Age and Tenure

2.6yrs

Average Tenure

The tenure for the Mitchell Services management team is about average.


Board Age and Tenure

5.5yrs

Average Tenure

The tenure for the Mitchell Services board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 5.5yrs
    • Compensation: AU$87.60k
  • Andrew Elf

    Chief Executive Officer

    • Tenure: 5.5yrs
    • Compensation: AU$671.26k
  • Greg Switala

    Company Secretary & CFO

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

    General Manager of People & Risk

    • Tenure: 0.4yrs
  • Nigel White

    General Counsel

    • Tenure: 0.4yrs

Board Members

  • Neal O'Connor (56yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$56.94k
  • Nathan Mitchell

    Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: AU$87.60k
  • Peter Miller

    Founder & Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: AU$39.42k
  • Rob Douglas

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: AU$39.42k
  • Grant Moyle

    Alternate Director

    • Tenure: 5.3yrs

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$97.573m
  • 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 Analysis2019/09/21 10:36
End of Day Share Price2019/09/20 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.