ASX:MSV

Stock Analysis Report

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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. More Details


Snowflake Analysis

Undervalued with high growth potential.

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

-3.8%

MSV

-2.8%

AU Metals and Mining

1.2%

AU Market


1 Year Return

-12.3%

MSV

9.4%

AU Metals and Mining

-10.3%

AU Market

Return vs Industry: MSV underperformed the Australian Metals and Mining industry which returned 9.4% over the past year.

Return vs Market: MSV underperformed the Australian Market which returned -10.3% over the past year.


Shareholder returns

MSVIndustryMarket
7 Day-3.8%-2.8%1.2%
30 Day-8.3%-2.6%-2.3%
90 Day-4.8%6.9%3.0%
1 Year-10.4%-12.3%14.5%9.4%-7.1%-10.3%
3 Year26.7%22.0%67.6%44.3%18.6%3.4%
5 Year211.4%194.1%151.5%103.1%46.1%15.4%

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$0.5) is trading below our estimate of fair value (A$1.02)

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


Price To Earnings Ratio

PE vs Industry: MSV is poor value based on its PE Ratio (13.1x) compared to the AU Metals and Mining industry average (11.9x).

PE vs Market: MSV is good value based on its PE Ratio (13.1x) compared to the Australian market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: MSV is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: MSV is good value based on its PB Ratio (1.7x) compared to the AU Metals and Mining industry average (2.3x).


Next Steps

Future Growth

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

33.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSV's forecast earnings growth (33.9% per year) is above the savings rate (2.3%).

Earnings vs Market: MSV's earnings (33.9% per year) are forecast to grow faster than the Australian market (17.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MSV's revenue (7.5% per year) is forecast to grow faster than the Australian market (4.4% 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

Future ROE: MSV's Return on Equity is forecast to be high in 3 years time (25.6%)


Next Steps

Past Performance

How has Mitchell Services performed over the past 5 years?

69.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSV has a large one-off gain of A$4.0M impacting its June 30 2020 financial results.

Growing Profit Margin: MSV's current net profit margins (4.1%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: MSV has become profitable over the past 5 years, growing earnings by 69.5% per year.

Accelerating Growth: MSV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSV had negative earnings growth (-58.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (15.3%).


Return on Equity

High ROE: MSV's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is Mitchell Services's financial position?


Financial Position Analysis

Short Term Liabilities: MSV's short term assets (A$58.6M) exceed its short term liabilities (A$49.5M).

Long Term Liabilities: MSV's short term assets (A$58.6M) exceed its long term liabilities (A$35.1M).


Debt to Equity History and Analysis

Debt Level: MSV's debt to equity ratio (26.8%) is considered satisfactory.

Reducing Debt: MSV's debt to equity ratio has increased from 21.5% to 26.8% over the past 5 years.

Debt Coverage: MSV's debt is well covered by operating cash flow (202.5%).

Interest Coverage: MSV's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

1.4yrs

Average management tenure


CEO

Andrew Elf

6.5yrs

Tenure

AU$705,681

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 ($USD495.04K) is above average for companies of similar size in the Australian market ($USD279.36K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nathan Mitchell
Executive Chairman6.5yrsAU$219.00k18.11%
A$ 18.0m
Andrew Elf
Chief Executive Officer6.5yrsAU$705.68k0.39%
A$ 393.2k
Peter Miller
Founder & Non-Executive Director9.58yrsAU$76.65k1.2%
A$ 1.2m
Gregory Switala
Company Secretary & CFO5.75yrsAU$475.14k0.069%
A$ 68.9k
Scott Tumbridge
Executive Director0.83yrAU$187.43k7.2%
A$ 7.2m
Nicholas Shaw
General Manager of Operations0.17yrno datano data
Nigel White
General Counsel1.42yrsno datano data
Josh Bryant
General Manager of People & Risk1.42yrsno datano data
Don Macdonald
Chief Executive Officer of Deepcore Drilling0.25yrno datano data

1.4yrs

Average Tenure

Experienced Management: MSV's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nathan Mitchell
Executive Chairman6.5yrsAU$219.00k18.11%
A$ 18.0m
Peter Miller
Founder & Non-Executive Director9.58yrsAU$76.65k1.2%
A$ 1.2m
Scott Tumbridge
Executive Director0.83yrAU$187.43k7.2%
A$ 7.2m
Neal O'Connor
Independent Non-Executive Director4.92yrsAU$98.55k0.059%
A$ 58.4k
Robert Douglas
Independent Non-Executive Director6.83yrsAU$87.60k0.11%
A$ 110.5k
Grant Moyle
Alternate Director6.33yrsno data0.10%
A$ 103.3k
Peter Hudson
Independent Non-Executive Director0.17yrno datano data

6.3yrs

Average Tenure

Experienced Board: MSV's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MSV insiders have only sold shares 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 14.3%.


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$99.619m
  • 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
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 Analysis2020/09/26 19:06
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.