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MWY

MidwayASX:MWY Stock Report

Market Cap

AU$113.5m

7D

-0.8%

1Y

14.0%

Updated

25 Oct, 2021

Data

Company Financials +
MWY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

MWY Overview

Midway Limited purchases, processes, markets, and exports woodfibre to the pulp and paper industry in Australia, China, Japan, and South East Asia.

Price History & Performance

Summary of all time highs, changes and price drops for Midway
Historical stock prices
Current Share PriceAU$1.30
52 Week HighAU$0.79
52 Week LowAU$1.46
Beta0.58
1 Month Change14.54%
3 Month Change15.56%
1 Year Change14.04%
3 Year Change-57.10%
5 Year Changen/a
Change since IPO-44.44%

Recent News & Updates

Oct 03
There Are Reasons To Feel Uneasy About Midway's (ASX:MWY) Returns On Capital

There Are Reasons To Feel Uneasy About Midway's (ASX:MWY) Returns On Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

May 31
Is Midway (ASX:MWY) A Risky Investment?

Is Midway (ASX:MWY) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

May 05
Calculating The Fair Value Of Midway Limited (ASX:MWY)

Calculating The Fair Value Of Midway Limited (ASX:MWY)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Midway Limited...

Shareholder Returns

MWYAU ForestryAU Market
7D-0.8%0.04%0.6%
1Y14.0%36.9%21.3%

Return vs Industry: MWY underperformed the Australian Forestry industry which returned 36.9% over the past year.

Return vs Market: MWY underperformed the Australian Market which returned 21.3% over the past year.

Price Volatility

Is MWY's price volatile compared to industry and market?
MWY volatility
MWY Beta0.58
Industry Beta0.60
Market Beta1

Stable Share Price: MWY is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MWY's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1980n/aTony Pricehttps://www.midwaylimited.com.au

Midway Limited purchases, processes, markets, and exports woodfibre to the pulp and paper industry in Australia, China, Japan, and South East Asia. It operates through Woodfibre, Forestry Logistics, and Plantation Management segments. The company offers hardwood and softwood woodchips.

Midway Fundamentals Summary

How do Midway's earnings and revenue compare to its market cap?
MWY fundamental statistics
Market CapAU$113.54m
Earnings (TTM)-AU$5.36m
Revenue (TTM)AU$280.79m

0.4x

P/S Ratio

-21.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MWY income statement (TTM)
RevenueAU$280.79m
Cost of RevenueAU$198.97m
Gross ProfitAU$81.83m
ExpensesAU$87.19m
Earnings-AU$5.36m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.061
Gross Margin29.14%
Net Profit Margin-1.91%
Debt/Equity Ratio25.6%

How did MWY perform over the long term?

See historical performance and comparison

Valuation

Is Midway 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: MWY (A$1.3) is trading below our estimate of fair value (A$9.16)

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


Price To Earnings Ratio

PE vs Industry: MWY is unprofitable, so we can't compare its PE Ratio to the Global Forestry industry average.

PE vs Market: MWY is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MWY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MWY's PB Ratio (0.9x) is in line with the XO Forestry industry average.


Future Growth

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

114.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MWY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MWY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MWY's is expected to become profitable in the next 3 years.

Revenue vs Market: MWY's revenue (9.7% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: MWY's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MWY's Return on Equity is forecast to be low in 3 years time (4.5%).


Past Performance

How has Midway performed over the past 5 years?

-39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MWY is currently unprofitable.

Growing Profit Margin: MWY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MWY is unprofitable, and losses have increased over the past 5 years at a rate of 39.2% per year.

Accelerating Growth: Unable to compare MWY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MWY is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (42.4%).


Return on Equity

High ROE: MWY has a negative Return on Equity (-3.92%), as it is currently unprofitable.


Financial Health

How is Midway's financial position?


Financial Position Analysis

Short Term Liabilities: MWY's short term assets (A$59.3M) exceed its short term liabilities (A$46.4M).

Long Term Liabilities: MWY's short term assets (A$59.3M) do not cover its long term liabilities (A$84.3M).


Debt to Equity History and Analysis

Debt Level: MWY's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: MWY's debt to equity ratio has reduced from 32.5% to 25.6% over the past 5 years.

Debt Coverage: MWY's debt is well covered by operating cash flow (65.7%).

Interest Coverage: MWY's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MWY'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 MWY's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MWY'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

Tony Price

5.92yrs

Tenure

AU$612,836

Compensation

Mr. Anthony R. Price, also known as Tony, serves as the Chief Executive Officer and Managing Director of Midway Limited since November 2015. Mr. Price serves as the Managing Director at Australian Bluegum...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD459.40K) is above average for companies of similar size in the Australian market ($USD302.38K).

Compensation vs Earnings: Tony's compensation has increased whilst the company is unprofitable.


Leadership Team

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


Board Members

Experienced Board: MWY's board of directors are considered experienced (5.7 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Midway Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Midway Limited
  • Ticker: MWY
  • Exchange: ASX
  • Founded: 1980
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: AU$113.537m
  • Shares outstanding: 87.34m
  • Website: https://www.midwaylimited.com.au

Number of Employees


Location

  • Midway Limited
  • North Geelong MDC
  • PO Box 678
  • North Geelong
  • Victoria
  • 3215
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:50
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.