ASX:MYE

Stock Analysis Report

Executive Summary

Mastermyne Group Limited provides contracting services to the underground long wall mining operations and industrial products and services in coalfields and supporting industries of Queensland and New South Wales, Australia.

Rewards

Trading at 14.6% below its fair value

Earnings are forecast to grow 24.92% per year

Earnings grew by 64.8% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (A$58M)



Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Mastermyne Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MYE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.8%

MYE

3.8%

AU Metals and Mining

0.3%

AU Market


1 Year Return

-38.7%

MYE

-21.2%

AU Metals and Mining

-22.9%

AU Market

Return vs Industry: MYE underperformed the Australian Metals and Mining industry which returned -20% over the past year.

Return vs Market: MYE underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

MYEIndustryMarket
7 Day1.8%3.8%0.3%
30 Day-32.1%-19.5%-27.8%
90 Day-40.0%-25.1%-30.0%
1 Year-34.2%-38.7%-16.8%-21.2%-19.4%-22.9%
3 Year104.1%90.0%24.4%8.6%-8.3%-20.8%
5 Year136.7%111.1%56.2%19.0%2.9%-20.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mastermyne Group undervalued compared to its fair value and its price relative to the market?

14.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MYE (A$0.57) is trading below our estimate of fair value (A$0.67)

Significantly Below Fair Value: MYE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MYE is good value based on its PE Ratio (6.4x) compared to the Metals and Mining industry average (7.2x).

PE vs Market: MYE is good value based on its PE Ratio (6.4x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: MYE is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MYE is good value based on its PB Ratio (0.9x) compared to the AU Metals and Mining industry average (1x).


Next Steps

Future Growth

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

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MYE's forecast earnings growth (24.9% per year) is above the savings rate (1.1%).

Earnings vs Market: MYE's earnings (24.9% per year) are forecast to grow faster than the Australian market (10% per year).

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

Revenue vs Market: MYE's revenue (14.9% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MYE's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MYE's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has Mastermyne Group performed over the past 5 years?

55.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MYE has high quality earnings.

Growing Profit Margin: MYE's current net profit margins (3.6%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: MYE has become profitable over the past 5 years, growing earnings by 55% per year.

Accelerating Growth: MYE's earnings growth over the past year (64.8%) exceeds its 5-year average (55% per year).

Earnings vs Industry: MYE earnings growth over the past year (64.8%) exceeded the Metals and Mining industry -7%.


Return on Equity

High ROE: MYE's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Mastermyne Group's financial position?


Financial Position Analysis

Short Term Liabilities: MYE's short term assets (A$63.6M) exceed its short term liabilities (A$43.4M).

Long Term Liabilities: MYE's short term assets (A$63.6M) exceed its long term liabilities (A$9.8M).


Debt to Equity History and Analysis

Debt Level: MYE's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: MYE's debt to equity ratio has reduced from 20% to 5.9% over the past 5 years.

Debt Coverage: MYE's debt is well covered by operating cash flow (436.9%).

Interest Coverage: MYE's interest payments on its debt are well covered by EBIT (31.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: MYE's debt is covered by short term assets (assets are 16.6x debt).


Next Steps

Dividend

What is Mastermyne Group's current dividend yield, its reliability and sustainability?

7.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MYE's dividend (7.02%) is higher than the bottom 25% of dividend payers in the Australian market (3.37%).

High Dividend: MYE's dividend (7.02%) is low compared to the top 25% of dividend payers in the Australian market (8.57%).


Stability and Growth of Payments

Stable Dividend: MYE's dividend payments have been volatile in the past 10 years.

Growing Dividend: MYE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), MYE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MYE's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Tony Caruso

15.17s

Tenure

AU$661,312

Compensation

Mr. Anthony Salvatore Caruso, also known as Tony, has been the Chief Executive Officer and Managing Director of Mastermyne Group Limited since 2005 and 2008 respectively. Mr. Caruso is responsible for tend ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD405.61K) is above average for companies of similar size in the Australian market ($USD242.11K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Caruso
CEO, MD & Executive Director15.17yrsAU$661.31k2.09% A$1.2m
Brett Maff
CFO & Company Secretary1.33yrsAU$441.05k0.025% A$14.3k
Vivienne Gayton
Executive General Manager of Human Resource9.58yrsAU$374.33k0.013% A$7.3k
David Sykes
Executive General Manager of Growth & Strategyno dataAU$509.26k0.013% A$7.5k
Patrick McCoy
Executive General Manager of QLD Mining2.17yrsAU$360.59kno data
Wayne Price
Executive General Manager of NSW Mining2.17yrsAU$462.36kno data

2.2yrs

Average Tenure

Experienced Management: MYE's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Caruso
CEO, MD & Executive Director15.17yrsAU$661.31k2.09% A$1.2m
Andrew Watts
Non-Executive Director10yrsAU$51.12k11.99% A$7.0m
Colin Bloomfield
Non-Executive Independent Chairman5yrsAU$86.99k1.08% A$627.0k
Julie Whitcombe
Independent Non-Executive Director1.75yrsAU$52.91k0.043% A$25.1k
Gabriel Meena
Independent Non-Executive Director4.5yrsAU$53.70k0.098% A$57.0k

5.0yrs

Average Tenure

Experienced Board: MYE's board of directors are considered experienced (5.1 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 been diluted in the past year, with total shares outstanding growing by 4.2%.


Top Shareholders

Company Information

Mastermyne Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mastermyne Group Limited
  • Ticker: MYE
  • Exchange: ASX
  • Founded: 1996
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$58.301m
  • Shares outstanding: 102.28m
  • Website: https://www.mastermyne.com.au

Number of Employees


Location

  • Mastermyne Group Limited
  • Riverside Plaza
  • Level 1
  • Mackay
  • Queensland
  • 4740
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MYEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2010
24DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2010
MYECHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2010

Biography

Mastermyne Group Limited provides contracting services to the underground long wall mining operations and industrial products and services in coalfields and supporting industries of Queensland and New South Wales, Australia. It operates in two segments, Mastermyne and Mastertec. The Mastermyne segment offers project management, labour and equipment hiring, underground roadway development, underground ventilation device installation, bulk materials handling system installation and relocation, and underground mine support services, as well as underground conveyor installation, extension, and maintenance services. The Mastertec segment provides a range of above-ground contracting services to ports, resources, industrial, and infrastructure sectors. Mastermyne Group Limited was founded in 1996 and is headquartered in Mackay, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 10:39
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.