ASX:MWR

Stock Analysis Report

Executive Summary

MGM Wireless Limited designs, develops, and commercializes smartphone + watch wearables devices for children, and software for school communication and student absence management in Australia, New Zealand, the United Kingdom, and the United States.

Risk Analysis

Earnings have declined by -78.83% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 3 more risks


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has MGM Wireless's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.3%

MWR

4.4%

AU Interactive Media and Services

2.0%

AU Market


1 Year Return

-10.2%

MWR

50.1%

AU Interactive Media and Services

19.8%

AU Market

Return vs Industry: MWR underperformed the Australian Interactive Media and Services industry which returned 54% over the past year.

Return vs Market: MWR underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

MWRIndustryMarket
7 Day-3.3%4.4%2.0%
30 Day0%5.5%3.3%
90 Day-19.4%7.1%5.8%
1 Year-10.2%-10.2%52.7%50.1%25.2%19.8%
3 Year316.2%308.5%93.9%83.6%39.6%20.9%
5 Year170.3%156.6%138.0%116.6%61.8%25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MGM Wireless undervalued compared to its fair value and its price relative to the market?

7.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MWR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MWR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MWR is unprofitable, so we can't compare its PE Ratio to the Interactive Media and Services industry average.

PE vs Market: MWR 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 MWR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MWR is good value based on its PB Ratio (7.6x) compared to the AU Interactive Media and Services industry average (7.6x).


Next Steps

Future Growth

How is MGM Wireless forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.7%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MGM Wireless has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has MGM Wireless performed over the past 5 years?

-78.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MWR is currently unprofitable.

Growing Profit Margin: MWR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MWR is unprofitable, and losses have increased over the past 5 years at a rate of -78.8% per year.

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

Earnings vs Industry: MWR is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (0.8%).


Return on Equity

High ROE: MWR has a negative Return on Equity (-97.58%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MGM Wireless's financial position?


Financial Position Analysis

Short Term Liabilities: MWR's short term assets (A$4.7M) exceed its short term liabilities (A$1.6M).

Long Term Liabilities: MWR's short term assets (A$4.7M) exceed its long term liabilities (A$1.3M).


Debt to Equity History and Analysis

Debt Level: MWR's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: MWR's debt to equity ratio has increased from 6.5% to 26% over the past 5 years.


Balance Sheet

Inventory Level: MWR has a low level of unsold assets or inventory.

Debt Coverage by Assets: MWR's debt is covered by short term assets (assets are 3.8x 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: MWR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MWR has less than a year of cash runway if free cash flow continues to reduce at historical rates of -118.6% each year


Next Steps

Dividend

What is MGM Wireless's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.4%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MWR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

AU$900k

CEO Compensation


CEO

Mark Fortunatow 0

0yrs

Tenure

AU$900,017

Compensation

Mr. Mark Fortunatow, B.Sc.(Ma.Sc.), B.Ec. Co-founded MGM Wireless Limited in 2001 and serves as its Executive Chairman and Chief Executive Officer. Mr. Fortunatow is a founder and serves as the Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD621.13K) is above average for companies of similar size in the Australian market ($USD262.68K).

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$412,25920 Aug 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,271,640
Max PriceAU$0.44
SellAU$2,704,56520 Aug 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares6,432,940
Max PriceAU$0.43
SellAU$334,02201 Jul 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares903,950
Max PriceAU$0.37
BuyAU$2,052,29501 Jul 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares6,110,760
Max PriceAU$0.34

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.3%.


Management Team

  • Mark Fortunatow

    Co-Founder

    • Compensation: AU$900.02k
  • Justin Nelson

    Company Secretary

    • Tenure: 7.6yrs
    • Compensation: AU$1.24k
  • Tara Lewis-Christie

    Consultant

    • Tenure: 2.6yrs
    • Compensation: AU$201.66k

Board Members

  • Mark Fortunatow

    Co-Founder

    • Compensation: AU$900.02k
  • Leila Henderson

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: AU$48.95k
  • Glen Butler

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$90.93k

Company Information

MGM Wireless Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MGM Wireless Limited
  • Ticker: MWR
  • Exchange: ASX
  • Founded:
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: AU$41.062m
  • Shares outstanding: 141.59m
  • Website: https://www.mgmwireless.com

Number of Employees


Location

  • MGM Wireless Limited
  • The Parks
  • Suite 13
  • Rose Park
  • South Australia
  • 5067
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MWRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2003
EZYDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2003

Biography

MGM Wireless Limited designs, develops, and commercializes smartphone + watch wearables devices for children, and software for school communication and student absence management in Australia, New Zealand, the United Kingdom, and the United States. The company operates through School Messaging Services, Smart Watches and Apps, and Other segments. It offers Outreach+, a content management and messaging platform for mobile school communications; School Star, a school news and messaging app; and MessageYou, a student absence notification. The company also provides WatchLists, an absence analytics software; and RollMarker, a student attendance management solution. In addition, it supplies Spacetalk smartwatches and applications through retail distribution networks and online sales. MGM Wireless Limited is headquartered in Rose Park, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 10:31
End of Day Share Price2020/01/17 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.