ASX:MVP

Stock Analysis Report

Medical Developments International

Executive Summary

Medical Developments International Limited manufactures and distributes pharmaceutical drugs, and medical and veterinary equipment.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.

Share Price & News

How has Medical Developments International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MVP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.2%

MVP

2.8%

AU Pharmaceuticals

0.9%

AU Market


1 Year Return

17.7%

MVP

-33.1%

AU Pharmaceuticals

11.6%

AU Market

Return vs Industry: MVP exceeded the Australian Pharmaceuticals industry which returned -33.1% over the past year.

Return vs Market: MVP exceeded the Australian Market which returned 11.6% over the past year.


Shareholder returns

MVPIndustryMarket
7 Day-7.2%2.8%0.9%
30 Day17.5%-2.7%1.4%
90 Day8.4%-0.8%2.2%
1 Year18.8%17.7%-32.9%-33.1%18.0%11.6%
3 Year19.9%17.0%-43.2%-43.8%39.3%20.8%
5 Year394.6%378.8%-21.0%-28.2%52.3%18.3%

Price Volatility Vs. Market

How volatile is Medical Developments International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Medical Developments International undervalued compared to its fair value and its price relative to the market?

351.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MVP (A$5.65) is trading above our estimate of fair value (A$0.71)

Significantly Below Fair Value: MVP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MVP is poor value based on its PE Ratio (351.7x) compared to the Pharmaceuticals industry average (34.6x).

PE vs Market: MVP is poor value based on its PE Ratio (351.7x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: MVP is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: MVP is overvalued based on its PB Ratio (8.3x) compared to the AU Pharmaceuticals industry average (2.3x).


Next Steps

Future Growth

How is Medical Developments International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

53.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MVP's forecast earnings growth (53.2% per year) is above the savings rate (2.3%).

Earnings vs Market: MVP's earnings (53.2% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: MVP's revenue (23.2% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MVP's revenue (23.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MVP's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Medical Developments International performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MVP has high quality earnings.

Growing Profit Margin: MVP's current net profit margins (5%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: MVP's earnings have declined by -10.1% per year over the past 5 years.

Accelerating Growth: MVP's earnings growth over the past year (327.2%) exceeds its 5-year average (-10.1% per year).

Earnings vs Industry: MVP earnings growth over the past year (327.2%) exceeded the Pharmaceuticals industry 7.8%.


Return on Equity

High ROE: MVP's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Medical Developments International's financial position?


Financial Position Analysis

Short Term Liabilities: MVP's short term assets (A$35.4M) exceeds its short term liabilities (A$8.4M)

Long Term Liabilities: MVP's short term assets (35.4M) exceeds its long term liabilities (31.8M)


Debt to Equity History and Analysis

Debt Level: MVP's debt to equity ratio (0.4%) is considered satisfactory

Reducing Debt: MVP's debt to equity ratio has reduced from 23% to 0.4% over the past 5 years.

Debt Coverage: MVP's debt is well covered by operating cash flow (11687.4%).

Interest Coverage: MVP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: MVP's debt is covered by short term assets (assets are 194.3x debt).


Next Steps

Dividend

What is Medical Developments International's current dividend yield, its reliability and sustainability?

0.71%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.4%markettop25%5.5%industryaverage2.6%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: MVP's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: MVP's dividend (0.71%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).


Stability and Growth of Payments

Stable Dividend: MVP is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: MVP is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MVP'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 Medical Developments International's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

John Sharman (53yo)

9.6yrs

Tenure

AU$643,987

Compensation

Mr. John Stewart Sharman, M.App.Fin, CA, B Ec, has been the Chief Executive Officer of Medical Developments International Limited since April 12, 2010. Mr. Sharman serves as Investment Director of CVC Vent ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD441.30K) is about average for companies of similar size in the Australian market ($USD485.71K).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.6yrs

Average Tenure

Experienced Management: MVP's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

6.6yrs

Average Tenure

Experienced Board: MVP's board of directors are considered experienced (6.6 years average tenure).


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$24,79523 Oct 19
M&G Investment Management Limited
EntityCompany
Shares4,494
Max PriceAU$5.52
BuyAU$18,71025 Feb 19
R. Johnston
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,000
Max PriceAU$3.75
BuyAU$1,236,69326 Dec 18
M&G Investment Management Limited
EntityCompany
Shares321,609
Max PriceAU$3.97
BuyAU$126,26120 Dec 18
David Williams
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares34,246
Max PriceAU$3.70

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Management Team

  • John Sharman (53yo)

    Chief Executive Officer

    • Tenure: 9.6yrs
    • Compensation: AU$643.99k
  • Scott Courtney

    Chief Scientific Officer

    • Tenure: 0.3yrs
  • Mark Edwards

    CFO & Company Secretary

    • Tenure: 2.1yrs
    • Compensation: AU$249.38k
  • Michelle Bradney

    Head of Medical Affairs

    • Tenure: 1.3yrs
  • Wai Chi

    Head of Regulatory Affairs

    • Tenure: 1yrs
  • Neil Issa

    Head of Quality

    • Tenure: 0.8yrs
  • Matthew Cramer

    Head of Project Management Office

    • Tenure: 0.3yrs
  • Wayne Pearce

    Head of Operations

    • Tenure: 0.3yrs
  • Thomas Materia

    Head of Sales & Marketing

    • Tenure: 0.3yrs
  • Tara Collier

    Head of Human Resources

    • Tenure: 0.3yrs

Board Members

  • Philip Powell (62yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: AU$51.25k
  • David Williams (55yo)

    Non Executive Chairman

    • Tenure: 16.2yrs
    • Compensation: AU$83.33k
  • R. Johnston

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: AU$51.25k
  • Leon Hoare

    Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: AU$51.25k

Company Information

Medical Developments International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medical Developments International Limited
  • Ticker: MVP
  • Exchange: ASX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$370.681m
  • Shares outstanding: 65.61m
  • Website: https://www.medicaldev.com

Number of Employees


Location

  • Medical Developments International Limited
  • 4 Caribbean Drive
  • Scoresby
  • Victoria
  • 3179
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MVPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2003
MVPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2003

Biography

Medical Developments International Limited manufactures and distributes pharmaceutical drugs, and medical and veterinary equipment. The company operates in three segments: Pharmaceuticals, Medical Devices, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 10:34
End of Day Share Price2019/11/11 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.