Medical Developments International

ASX:MVP

Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

MVP

ASX

A$347M

Market Cap

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Last updated 2019/04/23 10:32

Company description

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Medical Developments International has significant price volatility in the past 3 months.

MVP Share Price and Events

7 Day Returns

-1.5%

ASX:MVP

2.1%

AU Pharmaceuticals

-0%

AU Market

1 Year Returns

-22.5%

ASX:MVP

-21.1%

AU Pharmaceuticals

4.6%

AU Market

MVP Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Medical Developments International (MVP)	-1.5%	21.1%	33.4%	-22.5%	-11.1%	302.3%
AU Pharmaceuticals	2.1%	10.2%	-4.8%	-21.1%	-31.8%	-19.1%
AU Market	-0%	1%	6.9%	4.6%	18.2%	4.8%

1 Year Return vs Industry and Market

MVP underperformed the Pharmaceuticals industry which returned -21.1% over the past year.
MVP underperformed the Market in Australia which returned 4.6% over the past year.

Price Volatility

MVP

Industry

5yr Volatility vs Market

Related Companies

MVP Value

Is Medical Developments International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Medical Developments International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Medical Developments International.

ASX:MVP Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 2 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	7.2%
Perpetual Growth Rate	10-Year AU Government Bond Rate	2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MVP
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year AU Govt Bond Rate	2.3%
Equity Risk Premium	S&P Global	6%
Pharmaceuticals Unlevered Beta	Simply Wall St/ S&P Global	0.73
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.733 (1 + (1- 30%) (0.08%))	0.821
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.82
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2.31% + (0.821 * 5.96%)	7.21%

Discounted Cash Flow Calculation for ASX:MVP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Medical Developments International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:MVP DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (AUD, Millions)	Source	Present Value Discounted (@ 7.21%)
2019	9.40	Analyst x2	8.77
2020	-9.80	Analyst x2	-8.53
2021	4.40	Analyst x1	3.57
2022	2.74	Est @ -37.8%	2.07
2023	2.03	Est @ -25.77%	1.43
2024	1.68	Est @ -17.34%	1.11
2025	1.49	Est @ -11.45%	0.91
2026	1.38	Est @ -7.32%	0.79
2027	1.32	Est @ -4.43%	0.70
2028	1.29	Est @ -2.41%	0.64
Present value of next 10 years cash flows			A$11.47

ASX:MVP DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = A$1.29 × (1 + 2.31%) ÷ (7.21% – 2.31%)	A$26.87
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = A$26.87 ÷ (1 + 7.21%)¹⁰	A$13.40

ASX:MVP Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = A$11.47 + A$13.40	A$24.87
Equity Value per Share (AUD)	= Total value / Shares Outstanding = A$24.87 / 65.52	A$0.38

ASX:MVP Discount to Share Price
	Calculation	Result
Value per share (AUD)	From above.	A$0.38
Current discount	Discount to share price of A$5.27 = -1 x (A$5.27 - A$0.38) / A$0.38	-1288%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

The current share price of Medical Developments International is above its future cash flow value.

Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Medical Developments International's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Medical Developments International's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

ASX:MVP PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in AUD	A$0.00
ASX:MVP Share Price **	ASX (2019-04-23) in AUD	A$5.27
Australia Pharmaceuticals Industry PE Ratio	Median Figure of 6 Publicly-Listed Pharmaceuticals Companies	20.76x
Australia Market PE Ratio	Median Figure of 544 Publicly-Listed Companies	16.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Medical Developments International.

ASX:MVP PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= ASX:MVP Share Price ÷ EPS (both in AUD) = 5.27 ÷ 0.00	1280.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Medical Developments International is overvalued based on earnings compared to the AU Pharmaceuticals industry average.
Medical Developments International is overvalued based on earnings compared to the Australia market.

Price based on expected Growth

Does Medical Developments International's expected growth come at a high price?

Raw Data

ASX:MVP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	1280.99x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts	101.9%per year
Global Pharmaceuticals Industry PEG Ratio	Median Figure of 120 Publicly-Listed Pharmaceuticals Companies	1.48x
Australia Market PEG Ratio	Median Figure of 360 Publicly-Listed Companies	1.35x

*Line of best fit is calculated by linear regression .

ASX:MVP PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 1280.99x ÷ 101.9%	12.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Medical Developments International is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Medical Developments International's assets?

Raw Data

ASX:MVP PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in AUD	A$0.70
ASX:MVP Share Price *	ASX (2019-04-23) in AUD	A$5.27
Australia Pharmaceuticals Industry PB Ratio	Median Figure of 26 Publicly-Listed Pharmaceuticals Companies	3.06x
Australia Market PB Ratio	Median Figure of 1,676 Publicly-Listed Companies	1.67x

ASX:MVP PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= ASX:MVP Share Price ÷ Book Value per Share (both in AUD) = 5.27 ÷ 0.70	7.51x

* Primary Listing of Medical Developments International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Medical Developments International is overvalued based on assets compared to the AU Pharmaceuticals industry average.

Value checks

We assess Medical Developments International's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

MVP Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

101.9%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Medical Developments International expected to grow at an attractive rate?

Medical Developments International's earnings growth is expected to exceed the low risk savings rate of 2.3%.

Growth vs Market Checks

Medical Developments International's earnings growth is expected to exceed the Australia market average.
Medical Developments International's revenue growth is expected to exceed the Australia market average.

Annual Growth Rates Comparison

Raw Data

ASX:MVP Future Growth Rates Data Sources
Data Point	Source	Value (per year)
ASX:MVP Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts	101.9%
ASX:MVP Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts	28.1%
Australia Pharmaceuticals Industry Earnings Growth Rate	Market Cap Weighted Average	55.6%
Australia Pharmaceuticals Industry Revenue Growth Rate	Market Cap Weighted Average	29.2%
Australia Market Earnings Growth Rate	Market Cap Weighted Average	6.7%
Australia Market Revenue Growth Rate	Market Cap Weighted Average	3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

ASX:MVP Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 2 Analyst Estimates (S&P Global)	See Below

All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MVP Future Estimates Data
Date (Data in AUD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-06-30	36	10	6	2
2020-06-30	26	9	3	2
2019-06-30	20	21	1	2

ASX:MVP Past Financials Data
Date (Data in AUD Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	19	23	0
2018-09-30	18	12	0
2018-06-30	17	2	0
2018-03-31	18	2	1
2017-12-31	18	3	2
2017-09-30	18	3	2
2017-06-30	18	4	2
2017-03-31	18	4	2
2016-12-31	18	4	2
2016-09-30	17	8	2
2016-06-30	15	12	2
2016-03-31	14	12	1

*GAAP earnings excluding extraordinary items.

High Growth Checks

Medical Developments International's earnings are expected to grow significantly at over 20% yearly.
Medical Developments International's revenue is expected to grow significantly at over 20% yearly.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

ASX:MVP Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 2 Analyst Estimates (S&P Global)	See Below

All data from Medical Developments International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MVP Future Estimates Data
Date (Data in AUD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-06-30	0.08	0.09	0.08	2.00
2020-06-30	0.04	0.05	0.03	2.00
2019-06-30	0.01	0.01	0.01	2.00

ASX:MVP Past Financials Data
Date (Data in AUD Millions)	EPS *
2018-12-31	0.00
2018-09-30	0.00
2018-06-30	0.00
2018-03-31	0.01
2017-12-31	0.03
2017-09-30	0.03
2017-06-30	0.03
2017-03-31	0.03
2016-12-31	0.03
2016-09-30	0.03
2016-06-30	0.03
2016-03-31	0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Medical Developments International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Show me more growth companies in the Pharmaceuticals industry

Future performance checks

We assess Medical Developments International's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Medical Developments International has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MVP Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Medical Developments International's growth in the last year to its industry (Pharmaceuticals).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Medical Developments International's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
Medical Developments International's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Medical Developments International's 1-year earnings growth is negative, it can't be compared to the Global Pharmaceuticals industry average.

Earnings and Revenue History

Medical Developments International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Medical Developments International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MVP Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	19.18	0.25	9.68
2018-09-30	18.32	0.25	9.50
2018-06-30	17.46	0.24	9.33
2018-03-31	17.78	0.89	8.79
2017-12-31	18.10	1.54	8.26
2017-09-30	18.22	1.68	8.13
2017-06-30	18.35	1.82	8.01
2017-03-31	17.94	1.78	7.61
2016-12-31	17.53	1.74	7.21
2016-09-30	16.50	1.66	6.92
2016-06-30	15.47	1.57	6.64
2016-03-31	13.78	1.30	5.79
2015-12-31	12.10	1.03	4.94
2015-09-30	11.85	1.28	4.56
2015-06-30	11.61	1.53	4.18
2015-03-31	10.97	1.35	4.27
2014-12-31	10.33	1.18	4.36
2014-09-30	9.85	1.03	4.28
2014-06-30	9.37	0.88	4.21
2014-03-31	9.58	1.08	4.03
2013-12-31	9.79	1.29	3.85
2013-09-30	10.76	1.80	3.84
2013-06-30	11.73	2.31	3.82
2013-03-31	12.13	2.65	3.83
2012-12-31	12.53	2.99	3.84
2012-09-30	11.92	2.85	3.57
2012-06-30	11.31	2.70	3.31

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Medical Developments International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Medical Developments International used its assets less efficiently than the AU Pharmaceuticals industry average last year based on Return on Assets.
Medical Developments International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess Medical Developments International's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Medical Developments International has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MVP Health

How is Medical Developments International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Medical Developments International's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Medical Developments International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Medical Developments International's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Medical Developments International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

Low level of unsold assets.
Debt is covered by short term assets, assets are 143.9x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Medical Developments International Company Filings, last reported 3 months ago.

ASX:MVP Past Debt and Equity Data
Date (Data in AUD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	44.09	0.27	32.27
2018-09-30	44.09	0.27	32.27
2018-06-30	21.04	9.25	0.79
2018-03-31	21.04	9.25	0.79
2017-12-31	21.35	3.92	0.91
2017-09-30	21.35	3.92	0.91
2017-06-30	21.60	0.43	1.69
2017-03-31	21.60	0.43	1.69
2016-12-31	20.84	0.46	5.53
2016-09-30	20.84	0.46	5.53
2016-06-30	19.03	0.48	5.62
2016-03-31	19.03	0.48	5.62
2015-12-31	17.64	0.89	9.55
2015-09-30	17.64	0.89	9.55
2015-06-30	17.41	1.11	0.95
2015-03-31	17.41	1.11	0.95
2014-12-31	16.58	1.58	0.60
2014-09-30	16.58	1.58	0.60
2014-06-30	15.82	3.66	1.66
2014-03-31	15.82	3.66	1.66
2013-12-31	15.36	3.37	1.09
2013-09-30	15.36	3.37	1.09
2013-06-30	15.73	1.44	0.77
2013-03-31	15.73	1.44	0.77
2012-12-31	16.64	0.00	2.13
2012-09-30	16.64	0.00	2.13
2012-06-30	16.17	0.00	3.48

Medical Developments International's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (21.9% vs 0.6% today).
Debt is well covered by operating cash flow (8490.8%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 13.1x coverage).

Show me more healthy companies in the Pharmaceuticals industry

Financial health checks

We assess Medical Developments International's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

MVP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

0.76%

Current annual income from Medical Developments International dividends. Estimated to be 0.76% next year.

If you bought A$2,000 of Medical Developments International shares you are expected to receive A$15 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Medical Developments International's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.52%).
Medical Developments International's dividend is below the markets top 25% of dividend payers in Australia (5.81%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

ASX:MVP Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 2 Analyst Estimates (S&P Global)	See Below
Global Pharmaceuticals Industry Average Dividend Yield	Market Cap Weighted Average of 140 Stocks	3%
Australia Market Average Dividend Yield	Market Cap Weighted Average of 417 Stocks	4.3%
Australia Minimum Threshold Dividend Yield	10th Percentile	1.6%
Australia Bottom 25% Dividend Yield	25th Percentile	2.5%
Australia Top 25% Dividend Yield	75th Percentile	5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MVP Future Dividends Estimate Data
Date (Data in A$)	Dividend per Share (annual)	Avg. No. Analysts
2021-06-30	0.04	2.00
2020-06-30	0.04	2.00
2019-06-30	0.04	2.00

ASX:MVP Past Annualized Dividends Data
Date (Data in A$)	Dividend per share (annual)	Avg. Yield (%)
2019-02-19	0.040	0.880
2018-08-16	0.040	0.960
2018-02-16	0.040	0.653
2017-08-17	0.040	0.648
2017-02-20	0.040	0.797
2016-08-17	0.040	0.810
2016-02-17	0.040	0.717
2015-02-19	0.000	0.000
2014-08-21	0.000	0.000
2014-02-21	0.000	0.000
2013-08-23	0.040	3.102
2013-02-22	0.060	4.119
2012-08-22	0.060	3.890
2012-02-23	0.060	8.070
2011-08-29	0.030	5.721

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Medical Developments International is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
Medical Developments International is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.

Current Payout to shareholders

What portion of Medical Developments International's earnings are paid to the shareholders as a dividend.

No need to calculate the sustainability of Medical Developments International's dividends as it is not paying a notable one for Australia.

Future Payout to shareholders

No need to calculate the sustainability of Medical Developments International's dividends in 3 years as they are not expected to pay a notable one for Australia.

Income/ dividend checks

We assess Medical Developments International's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Medical Developments International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

MVP Management

What is the CEO of Medical Developments International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

John Sharman

COMPENSATION	A$447,351
AGE	52
TENURE AS CEO	9 years

CEO Bio

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 Venture Managers Pty Limited. He served as a Managing Director of Cyclopharm Ltd., from September 1, 2006 to June 3, 2008. He held leadership roles of Vita Life Sciences Ltd from 2003 to 2006 and Cyclopharm Ltd from 2003 to 2008. He served as a Finance Director of Vita Life Sciences Ltd., from October 2003 to August 2006 and also served as its Company Secretary. Mr. Sharman has over 20 years experience in company management, private equity, investment banking and corporate finance. He has extensive experience in capital raisings, negotiation of key agreements, recovery and commercial strategies for performing and non performing companies in all stages of company development. He has extensive distribution networks within the medical equipment, pharmaceutical and financial industries globally, including developed and emerging markets. He served as an Executive Director of Cyclopharm Ltd. until February 29, 2012. He served as a Non Executive Director of Vita Life Sciences Ltd. until July 26, 2012. He served as a Director of Cyclopharm Ltd. from November 21, 2005 to June 3, 2008. He served as an Executive Director of Vita Life Sciences Ltd., from October 2003 to August 2006 and previously since May 31, 2002. Mr. Sharman holds Master of Applied Finance, Macquarie University, NSW and a Bachelor of Economics Degreefrom Monash University, Victoria and an Associate of the Institute of Chartered Accountants.

CEO Compensation

John's compensation has been consistent with company performance over the past year.
John's remuneration is lower than average for companies of similar size in Australia.

Management Team Tenure

Average tenure of the Medical Developments International management team in years:

1.1

Average Tenure

The average tenure for the Medical Developments International management team is less than 2 years, this suggests a new team.

Management Team

John Sharman

TITLE

Chief Executive Officer

COMPENSATION

A$447K

AGE

52

TENURE

9 yrs

Mark Edwards

0.3 yrs

Board of Directors Tenure

Average tenure of the Medical Developments International board of directors in years:

Average Tenure

The tenure for the Medical Developments International board of directors is about average.

Board of Directors

David Williams

TITLE

Non-Executive Chairman

COMPENSATION

A$75K

AGE

54

TENURE

15.6 yrs

Philip Powell

5.6 yrs

Who owns this company?

Recent Insider Trading

More shares have been bought than sold by Medical Developments International insiders in the past 3 months, but not in substantial volumes.

Show me more companies with insider buying in the Pharmaceuticals industry

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (A$)	Value (A$)
25. Feb 19	Buy	R. Johnston	Individual	22. Feb 19	25. Feb 19	5,000	A$3.75	A$18,710
26. Dec 18	Buy	M&G Investment Management Limited	Company	22. Aug 18	20. Dec 18	321,609	A$3.97	A$1,236,693
20. Dec 18	Buy	David Williams	Individual	18. Dec 18	19. Dec 18	34,246	A$3.70	A$126,261
18. May 18	Buy	David Williams	Individual	17. May 18	18. May 18	288,991	A$5.81	A$1,615,941
15. May 18	Buy	David Williams	Individual	15. May 18	15. May 18	225,258	A$5.96	A$1,341,659
14. May 18	Buy	David Williams	Individual	14. May 18	14. May 18	235,751	A$6.21	A$1,464,061

Management checks

We assess Medical Developments International's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MVP News

Simply Wall St News

Should You Be Concerned About Medical Developments International Limited's (ASX:MVP) ROE?

We'll use ROE to examine Medical Developments International Limited (ASX:MVP), by way of a worked example. … Medical Developments International has a ROE of 1.2%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 5 months ago – Full article

What Investors Should Know About Medical Developments International Limited's (ASX:MVP) Financial Strength

Investors are always looking for growth in small-cap stocks like Medical Developments International Limited (ASX:MVP), with a market cap of AU$336.69m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St - 9 months ago – Full article

Medical Developments International Limited (ASX:MVP): Does The -11.82% Earnings Drop Reflect A Longer Term Trend?

Investors with a long-term horizong may find it valuable to assess Medical Developments International Limited's (ASX:MVP) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … For Medical Developments International, its most recent earnings (trailing twelve month) is AU$1.54M, which, in comparison to the prior year's level, has dropped by -11.82%. … This means Medical Developments International has been growing expenses, which is hurting margins and earnings, and is not a sustainable practice.