McGrath
Market Cap
AU$55.9m
Last Updated
2019/12/15 10:42 UTC
Data Sources
Company Financials
Executive Summary
McGrath Limited operates as an integrated residential real estate services company in Australia.
Risk Analysis
Earnings have declined by -67.17% per year over past 5 years
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
Snowflake Analysis
Flawless balance sheet with weak fundamentals.
Similar Companies
Share Price & News
How has McGrath's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MEA's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.6%
MEA
-0.5%
AU Real Estate
0.5%
AU Market
1 Year Return
17.5%
MEA
46.2%
AU Real Estate
19.1%
AU Market
Return vs Industry: MEA underperformed the Australian Real Estate industry which returned 46.2% over the past year.
Return vs Market: MEA underperformed the Australian Market which returned 19.1% over the past year.
Shareholder returns
| MEA | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.6% | -0.5% | 0.5% |
| 30 Day | 1.5% | -1.8% | -1.0% |
| 90 Day | 52.3% | 7.9% | 0.2% |
| 1 Year | 17.5%17.5% | 51.3%46.2% | 24.9%19.1% |
| 3 Year | -60.3%-61.5% | 31.5%17.6% | 37.0%18.2% |
| 5 Year | n/a | 45.1%19.6% | 58.6%22.8% |
Price Volatility Vs. Market
How volatile is McGrath's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
What Kind Of Shareholders Own McGrath Limited (ASX:MEA)?1 month ago | Simply Wall St
Trade Alert: The Of McGrath Limited (ASX:MEA), Yunhui Lin, Has Just Spent AU$1.3m Buying Shares1 month ago | Simply Wall St
Those Who Purchased McGrath (ASX:MEA) Shares Three Years Ago Have A 80% Loss To Show For ItValuation
Is McGrath undervalued compared to its fair value and its price relative to the market?
1.82x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate MEA's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate MEA's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: MEA is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.
PE vs Market: MEA 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 MEA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MEA is overvalued based on its PB Ratio (1.8x) compared to the AU Real Estate industry average (0.9x).
Next Steps
Future Growth
How is McGrath forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
22.0%
Forecasted Real Estate 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 McGrath 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
- Examine McGrath's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- McGrath competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Real Estate industry.
Past Performance
How has McGrath performed over the past 5 years?
-67.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEA is currently unprofitable.
Growing Profit Margin: MEA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MEA is unprofitable, and losses have increased over the past 5 years at a rate of -67.2% per year.
Accelerating Growth: Unable to compare MEA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MEA is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-2.4%).
Return on Equity
High ROE: MEA has a negative Return on Equity (-50.48%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is McGrath's financial position?
Financial Position Analysis
Short Term Liabilities: MEA's short term assets (A$32.3M) exceed its short term liabilities (A$15.7M).
Long Term Liabilities: MEA's short term assets (A$32.3M) exceed its long term liabilities (A$3.0M).
Debt to Equity History and Analysis
Debt Level: MEA is debt free.
Reducing Debt: MEA has no debt compared to 5 years ago when its debt to equity ratio was 56.4%.
Balance Sheet
Inventory Level: MEA has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if MEA's debt is covered by short term assets.
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: MEA has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: MEA has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of -52.2% each year.
Next Steps
Dividend
What is McGrath's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate MEA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate MEA'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 MEA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MEA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MEA is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MEA'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 McGrath's salary, the management and board of directors tenure and is there insider trading?
2.0yrs
Average management tenure
CEO
Geoff Lucas (53yo)
1.8yrs
Tenure
AU$588,639
Compensation
Mr. Geoffrey Lucas, also known as Geoff, B.Com, CPA, FAICD, has been Chief Executive Officer of McGrath Ltd since February 27, 2018. Mr. Lucas rejoined McGrath Limited in February 2018. He served as Chief  ...
CEO Compensation Analysis
Compensation vs Market: Geoff's total compensation ($USD404.12K) is above average for companies of similar size in the Australian market ($USD261.19K).
Compensation vs Earnings: Geoff's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
2.0yrs
Average Tenure
55yo
Average Age
Experienced Management: MEA's management team is considered experienced (2 years average tenure).
Board Age and Tenure
1.8yrs
Average Tenure
Experienced Board: MEA's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: MEA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 5,927,796 |
| Max Price | AU$0.36 |
| Entity | Company |
| Shares | 568,583 |
| Max Price | AU$0.20 |
| Entity | Company |
| Shares | 777,348 |
| Max Price | AU$0.24 |
| Entity | Company |
| Shares | 1,748,287 |
| Max Price | AU$0.26 |
| Entity | Company |
| Shares | 2,546,058 |
| Max Price | AU$0.28 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.3%.
Management Team
Geoff Lucas (53yo)
Chief Executive Officer
- Tenure: 1.8yrs
- Compensation: AU$588.64k
John McGrath (55yo)
Founder & Executive Director
- Tenure: 19.8yrs
- Compensation: AU$552.89k
Howard Herman (68yo)
Chief Financial Officer
- Tenure: 0.5yrs
- Compensation: AU$347.69k
Chris Mourd
Head of Franchise Network
- Tenure: 2.5yrs
- Compensation: AU$441.79k
Scott Kennedy-Green
Chief Auctioneer
- Tenure: 0yrs
Terri Sissian
Communications Director
- Tenure: 0yrs
Melissa Jones
Company Secretary
- Tenure: 1.8yrs
Rob Fearnley
Head of Company Owned Property Management
- Tenure: 2.3yrs
- Compensation: AU$276.26k
Board Members
John McGrath (55yo)
Founder & Executive Director
- Tenure: 19.8yrs
- Compensation: AU$552.89k
Peter Lewis (55yo)
Non-Executive Independent Chairman
- Tenure: 1.8yrs
- Compensation: AU$140.00k
Andrew Robinson
Non-Executive Independent Director
- Tenure: 1.8yrs
- Compensation: AU$100.00k
Wayne Mo
Non-Executive Director
- Tenure: 1.5yrs
Company Information
McGrath Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: McGrath Limited
- Ticker: MEA
- Exchange: ASX
- Founded: 1988
- Industry: Real Estate Services
- Sector: Real Estate
- Market Cap: AU$55.895m
- Shares outstanding: 166.85m
- Website: https://www.mcgrath.com.au
Number of Employees
Location
- McGrath Limited
- 55 Pyrmont Street
- Pyrmont
- New South Wales
- 2009
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MEA | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2015 |
| MEA | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2015 |
Biography
McGrath Limited operates as an integrated residential real estate services company in Australia. It operates through Company Owned Sales, Company Owned Property Management, Franchise Services, and Other se ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/15 10:42 |
| End of Day Share Price | 2019/12/13 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.