McGrath
Market Cap
AU$106.8m
Last Updated
2021/03/02 07:07 UTC
Data Sources
Company Financials
Executive Summary
McGrath Limited operates as an integrated residential real estate services company in Australia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and good value.
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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: MEA's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
-5.4%
MEA
10.0%
AU Real Estate
-0.3%
AU Market
1 Year Return
108.5%
MEA
-13.5%
AU Real Estate
11.2%
AU Market
Return vs Industry: MEA exceeded the Australian Real Estate industry which returned -13.5% over the past year.
Return vs Market: MEA exceeded the Australian Market which returned 11.2% over the past year.
Shareholder returns
| MEA | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.4% | 10.0% | -0.3% |
| 30 Day | 23.0% | 9.8% | 2.7% |
| 90 Day | 38.2% | -0.8% | 4.4% |
| 1 Year | 110.1%108.5% | -11.9%-13.5% | 14.7%11.2% |
| 3 Year | 44.2%43.0% | -5.0%-12.6% | 30.8%15.1% |
| 5 Year | -51.3%-54.4% | 27.6%8.2% | 62.3%30.7% |
Long-Term 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
1 day ago | Simply Wall St
We Think McGrath's (ASX:MEA) Profit Is Only A Baseline For What They Can Achieve3 weeks ago | Simply Wall St
McGrath Limited (ASX:MEA) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?2 months ago | Simply Wall St
If You Had Bought McGrath's (ASX:MEA) Shares Five Years Ago You Would Be Down 75%Valuation
Is McGrath undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MEA (A$0.62) is trading below our estimate of fair value (A$17.18)
Significantly Below Fair Value: MEA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MEA is good value based on its PE Ratio (10.5x) compared to the AU Real Estate industry average (28.1x).
PE vs Market: MEA is good value based on its PE Ratio (10.5x) compared to the Australian market (19.8x).
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 (2.7x) compared to the AU Real Estate industry average (1.1x).
Next Steps
Future Growth
How is McGrath forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
20.6%
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 whether McGrath is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- 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?
-15.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEA has a large one-off gain of A$4.3M impacting its December 31 2020 financial results.
Growing Profit Margin: MEA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MEA has become profitable over the past 5 years, growing earnings by -15.1% per year.
Accelerating Growth: MEA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MEA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (-13.3%).
Return on Equity
High ROE: MEA's Return on Equity (25.8%) is considered high.
Next Steps
Financial Health
How is McGrath's financial position?
Financial Position Analysis
Short Term Liabilities: MEA's short term assets (A$44.1M) exceed its short term liabilities (A$26.5M).
Long Term Liabilities: MEA's short term assets (A$44.1M) exceed its long term liabilities (A$21.1M).
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 12.8%.
Debt Coverage: MEA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: MEA has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is McGrath current dividend yield, its reliability and sustainability?
16.26%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MEA's dividend (16.26%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).
High Dividend: MEA's dividend (16.26%) is in the top 25% of dividend payers in the Australian market (5.35%)
Stability and Growth of Payments
Stable Dividend: MEA has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MEA's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (8.5%), MEA's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Eddie Law
0.58
Tenure
Mr. Edward Law, also known Eddie, serves as Chief Executive officer of McGrath Limited since August 24, 2020.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Director | 21yrs | AU$552.86k | 22.25% A$ 23.8m | |
| Chief Financial Officer | 1.75yrs | AU$470.27k | no data | |
| Head of Franchise Network | 3.75yrs | AU$525.82k | no data | |
| Head of Company Owned Property Management | 3.5yrs | AU$346.67k | 0.059% A$ 62.5k | |
| Chief Executive Officer | 0.58yr | no data | no data | |
| Communications Director | no data | no data | no data | |
| Chief Auctioneer | no data | no data | no data | |
| Company Secretary | 1.08yrs | no data | no data |
2.6yrs
Average Tenure
Experienced Management: MEA's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Director | 21yrs | AU$552.86k | 22.25% A$ 23.8m | |
| Non-Executive Independent Chairman | 3.08yrs | AU$130.67k | 0.082% A$ 87.5k | |
| Additional Non-Independent Non-Executive Director | 0.50yr | no data | no data | |
| Non-Executive Independent Director | 3.08yrs | AU$93.33k | 0.032% A$ 33.7k | |
| Non-Executive Director | 2.75yrs | no data | no data |
3.1yrs
Average Tenure
Experienced Board: MEA's board of directors are considered experienced (3.1 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$106.784m
- 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 | 2021/03/02 07:07 |
| End of Day Share Price | 2021/03/02 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.