McGrath
Market Cap
AU$43.4m
Last Updated
2020/10/19 10:45 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 slightly overvalued.
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
3.8%
MEA
3.1%
AU Real Estate
0.5%
AU Market
1 Year Return
22.7%
MEA
-24.9%
AU Real Estate
-5.6%
AU Market
Return vs Industry: MEA exceeded the Australian Real Estate industry which returned -24.9% over the past year.
Return vs Market: MEA exceeded the Australian Market which returned -5.7% over the past year.
Shareholder returns
| MEA | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.8% | 3.1% | 0.5% |
| 30 Day | 10.2% | 5.7% | 5.0% |
| 90 Day | 45.9% | 9.2% | 2.9% |
| 1 Year | 22.7%22.7% | -23.2%-24.9% | -2.3%-5.6% |
| 3 Year | -53.0%-53.0% | -11.3%-18.9% | 12.4%-1.2% |
| 5 Year | n/a | 23.5%3.1% | 41.5%12.9% |
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 months ago | Simply Wall St
Is McGrath (ASX:MEA) In A Good Position To Deliver On Growth Plans?7 months ago | Simply Wall St
Do Insiders Own Lots Of Shares In McGrath Limited (ASX:MEA)?8 months ago | Simply Wall St
How Many McGrath Limited (ASX:MEA) Shares Did Insiders Buy, In The Last Year?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$0.27) is trading below our estimate of fair value (A$7.84)
Significantly Below Fair Value: MEA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MEA is poor value based on its PE Ratio (62.6x) compared to the AU Real Estate industry average (23.8x).
PE vs Market: MEA is poor value based on its PE Ratio (62.6x) compared to the Australian market (21.1x).
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 (1.5x) 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?
40.0%
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?
-37.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEA has a large one-off gain of A$2.2M impacting its June 30 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 -37.8% 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 (-39.6%).
Return on Equity
High ROE: MEA's Return on Equity (2.4%) is considered low.
Next Steps
Financial Health
How is McGrath's financial position?
Financial Position Analysis
Short Term Liabilities: MEA's short term assets (A$37.2M) exceed its short term liabilities (A$27.2M).
Long Term Liabilities: MEA's short term assets (A$37.2M) exceed its long term liabilities (A$22.4M).
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 40.9%.
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?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MEA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MEA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Eddie Law
0.17
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 | 20.58yrs | AU$552.86k | 22.25% A$ 9.7m | |
| Chief Financial Officer | 1.33yrs | AU$470.27k | no data | |
| Head of Franchise Network | 3.33yrs | AU$525.82k | no data | |
| Head of Company Owned Property Management | 3.08yrs | AU$346.67k | 0.059% A$ 25.4k | |
| Chief Executive Officer | 0.17yr | no data | no data | |
| Communications Director | no data | no data | no data | |
| Chief Auctioneer | no data | no data | no data | |
| Company Secretary | 0.67yr | no data | no data |
2.2yrs
Average Tenure
Experienced Management: MEA's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Executive Director | 20.58yrs | AU$552.86k | 22.25% A$ 9.7m | |
| Non-Executive Independent Chairman | 2.67yrs | AU$130.67k | 0.082% A$ 35.5k | |
| Additional Non-Executive Director | 0.083yr | no data | no data | |
| Non-Executive Independent Director | 2.67yrs | AU$93.33k | 0.032% A$ 13.7k | |
| Non-Executive Director | 2.33yrs | no data | no data |
2.7yrs
Average Tenure
Experienced Board: MEA's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
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$43.381m
- 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 | 2020/10/19 10:45 |
| End of Day Share Price | 2020/10/19 00:00 |
| Earnings | 2020/06/30 |
| 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.