ASX:MGR

Stock Analysis Report

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Executive Summary

Mirvac is an Australian property group with a clearly defined purpose to reimagine urban life. More Details


Snowflake Analysis

Good value second-rate dividend payer.


Similar Companies

Share Price & News

How has Mirvac Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.5%

MGR

-2.0%

AU REITs

-2.4%

AU Market


1 Year Return

-33.6%

MGR

-17.2%

AU REITs

-8.3%

AU Market

Return vs Industry: MGR underperformed the Australian REITs industry which returned -17.2% over the past year.

Return vs Market: MGR underperformed the Australian Market which returned -8.3% over the past year.


Shareholder returns

MGRIndustryMarket
7 Day-4.5%-2.0%-2.4%
30 Day-3.6%-1.1%1.8%
90 Day1.9%7.5%1.7%
1 Year-31.5%-33.6%-13.7%-17.2%-5.0%-8.3%
3 Year0.9%-10.9%16.6%0.9%14.6%-0.08%
5 Year47.2%18.0%42.6%10.9%41.6%12.1%

Price Volatility Vs. Market

How volatile is Mirvac Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mirvac Group undervalued compared to its fair value and its price relative to the market?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGR (A$2.13) is trading below our estimate of fair value (A$2.61)

Significantly Below Fair Value: MGR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MGR is good value based on its PE Ratio (15x) compared to the AU REITs industry average (16x).

PE vs Market: MGR is good value based on its PE Ratio (15x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: MGR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: MGR is good value based on its PB Ratio (0.8x) compared to the AU REITs industry average (1x).


Next Steps

Future Growth

How is Mirvac Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGR's forecast earnings growth (7.1% per year) is above the savings rate (2.3%).

Earnings vs Market: MGR's earnings (7.1% per year) are forecast to grow slower than the Australian market (17.6% per year).

High Growth Earnings: MGR's earnings are forecast to grow, but not significantly.

Revenue vs Market: MGR's revenue is expected to decline over the next 3 years (-26.1% per year).

High Growth Revenue: MGR's revenue is forecast to decline over the next 3 years (-26.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGR's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Mirvac Group performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGR has high quality earnings.

Growing Profit Margin: MGR's current net profit margins (24.8%) are lower than last year (45.2%).


Past Earnings Growth Analysis

Earnings Trend: MGR's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: MGR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MGR had negative earnings growth (-45.2%) over the past year, making it difficult to compare to the REITs industry average (6.8%).


Return on Equity

High ROE: MGR's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Mirvac Group's financial position?


Financial Position Analysis

Short Term Liabilities: MGR's short term assets (A$1.1B) exceed its short term liabilities (A$749.0M).

Long Term Liabilities: MGR's short term assets (A$1.1B) do not cover its long term liabilities (A$4.5B).


Debt to Equity History and Analysis

Debt Level: MGR's debt to equity ratio (43.7%) is considered high.

Reducing Debt: MGR's debt to equity ratio has increased from 42.1% to 43.7% over the past 5 years.

Debt Coverage: MGR's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: MGR's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Mirvac Group current dividend yield, its reliability and sustainability?

4.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGR's dividend (4.27%) is higher than the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: MGR's dividend (4.27%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


Stability and Growth of Payments

Stable Dividend: MGR's dividend payments have been volatile in the past 10 years.

Growing Dividend: MGR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106.8%), MGR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGR's dividends in 3 years are forecast to be covered by earnings (70.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Susan Lloyd-Hurwitz (52 yo)

8.17yrs

Tenure

AU$2,399,341

Compensation

Ms. Susan Lloyd-Hurwitz, BA (Hons), MBA (Dist), has been the Chief Executive Officer and Managing Director of Mirvac Group since August 15, 2012 and its Executive Director since November 5, 2012. Prior to ...


CEO Compensation Analysis

Compensation vs Market: Susan's total compensation ($USD1.69M) is below average for companies of similar size in the Australian market ($USD2.51M).

Compensation vs Earnings: Susan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Susan Lloyd-Hurwitz
CEO, MD & Executive Director8.17yrsAU$2.40m0.13%
A$ 10.8m
Shane Gannon
Chief Financial Officer6.83yrsAU$1.24m0.016%
A$ 1.3m
Brett Draffen
Chief Investment Officer6.33yrsAU$1.34m0.021%
A$ 1.8m
Susan MacDonald
Head of Retailno dataAU$994.07k0.020%
A$ 1.7m
Stuart Penklis
Head of Residential3.5yrsAU$1.09m0.0019%
A$ 159.9k
Campbell Hanan
Head of Commercial Property4.58yrsAU$1.03m0.012%
A$ 1.0m
Bryan Howitt
General Manager of Investor Relations & Capital Allocationno datano datano data
Kate Lander
General Manager of Communicationsno datano datano data
Chris Akayan
Head of Culture & Capability3.58yrsno datano data
Bay Warburton
Head of Stakeholder Relations3.17yrsno datano data
Kristen Sweeney
Co-Head of Human Resourcesno datano datano data
William Payne
Chief Digital Officer0.58yrno datano data

4.1yrs

Average Tenure

Experienced Management: MGR's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Susan Lloyd-Hurwitz
CEO, MD & Executive Director8.17yrsAU$2.40m0.13%
A$ 10.8m
John Mulcahy
Independent Non-Executive Chair6.92yrsAU$456.00k0.0027%
A$ 227.1k
Samantha Mostyn
Independent Non-Executive Director5.58yrsAU$192.85k0.0014%
A$ 118.2k
James Millar
Independent Non-Executive Director10.92yrsAU$221.35k0.0014%
A$ 119.1k
Christine Bartlett
Independent Non-Executive Director5.83yrsAU$192.85k0.0014%
A$ 119.1k
Peter John Hawkins
Independent Non-Executive Director14.75yrsAU$221.35k0.015%
A$ 1.3m
Alan Robert Sindel
Independent Non-Executive Director0.083yrno data0.0018%
A$ 151.4k
Peter Nash
Independent Non-Executive Director1.92yrsAU$192.85k0.0010%
A$ 88.5k
Jane Hewitt
Independent Non-Executive Director1.83yrsAU$192.85k0.0010%
A$ 86.8k

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: MGR's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MGR 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

Mirvac Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mirvac Group
  • Ticker: MGR
  • Exchange: ASX
  • Founded: 1972
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$8.505b
  • Shares outstanding: 3.94b
  • Website: https://www.mirvac.com

Number of Employees


Location

  • Mirvac Group
  • 200 George Street
  • Level 28
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGRASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJun 1999
MJBDB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJun 1999
MRVG.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJun 1999
MJBBST (Boerse-Stuttgart)YesStapled SecuritiesDEEURJun 1999
MGRCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJun 1999

Biography

Mirvac is an Australian property group with a clearly defined purpose to reimagine urban life. By creating beautiful homes, inspiring workplace precincts and thriving shopping centres, we aim to make a pos ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 10:41
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.