ASX:MGR

Stock Analysis Report

Executive Summary

Mirvac is a leading, diversified Australian property group, with an integrated development and asset management capability.

Rewards

PE ratio (12x) is below the Australian market (18.3x)

Pays a high and reliable dividend of 3.5%

Risk Analysis

Earnings are forecast to decline by an average of -18.4% per year for the next 3 years

Large one-off items impacting financial results

Significant insider selling over the past 3 months



Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Charter Hall Group

ASX:CHC

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

-1.8%

MGR

-3.2%

AU REITs

-3.4%

AU Market


1 Year Return

45.2%

MGR

17.2%

AU REITs

15.4%

AU Market

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

Return vs Market: MGR exceeded the Australian Market which returned 15.4% over the past year.


Shareholder returns

MGRIndustryMarket
7 Day-1.8%-3.2%-3.4%
30 Day2.5%-1.6%-1.5%
90 Day7.8%-1.6%-0.5%
1 Year51.5%45.2%23.1%17.2%21.1%15.4%
3 Year82.0%58.4%48.8%27.3%35.6%17.1%
5 Year129.6%80.9%93.8%50.2%57.2%21.7%

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?

12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGR (A$3.31) is trading above our estimate of fair value (A$3.27)

Significantly Below Fair Value: MGR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGR is good value based on its PE Ratio (12x) compared to the REITs industry average (15.8x).

PE vs Market: MGR is good value based on its PE Ratio (12x) compared to the Australian market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MGR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MGR is overvalued based on its PB Ratio (1.3x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

How is Mirvac Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGR's earnings are forecast to decline over the next 3 years (-18.4% per year).

Earnings vs Market: MGR's earnings are forecast to decline over the next 3 years (-18.4% per year).

High Growth Earnings: MGR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGR's revenue is expected to decline over the next 3 years (-23.9% per year).

High Growth Revenue: MGR's revenue is forecast to decline over the next 3 years (-23.9% 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 (5.9%).


Next Steps

Past Performance

How has Mirvac Group performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGR has a large one-off gain of A$516.0M impacting its June 30 2019 financial results.

Growing Profit Margin: MGR's current net profit margins (45.2%) are lower than last year (47.3%).


Past Earnings Growth Analysis

Earnings Trend: MGR's earnings have grown by 16.7% 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 (-6.4%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).


Return on Equity

High ROE: MGR's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mirvac Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MGR has a low level of unsold assets or inventory.

Debt Coverage by Assets: MGR's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: MGR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MGR has a sufficient allowance for bad loans.

Low Risk Liabilities: MGR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MGR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MGR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MGR has an appropriate level of bad loans.


Next Steps

Dividend

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

3.50%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%2.4%markettop25%5.6%industryaverage4.5%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: MGR's dividend (3.5%) is higher than the bottom 25% of dividend payers in the Australian market (2.43%).

High Dividend: MGR's dividend (3.5%) is low compared to the top 25% of dividend payers in the Australian market (5.63%).


Stability and Growth of Payments

Stable Dividend: MGR's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.3%), MGR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGR's dividends in 3 years are forecast to be covered by earnings (76% payout ratio).


Next Steps

Management

What is the CEO of Mirvac Group's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Susan Lloyd-Hurwitz (51yo)

7.3yrs

Tenure

AU$4,822,584

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 ($USD3.30M) is about average for companies of similar size in the Australian market ($USD3.01M).

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


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: MGR's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

61yo

Average Age

Experienced Board: MGR's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: MGR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyAU$16,15026 Nov 19
Jane Hewitt
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceAU$3.23
BuyAU$49,05021 Nov 19
Jane Hewitt
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares15,000
Max PriceAU$3.27
SellAU$745,40031 Oct 19
Susan Lloyd-Hurwitz
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares233,031
Max PriceAU$3.25
SellAU$220,32024 Sep 19
Susan Lloyd-Hurwitz
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares70,967
Max PriceAU$3.11
SellAU$875,84525 Mar 19
Susan Lloyd-Hurwitz
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares321,294
Max PriceAU$2.74
SellAU$017 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares2,335,105
Max PriceAU$2.69
BuyAU$339,32817 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares30,256,514
Max PriceAU$2.70
SellAU$020 Feb 19
BlackRock, Inc.
EntityCompany
Shares56,593,818
Max PriceAU$2.57
BuyAU$42,56120 Feb 19
BlackRock, Inc.
EntityCompany
Shares75,894,303
Max PriceAU$2.59
BuyAU$849,10727 Dec 18
State Street Global Advisors, Inc.
EntityCompany
Shares15,429,989
Max PriceAU$2.51

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Shane Gannon (59yo)

    Chief Financial Officer

    • Tenure: 6yrs
    • Compensation: AU$2.50m
  • Brett Draffen

    Chief Investment Officer

    • Tenure: 5.4yrs
    • Compensation: AU$2.63m
  • Sean Ward

    Group Company Secretary & Head of Risk

    • Tenure: 2.6yrs
  • Bryan Howitt

    General Manager of Investor Relations

    • Tenure: 0yrs
  • Stuart Penklis

    Head of Residential

    • Tenure: 2.6yrs
    • Compensation: AU$1.77m
  • Susan Lloyd-Hurwitz (51yo)

    CEO, MD & Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$4.82m
  • Campbell Hanan

    Head of Office & Industrial

    • Tenure: 3.8yrs
    • Compensation: AU$1.87m
  • Susan MacDonald

    Head of Retail

    • Tenure: 0yrs
    • Compensation: AU$1.84m
  • Chris Akayan

    Head of Culture & Reputation

    • Tenure: 2.8yrs
  • Kate Lander

    General Manager of Communications

    • Tenure: 0yrs

Board Members

  • John Mulcahy (69yo)

    Independent Non-Executive Chair

    • Tenure: 6.1yrs
    • Compensation: AU$480.00k
  • Sam Mostyn (54yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: AU$203.00k
  • James Millar (66yo)

    Independent Non-Executive Director

    • Tenure: 10.1yrs
    • Compensation: AU$233.00k
  • Christine Bartlett

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: AU$203.00k
  • Peter John Hawkins (65yo)

    Independent Non-Executive Director

    • Tenure: 13.9yrs
    • Compensation: AU$233.00k
  • Susan Lloyd-Hurwitz (51yo)

    CEO, MD & Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$4.82m
  • Peter Nash (57yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$126.11k
  • Jane Hewitt

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$114.39k

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$12.667b
  • Shares outstanding: 3.93b
  • 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 a leading, diversified Australian property group, with an integrated development and asset management capability. We have 45 years of experience in the property industry and an unmatched reputati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 10:33
End of Day Share Price2019/12/05 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.