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MTO

MotorCycle HoldingsASX:MTO Stock Report

Market Cap

AU$194.4m

7D

6.4%

1Y

14.5%

Updated

24 Oct, 2021

Data

Company Financials +
MTO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends4/6

MTO Overview

MotorCycle Holdings Limited owns and operates motorcycle dealerships in Australia.

MotorCycle Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MotorCycle Holdings
Historical stock prices
Current Share PriceAU$3.15
52 Week HighAU$2.20
52 Week LowAU$3.43
Beta1.35
1 Month Change5.35%
3 Month Change16.67%
1 Year Change14.55%
3 Year Change35.19%
5 Year Change-25.36%
Change since IPO16.24%

Recent News & Updates

Jun 14
Why MotorCycle Holdings Limited (ASX:MTO) Could Be Worth Watching

Why MotorCycle Holdings Limited (ASX:MTO) Could Be Worth Watching

MotorCycle Holdings Limited ( ASX:MTO ), might not be a large cap stock, but it saw a decent share price growth in the...

May 31
Estimating The Fair Value Of MotorCycle Holdings Limited (ASX:MTO)

Estimating The Fair Value Of MotorCycle Holdings Limited (ASX:MTO)

How far off is MotorCycle Holdings Limited ( ASX:MTO ) from its intrinsic value? Using the most recent financial data...

Apr 05
Does MotorCycle Holdings (ASX:MTO) Have A Healthy Balance Sheet?

Does MotorCycle Holdings (ASX:MTO) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

MTOAU Specialty RetailAU Market
7D6.4%1.2%0.6%
1Y14.5%26.3%21.3%

Return vs Industry: MTO underperformed the Australian Specialty Retail industry which returned 26.3% over the past year.

Return vs Market: MTO underperformed the Australian Market which returned 21.3% over the past year.

Price Volatility

Is MTO's price volatile compared to industry and market?
MTO volatility
MTO Beta1.35
Industry Beta1.2
Market Beta1

Stable Share Price: MTO is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MTO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1989700Dave Ahmethttps://www.mcholdings.com.au

MotorCycle Holdings Limited owns and operates motorcycle dealerships in Australia. It operates through two segments, Motorcycle Retailing and Motorcycle Accessories Wholesaling. The company is involved in the sale of new motorcycles, used motorcycles, accessories and parts, and mechanical protection plan contracts; wholesaling and retailing of motorcycle accessories; and financing and insurance services for motorcycle purchases through third-party sources, as well as servicing and repair of motorcycles.

MotorCycle Holdings Fundamentals Summary

How do MotorCycle Holdings's earnings and revenue compare to its market cap?
MTO fundamental statistics
Market CapAU$194.38m
Earnings (TTM)AU$28.30m
Revenue (TTM)AU$430.69m

6.9x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTO income statement (TTM)
RevenueAU$430.69m
Cost of RevenueAU$305.44m
Gross ProfitAU$125.25m
ExpensesAU$96.96m
EarningsAU$28.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.46
Gross Margin29.08%
Net Profit Margin6.57%
Debt/Equity Ratio19.1%

How did MTO perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

44%

Payout Ratio

Valuation

Is MotorCycle Holdings undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTO (A$3.15) is trading below our estimate of fair value (A$5.67)

Significantly Below Fair Value: MTO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTO is good value based on its PE Ratio (6.9x) compared to the Australian Specialty Retail industry average (11.4x).

PE vs Market: MTO is good value based on its PE Ratio (6.9x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MTO is good value based on its PB Ratio (1.3x) compared to the AU Specialty Retail industry average (3.9x).


Future Growth

How is MotorCycle Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTO's earnings are forecast to decline over the next 3 years (-12.6% per year).

Earnings vs Market: MTO's earnings are forecast to decline over the next 3 years (-12.6% per year).

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

Revenue vs Market: MTO's revenue (2.5% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: MTO's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTO's Return on Equity is forecast to be low in 3 years time (12.1%).


Past Performance

How has MotorCycle Holdings performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTO has high quality earnings.

Growing Profit Margin: MTO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MTO's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: MTO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MTO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (91.8%).


Return on Equity

High ROE: MTO's Return on Equity (19.6%) is considered low.


Financial Health

How is MotorCycle Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MTO's short term assets (A$99.8M) exceed its short term liabilities (A$64.1M).

Long Term Liabilities: MTO's short term assets (A$99.8M) exceed its long term liabilities (A$44.0M).


Debt to Equity History and Analysis

Debt Level: MTO's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: MTO's debt to equity ratio has reduced from 85.8% to 19.1% over the past 5 years.

Debt Coverage: MTO's debt is well covered by operating cash flow (106%).

Interest Coverage: MTO's interest payments on its debt are well covered by EBIT (19.7x coverage).


Balance Sheet


Dividend

What is MotorCycle Holdings's current dividend yield, its reliability and sustainability?

6.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTO's dividend (6.35%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: MTO's dividend (6.35%) is in the top 25% of dividend payers in the Australian market (5.3%)


Stability and Growth of Payments

Stable Dividend: MTO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MTO's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), MTO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTO's dividends in 3 years are forecast to be covered by earnings (63.3% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Dave Ahmet

10.33yrs

Tenure

AU$1,597,965

Compensation

Mr. David Hedley Ahmet, also known as Dave, is Founder of MotorCycle Holdings Limited and has been its Chief Executive Officer and Managing Director since June 30, 2011. He has successfully led the expansi...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.19M) is above average for companies of similar size in the Australian market ($USD302.87K).

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


Leadership Team

Experienced Management: MTO's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: MTO's board of directors are considered experienced (5.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

MotorCycle Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: MotorCycle Holdings Limited
  • Ticker: MTO
  • Exchange: ASX
  • Founded: 1989
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: AU$194.376m
  • Shares outstanding: 61.71m
  • Website: https://www.mcholdings.com.au

Number of Employees


Location

  • MotorCycle Holdings Limited
  • 68 Moss Street
  • Slacks Creek
  • Queensland
  • 4127
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 07:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.