ASX:MTO

Stock Analysis Report

MotorCycle Holdings

Executive Summary

MotorCycle Holdings Limited operates as a motorcycle dealer in Australia.

Snowflake

Excellent balance sheet and fair value.


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Share Price & News

How has MotorCycle Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.9%

MTO

-3.7%

AU Specialty Retail

-1.0%

AU Market


1 Year Return

2.9%

MTO

35.5%

AU Specialty Retail

16.2%

AU Market

Return vs Industry: MTO underperformed the Australian Specialty Retail industry which returned 35.5% over the past year.

Return vs Market: MTO underperformed the Australian Market which returned 16.2% over the past year.


Shareholder returns

MTOIndustryMarket
7 Day-7.9%-3.7%-1.0%
30 Day-9.1%-3.2%-0.2%
90 Day19.9%8.2%2.2%
1 Year2.9%2.9%41.6%35.5%21.9%16.2%
3 Year-38.0%-45.9%27.4%11.1%36.3%17.7%
5 Yearn/a82.9%47.7%52.7%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTO (A$2.11) is trading above our estimate of fair value (A$2.06)

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


Price To Earnings Ratio

PE vs Industry: MTO is good value based on its PE Ratio (15.6x) compared to the Specialty Retail industry average (16.2x).

PE vs Market: MTO is good value based on its PE Ratio (15.6x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MTO is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: MTO is good value based on its PB Ratio (1x) compared to the AU Specialty Retail industry average (2.2x).


Next Steps

Future Growth

How is MotorCycle Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTO's forecast earnings growth (13.1% per year) is above the savings rate (2.3%).

Earnings vs Market: MTO's earnings (13.1% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: MTO's revenue (5.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MTO's revenue (5.4% 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 (9%).


Next Steps

Past Performance

How has MotorCycle Holdings performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTO has high quality earnings.

Growing Profit Margin: MTO's current net profit margins (2.5%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: MTO's earnings have grown by 18.5% per year over the past 5 years.

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

Earnings vs Industry: MTO had negative earnings growth (-2.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (-2%).


Return on Equity

High ROE: MTO's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MotorCycle Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MTO's short term assets (A$103.9M) exceeds its short term liabilities (A$51.7M)

Long Term Liabilities: MTO's short term assets (A$103.9M) exceeds its long term liabilities (52.5M)


Debt to Equity History and Analysis

Debt Level: MTO's debt to equity ratio (57.2%) is considered high.

Reducing Debt: MTO's debt to equity ratio has reduced from 536.4% to 57.2% over the past 5 years.

Debt Coverage: MTO's debt is well covered by operating cash flow (24.6%).

Interest Coverage: MTO's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: MTO has a high level of physical assets or inventory.

Debt Coverage by Assets: MTO's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

3.34%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage4.2%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MTO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MTO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MTO is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTO's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Dave Ahmet 0

8.4yrs

Tenure

AU$708,803

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. Mr. Ahmet has successfully led Moto ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD482.15K) is above average for companies of similar size in the Australian market ($USD255.42K).

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


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: MTO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: MTO's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$1,166,55011 Oct 19
Auscap Asset Management Limited
EntityCompany
Shares505,000
Max PriceAU$2.31
BuyAU$25,28804 Sep 19
Peter Henley
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares11,500
Max PriceAU$2.20
BuyAU$69,20308 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares55,169
Max PriceAU$1.25
SellAU$5,597,11709 Jul 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares1,918,107
Max PriceAU$3.72
BuyAU$75,00004 Mar 19
David Ahmet
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares50,000
Max PriceAU$1.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.


Management Team

  • Dave Ahmet

    Co-Founder

    • Tenure: 8.4yrs
    • Compensation: AU$708.80k
  • Bob Donovan

    Chief Financial Officer

    • Tenure: 0.5yrs
    • Compensation: AU$270.48k
  • Mike Cooksley

    Head of Group Finance & Insurance

    • Tenure: 0yrs
  • Russell Lemon

    Head of Group Service

    • Tenure: 0yrs
  • Nicole Spink

    Financial Controller & Company Secretary

    • Tenure: 1.5yrs

Board Members

  • David Foster (50yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: AU$175.00k
  • Peter Henley (72yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$90.95k
  • Rick Dennis

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$85.00k
  • Dave Ahmet

    Co-Founder

    • Tenure: 8.4yrs
    • Compensation: AU$708.80k
  • Warren Bee

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: AU$85.00k
  • Rob Cassen

    Non-Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$283.62k

Company Information

MotorCycle Holdings Limited's company bio, 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$130.201m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2016
MTOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2016

Biography

MotorCycle Holdings Limited operates as a motorcycle dealer in Australia. It operates in two segments, Motorcycle Retailing and Motorcycle Accessories Wholesaling. The company is involved in the sale of ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 10:41
End of Day Share Price2019/11/21 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.