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MTO

MotorCycle Holdings ASX:MTO Stock Report

Last Price

AU$2.14

Market Cap

AU$132.1m

7D

-1.8%

1Y

-24.9%

Updated

04 Jul, 2022

Data

Company Financials +
MTO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends3/6

MTO Stock 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$2.14
52 Week HighAU$3.44
52 Week LowAU$1.83
Beta1.41
1 Month Change-8.94%
3 Month Change-26.21%
1 Year Change-24.91%
3 Year Change69.17%
5 Year Change-46.10%
Change since IPO-21.03%

Recent News & Updates

Feb 28
MotorCycle Holdings (ASX:MTO) Will Pay A Larger Dividend Than Last Year At AU$0.12

MotorCycle Holdings (ASX:MTO) Will Pay A Larger Dividend Than Last Year At AU$0.12

The board of MotorCycle Holdings Limited ( ASX:MTO ) has announced that it will be increasing its dividend on the 6th...

Shareholder Returns

MTOAU Specialty RetailAU Market
7D-1.8%-0.9%-2.1%
1Y-24.9%-29.5%-10.5%

Return vs Industry: MTO exceeded the Australian Specialty Retail industry which returned -32% over the past year.

Return vs Market: MTO underperformed the Australian Market which returned -12% over the past year.

Price Volatility

Is MTO's price volatile compared to industry and market?
MTO volatility
MTO Average Weekly Movement7.4%
Specialty Retail Industry Average Movement5.9%
Market Average Movement10.0%
10% most volatile stocks in AU Market16.7%
10% least volatile stocks in AU Market4.5%

Stable Share Price: MTO is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MTO's weekly volatility (7%) 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$132.07m
Earnings (TTM)AU$23.65m
Revenue (TTM)AU$447.29m

5.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTO income statement (TTM)
RevenueAU$447.29m
Cost of RevenueAU$322.09m
Gross ProfitAU$125.19m
Other ExpensesAU$101.54m
EarningsAU$23.65m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.38
Gross Margin27.99%
Net Profit Margin5.29%
Debt/Equity Ratio25.8%

How did MTO perform over the long term?

See historical performance and comparison

Dividends

11.2%

Current Dividend Yield

57%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MTO?

Other financial metrics that can be useful for relative valuation.

MTO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA5.8x
PEG Ratio-1.7x

Price to Earnings Ratio vs Peers

How does MTO's PE Ratio compare to its peers?

MTO PE Ratio vs Peers
The above table shows the PE ratio for MTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8x
ASG Autosports Group
6.9x0.5%AU$316.8m
PWR Peter Warren Automotive Holdings
9.4x-2.6%AU$379.4m
APE Eagers Automotive
7.9x-11.2%AU$2.6b
SSG Shaver Shop Group
7.9x4.9%AU$128.4m
MTO MotorCycle Holdings
5.6x-3.3%AU$132.1m

Price-To-Earnings vs Peers: MTO is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (8x).


Price to Earnings Ratio vs Industry

How does MTO's PE Ratio compare vs other companies in the AU Specialty Retail Industry?

Price-To-Earnings vs Industry: MTO is good value based on its Price-To-Earnings Ratio (5.6x) compared to the Australian Specialty Retail industry average (8.8x)


Price to Earnings Ratio vs Fair Ratio

What is MTO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio8.4x

Price-To-Earnings vs Fair Ratio: MTO is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.4x).


Share Price vs Fair Value

What is the Fair Price of MTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MTO (A$2.14) is trading below our estimate of fair value (A$8.31)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.3%

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 (-3.3% per year).

Earnings vs Market: MTO's earnings are forecast to decline over the next 3 years (-3.3% per year).

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

Revenue vs Market: MTO's revenue (2.8% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: MTO's revenue (2.8% 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 (13.5%).


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Past Performance

How has MotorCycle Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MTO has high quality earnings.

Growing Profit Margin: MTO's current net profit margins (5.3%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: MTO's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: MTO's earnings growth over the past year (623.7%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: MTO earnings growth over the past year (623.7%) exceeded the Specialty Retail industry 22.8%.


Return on Equity

High ROE: MTO's Return on Equity (15.7%) is considered low.


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Financial Health

How is MotorCycle Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MTO's short term assets (A$114.5M) exceed its short term liabilities (A$69.5M).

Long Term Liabilities: MTO's short term assets (A$114.5M) exceed its long term liabilities (A$49.9M).


Debt to Equity History and Analysis

Debt Level: MTO's net debt to equity ratio (22.6%) is considered satisfactory.

Reducing Debt: MTO's debt to equity ratio has reduced from 73.4% to 25.8% over the past 5 years.

Debt Coverage: MTO's debt is well covered by operating cash flow (39.9%).

Interest Coverage: MTO's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


11.21%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MTO's dividend (11.21%) is higher than the bottom 25% of dividend payers in the Australian market (2.75%).

High Dividend: MTO's dividend (11.21%) is in the top 25% of dividend payers in the Australian market (6.87%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.3%), MTO's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (108.3%), MTO's dividend payments are not well covered by cash flows.


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Management

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

4.2yrs

Average management tenure


CEO

Dave Ahmet

11.08yrs

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 ($USD1.08M) is above average for companies of similar size in the Australian market ($USD281.90K).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MTO's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: MTO's board of directors are considered experienced (6.1 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
  • Implied Market Cap: AU$132.069m
  • 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 Analysis2022/07/04 00:00
End of Day Share Price2022/07/04 00:00
Earnings2021/12/31
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.