ASX:MTO

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MotorCycle Holdings

Executive Summary

MotorCycle Holdings Limited operates as a motorcycle dealer in Australia.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

31.0%

MTO

8.5%

AU Specialty Retail

3.8%

AU Market


1 Year Return

2.6%

MTO

-8.8%

AU Specialty Retail

-10.6%

AU Market

Return vs Industry: MTO exceeded the Australian Specialty Retail industry which returned -8.8% over the past year.

Return vs Market: MTO exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

MTOIndustryMarket
7 Day31.0%8.5%3.8%
30 Day120.0%23.6%9.9%
90 Day-8.3%-12.1%-13.0%
1 Year2.6%2.6%-5.2%-8.8%-6.9%-10.6%
3 Year-56.0%-60.9%38.1%20.8%12.7%-2.1%
5 Yearn/a33.0%7.4%27.9%0.4%

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?

12.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTO (A$1.38) is trading below our estimate of fair value (A$1.57)

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


Price To Earnings Ratio

PE vs Industry: MTO is good value based on its PE Ratio (10.7x) compared to the Specialty Retail industry average (11.4x).

PE vs Market: MTO is good value based on its PE Ratio (10.7x) compared to the Australian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: MTO is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MTO is good value based on its PB Ratio (0.6x) compared to the AU Specialty Retail industry average (1.8x).


Next Steps

Future Growth

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

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTO's forecast earnings growth (17.8% per year) is above the savings rate (2.3%).

Earnings vs Market: MTO's earnings (17.8% per year) are forecast to grow faster than the Australian market (15% per year).

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

Revenue vs Market: MTO's revenue (4.8% per year) is forecast to grow faster than the Australian market (4.5% per year).

High Growth Revenue: MTO's revenue (4.8% 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 (6.9%).


Next Steps

Past Performance

How has MotorCycle Holdings performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTO has high quality earnings.

Growing Profit Margin: MTO's current net profit margins (2.4%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: MTO's earnings have grown by 13.5% 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 (-20.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (-2.2%).


Return on Equity

High ROE: MTO's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is MotorCycle Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MTO's short term assets (A$109.0M) exceed its short term liabilities (A$65.2M).

Long Term Liabilities: MTO's short term assets (A$109.0M) exceed its long term liabilities (A$73.6M).


Debt to Equity History and Analysis

Debt Level: MTO's debt to equity ratio (55.7%) is considered high.

Reducing Debt: MTO's debt to equity ratio has reduced from 440.4% to 55.7% over the past 5 years.

Debt Coverage: MTO's debt is well covered by operating cash flow (21.1%).

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


Balance Sheet


Next Steps

Dividend

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

3.95%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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

2.0yrs

Average management tenure


CEO

Dave Ahmet

8.92yrs

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 ($USD466.50K) is above average for companies of similar size in the Australian market ($USD252.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Ahmet
Co-Founder8.92yrsAU$708.80k18.29% A$14.7m
Robert Donovan
Chief Financial Officer1yrAU$270.48k0.41% A$331.9k
Michael Cooksley
Head of Group Finance & Insuranceno datano datano data
Russell Lemon
Head of Group Serviceno datano datano data
Nicole Spink
Financial Controller & Company Secretary2yrsno datano data

2.0yrs

Average Tenure

Experienced Management: MTO's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Ahmet
Co-Founder8.92yrsAU$708.80k18.29% A$14.7m
David Foster
Chairman of the Board3.83yrsAU$175.00k0.073% A$58.4k
Peter Henley
Independent Non-Executive Director3.17yrsAU$90.95k0.041% A$33.2k
Richard Dennis
Independent Non-Executive Director3.67yrsAU$85.00kno data
Warren Bee
Independent Non-Executive Director8.92yrsAU$85.00k0.063% A$50.6k
Robert Cassen
Non-Independent Non-Executive Director2.58yrsAU$283.62k5.45% A$4.4m

3.8yrs

Average Tenure

Experienced Board: MTO's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MTO 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 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$80.219m
  • 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 new motorcycles, used motorcycles, and accessories and parts; and finance, insurance, and warranty activities, as well as servicing and repair of motorcycles. It operates 48 franchises from 31 dealership and 8 retail accessory locations in Queensland, New South Wales, Victoria, and the Australian Capital Territory. The company also owns and operates a rider training school and a motorcycle repair business that performs smash repair work for insurers. MotorCycle Holdings Limited was founded in 1989 and is based in Slacks Creek, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 10:54
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
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.