ASX:MTO

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MotorCycle Holdings

Executive Summary

MotorCycle Holdings Limited owns and operates motorcycle dealerships in Australia. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

MTO

-0.2%

AU Specialty Retail

-0.6%

AU Market


1 Year Return

-13.0%

MTO

2.5%

AU Specialty Retail

-10.6%

AU Market

Return vs Industry: MTO underperformed the Australian Specialty Retail industry which returned 2.5% over the past year.

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


Shareholder returns

MTOIndustryMarket
7 Day3.3%-0.2%-0.6%
30 Day-1.1%-2.3%-2.9%
90 Day5.3%21.8%4.0%
1 Year-10.6%-13.0%6.3%2.5%-7.4%-10.6%
3 Year-49.2%-55.3%68.5%47.6%18.3%3.1%
5 Yearn/a79.1%44.0%46.0%15.3%

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?

14.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTO (A$1.88) is trading below our estimate of fair value (A$2.19)

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 unprofitable, so we can't compare its PE Ratio to the AU Specialty Retail industry average.

PE vs Market: MTO is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTO is good value based on its PB Ratio (0.9x) compared to the AU Specialty Retail industry average (2.3x).


Next Steps

Future Growth

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

58.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: MTO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MTO's is expected to become profitable in the next 3 years.

Revenue vs Market: MTO's revenue (2.4% per year) is forecast to grow slower than the Australian market (4.4% per year).

High Growth Revenue: MTO's revenue (2.4% 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?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTO is currently unprofitable.

Growing Profit Margin: MTO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTO is unprofitable, and losses have increased over the past 5 years at a rate of 6.8% per year.

Accelerating Growth: Unable to compare MTO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTO is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-3.9%).


Return on Equity

High ROE: MTO has a negative Return on Equity (-7.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is MotorCycle Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MTO's short term assets (A$121.5M) exceed its short term liabilities (A$65.3M).

Long Term Liabilities: MTO's short term assets (A$121.5M) exceed its long term liabilities (A$70.2M).


Debt to Equity History and Analysis

Debt Level: MTO's debt to equity ratio (60.4%) is considered high.

Reducing Debt: MTO's debt to equity ratio has reduced from 374.2% to 60.4% over the past 5 years.

Debt Coverage: MTO's debt is well covered by operating cash flow (47.2%).

Interest Coverage: MTO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

5.33%

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?

4.1yrs

Average board tenure


CEO

Dave Ahmet

9.25yrs

Tenure

AU$797,417

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 ($USD560.46K) is above average for companies of similar size in the Australian market ($USD277.06K).

Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
David Ahmet
Co-Founder9.25yrsAU$797.42k18.38%
A$ 21.3m
David Foster
Independent Chairman of the Board4.17yrsAU$172.98k0.073%
A$ 84.5k
Peter Henley
Independent Non-Executive Director3.5yrsAU$88.96k0.088%
A$ 102.5k
Richard Dennis
Independent Non-Executive Director4yrsAU$84.02kno data
Warren Bee
Independent Non-Executive Director9.25yrsAU$84.02k0.063%
A$ 73.2k
Robert Cassen
Non-Independent Non-Executive Director2.92yrsAU$79.08k5.45%
A$ 6.3m

4.1yrs

Average Tenure

Experienced Board: MTO's board of directors are considered experienced (4.1 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$116.009m
  • 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 owns and operates motorcycle dealerships in Australia. It operates in two segments, Motorcycle Retailing and Motorcycle Accessories Wholesaling. The company is involved in the s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 19:05
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.