ASX:MTO

Stock Analysis Report

MotorCycle Holdings

Executive Summary

MotorCycle Holdings Limited operates as a motorcycle dealer in Australia.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Risks

  • MotorCycle Holdings has significant price volatility in the past 3 months.
  • MotorCycle Holdings is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.6%

ASX:MTO

-0.9%

AU Specialty Retail

1.2%

AU Market


1 Year Return

-29.3%

ASX:MTO

16.1%

AU Specialty Retail

6.9%

AU Market

MTO underperformed the Specialty Retail industry which returned 16.1% over the past year.

MTO underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

MTOIndustryMarket
7 Day4.6%-0.9%1.2%
30 Day34.7%11.0%4.9%
90 Day83.2%15.8%1.2%
1 Year-29.3%-29.3%21.4%16.1%13.1%6.9%
3 Year-26.5%-35.9%15.3%0.7%41.8%22.7%
5 Yearn/a75.4%43.0%48.2%15.7%

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 based on future cash flows and its price relative to the stock market?

16.93x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

MotorCycle Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

MotorCycle Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

MotorCycle Holdings is overvalued based on earnings compared to the AU Specialty Retail industry average.

MotorCycle Holdings is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

MotorCycle Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

MotorCycle Holdings is good value based on assets compared to the AU Specialty Retail industry average.


Next Steps

Future Growth

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

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MotorCycle Holdings's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

MotorCycle Holdings's earnings are expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

MotorCycle Holdings's revenue growth is expected to exceed the Australia market average.

MotorCycle Holdings's earnings growth is expected to exceed the Australia market average.

MotorCycle Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

MotorCycle Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has MotorCycle Holdings performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MotorCycle Holdings's year on year earnings growth rate has been positive over the past 5 years.

MotorCycle Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

MotorCycle Holdings's 1-year earnings growth is negative, it can't be compared to the AU Specialty Retail industry average.


Return on Equity

MotorCycle Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MotorCycle Holdings used its assets less efficiently than the AU Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

MotorCycle Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MotorCycle Holdings's financial position?


Financial Position Analysis

MotorCycle Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

MotorCycle Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

MotorCycle Holdings's level of debt (57.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (536.4% vs 57.2% today).

Debt is well covered by operating cash flow (24.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.08%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate MotorCycle Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate MotorCycle Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as MotorCycle Holdings has not reported any payouts.

Unable to verify if MotorCycle Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as MotorCycle Holdings has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Dave Ahmet 0

8.3yrs

Tenure

AU$747,452

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

Dave's remuneration is higher than average for companies of similar size in Australia.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

The average tenure for the MotorCycle Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

The tenure for the MotorCycle Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by MotorCycle Holdings individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

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
Colonial First State Asset Management (Australia) Limited
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


Management Team

  • Adrian Murphy

    Chief Operating Officer

    • Tenure: 1.7yrs
  • Dave Ahmet

    Co-Founder

    • Tenure: 8.3yrs
    • Compensation: AU$747.45k
  • Chris Chenoweth

    General Manager

    • Tenure: 11yrs
    • Compensation: AU$327.90k
  • Bob Donovan

    Interim Chief Financial Officer

    • Tenure: 0.3yrs
    • Compensation: AU$283.44k
  • Mike Cooksley

    Head of Group Finance & Insurance

    • Tenure: 0yrs
  • Russell Lemon

    Head of Group Service

    • Tenure: 0yrs
  • Nicole Spink

    Financial Controller & Company Secretary

    • Tenure: 1.3yrs

Board Members

  • David Foster (50yo)

    Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: AU$175.00k
  • Peter Henley (72yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: AU$82.53k
  • Rick Dennis

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: AU$85.00k
  • Dave Ahmet

    Co-Founder

    • Tenure: 8.3yrs
    • Compensation: AU$747.45k
  • Warren Bee

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: AU$85.00k
  • Rob Cassen

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$233.12k

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$141.925m
  • 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 Analysis2019/09/18 10:39
End of Day Share Price2019/09/18 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.