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MAQ

Macquarie Telecom Group ASX:MAQ Stock Report

Last Price

AU$62.55

Market Cap

AU$1.4b

7D

6.4%

1Y

18.5%

Updated

27 Jun, 2022

Data

Company Financials +
MAQ fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends0/6

MAQ Stock Overview

Macquarie Telecom Group Limited provides telecommunication, cloud computing, cybersecurity, and date center services to corporate and government customers in Australia.

Macquarie Telecom Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Macquarie Telecom Group
Historical stock prices
Current Share PriceAU$62.55
52 Week HighAU$82.50
52 Week LowAU$51.02
Beta0.58
1 Month Change5.82%
3 Month Change-4.80%
1 Year Change18.47%
3 Year Change213.53%
5 Year Change338.95%
Change since IPO245.58%

Recent News & Updates

Jun 24
Be Wary Of Macquarie Telecom Group (ASX:MAQ) And Its Returns On Capital

Be Wary Of Macquarie Telecom Group (ASX:MAQ) And Its Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

May 10
Macquarie Telecom Group (ASX:MAQ) Takes On Some Risk With Its Use Of Debt

Macquarie Telecom Group (ASX:MAQ) Takes On Some Risk With Its Use Of Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Mar 01
Here's What's Concerning About Macquarie Telecom Group's (ASX:MAQ) Returns On Capital

Here's What's Concerning About Macquarie Telecom Group's (ASX:MAQ) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

MAQAU TelecomAU Market
7D6.4%3.4%1.4%
1Y18.5%7.5%-11.3%

Return vs Industry: MAQ exceeded the Australian Telecom industry which returned 7.5% over the past year.

Return vs Market: MAQ exceeded the Australian Market which returned -11.3% over the past year.

Price Volatility

Is MAQ's price volatile compared to industry and market?
MAQ volatility
MAQ Average Weekly Movement5.3%
Telecom Industry Average Movement9.9%
Market Average Movement9.7%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

Stable Share Price: MAQ is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MAQ's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992467David Tudehopehttps://macquarietelecomgroup.com

Macquarie Telecom Group Limited provides telecommunication, cloud computing, cybersecurity, and date center services to corporate and government customers in Australia. The company offers voice services, such as teams calling, unified communications, and video and Web conferencing services, as well as Hello, a cloud-based hosted voice system; managed mobility services and mobile device management; and cloud services, including hybrid, VMWare, and private cloud services, as well as dedicated servers, colocation, managed hosting, management tools, SD-WAN, SD-LAN, and data center extension services. It also provides data services, including Internet, fixed wireline Ethernet, private IP-VPN, Cisco Meraki, business NBN, international data links, SIP trunking, SaaS enabled WAN, secure remote access, and business Ethernet access.

Macquarie Telecom Group Fundamentals Summary

How do Macquarie Telecom Group's earnings and revenue compare to its market cap?
MAQ fundamental statistics
Market CapAU$1.36b
Earnings (TTM)AU$9.17m
Revenue (TTM)AU$290.82m

147.1x

P/E Ratio

4.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAQ income statement (TTM)
RevenueAU$290.82m
Cost of RevenueAU$182.52m
Gross ProfitAU$108.30m
Other ExpensesAU$99.13m
EarningsAU$9.17m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.43
Gross Margin37.24%
Net Profit Margin3.15%
Debt/Equity Ratio103.3%

How did MAQ perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • 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 MAQ?

Other financial metrics that can be useful for relative valuation.

MAQ 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/Revenue5.6x
Enterprise Value/EBITDA28.4x
PEG Ratio4.5x

Price to Earnings Ratio vs Peers

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

MAQ PE Ratio vs Peers
The above table shows the PE ratio for MAQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average69x
TPG TPG Telecom
104x25.9%AU$11.4b
TLS Telstra
31.1x10.0%AU$44.9b
CCG Comms Group
88.5xn/aAU$30.7m
HFY Hubify
53xn/aAU$21.6m
MAQ Macquarie Telecom Group
147.1x32.7%AU$1.4b

Price-To-Earnings vs Peers: MAQ is expensive based on its Price-To-Earnings Ratio (147.1x) compared to the peer average (69x).


Price to Earnings Ratio vs Industry

How does MAQ's PE Ratio compare vs other companies in the Global Telecom Industry?

Price-To-Earnings vs Industry: MAQ is expensive based on its Price-To-Earnings Ratio (147.1x) compared to the Global Telecom industry average (17.4x)


Price to Earnings Ratio vs Fair Ratio

What is MAQ'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.

MAQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio147.1x
Fair PE Ratio50.8x

Price-To-Earnings vs Fair Ratio: MAQ is expensive based on its Price-To-Earnings Ratio (147.1x) compared to the estimated Fair Price-To-Earnings Ratio (50.8x).


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate MAQ's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MAQ's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: MAQ is poor value based on its PEG Ratio (4.5x)


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Future Growth

How is Macquarie Telecom Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


32.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAQ's forecast earnings growth (32.7% per year) is above the savings rate (1.8%).

Earnings vs Market: MAQ's earnings (32.7% per year) are forecast to grow faster than the Australian market (6% per year).

High Growth Earnings: MAQ's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MAQ's revenue (13.8% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: MAQ's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAQ's Return on Equity is forecast to be low in 3 years time (10.2%).


Discover growth companies

Past Performance

How has Macquarie Telecom Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MAQ has high quality earnings.

Growing Profit Margin: MAQ's current net profit margins (3.2%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: MAQ's earnings have declined by 3.4% per year over the past 5 years.

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

Earnings vs Industry: MAQ had negative earnings growth (-34%) over the past year, making it difficult to compare to the Telecom industry average (-34%).


Return on Equity

High ROE: MAQ's Return on Equity (6.4%) is considered low.


Discover strong past performing companies

Financial Health

How is Macquarie Telecom Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MAQ's short term assets (A$59.1M) exceed its short term liabilities (A$58.6M).

Long Term Liabilities: MAQ's short term assets (A$59.1M) do not cover its long term liabilities (A$277.2M).


Debt to Equity History and Analysis

Debt Level: MAQ's net debt to equity ratio (90.3%) is considered high.

Reducing Debt: MAQ's debt to equity ratio has increased from 0.01% to 103.3% over the past 5 years.

Debt Coverage: MAQ's debt is well covered by operating cash flow (68.7%).

Interest Coverage: MAQ's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


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Dividend

What is Macquarie Telecom Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate MAQ'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 MAQ's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: MAQ is not paying a notable dividend for the Australian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MAQ has not reported any payouts.


Discover strong dividend paying companies

Management

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

4.4yrs

Average management tenure


CEO

David Tudehope (54 yo)

7.92yrs

Tenure

AU$2,382,107

Compensation

Mr. David Tudehope is a co-counder of Macquarie Telecom Group Limited (Alternative Name, is Macquarie Corporate Telecommunications Holdings Ltd.) and has been its Chief Executive Officer since July 22, 201...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.66M) is above average for companies of similar size in the Australian market ($USD1.04M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: MAQ's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: MAQ's board of directors are seasoned and experienced ( 10.2 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

Macquarie Telecom Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Macquarie Telecom Group Limited
  • Ticker: MAQ
  • Exchange: ASX
  • Founded: 1992
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: AU$1.358b
  • Shares outstanding: 21.57m
  • Website: https://macquarietelecomgroup.com

Number of Employees


Location

  • Macquarie Telecom Group Limited
  • 2 Market Street
  • Level 15
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 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.