Macquarie Telecom Group (ASX:MAQ) - Share price, News & Analysis

MAQ fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	1/6
Financial Health	3/6
Dividends	0/6

MAQ Stock Overview

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

Rewards

Earnings are forecast to grow 32.67% per year

Risk Analysis

Has a high level of debt

Profit margins (3.2%) are lower than last year (5%)

Macquarie Telecom Group Competitors

TPG Telecom

ASX:TPG

AU$11.4b

Telstra

ASX:TLS

AU$44.9b

Comms Group

ASX:CCG

AU$30.7m

Hubify

ASX:HFY

AU$21.6m

Price History & Performance

Summary of all time highs, changes and price drops for Macquarie Telecom Group
Historical stock prices
Current Share Price	AU$62.55
52 Week High	AU$82.50
52 Week Low	AU$51.02
Beta	0.58
1 Month Change	5.82%
3 Month Change	-4.80%
1 Year Change	18.47%
3 Year Change	213.53%
5 Year Change	338.95%
Change since IPO	245.58%

Recent News & Updates

Jun 24

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

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

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

	MAQ	AU Telecom	AU Market
7D	6.4%	3.4%	1.4%
1Y	18.5%	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 Movement	5.3%
Telecom Industry Average Movement	9.9%
Market Average Movement	9.7%
10% most volatile stocks in AU Market	16.3%
10% least volatile stocks in AU Market	4.2%

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

Founded	Employees	CEO	Website
1992	467	David Tudehope	https://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 Cap	AU$1.36b
Earnings (TTM)	AU$9.17m
Revenue (TTM)	AU$290.82m

147.1x

P/E Ratio

4.6x

P/S Ratio

Is MAQ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAQ income statement (TTM)
Revenue	AU$290.82m
Cost of Revenue	AU$182.52m
Gross Profit	AU$108.30m
Other Expenses	AU$99.13m
Earnings	AU$9.17m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.43
Gross Margin	37.24%
Net Profit Margin	3.15%
Debt/Equity Ratio	103.3%

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.

The above table shows the n/a ratio for MAQ. This is calculated by dividing MAQ's market cap by their current preferred multiple.
What is MAQ's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$1.36b

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/Revenue	5.6x
Enterprise Value/EBITDA	28.4x
PEG Ratio	4.5x

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.
Company	PE	Estimated Growth	Market Cap
Peer Average	69x
TPG TPG Telecom	104x	25.9%	AU$11.4b
TLS Telstra	31.1x	10.0%	AU$44.9b
CCG Comms Group	88.5x	n/a	AU$30.7m
HFY Hubify	53x	n/a	AU$21.6m
MAQ Macquarie Telecom Group	147.1x	32.7%	AU$1.4b

Forward PE

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 Ratio	147.1x
Fair PE Ratio	50.8x

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%).

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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.

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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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30