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Macquarie Telecom Group

Market Cap

AU$1.1b

Last Updated

2021/05/09 08:15 UTC

Data Sources

Company Financials +

Executive Summary

Macquarie Telecom Group Limited provides telecommunication and hosting services to corporate and government customers in Australia. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Macquarie Telecom Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAQ is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MAQ's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

MAQ

1.1%

AU Telecom

0.5%

AU Market


1 Year Return

86.5%

MAQ

21.4%

AU Telecom

36.7%

AU Market

Return vs Industry: MAQ exceeded the Australian Telecom industry which returned 21.4% over the past year.

Return vs Market: MAQ exceeded the Australian Market which returned 36.7% over the past year.


Shareholder returns

MAQIndustryMarket
7 Day-1.5%1.1%0.5%
30 Day3.6%-0.7%1.2%
90 Day-0.8%2.7%3.3%
1 Year86.5%86.5%27.2%21.4%40.8%36.7%
3 Year177.0%174.1%30.5%13.0%31.5%15.6%
5 Year366.3%329.9%-18.5%-37.5%63.6%32.6%

Long-Term Price Volatility Vs. Market

How volatile is Macquarie Telecom Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Macquarie Telecom Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAQ (A$51.2) is trading below our estimate of fair value (A$247.99)

Significantly Below Fair Value: MAQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MAQ is poor value based on its PE Ratio (78.6x) compared to the AU Telecom industry average (31.2x).

PE vs Market: MAQ is poor value based on its PE Ratio (78.6x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: MAQ is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: MAQ is overvalued based on its PB Ratio (8.4x) compared to the AU Telecom industry average (2.8x).


Future Growth

How is Macquarie Telecom Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

33.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAQ's forecast earnings growth (33.1% per year) is above the savings rate (1.9%).

Earnings vs Market: MAQ's earnings (33.1% per year) are forecast to grow faster than the Australian market (13.6% per year).

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

Revenue vs Market: MAQ's revenue (13.2% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: MAQ's revenue (13.2% 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 (16.5%).


Past Performance

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

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAQ has a high level of non-cash earnings.

Growing Profit Margin: MAQ's current net profit margins (5%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: MAQ's earnings have grown by 17% 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 (-6.6%) over the past year, making it difficult to compare to the Telecom industry average (-10.1%).


Return on Equity

High ROE: MAQ's Return on Equity (10.7%) is considered low.


Financial Health

How is Macquarie Telecom Group's financial position?


Financial Position Analysis

Short Term Liabilities: MAQ's short term assets (A$72.6M) exceed its short term liabilities (A$65.2M).

Long Term Liabilities: MAQ's short term assets (A$72.6M) do not cover its long term liabilities (A$167.4M).


Debt to Equity History and Analysis

Debt Level: MAQ's debt to equity ratio (71.8%) is considered high.

Reducing Debt: Insufficient data to determine if MAQ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MAQ's debt is well covered by operating cash flow (48.8%).

Interest Coverage: MAQ's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MAQ'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?

3.3yrs

Average management tenure


CEO

David Tudehope (53 yo)

6.83yrs

Tenure

AU$1,656,729

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 ($USD1.30M) is above average for companies of similar size in the Australian market ($USD865.18K).

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 (3.3 years average tenure).


Board Members

Experienced Board: MAQ's board of directors are considered experienced (8 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 company bio, 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
  • Market Cap: AU$1.101b
  • Shares outstanding: 21.50m
  • Website: https://www.macquarietelecomgroup.com

Number of Employees


Location

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

Listings


Biography

Macquarie Telecom Group Limited provides telecommunication and hosting services to corporate and government customers in Australia. It offers voice services, such as teams calling, unified communications, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 08:15
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
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.