ASX:MAQ

Stock Analysis Report

Macquarie Telecom Group

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Risks

  • Macquarie Telecom Group is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-3.2%

ASX:MAQ

-3.7%

AU Telecom

-0.4%

AU Market


1 Year Return

-5.2%

ASX:MAQ

15.9%

AU Telecom

2.1%

AU Market

MAQ underperformed the Telecom industry which returned 15.9% over the past year.

MAQ underperformed the Market in Australia which returned 2.1% over the past year.


Share holder returns

MAQIndustryMarket
7 Day-3.2%-3.7%-0.4%
30 Day-9.0%-1.3%-2.5%
90 Day6.1%2.7%0.5%
1 Year-4.2%-5.2%21.7%15.9%8.0%2.1%
3 Year84.8%70.4%-24.5%-35.6%32.4%14.9%
5 Year371.9%309.6%-9.1%-30.6%39.6%8.3%

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

21.15x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Macquarie Telecom Group is good value based on earnings compared to the AU Telecom industry average.

Macquarie Telecom Group is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Macquarie Telecom Group is poor value based on expected growth next year.


Price Based on Value of Assets

Macquarie Telecom Group is overvalued based on assets compared to the AU Telecom industry average.


Next Steps

Future Growth

How is Macquarie Telecom Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Macquarie Telecom Group's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Macquarie Telecom Group's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).

Macquarie Telecom Group's revenue growth is expected to exceed the Australia market average.

Macquarie Telecom Group's earnings growth is expected to exceed the Australia market average.

Macquarie Telecom Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

59.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Macquarie Telecom Group has delivered over 20% year on year earnings growth in the past 5 years.

Macquarie Telecom Group's 1-year earnings growth is less than its 5-year average (32.8% vs 59.2%)

Macquarie Telecom Group's earnings growth has exceeded the AU Telecom industry average in the past year (32.8% vs -36.9%).


Return on Equity

Macquarie Telecom Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Macquarie Telecom Group used its assets more efficiently than the AU Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Macquarie Telecom Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Macquarie Telecom Group's financial position?


Financial Position Analysis

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

Macquarie Telecom Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Macquarie Telecom Group has no debt.

Macquarie Telecom Group has no debt compared to 5 years ago when it was 25.1%.

Macquarie Telecom Group has no debt, it does not need to be covered by operating cash flow.

Macquarie Telecom Group has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Macquarie Telecom Group has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.23%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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

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

Unable to perform a dividend volatility check as Macquarie Telecom Group has not reported any payouts.

Unable to verify if Macquarie Telecom Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Macquarie Telecom Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Macquarie Telecom Group's dividends in 3 years as they are not expected to pay a notable one for Australia.


Next Steps

Management

What is the CEO of Macquarie Telecom Group's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

David Tudehope (52yo)

5.1yrs

Tenure

AU$872,344

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, 20 ...


CEO Compensation Analysis

David's remuneration is about average for companies of similar size in Australia.

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


Management Age and Tenure

0.3yrs

Average Tenure

The average tenure for the Macquarie Telecom Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.4yrs

Average Tenure

52yo

Average Age

The tenure for the Macquarie Telecom Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$5,159,67627 Dec 18
Viburnum Funds Pty Ltd.
EntityCompany
Shares251,689
Max PriceAU$20.76
SellAU$17,374,04123 Nov 18
David Tudehope
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares843,400
Max PriceAU$20.60

Ownership Breakdown


Management Team

  • David Tudehope (52yo)

    Co-Founder

    • Tenure: 5.1yrs
    • Compensation: AU$872.34k
  • Aidan Tudehope (47yo)

    Co-Founder

    • Tenure: 27.6yrs
    • Compensation: AU$770.66k
  • Geoff Richardson

    Interim Chief Financial Officer

    • Tenure: 0.3yrs
  • L. Clifton

    Group Executive of Macquarie Telecom

    • Tenure: 0.0yrs
    • Compensation: AU$622.74k
  • J. Mystakidis

    Group Executive of Macquarie Cloud Services

    • Tenure: 0.0yrs
    • Compensation: AU$666.46k
  • Matthew Healy

    National Executive of Legal

    • Tenure: 0.0yrs
  • D. Hirst

    Group Executive

    • Tenure: 0.0yrs
    • Compensation: AU$563.55k
  • Michael Gold

    Company Secretary

    • Tenure: 0.2yrs

Board Members

  • Peter James (69yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: AU$210.79k
  • David Tudehope (52yo)

    Co-Founder

    • Tenure: 5.1yrs
    • Compensation: AU$872.34k
  • Aidan Tudehope (47yo)

    Co-Founder

    • Tenure: 27.6yrs
    • Compensation: AU$770.66k
  • Bart Vogel (62yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$138.24k
  • Anouk Darling (49yo)

    Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$121.82k

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$452.437m
  • Shares outstanding: 21.27m
  • Website: https://www.macquarietelecom.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 1999
MAQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 1999

Biography

Macquarie Telecom Group Limited provides telecommunication and hosting services to corporate and government customers in Australia. It offers voice services, such as fixed-line voice, unified communication ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 10:34
End of Day Share Price2019/08/21 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.