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 Analysis

Excellent balance sheet and slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

23.9%

MAQ

1.3%

AU Telecom

1.1%

AU Market


1 Year Return

22.7%

MAQ

-3.8%

AU Telecom

-18.9%

AU Market

Return vs Industry: MAQ exceeded the Australian Telecom industry which returned -3.8% over the past year.

Return vs Market: MAQ exceeded the Australian Market which returned -18.9% over the past year.


Shareholder returns

MAQIndustryMarket
7 Day23.9%1.3%1.1%
30 Day-4.7%-9.7%-20.8%
90 Day5.8%-10.1%-25.0%
1 Year22.7%22.7%-0.2%-3.8%-15.2%-18.9%
3 Year100.7%92.5%-15.5%-27.5%-2.6%-16.0%
5 Year477.2%401.0%-31.2%-46.7%7.9%-16.4%

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$24.55) is trading below our estimate of fair value (A$127.81)

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 (35x) compared to the Telecom industry average (26.9x).

PE vs Market: MAQ is poor value based on its PE Ratio (35x) compared to the Australian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: MAQ is poor value based on its PEG Ratio (106.9x)


Price to Book Ratio

PB vs Industry: MAQ is overvalued based on its PB Ratio (4.6x) compared to the AU Telecom industry average (2x).


Next Steps

Future Growth

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

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAQ's forecast earnings growth (0.3% per year) is below the savings rate (1.1%).

Earnings vs Market: MAQ's earnings (0.3% per year) are forecast to grow slower than the Australian market (10.1% per year).

High Growth Earnings: MAQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: MAQ's revenue (7.4% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: MAQ's revenue (7.4% 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 (10.7%).


Next Steps

Past Performance

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

44.3%

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 (5.8%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: MAQ has become profitable over the past 5 years, growing earnings by 44.3% per year.

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 (-13.9%) over the past year, making it difficult to compare to the Telecom industry average (-8.9%).


Return on Equity

High ROE: MAQ's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is Macquarie Telecom Group's financial position?


Financial Position Analysis

Short Term Liabilities: MAQ's short term assets (A$41.5M) exceed its short term liabilities (A$40.3M).

Long Term Liabilities: MAQ's short term assets (A$41.5M) do not cover its long term liabilities (A$91.7M).


Debt to Equity History and Analysis

Debt Level: MAQ's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: MAQ's debt to equity ratio has reduced from 32.4% to 6.1% over the past 5 years.

Debt Coverage: MAQ's debt is well covered by operating cash flow (544.1%).

Interest Coverage: MAQ's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

Inventory Level: MAQ has a high level of physical assets or inventory.

Debt Coverage by Assets: MAQ's debt is covered by short term assets (assets are 5.9x debt).


Next Steps

Dividend

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

0.85%

Forecast Dividend Yield


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 payouts.

High Dividend: Unable to evaluate MAQ's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

6.9yrs

Average board tenure


CEO

David Tudehope (52yo)

5.75s

Tenure

AU$1,234,300

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

Compensation vs Market: David's total compensation ($USD747.11K) is about average for companies of similar size in the Australian market ($USD781.69K).

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


Board Members

NamePositionTenureCompensationOwnership
David Tudehope
Co-Founder5.75yrsAU$1.23m56.22% A$305.4m
Aidan Tudehope
Co-Founder28.25yrsAU$1.12m0.00019% A$1.0k
Peter James
Chairman5.75yrsAU$219.00k0.090% A$487.0k
Bart Vogel
Non-Executive Director5.75yrsAU$142.35k0.11% A$584.3k
Adelle Howse
Independent Non-executive Director0.67yrno datano data
Anouk Darling
Non-Executive Director8.08yrsAU$125.93k0.018% A$95.2k

6.9yrs

Average Tenure

52yo

Average Age

Experienced Board: MAQ's board of directors are considered experienced (6.9 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$543.275m
  • Shares outstanding: 21.31m
  • 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 communications, and video and Web conferencing services; managed mobility services and mobile management tools; and cloud services, including hybrid, VMWare, and private cloud services, as well as dedicated servers, colocation, managed hosting, management tools, SD-WAN, and data center extension services. The company 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 Limited was founded in 1992 and is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 10:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.