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 acceptable track record.


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

0.2%

MAQ

2.0%

AU Telecom

-0.2%

AU Market


1 Year Return

3.0%

MAQ

7.0%

AU Telecom

10.5%

AU Market

Return vs Industry: MAQ underperformed the Australian Telecom industry which returned 7% over the past year.

Return vs Market: MAQ underperformed the Australian Market which returned 10.5% over the past year.


Shareholder returns

MAQIndustryMarket
7 Day0.2%2.0%-0.2%
30 Day2.0%-1.7%-1.4%
90 Day0%-4.1%-1.0%
1 Year3.0%3.0%11.0%7.0%16.9%10.5%
3 Year106.9%94.8%-15.5%-27.9%36.9%18.6%
5 Year397.2%331.5%-11.5%-31.8%50.2%16.2%

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?

29.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MAQ (A$23) is trading above our estimate of fair value (A$6.11)

Significantly Below Fair Value: MAQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MAQ is good value based on its PE Ratio (29.5x) compared to the Telecom industry average (34.4x).

PE vs Market: MAQ is poor value based on its PE Ratio (29.5x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MAQ is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: MAQ is overvalued based on its PB Ratio (4.6x) compared to the AU Telecom industry average (2.5x).


Next Steps

Future Growth

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

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAQ's forecast earnings growth (14% per year) is above the savings rate (2.3%).

Earnings vs Market: MAQ's earnings (14% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: MAQ's revenue (6.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MAQ's revenue (6.4% 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 (14.9%).


Next Steps

Past Performance

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

55.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MAQ has become profitable over the past 5 years, growing earnings by 55.7% 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 (-3.1%) over the past year, making it difficult to compare to the Telecom industry average (-40%).


Return on Equity

High ROE: MAQ's Return on Equity (15.4%) is considered low.


Return on Assets

ROA vs Industry: MAQ has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: MAQ has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Macquarie Telecom Group's financial position?


Financial Position Analysis

Short Term Liabilities: MAQ's short term assets (A$46.6M) exceeds its short term liabilities (A$43.0M)

Long Term Liabilities: MAQ's short term assets (46.6M) exceeds its long term liabilities (11.6M)


Debt to Equity History and Analysis

Debt Level: MAQ is debt free.

Reducing Debt: MAQ has no debt compared to 5 years ago when its debt to equity ratio was 25.7%.

Debt Coverage: MAQ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MAQ has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if MAQ's debt is covered by short term assets.


Next Steps

Dividend

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

1.27%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage4.2%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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)

5.3yrs

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 ($USD845.01K) is about average for companies of similar size in the Australian market ($USD735.92K).

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


Management Age and Tenure

0.3yrs

Average Tenure

Experienced Management: MAQ's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.4yrs

Average Tenure

52yo

Average Age

Experienced Board: MAQ's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$6,144,75825 Sep 19
Australian Ethical Investment Ltd
EntityCompany
Shares289,139
Max PriceAU$26.55
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: 5.3yrs
    • Compensation: AU$1.23m
  • Aidan Tudehope (47yo)

    Co-Founder

    • Tenure: 27.8yrs
    • Compensation: AU$1.12m
  • Luke Clifton

    Group Executive of Macquarie Telecom

    • Tenure: 0yrs
    • Compensation: AU$616.91k
  • James Mystakidis

    Group Executive of Macquarie Cloud Services

    • Tenure: 0yrs
    • Compensation: AU$711.10k
  • David Hirst

    Group Executive

    • Tenure: 0yrs
    • Compensation: AU$616.17k
  • Michael Gold

    Company Secretary & General Counsel for the Group

    • Tenure: 0.3yrs
  • Helen Cox

    Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • Peter James (69yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: AU$219.00k
  • David Tudehope (52yo)

    Co-Founder

    • Tenure: 5.3yrs
    • Compensation: AU$1.23m
  • Aidan Tudehope (47yo)

    Co-Founder

    • Tenure: 27.8yrs
    • Compensation: AU$1.12m
  • Bart Vogel (62yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$142.35k
  • Adelle Howse

    Independent Non-executive Director

    • Tenure: 0.2yrs
  • Anouk Darling (49yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: AU$125.93k

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$478.213m
  • Shares outstanding: 21.24m
  • 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 Analysis2019/10/21 10:33
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.