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MNF

MNF GroupASX:MNF Stock Report

Market Cap

AU$592.7m

7D

5.1%

1Y

55.9%

Updated

24 Oct, 2021

Data

Company Financials +
MNF fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance5/6
Financial Health6/6
Dividends0/6

MNF Overview

MNF Group Limited, together with subsidiaries, provides voice, data, and cloud-based communication and communication enablement services to residential, business, government, and wholesale customers in Australia and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for MNF Group
Historical stock prices
Current Share PriceAU$7.00
52 Week HighAU$4.14
52 Week LowAU$7.20
Beta0.35
1 Month Change7.69%
3 Month Change30.11%
1 Year Change55.90%
3 Year Change66.67%
5 Year Change42.28%
Change since IPO2,757.14%

Recent News & Updates

Jun 09
MNF Group (ASX:MNF) Seems To Use Debt Quite Sensibly

MNF Group (ASX:MNF) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

MNFAU TelecomAU Market
7D5.1%-1.8%0.6%
1Y55.9%30.7%21.3%

Return vs Industry: MNF exceeded the Australian Telecom industry which returned 30.7% over the past year.

Return vs Market: MNF exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is MNF's price volatile compared to industry and market?
MNF volatility
MNF Beta0.35
Industry Beta0.59
Market Beta1

Stable Share Price: MNF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MNF's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004400Rene Sugohttps://www.mnfgroup.limited

MNF Group Limited, together with subsidiaries, provides voice, data, and cloud-based communication and communication enablement services to residential, business, government, and wholesale customers in Australia and internationally. It operates through Domestic Wholesale, Direct, and Global Wholesale segments. The Domestic Wholesale segment provides Australian and New Zealand phone numbers with number portability, terminating calls in Australia / New Zealand, software for telecom billing and compliance management, and white label cloud phone systems and mobile services to retail service providers, managed services providers, and IT companies under the Symbio Networks, iBoss, TelcoInaBox, and Comms Code brands.

MNF Group Fundamentals Summary

How do MNF Group's earnings and revenue compare to its market cap?
MNF fundamental statistics
Market CapAU$592.71m
Earnings (TTM)AU$11.88m
Revenue (TTM)AU$203.74m

49.9x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MNF income statement (TTM)
RevenueAU$203.74m
Cost of RevenueAU$111.14m
Gross ProfitAU$92.60m
ExpensesAU$80.72m
EarningsAU$11.88m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin45.45%
Net Profit Margin5.83%
Debt/Equity Ratio0%

How did MNF perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

49.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MNF (A$7) is trading above our estimate of fair value (A$6.44)

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


Price To Earnings Ratio

PE vs Industry: MNF is good value based on its PE Ratio (49.9x) compared to the Australian Telecom industry average (57x).

PE vs Market: MNF is poor value based on its PE Ratio (49.9x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: MNF is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: MNF is overvalued based on its PB Ratio (4x) compared to the AU Telecom industry average (3.4x).


Future Growth

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

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNF's forecast earnings growth (16.5% per year) is above the savings rate (1.9%).

Earnings vs Market: MNF's earnings (16.5% per year) are forecast to grow faster than the Australian market (11.5% per year).

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

Revenue vs Market: MNF's revenue (9.4% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: MNF's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNF's Return on Equity is forecast to be low in 3 years time (13.4%).


Past Performance

How has MNF Group performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNF has high quality earnings.

Growing Profit Margin: MNF's current net profit margins (5.8%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: MNF's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: MNF's earnings growth over the past year (45.8%) exceeds its 5-year average (2% per year).

Earnings vs Industry: MNF earnings growth over the past year (45.8%) exceeded the Telecom industry 2.1%.


Return on Equity

High ROE: MNF's Return on Equity (7.9%) is considered low.


Financial Health

How is MNF Group's financial position?


Financial Position Analysis

Short Term Liabilities: MNF's short term assets (A$75.7M) exceed its short term liabilities (A$37.2M).

Long Term Liabilities: MNF's short term assets (A$75.7M) exceed its long term liabilities (A$22.4M).


Debt to Equity History and Analysis

Debt Level: MNF is debt free.

Reducing Debt: MNF has no debt compared to 5 years ago when its debt to equity ratio was 34.9%.

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

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


Balance Sheet


Dividend

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

1.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNF's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: MNF's dividend (1.09%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).


Stability and Growth of Payments

Stable Dividend: MNF is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: MNF is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

Rene Sugo

9.58yrs

Tenure

AU$956,772

Compensation

Mr. Rene Sugo, B.Eng. (Hon), Co-founded MNF Group Limited and has been its Chief Executive Officer since March 1, 2012. Mr. Sugo served as Technical Director of MNF Group Limited. Mr Sugo started his caree...


CEO Compensation Analysis

Compensation vs Market: Rene's total compensation ($USD714.86K) is about average for companies of similar size in the Australian market ($USD715.89K).

Compensation vs Earnings: Rene's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MNF's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: MNF's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MNF 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

MNF Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: MNF Group Limited
  • Ticker: MNF
  • Exchange: ASX
  • Founded: 2004
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: AU$592.709m
  • Shares outstanding: 84.67m
  • Website: https://www.mnfgroup.limited

Number of Employees


Location

  • MNF Group Limited
  • 580 George Street
  • Level 4
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 07:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.