ASX:MNF

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MNF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.7%

MNF

-1.8%

AU Telecom

0.3%

AU Market


1 Year Return

9.2%

MNF

-10.7%

AU Telecom

-22.9%

AU Market

Return vs Industry: MNF exceeded the Australian Telecom industry which returned -10.6% over the past year.

Return vs Market: MNF exceeded the Australian Market which returned -22.8% over the past year.


Shareholder returns

MNFIndustryMarket
7 Day17.7%-1.8%0.3%
30 Day8.9%-13.0%-27.8%
90 Day-7.6%-15.9%-30.0%
1 Year10.8%9.2%-7.5%-10.7%-19.4%-22.9%
3 Year-0.5%-4.8%-22.0%-32.9%-8.3%-20.8%
5 Year40.3%29.4%-34.9%-49.6%2.9%-20.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNF (A$4.53) is trading below our estimate of fair value (A$5.67)

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


Price To Earnings Ratio

PE vs Industry: MNF is poor value based on its PE Ratio (29.1x) compared to the Telecom industry average (25.6x).

PE vs Market: MNF is poor value based on its PE Ratio (29.1x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: MNF is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MNF is overvalued based on its PB Ratio (3.9x) compared to the AU Telecom industry average (1.8x).


Next Steps

Future Growth

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

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNF's forecast earnings growth (22.9% per year) is above the savings rate (1.1%).

Earnings vs Market: MNF's earnings (22.9% per year) are forecast to grow faster than the Australian market (10% per year).

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

Revenue vs Market: MNF's revenue (8.4% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: MNF's revenue (8.4% 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 (14.3%).


Next Steps

Past Performance

How has MNF Group performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: MNF's current net profit margins (5.3%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: MNF's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: MNF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MNF had negative earnings growth (-3.9%) over the past year, making it difficult to compare to the Telecom industry average (-8.9%).


Return on Equity

High ROE: MNF's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is MNF Group's financial position?


Financial Position Analysis

Short Term Liabilities: MNF's short term assets (A$59.9M) exceed its short term liabilities (A$37.4M).

Long Term Liabilities: MNF's short term assets (A$59.9M) do not cover its long term liabilities (A$60.6M).


Debt to Equity History and Analysis

Debt Level: MNF's debt to equity ratio (66.6%) is considered high.

Reducing Debt: MNF's debt to equity ratio has increased from 0.1% to 66.6% over the past 5 years.

Debt Coverage: MNF's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: MNF's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: MNF has a low level of unsold assets or inventory.

Debt Coverage by Assets: MNF's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNF's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (3.37%).

High Dividend: MNF's dividend (1.43%) is low compared to the top 25% of dividend payers in the Australian market (8.57%).


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?

6.1yrs

Average management tenure


CEO

Rene Sugo

8s

Tenure

AU$549,365

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. He joined Lucent Technolo ...


CEO Compensation Analysis

Compensation vs Market: Rene's total compensation ($USD336.95K) is below average for companies of similar size in the Australian market ($USD591.04K).

Compensation vs Earnings: Rene's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rene Sugo
Co-Founder8yrsAU$549.37k14.27% A$54.5m
Catherine Ly
Treasurer & Company Secretaryno dataAU$192.80k0.36% A$1.4m
Christopher Last
Chief Financial Officer0.50yrno datano data
Ritsa Hime
Chief Operating Officer5.17yrsno datano data
John Boesen
Chief Technology Officerno datano datano data
Helen Fraser
General Counselno datano datano data
Jon Cleaver
Chief Commercial Officer7yrsno datano data
Tim Dunning
President of Global Commercial Business Unitno datano datano data

6.1yrs

Average Tenure

Experienced Management: MNF's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rene Sugo
Co-Founder8yrsAU$549.37k14.27% A$54.5m
Terry Cuthbertson
Non-Executive Chairman14yrsAU$131.40k1.09% A$4.2m
Michael Boorne
Non Executive Director13.25yrsAU$112.79k0.84% A$3.2m
David Paul Stewart
Independent Non-Executive Director0.58yrno data0.24% A$906.0k
Andy Fung
Non Executive Director8yrsAU$90.23k16.17% A$61.7m

13.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MNF's board of directors are seasoned and experienced ( 13.3 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 company bio, 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$381.637m
  • Shares outstanding: 84.25m
  • Website: https://www.mnfgroup.limited

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2006
MNFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2006

Biography

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 three segments: Domestic Retail, Domestic Wholesale, and Global Wholesale. The company’s products include MyNetFone that provides voice and Internet services; Symbio Networks, which offers IP voice carriage services and software through in-country voice infrastructure and platforms; Connexus; and CallStream that provides inbound business phone numbers. It also offers Pennytel that provides SIM-only mobile services; theBuzz; iBoss, a software-as-a-service platform, which enables users to start and scale their own telecommunications business; and TNZI, a global voice business servicing international carriage service providers, regional telecommunications networks, and multi-national enterprises. In addition, the company provides TollShield, a real-time toll fraud mitigation software for networks and carriers; Telcoinabox, a wholesale telecommunications aggregator; OCA Softswitch that delivers converged voice, data, and multi-media services for carriers and enterprises; Supernet, a licensed independent facilities based operator; MNF Enterprise, an enterprise and government telecommunications solution; and audio conferencing and collaboration services. Further, it provides hardware, equipment, and consulting services to support its products. The company was formerly known as My Net Fone Limited and changed its name to MNF Group Limited in October 2015. MNF Group Limited was founded in 2004 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 Analysis2020/03/28 10:38
End of Day Share Price2020/03/27 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.