ASX:MNF

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

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

0.2%

MNF

-2.3%

AU Telecom

-3.5%

AU Market


1 Year Return

-15.1%

MNF

-18.6%

AU Telecom

-9.2%

AU Market

Return vs Industry: MNF exceeded the Australian Telecom industry which returned -18.6% over the past year.

Return vs Market: MNF underperformed the Australian Market which returned -9.2% over the past year.


Shareholder returns

MNFIndustryMarket
7 Day0.2%-2.3%-3.5%
30 Day-2.2%-4.8%0.5%
90 Day-17.3%-15.3%2.3%
1 Year-13.9%-15.1%-14.9%-18.6%-6.0%-9.2%
3 Year-19.0%-22.4%-7.1%-20.1%12.4%-1.8%
5 Year48.8%37.6%-31.4%-47.8%39.6%10.8%

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?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNF (A$4.5) is trading below our estimate of fair value (A$5.69)

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 (30.2x) compared to the AU Telecom industry average (25.5x).

PE vs Market: MNF is poor value based on its PE Ratio (30.2x) compared to the Australian market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: MNF is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: MNF's PB Ratio (2.7x) is in line with the AU Telecom industry average.


Next Steps

Future Growth

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

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNF's forecast earnings growth (19.7% per year) is above the savings rate (2.3%).

Earnings vs Market: MNF's earnings (19.7% per year) are forecast to grow faster than the Australian market (18.3% per year).

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

Revenue vs Market: MNF's revenue (7.8% per year) is forecast to grow faster than the Australian market (5% per year).

High Growth Revenue: MNF's revenue (7.8% 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 (14.8%).


Next Steps

Past Performance

How has MNF Group performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNF has high quality earnings.

Growing Profit Margin: MNF's current net profit margins (5.2%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: MNF's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: MNF's earnings growth over the past year (19.9%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: MNF earnings growth over the past year (19.9%) exceeded the Telecom industry 6.8%.


Return on Equity

High ROE: MNF's Return on Equity (8.6%) 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$90.1M) exceed its short term liabilities (A$41.2M).

Long Term Liabilities: MNF's short term assets (A$90.1M) exceed its long term liabilities (A$54.7M).


Debt to Equity History and Analysis

Debt Level: MNF's debt to equity ratio (22.2%) is considered satisfactory.

Reducing Debt: MNF's debt to equity ratio has reduced from 108.7% to 22.2% over the past 5 years.

Debt Coverage: MNF's debt is well covered by operating cash flow (93.6%).

Interest Coverage: MNF's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MNF's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.17%).

High Dividend: MNF's dividend (1.44%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).


Stability and Growth of Payments

Stable Dividend: MNF's dividend payments have been volatile in the past 10 years.

Growing Dividend: MNF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41%), MNF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNF's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Rene Sugo

8.58yrs

Tenure

AU$650,968

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 ($USD456.56K) is about average for companies of similar size in the Australian market ($USD523.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rene Sugo
Co-Founder8.58yrsAU$650.97k8.41%
A$ 32.0m
Christopher Last
Chief Financial Officer1.08yrsAU$467.96k0.012%
A$ 46.3k
Le Ly
Treasurer & Company Secretaryno dataAU$197.53k0.36%
A$ 1.4m
Ritsa Hime
Chief Operating Officer5.75yrsno datano data
John Boesen
Chief Technology Officer2.33yrsno datano data
Helen Fraser
General Counselno datano datano data
Jon Cleaver
Chief Executive of Wholesale7.58yrsno datano data
Iain Falshaw
Chief Executive of Direct0.92yrno datano data
Tim Dunning
President of Global Commercial Business Unitno datano datano data

4.0yrs

Average Tenure

Experienced Management: MNF's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rene Sugo
Co-Founder8.58yrsAU$650.97k8.41%
A$ 32.0m
Terry Cuthbertson
Non-Executive Chairman14.58yrsAU$131.40k1.01%
A$ 3.9m
Michael Boorne
Independent Non Executive Director13.83yrsAU$112.79k0.46%
A$ 1.7m
David Paul Stewart
Independent Non-Executive Director1.17yrsAU$71.98k0.30%
A$ 1.1m
Andy Fung
Co- Founder & Non Executive Director8.58yrsAU$90.23k16.14%
A$ 61.3m
Gail Pemberton
Independent Non-Executive Director0.083yrno data0.020%
A$ 77.1k

11.2yrs

Average Tenure

66.5yo

Average Age

Experienced Board: MNF's board of directors are seasoned and experienced ( 11.2 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 been diluted in the past year, with total shares outstanding growing by 14.7%.


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$380.137m
  • Shares outstanding: 84.47m
  • 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 Aus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 10:35
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.