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MNF Group

ASX:MNF
Snowflake Description

High growth potential and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MNF
ASX
A$247M
Market Cap
  1. Home
  2. AU
  3. Telecom
Company description

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. The last earnings update was 145 days ago. More info.


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  • MNF Group has significant price volatility in the past 3 months.
MNF Share Price and Events
7 Day Returns
-6.1%
ASX:MNF
-1.4%
AU Telecom
0%
AU Market
1 Year Returns
-35.9%
ASX:MNF
27.9%
AU Telecom
4.8%
AU Market
MNF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MNF Group (MNF) -6.1% -7.4% -26.6% -35.9% -18% 19.1%
AU Telecom -1.4% -1.4% 7% 27.9% -37.3% -26%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • MNF underperformed the Telecom industry which returned 27.9% over the past year.
  • MNF underperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
MNF
Industry
5yr Volatility vs Market

Value

 Is MNF Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MNF Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MNF Group.

ASX:MNF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MNF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.349 (1 + (1- 30%) (22.09%))
0.6
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:MNF using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MNF Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:MNF DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 14.70 Analyst x2 13.73
2021 17.20 Analyst x2 15.00
2022 19.21 Est @ 11.67% 15.64
2023 20.91 Est @ 8.86% 15.90
2024 22.35 Est @ 6.9% 15.88
2025 23.59 Est @ 5.52% 15.65
2026 24.66 Est @ 4.56% 15.28
2027 25.62 Est @ 3.89% 14.82
2028 26.50 Est @ 3.41% 14.32
2029 27.31 Est @ 3.08% 13.78
Present value of next 10 years cash flows A$150.00
ASX:MNF DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$27.31 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$586.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$586.07 ÷ (1 + 7.08%)10
A$295.71
ASX:MNF Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$150.00 + A$295.71
A$445.71
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$445.71 / 73.41
A$6.07
ASX:MNF Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$6.07
Current discount Discount to share price of A$3.36
= -1 x (A$3.36 - A$6.07) / A$6.07
44.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MNF Group is available for.
Intrinsic value
45%
Share price is A$3.36 vs Future cash flow value of A$6.07
Current Discount Checks
For MNF Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MNF Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MNF Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MNF Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MNF Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MNF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.12
ASX:MNF Share Price ** ASX (2019-07-19) in AUD A$3.36
Australia Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Telecom Companies 27.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MNF Group.

ASX:MNF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MNF Share Price ÷ EPS (both in AUD)

= 3.36 ÷ 0.12

27.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MNF Group is good value based on earnings compared to the AU Telecom industry average.
  • MNF Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does MNF Group's expected growth come at a high price?
Raw Data
ASX:MNF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
30.7%per year
Australia Telecom Industry PEG Ratio Median Figure of 7 Publicly-Listed Telecom Companies 2.14x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:MNF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.72x ÷ 30.7%

0.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MNF Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on MNF Group's assets?
Raw Data
ASX:MNF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.06
ASX:MNF Share Price * ASX (2019-07-19) in AUD A$3.36
Australia Telecom Industry PB Ratio Median Figure of 14 Publicly-Listed Telecom Companies 2.4x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:MNF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MNF Share Price ÷ Book Value per Share (both in AUD)

= 3.36 ÷ 1.06

3.18x

* Primary Listing of MNF Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MNF Group is overvalued based on assets compared to the AU Telecom industry average.
X
Value checks
We assess MNF Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. MNF Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MNF Group expected to grow at an attractive rate?
  • MNF Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • MNF Group's earnings growth is expected to exceed the Australia market average.
  • MNF Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:MNF Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:MNF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 30.7%
ASX:MNF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 13.7%
Australia Telecom Industry Earnings Growth Rate Market Cap Weighted Average 9.4%
Australia Telecom Industry Revenue Growth Rate Market Cap Weighted Average -0.6%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MNF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MNF Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 301 30 20 3
2020-06-30 271 26 16 3
2019-06-30 238 10 11 4
ASX:MNF Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 202 0 9
2018-09-30 211 -8 10
2018-06-30 221 -16 12
2018-03-31 219 -16 13
2017-12-31 217 -15 13
2017-09-30 204 -1 13
2017-06-30 192 13 12
2017-03-31 180 34 11
2016-12-31 169 55 10
2016-09-30 165 53 9
2016-06-30 161 52 9
2016-03-31 150 32 9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MNF Group's earnings are expected to grow significantly at over 20% yearly.
  • MNF Group's revenue is expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MNF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from MNF Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MNF Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.28 0.28 0.28 1.00
2020-06-30 0.23 0.23 0.23 1.00
2019-06-30 0.16 0.16 0.16 1.00
ASX:MNF Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.12
2018-09-30 0.14
2018-06-30 0.16
2018-03-31 0.17
2017-12-31 0.18
2017-09-30 0.18
2017-06-30 0.17
2017-03-31 0.16
2016-12-31 0.15
2016-09-30 0.14
2016-06-30 0.13
2016-03-31 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • MNF Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess MNF Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MNF Group has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has MNF Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MNF Group's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MNF Group's year on year earnings growth rate has been positive over the past 5 years.
  • MNF Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MNF Group's 1-year earnings growth is negative, it can't be compared to the AU Telecom industry average.
Earnings and Revenue History
MNF Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MNF Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MNF Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 202.21 8.87 35.97
2018-09-30 211.47 10.36 34.72
2018-06-30 220.73 11.86 33.47
2018-03-31 218.87 12.56 31.98
2017-12-31 217.00 13.26 30.48
2017-09-30 204.38 12.66 29.07
2017-06-30 191.75 12.07 27.67
2017-03-31 180.20 10.96 26.73
2016-12-31 168.65 9.85 25.80
2016-09-30 164.93 9.42 24.21
2016-06-30 161.22 8.99 22.62
2016-03-31 150.28 8.53 20.51
2015-12-31 139.34 8.08 18.39
2015-09-30 112.51 7.63 16.69
2015-06-30 85.68 7.18 14.99
2015-03-31 73.41 6.85 13.68
2014-12-31 61.14 6.52 12.38
2014-09-30 60.22 6.15 12.28
2014-06-30 59.31 5.78 12.19
2014-03-31 57.78 5.40 12.61
2013-12-31 56.26 5.01 13.04
2013-09-30 51.23 4.58 11.81
2013-06-30 46.21 4.14 10.58
2013-03-31 42.01 3.89 9.17
2012-12-31 37.81 3.64 7.75
2012-09-30 38.05 3.35 7.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MNF Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MNF Group used its assets more efficiently than the AU Telecom industry average last year based on Return on Assets.
  • MNF Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MNF Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MNF Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is MNF Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MNF Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MNF Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MNF Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MNF Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MNF Group Company Filings, last reported 6 months ago.

ASX:MNF Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 77.61 54.49 10.49
2018-09-30 77.61 54.49 10.49
2018-06-30 76.23 10.77 18.87
2018-03-31 76.23 10.77 18.87
2017-12-31 72.01 10.06 21.72
2017-09-30 72.01 10.06 21.72
2017-06-30 68.35 11.33 52.36
2017-03-31 68.35 11.33 52.36
2016-12-31 42.90 13.31 54.66
2016-09-30 42.90 13.31 54.66
2016-06-30 38.97 13.97 52.89
2016-03-31 38.97 13.97 52.89
2015-12-31 35.62 15.04 10.86
2015-09-30 35.62 15.04 10.86
2015-06-30 19.05 25.31 6.29
2015-03-31 19.05 25.31 6.29
2014-12-31 15.99 0.00 4.18
2014-09-30 15.99 0.00 4.18
2014-06-30 14.24 0.00 7.44
2014-03-31 14.24 0.00 7.44
2013-12-31 12.09 0.00 3.95
2013-09-30 12.09 0.00 3.95
2013-06-30 10.78 0.00 4.81
2013-03-31 10.78 0.00 4.81
2012-12-31 9.03 0.00 2.52
2012-09-30 9.03 0.00 2.52
  • MNF Group's level of debt (70.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.6% vs 70.2% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 41.8x coverage).
X
Financial health checks
We assess MNF Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MNF Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.25%
Current annual income from MNF Group dividends. Estimated to be 3.58% next year.
If you bought A$2,000 of MNF Group shares you are expected to receive A$25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MNF Group's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • MNF Group's dividend is below the markets top 25% of dividend payers in Australia (5.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MNF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Oceania Telecom Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MNF Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.13 3.00
2020-06-30 0.11 3.00
2019-06-30 0.09 4.00
ASX:MNF Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.042 1.071
2018-08-27 0.084 1.933
2018-02-12 0.088 1.677
2017-08-14 0.090 1.552
2017-02-13 0.075 1.643
2016-08-15 0.070 1.516
2016-02-15 0.070 1.870
2015-08-24 0.065 1.935
2015-02-17 0.050 1.447
2014-08-11 0.050 1.587
2014-02-12 0.040 1.763
2013-08-21 0.040 2.613
2013-02-27 0.030 2.310
2012-08-27 0.030 3.339
2012-08-22 0.030 4.205
2012-02-29 0.016 3.256
2011-08-11 0.016 8.563
2011-02-21 0.010 4.908
2010-08-24 0.008 4.213

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MNF Group is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • MNF Group is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of MNF Group's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of MNF Group's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess MNF Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MNF Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MNF Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of MNF Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rene Sugo
COMPENSATION A$683,968
TENURE AS CEO 7.3 years
CEO Bio

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 Technologies following the acquisition of JNA by Lucent and served as Director of System Engineering of Lucent softswitch products in Australia and Asia Pacific. He joined JNA, was responsible for technical design and development of innovative data products. At Lucent, Mr. Sugo took a lead technical role in developing Lucent softswitch VoIP solutions to meet carriers' plans and strategies in its evolution from PSTN to a fully Internet based Next Generation Network. He is well placed in the telecommunications industry with strong experiences in both data and voice technologies and standards. He has been an Executive Director of MNF Group Limited since March 8, 2006. Mr. Sugo holds a Bachelor of Engineering degree with honors from the University of Technology Sydney, Australia.

CEO Compensation
  • Rene's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rene's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the MNF Group management team in years:

6.1
Average Tenure
  • The average tenure for the MNF Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Rene Sugo

TITLE
Co-Founder
COMPENSATION
A$684K
TENURE
7.3 yrs

Matt Gepp

TITLE
Chief Financial Officer
COMPENSATION
A$494K
TENURE
5.9 yrs

Catherine Ly

TITLE
Treasurer & Company Secretary
COMPENSATION
A$187K

Ritsa Hime

TITLE
Chief Operating Officer
TENURE
4.5 yrs

John Boesen

TITLE
Chief Technology Officer

Helen Fraser

TITLE
General Counsel

Jon Cleaver

TITLE
Chief Commercial Officer
TENURE
6.3 yrs

Tim Dunning

TITLE
President of Global Commercial Business Unit
Board of Directors Tenure

Average tenure of the MNF Group board of directors in years:

13.3
Average Tenure
  • The average tenure for the MNF Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Terry Cuthberston

TITLE
Non-Executive Chairman
COMPENSATION
A$131K
AGE
69
TENURE
13.3 yrs

Rene Sugo

TITLE
Co-Founder
COMPENSATION
A$684K
TENURE
13.3 yrs

Michael Boorne

TITLE
Non Executive Director
COMPENSATION
A$110K
AGE
56
TENURE
12.6 yrs

Andy Fung

TITLE
Non Executive Director
COMPENSATION
A$88K
TENURE
13.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
23. May 19 Buy Naos Asset Management Limited Company 20. May 19 20. May 19 735,062 A$4.19 A$3,080,014
X
Management checks
We assess MNF Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MNF Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

These 4 Measures Indicate That MNF Group (ASX:MNF) Is Using Debt Extensively

ASX:MNF Historical Debt, July 16th 2019 How Strong Is MNF Group's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching MNF Group's balance sheet over time. … Over the last three years, MNF Group reported free cash flow worth 10% of its EBIT, which is really quite low.

Simply Wall St -

Is MNF Group Limited's (ASX:MNF) CEO Paid Enough Relative To Peers?

See our latest analysis for MNF Group How Does Rene Sugo's Compensation Compare With Similar Sized Companies? … Our data indicates that MNF Group Limited is worth AU$272m, and total annual CEO compensation is AU$684k. … On average over the last three years, MNF Group Limited has grown earnings per share (EPS) by 5.0% each year (using a line of best fit).

Simply Wall St -

An Intrinsic Calculation For MNF Group Limited (ASX:MNF) Suggests It's 32% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of MNF Group Limited (ASX:MNF) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (A$, Millions) A$-4.70 A$14.70 A$17.20 A$19.21 A$20.91 A$22.35 A$23.59 A$24.66 A$25.62 A$26.50 Growth Rate Estimate Source Analyst x1 Analyst x2 Analyst x2 Est @ 11.67% Est @ 8.86% Est @ 6.9% Est @ 5.52% Est @ 4.56% Est @ 3.89% Est @ 3.41% Present Value (A$, Millions) Discounted @ 7.08% A$-4.39 A$12.82 A$14.01 A$14.61 A$14.85 A$14.83 A$14.61 A$14.27 A$13.84 A$13.37 Present Value of 10-year Cash Flow (PVCF)= A$122.82m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = AU$26m × (1 + 2.3%) ÷ (7.1% – 2.3%) = AU$569m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = A$AU$569m ÷ ( 1 + 7.1%)10 = A$286.87m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is A$409.69m.

Simply Wall St -

What Percentage Of MNF Group Limited (ASX:MNF) Shares Do Insiders Own?

Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. … View our latest analysis for MNF Group ASX:MNF Ownership Summary, May 28th 2019 What Does The Institutional Ownership Tell Us About MNF Group? … Insider Ownership Of MNF Group The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Should You Be Impressed By MNF Group Limited's (ASX:MNF) ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every A$1 worth of shareholders' equity, it generated A$0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do You Like MNF Group Limited (ASX:MNF) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll apply a basic P/E ratio analysis to MNF Group Limited's (ASX:MNF), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

MNF Group Limited (ASX:MNF) Is Employing Capital Very Effectively

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Did MNF Group's Share Price Deserve to Gain 80%?

MNF Group Limited (ASX:MNF) shareholders have seen the share price descend 13% over the month. … After all, the share price is up a market-beating 80% in that time. … During five years of share price growth, MNF Group achieved compound earnings per share (EPS) growth of 8.5% per year.

Simply Wall St -

How Should Investors Feel About MNF Group Limited's (ASX:MNF) CEO Pay?

In 2012 Rene Sugo was appointed CEO of MNF Group Limited (ASX:MNF). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Rene Sugo's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is There An Opportunity With MNF Group Limited's (ASX:MNF) 33.96% Undervaluation?

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Company Info

Description

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; 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.

Details
Name: MNF Group Limited
MNF
Exchange: ASX
Founded: 2004
A$246,658,658
73,410,315
Website: http://www.mnfgroup.limited
Address: MNF Group Limited
580 George Street,
Level 4,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MNF Ordinary Shares Australian Securities Exchange AU AUD 18. May 2006
CHIA MNF Ordinary Shares Chi-X Australia AU AUD 18. May 2006
Number of employees
Current staff
Staff numbers
0
MNF Group employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:35
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.