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

Fundamentals

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

-1.0%

MNF

2.0%

AU Telecom

0.03%

AU Market


1 Year Return

25.0%

MNF

10.6%

AU Telecom

15.3%

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 15.3% over the past year.


Shareholder returns

MNFIndustryMarket
7 Day-1.0%2.0%0.03%
30 Day-3.8%0.4%0.5%
90 Day31.6%-3.0%4.7%
1 Year26.7%25.0%14.8%10.6%22.0%15.3%
3 Year7.1%2.2%-12.0%-24.9%40.8%21.6%
5 Year48.9%37.0%-15.1%-34.4%56.1%20.7%

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?

26.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNF (A$5) is trading below our estimate of fair value (A$6.8)

Significantly Below Fair Value: MNF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MNF is good value based on its PE Ratio (32.2x) compared to the Telecom industry average (32.2x).

PE vs Market: MNF is poor value based on its PE Ratio (32.2x) compared to the Australian market (18.5x).


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 (4.3x) compared to the AU Telecom industry average (2.5x).


Next Steps

Future Growth

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

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNF's forecast earnings growth (24.7% per year) is above the savings rate (2.3%).

Earnings vs Market: MNF's earnings (24.7% per year) are forecast to grow faster than the Australian market (9.8% per year).

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

Revenue vs Market: MNF's revenue (12% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: MNF's revenue (12% 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 (18.9%).


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 (-40%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceeds its short term liabilities (A$37.4M)

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

1.22%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%2.4%markettop25%5.6%industryaverage4.2%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: MNF's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: MNF's dividend (1.22%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


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

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

5.8yrs

Average management tenure


CEO

Rene Sugo 0

7.7yrs

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 ($USD375.22K) is about average for companies of similar size in the Australian market ($USD470.53K).

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


Management Age and Tenure

5.8yrs

Average Tenure

Experienced Management: MNF's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

12.9yrs

Average Tenure

65yo

Average Age

Experienced Board: MNF's board of directors are seasoned and experienced ( 12.9 years average tenure).


Insider Trading

Insider Buying: MNF insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellAU$2,482,17102 Oct 19
Andy Fung
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares487,383
Max PriceAU$5.09
BuyAU$500,00017 Sep 19
David Paul Stewart
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$5.00
SellAU$500,00017 Sep 19
Andy Fung
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares100,000
Max PriceAU$5.00
BuyAU$3,080,01423 May 19
Naos Asset Management Limited
EntityCompany
Shares735,062
Max PriceAU$4.19

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rene Sugo

    Co-Founder

    • Tenure: 7.7yrs
    • Compensation: AU$549.37k
  • Catherine Ly

    Treasurer & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$192.80k
  • Chris Last

    Chief Financial Officer

    • Tenure: 0.2yrs
  • Jon Cleaver

    Chief Commercial Officer

    • Tenure: 6.7yrs
  • John Boesen

    Chief Technology Officer

    • Tenure: 0yrs
  • Tim Dunning

    President of Global Commercial Business Unit

    • Tenure: 0yrs
  • Helen Fraser

    General Counsel

    • Tenure: 0yrs
  • Ritsa Hime

    Chief Operating Officer

    • Tenure: 4.8yrs

Board Members

  • Terry Cuthbertson (69yo)

    Non-Executive Chairman

    • Tenure: 13.7yrs
    • Compensation: AU$131.40k
  • Michael Boorne (56yo)

    Non Executive Director

    • Tenure: 12.9yrs
    • Compensation: AU$112.79k
  • David Paul Stewart (65yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Rene Sugo

    Co-Founder

    • Tenure: 7.7yrs
    • Compensation: AU$549.37k
  • Andy Fung

    Non Executive Director

    • Tenure: 7.7yrs
    • Compensation: AU$90.23k

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$420.301m
  • Shares outstanding: 84.06m
  • 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 Analysis2019/11/14 10:33
End of Day Share Price2019/11/14 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.