TSX:MSI

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Executive Summary

Morneau Shepell Inc. operates as a human resources (HR) consulting and technology company in Canada, the United States, and internationally. More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Morneau Shepell's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MSI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

MSI

-1.4%

CA Professional Services

-0.5%

CA Market


1 Year Return

-9.4%

MSI

24.3%

CA Professional Services

-3.5%

CA Market

Return vs Industry: MSI underperformed the Canadian Professional Services industry which returned 23.1% over the past year.

Return vs Market: MSI underperformed the Canadian Market which returned -4.3% over the past year.


Shareholder returns

MSIIndustryMarket
7 Day-2.2%-1.4%-0.5%
30 Day0.4%3.4%3.0%
90 Day-7.4%14.5%2.4%
1 Year-7.1%-9.4%26.8%24.3%-0.06%-3.5%
3 Year45.4%33.7%80.3%54.8%7.1%-3.3%
5 Year116.4%83.2%119.4%76.7%36.8%15.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Morneau Shepell undervalued compared to its fair value and its price relative to the market?

37.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSI (CA$28.34) is trading above our estimate of fair value (CA$20.48)

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


Price To Earnings Ratio

PE vs Industry: MSI is poor value based on its PE Ratio (37.7x) compared to the CA Professional Services industry average (25.3x).

PE vs Market: MSI is poor value based on its PE Ratio (37.7x) compared to the Canadian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: MSI is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: MSI is good value based on its PB Ratio (2.8x) compared to the CA Professional Services industry average (3.8x).


Next Steps

Future Growth

How is Morneau Shepell forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSI's forecast earnings growth (5.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MSI's earnings (5.6% per year) are forecast to grow slower than the Canadian market (22.6% per year).

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

Revenue vs Market: MSI's revenue (4.9% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: MSI's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MSI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Morneau Shepell performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSI has a large one-off gain of CA$16.1M impacting its June 30 2020 financial results.

Growing Profit Margin: MSI's current net profit margins (5.3%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: MSI's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: MSI's earnings growth over the past year (468.2%) exceeds its 5-year average (10.9% per year).

Earnings vs Industry: MSI earnings growth over the past year (468.2%) exceeded the Professional Services industry 4.1%.


Return on Equity

High ROE: MSI's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Morneau Shepell's financial position?


Financial Position Analysis

Short Term Liabilities: MSI's short term assets (CA$270.3M) exceed its short term liabilities (CA$182.4M).

Long Term Liabilities: MSI's short term assets (CA$270.3M) do not cover its long term liabilities (CA$641.0M).


Debt to Equity History and Analysis

Debt Level: MSI's debt to equity ratio (64.8%) is considered high.

Reducing Debt: MSI's debt to equity ratio has reduced from 105.4% to 64.8% over the past 5 years.

Debt Coverage: MSI's debt is well covered by operating cash flow (26.3%).

Interest Coverage: MSI's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Morneau Shepell current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MSI's dividend (2.75%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: MSI's dividend (2.75%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).


Stability and Growth of Payments

Stable Dividend: MSI's dividends per share have been stable in the past 10 years.

Growing Dividend: MSI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.8%), MSI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MSI's dividends in 3 years are forecast to be covered by earnings (78.3% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Stephen Liptrap (54 yo)

3.42yrs

Tenure

CA$2,619,250

Compensation

Mr. Stephen Liptrap has been Chief Executive Officer and President of Morneau Shepell Ltd since May 4, 2017 & was its GM until 2020. Mr. Liptrap's responsibilities include the development and execution of ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD2.00M) is about average for companies of similar size in the Canadian market ($USD2.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Liptrap
President3.42yrsCA$2.62m0.026%
CA$ 498.8k
Grier Colter
CFO & Executive VP1yrCA$1.69mno data
Pierre Chamberland
Executive VP14.08yrsCA$1.01m0.077%
CA$ 1.5m
Kaytek Przybylski
Chief Data & Technology Officer and Executive VP1.08yrsCA$1.11m0.00013%
CA$ 2.5k
Scott Milligan
Chief Corporate Officer & Executive VP1yrCA$857.75k0.016%
CA$ 313.2k
Susan Marsh
General Counsel & Corporate Secretaryno datano data0.00069%
CA$ 13.5k
Helen Reeves
Senior Vice-President of Marketing & Communicationsno datano datano data
Gillian Whitebread
Executive VP & Chief Human Resources Officer1.92yrsno data0.00043%
CA$ 8.4k
Bill Howatt
Chief Research & Development Officer5.25yrsno datano data
Melvin Bartlett
Managing Partner of Retirement Solutions -West Region5yrsno datano data
Lyne Ramacia
Principal of Vancouver Retirement5yrsno datano data
Norah Joyce
Executive VP & Chief Commercial Officerno datano data0.0094%
CA$ 182.6k

3.4yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MSI's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Liptrap
President3.42yrsCA$2.62m0.026%
CA$ 498.8k
Ron Lalonde
Independent Director4.58yrsCA$135.98k0.020%
CA$ 396.1k
Robert Courteau
Directorno datano datano data
Dale Ponder
Independent Director4.67yrsCA$135.98k0.0029%
CA$ 57.0k
Kishore Kapoor
Independent Director2.17yrsCA$130.00kno data
Kevin Pennington
Independent Director5.58yrsCA$200.09k0.018%
CA$ 342.1k
Luc Bachand
Independent Director3.58yrsCA$136.00k0.013%
CA$ 256.5k
Gillian Denham
Independent Chairman of the Board5yrsCA$244.02k0.018%
CA$ 360.0k

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: MSI's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MSI 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 6.1%.


Top Shareholders

Company Information

Morneau Shepell Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Morneau Shepell Inc.
  • Ticker: MSI
  • Exchange: TSX
  • Founded: 1962
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: CA$1.952b
  • Shares outstanding: 68.51m
  • Website: https://www.morneaushepell.com

Number of Employees


Location

  • Morneau Shepell Inc.
  • One Morneau Shepell Centre
  • Suite 700
  • Toronto
  • Ontario
  • M3C 1W3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSITSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 2005
MSIX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2005
6M8DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2005

Biography

Morneau Shepell Inc. operates as a human resources (HR) consulting and technology company in Canada, the United States, and internationally. The company provides health and productivity, administrative, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:01
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.