XTRA:MZX

Stock Analysis Report

Executive Summary

Masterflex SE develops, produces, and markets high-tech hoses and connecting systems for various industrial and manufacturing applications worldwide.

Rewards

Trading at 44.9% below its fair value

Earnings are forecast to grow 14.33% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Does not have a meaningful market cap (€47M)



Snowflake Analysis

Very undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

MZX

-2.3%

DE Machinery

0.2%

DE Market


1 Year Return

-29.3%

MZX

-10.4%

DE Machinery

14.4%

DE Market

Return vs Industry: MZX underperformed the German Machinery industry which returned -10.7% over the past year.

Return vs Market: MZX underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

MZXIndustryMarket
7 Day-4.3%-2.3%0.2%
30 Day1.2%-3.6%0.9%
90 Day-3.4%-0.3%4.6%
1 Year-28.4%-29.3%-7.6%-10.4%17.9%14.4%
3 Year-27.7%-29.6%-18.3%-24.1%15.7%5.6%
5 Year-30.9%-32.7%0.04%-11.2%23.4%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MZX (€4.88) is trading below our estimate of fair value (€8.85)

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


Price To Earnings Ratio

PE vs Industry: MZX is good value based on its PE Ratio (13.9x) compared to the Machinery industry average (15.8x).

PE vs Market: MZX is good value based on its PE Ratio (13.9x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: MZX is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MZX is good value based on its PB Ratio (1.1x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is Masterflex forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MZX's forecast earnings growth (14.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: MZX's earnings (14.3% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: MZX's revenue (4.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: MZX's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MZX's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Masterflex performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MZX has high quality earnings.

Growing Profit Margin: MZX's current net profit margins (4.1%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: MZX's earnings have grown by 7.2% per year over the past 5 years.

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

Earnings vs Industry: MZX had negative earnings growth (-24.8%) over the past year, making it difficult to compare to the Machinery industry average (-14.4%).


Return on Equity

High ROE: MZX's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Masterflex's financial position?


Financial Position Analysis

Short Term Liabilities: MZX's short term assets (€35.5M) exceed its short term liabilities (€11.7M).

Long Term Liabilities: MZX's short term assets (€35.5M) exceed its long term liabilities (€27.9M).


Debt to Equity History and Analysis

Debt Level: MZX's debt to equity ratio (70.1%) is considered high.

Reducing Debt: MZX's debt to equity ratio has reduced from 81.6% to 70.1% over the past 5 years.

Debt Coverage: MZX's debt is well covered by operating cash flow (21.2%).

Interest Coverage: MZX's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

Inventory Level: MZX has a high level of physical assets or inventory.

Debt Coverage by Assets: MZX's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: MZX's dividend (1.43%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: MZX's dividend (1.43%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MZX has been paying a dividend for less than 10 years.

Growing Dividend: MZX's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20%), MZX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MZX's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).


Next Steps

Management

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

3.7yrs

Average board tenure


CEO

Andreas Bastin (56yo)

11.8yrs

Tenure

€583,000

Compensation

Dr. Andreas Bastin has been the Chairman of the Executive Board and Chief Executive Officer of Masterflex SE since April 1, 2008. Dr. Bastin serves as Chairman of the Executive Board of Masterflex AG and s ...


CEO Compensation Analysis

Compensation vs Market: Andreas's total compensation ($USD629.39K) is above average for companies of similar size in the German market ($USD413.42K).

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


Board Members

NamePositionTenureCompensationOwnership
Friedrich-Wilhelm Bischoping
Founder & Honorary Chairman of the Supervisory Board3.7yrsno data3.04% 1.4m
Jan van der Zouw
Member of the Supervisory Board3.7yrs€22.00kno data
Gerson Link
Vice Chairman of the Supervisory Board3.7yrs€27.00kno data
Georg van Hall
Chairman of the Supervisory Board3.7yrs€32.00kno data

3.7yrs

Average Tenure

Experienced Board: MZX's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Masterflex SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Masterflex SE
  • Ticker: MZX
  • Exchange: XTRA
  • Founded: 1987
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €46.937m
  • Shares outstanding: 9.62m
  • Website: https://www.masterflexgroup.com

Number of Employees


Location

  • Masterflex SE
  • Willy-Brandt-Allee 300
  • Gelsenkirchen
  • North Rhine-Westphalia
  • 45891
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MZXDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURJun 2000
MZXXTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEURJun 2000
0FCTLSE (London Stock Exchange)YesOrdinary Bearer SharesGBEURJun 2000

Biography

Masterflex SE develops, produces, and markets high-tech hoses and connecting systems for various industrial and manufacturing applications worldwide. It offers spiral hoses, clip hoses, and PU hoses, as well as connecting elements like cuffs, flanges, threaded sockets, clamps, and other accessories under the Masterflex brand; and specialist hoses, bellows, and moulded parts for aerospace, automotive, and rail transport industries under the Matzen & Timm brand. The company also provides extruded hoses and profiles under the Novoplast Schlauchtechnik brand; quality injection-moulded parts and assembled plastic components for the medical technology, cosmetics, and food technology industries under the Fleima-Plastic brand; and hoses for heating, ventilation, and air conditioning under the Masterduct. In addition, it offers smooth and shrink tubes produced from fluoridated plastics under the APT brand name; and markets intelligent hoses and connection solutions under the AMPIUS brand. Masterflex SE was founded in 1987 and is headquartered in Gelsenkirchen, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:23
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.