DB:MG9

Stock Analysis Report

Executive Summary

Metcash Limited operates as a wholesale distribution and marketing company in Australia and New Zealand.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MG9 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

MG9

1.2%

DE Consumer Retailing

-0.2%

DE Market


1 Year Return

10.3%

MG9

2.8%

DE Consumer Retailing

13.7%

DE Market

Return vs Industry: MG9 exceeded the German Consumer Retailing industry which returned 2.8% over the past year.

Return vs Market: MG9 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

MG9IndustryMarket
7 Day0.6%1.2%-0.2%
30 Day5.5%2.8%0.3%
90 Day-0.6%2.4%3.7%
1 Year15.7%10.3%6.8%2.8%17.2%13.7%
3 Year26.5%9.8%7.3%-3.4%15.4%5.3%
5 Year85.9%61.4%9.5%-7.3%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MG9 (€1.72) is trading below our estimate of fair value (€1.82)

Significantly Below Fair Value: MG9 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MG9 is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: MG9 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MG9's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MG9 is overvalued based on its PB Ratio (2.5x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Metcash forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

98.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MG9 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: MG9 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MG9's is expected to become profitable in the next 3 years.

Revenue vs Market: MG9's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: MG9's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MG9's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has Metcash performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MG9 is currently unprofitable.

Growing Profit Margin: MG9 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MG9 is unprofitable, but has reduced losses over the past 5 years at a rate of 19.4% per year.

Accelerating Growth: Unable to compare MG9's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MG9 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (2%).


Return on Equity

High ROE: MG9 has a negative Return on Equity (-5.11%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Metcash's financial position?


Financial Position Analysis

Short Term Liabilities: MG9's short term assets (A$2.8B) exceed its short term liabilities (A$2.5B).

Long Term Liabilities: MG9's short term assets (A$2.8B) exceed its long term liabilities (A$1.0B).


Debt to Equity History and Analysis

Debt Level: MG9's debt to equity ratio (21.2%) is considered satisfactory.

Reducing Debt: MG9's debt to equity ratio has reduced from 52.1% to 21.2% over the past 5 years.


Balance Sheet

Inventory Level: MG9 has a high level of physical assets or inventory.

Debt Coverage by Assets: MG9's debt is covered by short term assets (assets are 12.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MG9 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: MG9 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.3%markettop25%3.7%industryaverage3.7%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: MG9's dividend (4.61%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: MG9's dividend (4.61%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: MG9's dividend payments have been volatile in the past 10 years.

Growing Dividend: MG9's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: MG9 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: MG9's dividends in 3 years are forecast to be covered by earnings (59.7% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Jeff Adams 0

2.2yrs

Tenure

AU$3,654,068

Compensation

Mr. Jeffery K. Adams, also known as Jeff, BA (Business Administration and Management) has been Group Chief Executive Officer and Executive Director of Metcash Limited since December 5, 2017. Mr. Adams has ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD2.42M) is above average for companies of similar size in the German market ($USD1.51M).

Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffery Adams
Group CEO & Executive Director2.2yrsAU$3.65mno data
Brad Soller
Group Chief Financial Officer5yrsAU$1.51m0.0019% A$30.3k
Mark Laidlaw
Chief Executive Officer of Independent Hardware Group0yrsAU$1.58m0.017% A$272.6k
Scott Marshall
Chief Executive Officer of Food0yrsAU$1.61m0.0059% A$93.3k
Edwin Gear
Chief Information Officer4.8yrsno datano data
Steve Ashe
Head of Corporate Affairs & Investor Relations0yrsno datano data
Julie Hutton
Company Secretary & GM of Legal3.7yrsno datano data
Penny Coates
Chief People & Culture Officer4.4yrsno datano data
Kerrie Holmes
Head of Legal - Liquor & Assistant Company Secretary0yrsno datano data
Haiyun Chen
Head of China Export Development0yrsno datano data

4.4yrs

Average Tenure

Experienced Management: MG9's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffery Adams
Group CEO & Executive Director2.2yrsAU$3.65mno data
Robert Murray
Independent Non-Executive Chairman4.5yrsAU$429.98k0.0092% A$145.2k
Tonianne Dwyer
Independent Non-Executive Director5.7yrsAU$177.71k0.0066% A$103.7k
Murray Jordan
Independent Non-Executive Director4yrsAU$177.04k0.0047% A$73.7k
Peter Birtles
Non-Executive Director0.5yrsno data0.0044% A$69.1k
Helen Elizabeth Nash
Independent Non-Executive Director4.3yrsAU$161.38k0.0041% A$64.7k

4.2yrs

Average Tenure

54.5yo

Average Age

Experienced Board: MG9's board of directors are considered experienced (4.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Metcash Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Metcash Limited
  • Ticker: MG9
  • Exchange: DB
  • Founded: 1920
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: AU$2.564b
  • Listing Market Cap: AU$1.571b
  • Shares outstanding: 909.26m
  • Website: https://www.metcash.com

Number of Employees


Location

  • Metcash Limited
  • 1 Thomas Holt Drive
  • Macquarie Park
  • New South Wales
  • 2113
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1994
MCSH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
MG9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
MTSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1994
MHTL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2005

Biography

Metcash Limited operates as a wholesale distribution and marketing company in Australia and New Zealand. It operates through Food, Liquor, and Hardware segments. The Food segment distributes a range of products and services to independent supermarket and convenience retail outlets. The Liquor segment engages in the distribution of liquor products to independent retail outlets and hotels. The Hardware segment distributes hardware products to independent retail outlets; and operates company owned retail stores. The company serves independent retailers in the food, liquor, and hardware sectors. Metcash Limited was founded in 1920 and is based in Macquarie Park, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:51
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.