LSE:MNDI

Stock Analysis Report

Executive Summary

Mondi plc manufactures and sells packaging and paper products in Africa, Western Europe, Emerging Europe, Russia, North America, South America, Asia, and Australia.

Snowflake

Fundamentals

Outstanding track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.3%

MNDI

1.5%

GB Forestry

0.08%

GB Market


1 Year Return

-10.6%

MNDI

-4.7%

GB Forestry

3.5%

GB Market

Return vs Industry: MNDI underperformed the UK Forestry industry which returned -4.7% over the past year.

Return vs Market: MNDI underperformed the UK Market which returned 3.5% over the past year.


Shareholder returns

MNDIIndustryMarket
7 Day-3.3%1.5%0.08%
30 Day0.2%6.4%-1.3%
90 Day-14.6%5.4%-2.2%
1 Year-6.7%-10.6%-0.3%-4.7%9.0%3.5%
3 Year12.6%-2.2%47.8%-0.7%18.1%3.1%
5 Year87.2%54.0%129.2%45.7%36.2%5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNDI (£15.61) is trading below our estimate of fair value (£17.55)

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


Price To Earnings Ratio

PE vs Industry: MNDI is good value based on its PE Ratio (9.3x) compared to the Forestry industry average (10.4x).

PE vs Market: MNDI is good value based on its PE Ratio (9.3x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: MNDI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MNDI is overvalued based on its PB Ratio (2.3x) compared to the XE Forestry industry average (1.1x).


Next Steps

Future Growth

How is Mondi forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNDI's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: MNDI's earnings are forecast to decline over the next 3 years (-4.4% per year).

High Growth Earnings: MNDI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MNDI's revenue is expected to decline over the next 3 years (0.05% per year).

High Growth Revenue: MNDI's revenue is forecast to decline over the next 3 years (0.05% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNDI's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Mondi performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MNDI's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: MNDI's earnings growth over the past year (39.9%) exceeds its 5-year average (12% per year).

Earnings vs Industry: MNDI earnings growth over the past year (39.9%) exceeded the Forestry industry 1.2%.


Return on Equity

High ROE: MNDI's Return on Equity (23.7%) is considered high.


Return on Assets

ROA vs Industry: MNDI has a higher Return on Assets than the Forestry industry average last year.


Return on Capital Employed

ROCE Improving: MNDI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Mondi's financial position?


Financial Position Analysis

Short Term Liabilities: MNDI's short term assets (€2.4B) exceeds its short term liabilities (€1.6B)

Long Term Liabilities: MNDI's short term assets (2.4B) do not cover its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: MNDI's debt to equity ratio (54.4%) is considered high

Reducing Debt: MNDI's debt to equity ratio has reduced from 60.9% to 54.4% over the past 5 years.

Debt Coverage: MNDI's debt is well covered by operating cash flow (61.1%).

Interest Coverage: MNDI's interest payments on its debt are well covered by EBIT (16.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: MNDI's debt is covered by short term assets (assets are 1.076090x debt).


Next Steps

Dividend

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

4.53%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.0%markettop25%5.4%industryaverage4.3%forecastin3Years4.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MNDI's dividend (4.53%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: MNDI's dividend (4.53%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

Growing Dividend: MNDI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.3%), MNDI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNDI's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Peter Oswald (57yo)

2.4yrs

Tenure

€5,794,596

Compensation

Mr. Peter Josef Oswald has been Chief Executive Officer of Mondi Limited and Mondi plc since May 11, 2017. Mr. Oswald has been Chief Executive Officer of The Mondi Group plc since May 11, 2017. Mr. Oswald  ...


CEO Compensation Analysis

Compensation vs. Market: Peter has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

Experienced Management: MNDI's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: MNDI's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Buy€76,66219 Aug 19
Peter Oswald
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,000
Max Price€15.33
Sell€136,64108 Mar 19
Andrew Charles King
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares7,629
Max Price€17.91
Sell€288,91708 Mar 19
Peter Oswald
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares16,131
Max Price€17.91
Buy€79,85014 Dec 18
Peter Oswald
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,000
Max Price€15.97

Ownership Breakdown


Management Team

  • Peter Oswald (57yo)

    CEO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: €5.79m
  • Andrew Charles King (49yo)

    CFO & Executive Director

    • Tenure: 11yrs
    • Compensation: €3.83m
  • Thomas Ott

    Chief Operating Officer of Mondi Industrial Bags

    • Tenure: 0yrs
  • Michael Hakes (54yo)

    Group HR Director

    • Tenure: 1.5yrs
  • John Lindahl (59yo)

    Group Technical & Sustainability Director

    • Tenure: 8.2yrs
  • Sara Sizer (56yo)

    Group Communication & Marketing Director

    • Tenure: 2.1yrs
  • Jürgen Schneider

    Managing Director of Personal Care Components

    • Tenure: 0yrs
  • Peter Orisich (59yo)

    Chief Executive Officer of Uncoated Fine Paper

    • Tenure: 2.4yrs
  • Viv McMenamin (56yo)

    Chief Executive Officer of South Africa

    • Tenure: 2yrs
  • Clara Valera

    Group Head of Strategy & Investor Relations

    • Tenure: 0yrs

Board Members

  • David Williams (73yo)

    Independent Chairman of the Board

    • Tenure: 0.2yrs
    • Compensation: €331.16k
  • Dominique J. Reiniche (64yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: €109.16k
  • Tanya Fratto (58yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: €111.77k
  • Fred Phaswana (74yo)

    Joint Chairman

    • Tenure: 6.3yrs
    • Compensation: €333.19k
  • Stephen Young (63yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: €66.95k
  • Stephen Harris (61yo)

    Senior Independent Director

    • Tenure: 1.4yrs
    • Compensation: €109.63k
  • Peter Oswald (57yo)

    CEO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: €5.79m
  • Andrew Charles King (49yo)

    CFO & Executive Director

    • Tenure: 11yrs
    • Compensation: €3.83m
  • Enoch Godongwana (62yo)

    Independent Non-Executive Director

    • Tenure: 0.08yrs

Company Information

Mondi plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mondi plc
  • Ticker: MNDI
  • Exchange: LSE
  • Founded: 1967
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: UK£7.564b
  • Shares outstanding: 484.74m
  • Website: https://www.mondigroup.com

Number of Employees


Location

  • Mondi plc
  • Building 1
  • 1st Floor
  • Addlestone
  • Surrey
  • KT15 2PG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNDILSE (London Stock Exchange)YesPLC Ordinary SharesGBGBPJul 2007
MNPJSE (The Johannesburg Securities Exchange)YesPLC Ordinary SharesZAZARJul 2007
KYCDB (Deutsche Boerse AG)YesPLC Ordinary SharesDEEURJul 2007
MOND.FOTCPK (Pink Sheets LLC)YesPLC Ordinary SharesUSUSDJul 2007
MNDILBATS-CHIXE (BATS 'Chi-X Europe')YesPLC Ordinary SharesGBGBPJul 2007
MOND.YOTCPK (Pink Sheets LLC)ADR EACH REPR 2 ORDUSUSDJun 2008
KYCADB (Deutsche Boerse AG)ADR EACH REPR 2 ORDDEEURJun 2008

Biography

Mondi plc manufactures and sells packaging and paper products in Africa, Western Europe, Emerging Europe, Russia, North America, South America, Asia, and Australia. The company offers flexible packaging, b ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:53
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.