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.

Rewards

Trading at 1.9% below its fair value

Earnings grew by 39.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -3.2% per year for the next 3 years

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

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

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


Market Performance


7 Day Return

0.8%

MNDI

1.4%

GB Forestry

-0.2%

GB Market


1 Year Return

-12.3%

MNDI

2.1%

GB Forestry

6.1%

GB Market

Return vs Industry: MNDI underperformed the UK Forestry industry which returned 2.1% over the past year.

Return vs Market: MNDI underperformed the UK Market which returned 6.1% over the past year.


Shareholder returns

MNDIIndustryMarket
7 Day0.8%1.4%-0.2%
30 Day3.6%2.6%-2.7%
90 Day-0.2%-2.1%3.9%
1 Year-8.5%-12.3%6.8%2.1%11.8%6.1%
3 Year2.9%-10.6%35.5%-8.3%17.5%2.6%
5 Year59.0%30.8%90.3%20.5%34.8%3.7%

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?

1.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNDI (£16.63) is trading below our estimate of fair value (£16.94)

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 (10.3x) compared to the Forestry industry average (11.2x).

PE vs Market: MNDI is good value based on its PE Ratio (10.3x) compared to the UK market (18.5x).


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 (2.6x) 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 12 analysts?

-3.2%

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 (-3.2% per year).

Earnings vs Market: MNDI's earnings are forecast to decline over the next 3 years (-3.2% per year).

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

Revenue vs Market: MNDI's revenue (0.09% per year) is forecast to grow slower than the UK market (3.4% per year).

High Growth Revenue: MNDI's revenue (0.09% per year) is forecast to grow slower than 20% 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 (17.1%).


Next Steps

Past Performance

How has Mondi performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNDI has high quality earnings.

Growing Profit Margin: MNDI's current net profit margins (12.5%) are higher than last year (9.3%).


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 -11.4%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mondi's financial position?


Financial Position Analysis

Short Term Liabilities: MNDI's short term assets (€2.4B) exceed 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 1.1x debt).


Next Steps

Dividend

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

4.10%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.8%markettop25%5.1%industryaverage4.2%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: MNDI's dividend (4.1%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: MNDI's dividend (4.1%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

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 well covered by earnings (48.3% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Peter Oswald (57yo)

2.8yrs

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's total compensation ($USD6.28M) is above average for companies of similar size in the UK market ($USD4.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Oswald
CEO & Executive Director2.8yrs€5.79m0.038% 3.1m
Andrew Charles King
CFO & Executive Director11.3yrs€3.83m0.015% 1.2m
Gunilla Saltin
Chief Executive Officer of Uncoated Fine Paper and Group Technical & Sustainability Director1.1yrsno datano data
Clara Valera
Group Head of Strategy & Investor Relations0yrsno datano data
Sara Sizer
Group Communication & Marketing Director2.4yrsno datano data
Michael Hakes
Group HR Director1.8yrsno datano data
Thomas Ott
Chief Operating Officer of Mondi Industrial Bags0yrsno datano data
Jürgen Schneider
Managing Director of Personal Care Components0yrsno datano data
Peter Orisich
Chief Executive Officer of Flexible Packaging & Engineered Materials2.8yrsno datano data
Vivien McMenamin
Chief Executive Officer of South Africa2.3yrsno datano data

2.4yrs

Average Tenure

56yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Peter Oswald
CEO & Executive Director2.8yrs€5.79m0.038% 3.1m
Andrew Charles King
CFO & Executive Director11.3yrs€3.83m0.015% 1.2m
David Williams
Independent Chairman of the Board0.5yrs€331.16k0.0010% 83.0k
Dominique J. Reiniche
Independent Non-Executive Director4.3yrs€109.16k0.00021% 16.9k
Tanya Fratto
Independent Non-Executive Director3.1yrs€111.77k0.00021% 16.9k
Stephen Young
Independent Non-Executive Director1.8yrs€66.95k0.00042% 33.8k
Stephen Harris
Senior Independent Director1.8yrs€109.63k0.00021% 16.9k
Enoch Godongwana
Independent Non-Executive Director0.4yrsno datano data

2.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MNDI's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

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£8.059b
  • 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, bags, and pouches; personal care components; release liners; technical films; corrugated packaging products; industrial bags; barrier coatings; specialty Kraft and sack Kraft papers; containerboards; and office and professional printing papers. It serves customers in the agriculture, automotive, building and construction, chemicals and dangerous goods, food and beverages, graphic and photographic, home and personal care, medical and pharmaceutical, office and professional printing, paper and packaging converting, pet care, retail and e-commerce, and shipping and transport industries. The company was founded in 1967 and is based in Addlestone, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:14
End of Day Share Price2020/02/14 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.