AIM:MWE

Stock Analysis Report

M.T.I Wireless Edge

Executive Summary

M.T.I Wireless Edge Ltd. designs, develops, manufactures, and markets antennas and accessories for the commercial and military applications.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Share Price & News

How has M.T.I Wireless Edge's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MWE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

MWE

1.3%

GB Communications

-0.07%

GB Market


1 Year Return

94.4%

MWE

46.2%

GB Communications

6.0%

GB Market

Return vs Industry: MWE exceeded the UK Communications industry which returned 46.2% over the past year.

Return vs Market: MWE exceeded the UK Market which returned 6% over the past year.


Shareholder returns

MWEIndustryMarket
7 Day0%1.3%-0.07%
30 Day20.7%3.0%2.2%
90 Day52.2%13.5%3.8%
1 Year102.7%94.4%48.9%46.2%11.5%6.0%
3 Year69.5%51.4%64.5%55.0%22.0%6.6%
5 Year338.8%268.4%105.0%85.9%33.5%3.3%

Price Volatility Vs. Market

How volatile is M.T.I Wireless Edge's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is M.T.I Wireless Edge undervalued compared to its fair value and its price relative to the market?

15.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MWE (£0.35) is trading above our estimate of fair value (£0.18)

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


Price To Earnings Ratio

PE vs Industry: MWE is good value based on its PE Ratio (15.1x) compared to the Communications industry average (15.1x).

PE vs Market: MWE is good value based on its PE Ratio (15.1x) compared to the UK market (17x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MWE is overvalued based on its PB Ratio (1.9x) compared to the GB Communications industry average (1.7x).


Next Steps

Future Growth

How is M.T.I Wireless Edge forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MWE's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if MWE's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MWE's revenue (8.6% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: MWE's revenue (8.6% 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 MWE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has M.T.I Wireless Edge performed over the past 5 years?

35.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MWE has high quality earnings.

Growing Profit Margin: MWE's current net profit margins (7%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: MWE's earnings have grown significantly by 35.8% per year over the past 5 years.

Accelerating Growth: MWE's earnings growth over the past year (22%) is below its 5-year average (35.8% per year).

Earnings vs Industry: MWE earnings growth over the past year (22%) underperformed the Communications industry 22%.


Return on Equity

High ROE: MWE's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is M.T.I Wireless Edge's financial position?


Financial Position Analysis

Short Term Liabilities: MWE's short term assets ($24.1M) exceeds its short term liabilities ($8.4M)

Long Term Liabilities: MWE's short term assets ($24.1M) exceeds its long term liabilities (1.5M)


Debt to Equity History and Analysis

Debt Level: MWE's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: MWE's debt to equity ratio has reduced from 9.7% to 2.9% over the past 5 years.

Debt Coverage: MWE's debt is well covered by operating cash flow (452.8%).

Interest Coverage: MWE's interest payments on its debt are well covered by EBIT (68.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: MWE's debt is covered by short term assets (assets are 40x debt).


Next Steps

Dividend

What is M.T.I Wireless Edge's current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.0%markettop25%5.4%industryaverage3.2%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: MWE's dividend (3.31%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: MWE's dividend (3.31%) is low compared to the top 25% of dividend payers in the UK market (5.38%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.9%), MWE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of M.T.I Wireless Edge's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Moni Borovitz (48yo)

0.7yrs

Tenure

US$360,000

Compensation

Mr. Moshe Borovitz, also known as Moni, serves as an Executive Director of MTI Wireless Edge Ltd and also serves as its Chief Executive Officer since March 14, 2019. Mr. Borovitz serves as the Chief Financ ...


CEO Compensation Analysis

Compensation vs Market: Moni's total compensation ($USD360.00K) is about average for companies of similar size in the UK market ($USD321.30K).

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


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: MWE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MWE's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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.


Management Team

  • Moni Borovitz (48yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: US$360.00k
  • Dov Feiner (63yo)

    Antenna Division GM & Director

    • Tenure: 0yrs
    • Compensation: US$325.00k
  • Haim Giller

    Chief Mechanical Engineer

    • Tenure: 0yrs
  • Shlomo Ben-Naim

    Corporate Vice President of Operations

    • Tenure: 7.1yrs
  • Israel Saraf

    Chief Antenna Engineer

    • Tenure: 1.8yrs
  • Ilan Vainer

    Chief Mechanical Engineer

    • Tenure: 1.8yrs

Board Members

  • Zvi Borovitz (80yo)

    Non-Executive Chairman

    • Tenure: 0yrs
  • Moni Borovitz (48yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: US$360.00k
  • Dov Feiner (63yo)

    Antenna Division GM & Director

    • Tenure: 0yrs
    • Compensation: US$325.00k
  • Richard Bennett (50yo)

    Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: US$18.00k
  • Lihi Elimelech-Bechor (41yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: US$18.00k
  • Amnon Sofrin (65yo)

    Non-Executive Director

    • Tenure: 1yrs
  • David Yariv

    Non-Executive Director

    • Tenure: 2.5yrs

Company Information

M.T.I Wireless Edge Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: M.T.I Wireless Edge Ltd.
  • Ticker: MWE
  • Exchange: AIM
  • Founded: 1972
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£30.604m
  • Shares outstanding: 87.44m
  • Website: https://www.mtiwe.com

Number of Employees


Location

  • M.T.I Wireless Edge Ltd.
  • 11 Hamelacha Street
  • Afek Industrial Park
  • Rosh-Ha'Ayin
  • 48091
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MWEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2006

Biography

M.T.I Wireless Edge Ltd. designs, develops, manufactures, and markets antennas and accessories for the commercial and military applications. The company operates through Antenna; Aerostat Operation; Water  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 20:49
End of Day Share Price2019/11/19 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.