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Market Cap

HK$271.1b

Last Updated

2021/05/16 10:41 UTC

Data Sources

Company Financials +

Executive Summary

MTR Corporation Limited designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland of China, Macao, Sweden, and the United Kingdom. More Details


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 66 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 66's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

66

-0.7%

HK Transportation

-1.9%

HK Market


1 Year Return

6.2%

66

7.0%

HK Transportation

24.3%

HK Market

Return vs Industry: 66 matched the Hong Kong Transportation industry which returned 7% over the past year.

Return vs Market: 66 underperformed the Hong Kong Market which returned 24.4% over the past year.


Shareholder returns

66IndustryMarket
7 Day-0.8%-0.7%-1.9%
30 Day-0.7%-0.6%-3.4%
90 Day-2.3%-1.1%-8.0%
1 Year9.4%6.2%10.3%7.0%29.0%24.3%
3 Year3.3%-2.8%-9.3%-15.0%0.5%-10.0%
5 Year41.7%21.5%21.5%4.9%58.6%31.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 66 (HK$43.85) is trading above our estimate of fair value (HK$22.29)

Significantly Below Fair Value: 66 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 66 is unprofitable, so we can't compare its PE Ratio to the Asian Transportation industry average.

PE vs Market: 66 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 66's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 66 is overvalued based on its PB Ratio (1.5x) compared to the HK Transportation industry average (1.3x).


Future Growth

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

39.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 66 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 66 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 66's is expected to become profitable in the next 3 years.

Revenue vs Market: 66's revenue (10.8% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 66's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 66's Return on Equity is forecast to be low in 3 years time (7.3%).


Past Performance

How has MTR performed over the past 5 years?

-12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 66 is currently unprofitable.

Growing Profit Margin: 66 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 66 is unprofitable, and losses have increased over the past 5 years at a rate of 12.5% per year.

Accelerating Growth: Unable to compare 66's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 66 is unprofitable, making it difficult to compare its past year earnings growth to the Transportation industry (-1.7%).


Return on Equity

High ROE: 66 has a negative Return on Equity (-2.72%), as it is currently unprofitable.


Financial Health

How is MTR's financial position?


Financial Position Analysis

Short Term Liabilities: 66's short term assets (HK$41.8B) exceed its short term liabilities (HK$16.0B).

Long Term Liabilities: 66's short term assets (HK$41.8B) do not cover its long term liabilities (HK$97.6B).


Debt to Equity History and Analysis

Debt Level: 66's debt to equity ratio (27.9%) is considered satisfactory.

Reducing Debt: 66's debt to equity ratio has increased from 12.1% to 27.9% over the past 5 years.

Debt Coverage: 66's debt is not well covered by operating cash flow (1.6%).

Interest Coverage: 66 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is MTR current dividend yield, its reliability and sustainability?

2.80%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 17 2021Ex Dividend DateMay 28 2021Dividend Pay DateJul 20 202153 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 66's dividend (2.81%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.94%).

High Dividend: 66's dividend (2.81%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.03%).


Stability and Growth of Payments

Stable Dividend: 66's dividend payments have been volatile in the past 10 years.

Growing Dividend: 66's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 66 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 66's dividends in 3 years are forecast to be covered by earnings (61.1% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Jacob Kam (58 yo)

2.08yrs

Tenure

HK$10,700,000

Compensation

Dr. Chak-pui Kam, also known as Jacob, has been Chief Executive Officer and Director at MTR Corporation Limited since April 1, 2019 and also has been its Member of the Executive Directorate since January 1...


CEO Compensation Analysis

Compensation vs Market: Jacob's total compensation ($USD1.38M) is above average for companies of similar size in the Hong Kong market ($USD853.80K).

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


Leadership Team

Experienced Management: 66's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 66's board of directors are considered experienced (5.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: MTR Corporation Limited
  • Ticker: 66
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: HK$271.095b
  • Shares outstanding: 6.18b
  • Website: https://www.mtr.com.hk

Number of Employees


Location

  • MTR Corporation Limited
  • MTR Headquarters Building
  • Telford Plaza
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings


Biography

MTR Corporation Limited designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland of China, Macao, Sweden, and the United Kingdom. It operates through Hong Kong Tr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 10:41
End of Day Share Price2021/05/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.