MTR
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MTR Corporation Limited designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland of China, Sweden, the United Kingdom, and internationally. The last earnings update was 11 days ago. More info.
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66 Share Price and Events
7 Day Returns
1 Year Returns
66 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| MTR (66) | -1.9% | 0.3% | 12% | 9.6% | 22.6% | 62.5% |
| HK Transportation | -2.4% | -1.1% | 9.5% | 2.7% | 15% | 54.1% |
| HK Market | 0.3% | 2.3% | 10.5% | -4.8% | 27.1% | 20.8% |
1 Year Return vs Industry and Market
- 66 outperformed the Transportation industry which returned 2.7% over the past year.
- 66 outperformed the Market in Hong Kong which returned -4.8% over the past year.
Value
Is MTR undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
MTR
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for MTR.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 9 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.1% |
| Perpetual Growth Rate | 10-Year HK Government Bond Rate | 2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year HK Govt Bond Rate | 2% |
| Equity Risk Premium | S&P Global | 6.7% |
| Transportation Unlevered Beta | Simply Wall St/ S&P Global | 1 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.998 (1 + (1- 25%) (13.86%)) |
1.068 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.07 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.068 * 6.65%) |
9.11% |
Discounted Cash Flow Calculation for SEHK:66 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for MTR is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (HKD, Millions) | Source |
Present Value Discounted (@ 9.11%) |
|
|---|---|---|---|
| 2019 | 7,944.86 | Analyst x3 | 7,281.77 |
| 2020 | 8,252.05 | Analyst x4 | 6,932.09 |
| 2021 | 13,474.33 | Analyst x2 | 10,374.34 |
| 2022 | 18,086.43 | Est @ 34.23% | 12,763.13 |
| 2023 | 22,528.65 | Est @ 24.56% | 14,571.04 |
| 2024 | 26,537.32 | Est @ 17.79% | 15,731.25 |
| 2025 | 30,002.15 | Est @ 13.06% | 16,300.83 |
| 2026 | 32,924.48 | Est @ 9.74% | 16,395.60 |
| 2027 | 35,367.21 | Est @ 7.42% | 16,142.11 |
| 2028 | 37,416.50 | Est @ 5.79% | 15,652.14 |
| Present value of next 10 years cash flows | HK$132,144.29 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= HK$37,416.50 × (1 + 2%) ÷ (9.11% – 2%) |
HK$537,315.67 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= HK$537,315.67 ÷ (1 + 9.11%)10 |
HK$224,770.86 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= HK$132,144.29 + HK$224,770.86 |
HK$356,915.16 |
| Equity Value per Share (HKD) |
= Total value / Shares Outstanding
= HK$356,915.16 / 6,141.27 |
HK$58.12 |
| Calculation | Result | |
|---|---|---|
| Value per share (HKD) | From above. | HK$58.12 |
| Current discount | Discount to share price of
HK$47.45
= -1 x (HK$47.45 - HK$58.12) / HK$58.12 |
18.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- MTR's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- MTR's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for MTR's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
MTR's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in HKD | HK$2.64 |
| SEHK:66 Share Price ** | SEHK (2019-04-18) in HKD | HK$47.45 |
| Hong Kong Transportation Industry PE Ratio | Median Figure of 6 Publicly-Listed Transportation Companies | 20.26x |
| Hong Kong Market PE Ratio | Median Figure of 1,474 Publicly-Listed Companies | 12.01x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of MTR.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SEHK:66 Share Price ÷ EPS (both in HKD) = 47.45 ÷ 2.64 |
17.95x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- MTR is good value based on earnings compared to the HK Transportation industry average.
- MTR is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does
MTR's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 17.95x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
0%per year |
| Asia Transportation Industry PEG Ratio | Median Figure of 6 Publicly-Listed Transportation Companies | 2.53x |
| Hong Kong Market PEG Ratio | Median Figure of 463 Publicly-Listed Companies | 0.87x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 17.95x ÷ 0% |
1243.66x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- MTR is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
MTR's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in HKD | HK$29.39 |
| SEHK:66 Share Price * | SEHK (2019-04-18) in HKD | HK$47.45 |
| Hong Kong Transportation Industry PB Ratio | Median Figure of 7 Publicly-Listed Transportation Companies | 1.03x |
| Hong Kong Market PB Ratio | Median Figure of 2,149 Publicly-Listed Companies | 1.03x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SEHK:66 Share Price ÷ Book Value per Share (both in HKD) = 47.45 ÷ 29.39 |
1.61x |
* Primary Listing of MTR.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- MTR is overvalued based on assets compared to the HK Transportation industry average.
Value checks
We assess MTR's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check) MTR has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is MTR expected to perform in the next 1 to 3 years based on estimates from 9 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- MTR's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
- MTR's earnings growth is positive but not above the Hong Kong market average.
- MTR's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SEHK:66 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | 0% |
| SEHK:66 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | 4% |
| Hong Kong Transportation Industry Earnings Growth Rate | Market Cap Weighted Average | 2.5% |
| Asia Transportation Industry Revenue Growth Rate | Market Cap Weighted Average | 5% |
| Hong Kong Market Earnings Growth Rate | Market Cap Weighted Average | 11.8% |
| Hong Kong Market Revenue Growth Rate | Market Cap Weighted Average | 11.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Date (Data in HKD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 60,751 | 27,784 | 15,921 | 6 |
| 2020-12-31 | 58,876 | 21,617 | 13,643 | 9 |
| 2019-12-31 | 56,302 | 20,497 | 12,739 | 9 |
| Date (Data in HKD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 53,930 | 10,950 | 16,008 |
| 2018-09-30 | 52,870 | 13,196 | 16,220 |
| 2018-06-30 | 51,809 | 15,442 | 16,432 |
| 2018-03-31 | 53,625 | 17,523 | 16,631 |
| 2017-12-31 | 55,440 | 19,603 | 16,829 |
| 2017-09-30 | 54,663 | 18,104 | 14,721 |
| 2017-06-30 | 53,886 | 16,605 | 12,613 |
| 2017-03-31 | 49,538 | 16,870 | 11,434 |
| 2016-12-31 | 45,189 | 17,135 | 10,254 |
| 2016-09-30 | 43,994 | 15,922 | 10,090 |
| 2016-06-30 | 42,798 | 14,708 | 9,926 |
| 2016-03-31 | 42,250 | 14,825 | 11,460 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
All data from MTR Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in HKD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 2.55 | 2.78 | 2.31 | 5.00 |
| 2020-12-31 | 2.21 | 2.46 | 1.92 | 8.00 |
| 2019-12-31 | 2.11 | 2.34 | 1.81 | 8.00 |
| Date (Data in HKD Millions) | EPS * |
|---|---|
| 2018-12-31 | 2.64 |
| 2018-09-30 | 2.69 |
| 2018-06-30 | 2.74 |
| 2018-03-31 | 2.78 |
| 2017-12-31 | 2.83 |
| 2017-09-30 | 2.48 |
| 2017-06-30 | 2.14 |
| 2017-03-31 | 1.94 |
| 2016-12-31 | 1.74 |
| 2016-09-30 | 1.72 |
| 2016-06-30 | 1.70 |
| 2016-03-31 | 1.96 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess MTR's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
MTR has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has MTR performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- MTR's year on year earnings growth rate has been positive over the past 5 years.
- MTR's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- MTR's 1-year earnings growth is negative, it can't be compared to the HK Transportation industry average.
Earnings and Revenue History
All data from MTR Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in HKD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 53,930.00 | 16,008.00 | 1,074.00 | |
| 2018-09-30 | 52,869.50 | 16,220.00 | 1,005.00 | |
| 2018-06-30 | 51,809.00 | 16,432.00 | 936.00 | |
| 2018-03-31 | 53,624.50 | 16,630.50 | 923.00 | |
| 2017-12-31 | 55,440.00 | 16,829.00 | 910.00 | |
| 2017-09-30 | 54,663.00 | 14,721.00 | 936.00 | |
| 2017-06-30 | 53,886.00 | 12,613.00 | 962.00 | |
| 2017-03-31 | 49,537.50 | 11,433.50 | 977.00 | |
| 2016-12-31 | 45,189.00 | 10,254.00 | 992.00 | |
| 2016-09-30 | 43,993.50 | 10,090.00 | 954.50 | |
| 2016-06-30 | 42,798.00 | 9,926.00 | 917.00 | |
| 2016-03-31 | 42,249.50 | 11,460.00 | 899.50 | |
| 2015-12-31 | 41,701.00 | 12,994.00 | 882.00 | |
| 2015-09-30 | 41,298.00 | 14,438.50 | 985.50 | |
| 2015-06-30 | 40,895.00 | 15,883.00 | 1,089.00 | |
| 2015-03-31 | 40,525.50 | 15,744.50 | 1,078.00 | |
| 2014-12-31 | 40,156.00 | 15,606.00 | 1,067.00 | |
| 2014-09-30 | 39,560.00 | 15,192.50 | 1,021.50 | |
| 2014-06-30 | 38,964.00 | 14,779.00 | 976.00 | |
| 2014-03-31 | 38,835.50 | 13,902.00 | 971.50 | |
| 2013-12-31 | 38,707.00 | 13,025.00 | 967.00 | |
| 2013-09-30 | 38,253.00 | 13,386.50 | 881.50 | |
| 2013-06-30 | 37,799.00 | 13,748.00 | 796.00 | |
| 2013-03-31 | 36,769.00 | 13,561.50 | 792.00 | |
| 2012-12-31 | 35,739.00 | 13,375.00 | 788.00 | |
| 2012-09-30 | 35,073.50 | 13,010.00 | 672.50 | |
| 2012-06-30 | 34,408.00 | 12,564.00 | 557.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- MTR has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- MTR used its assets more efficiently than the HK Transportation industry average last year based on Return on Assets.
- MTR's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess MTR's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
MTR has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is MTR's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up MTR's finances.
The net worth of a company is the difference between its assets and liabilities.
- MTR is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- MTR's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from MTR Company Filings, last reported 3 months ago.
| Date (Data in HKD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 180,619.00 | 40,382.00 | 8,954.00 |
| 2018-09-30 | 180,619.00 | 40,382.00 | 8,954.00 |
| 2018-06-30 | 168,418.00 | 38,563.00 | 8,499.00 |
| 2018-03-31 | 168,418.00 | 38,563.00 | 8,499.00 |
| 2017-12-31 | 166,426.00 | 42,220.00 | 14,072.00 |
| 2017-09-30 | 166,426.00 | 42,220.00 | 14,072.00 |
| 2017-06-30 | 152,695.00 | 42,605.00 | 12,223.00 |
| 2017-03-31 | 152,695.00 | 42,605.00 | 12,223.00 |
| 2016-12-31 | 149,556.00 | 40,085.00 | 7,199.00 |
| 2016-09-30 | 149,556.00 | 40,085.00 | 7,199.00 |
| 2016-06-30 | 145,239.00 | 27,254.00 | 19,072.00 |
| 2016-03-31 | 145,239.00 | 27,254.00 | 19,072.00 |
| 2015-12-31 | 170,171.00 | 20,958.00 | 7,270.00 |
| 2015-09-30 | 170,171.00 | 20,958.00 | 7,270.00 |
| 2015-06-30 | 167,355.00 | 19,043.00 | 10,595.00 |
| 2015-03-31 | 167,355.00 | 19,043.00 | 10,595.00 |
| 2014-12-31 | 163,482.00 | 20,679.00 | 16,382.00 |
| 2014-09-30 | 163,482.00 | 20,679.00 | 16,382.00 |
| 2014-06-30 | 156,829.00 | 21,285.00 | 7,062.00 |
| 2014-03-31 | 156,829.00 | 21,285.00 | 7,062.00 |
| 2013-12-31 | 152,702.00 | 24,730.00 | 8,029.00 |
| 2013-09-30 | 152,702.00 | 24,730.00 | 8,029.00 |
| 2013-06-30 | 146,583.00 | 23,465.00 | 17,905.00 |
| 2013-03-31 | 146,583.00 | 23,465.00 | 17,905.00 |
| 2012-12-31 | 143,111.00 | 23,824.00 | 6,138.00 |
| 2012-09-30 | 144,480.00 | 23,824.00 | 6,138.00 |
| 2012-06-30 | 137,696.00 | 26,566.00 | 24,543.00 |
- MTR's level of debt (22.4%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (16.2% vs 22.4% today).
- Debt is well covered by operating cash flow (27.1%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 13.9x coverage).
Financial health checks
We assess MTR's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) MTR has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is MTR's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
HK$2,000 of
MTR
shares you are expected to receive
HK$51
in your first year as a dividend.
Dividend Amount
- MTR's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.94%).
- MTR's dividend is below the markets top 25% of dividend payers in Hong Kong (5.34%).
Upcoming dividend payment
Purchase MTR before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Asia Transportation Industry Average Dividend Yield | Market Cap Weighted Average of 8 Stocks | 2.6% |
| Hong Kong Market Average Dividend Yield | Market Cap Weighted Average of 965 Stocks | 3.4% |
| Hong Kong Minimum Threshold Dividend Yield | 10th Percentile | 1.1% |
| Hong Kong Bottom 25% Dividend Yield | 25th Percentile | 1.9% |
| Hong Kong Top 25% Dividend Yield | 75th Percentile | 5.3% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in HK$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 1.39 | 7.00 |
| 2020-12-31 | 1.36 | 11.00 |
| 2019-12-31 | 1.28 | 11.00 |
| Date (Data in HK$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-11 | 1.200 | 2.494 |
| 2018-08-09 | 1.120 | 2.679 |
| 2018-04-11 | 1.120 | 2.573 |
| 2017-03-07 | 1.070 | 2.408 |
| 2016-04-13 | 5.460 | 13.619 |
| 2015-03-16 | 1.050 | 2.901 |
| 2014-04-02 | 0.920 | 2.962 |
| 2013-03-11 | 0.790 | 2.683 |
| 2012-08-13 | 0.760 | 2.522 |
| 2012-03-08 | 0.760 | 2.861 |
| 2011-08-11 | 0.700 | 2.766 |
| 2011-03-03 | 0.590 | 2.136 |
| 2010-04-23 | 0.520 | 1.836 |
| 2010-03-09 | 0.520 | 1.803 |
| 2009-08-11 | 0.480 | 1.788 |
| 2009-04-23 | 0.480 | 2.059 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
MTR's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.2x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
Income/ dividend checks
We assess MTR's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can MTR afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) MTR has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | HK$9,800,000 |
| AGE | 56 |
| TENURE AS CEO | 0 years |
CEO Bio
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, 2011 and served as its Managing Director of Operations & Mainland Business from May 1, 2016 until April 1, 2019. He serves as a Projects Director at MTR Corporation since August 7, 2018. Dr. Kam is responsible for overseeing the MTR's transport operations in Hong Kong and its rail and property businesses in the Mainland of China. In addition, Dr. Kam is responsible for overseeing railway operations standards and ensuring mutual learning of best practices among all the MTR’s railway operations globally. He served as the Operations Director at MTR Corporation Limited since January 1, 2011 until April 2016. He served as Chief of Operations Engineering at MTR Corporation Limited until January 1, 2011. Dr. Kam served as Head of Operations Engineering at MTR Corporation Limited. He served as Operations Manager - LAR and General Manager of Shenzhen L4 at MTR Corporation Limited. He served as a Director of Metro Trains Melbourne Pty Ltd until August 12, 2016. Dr. Kam has been the chairman of the Regional and Suburban Railways Assembly of the International Association of Public Transport (UITP) since May 2017. He is a council member of Vocational Training Council. He has been a member of Hong Kong Quality Assurance Agency Governing Council since November 21, 2017. He qualified as a Chartered Engineer in the United Kingdom in 1989. He is the Vice President of The Chartered Institute of Logistics and Transport in Hong Kong. He is a Member of both the Institution of Mechanical Engineers, United Kingdom and The Hong Kong Institution of Engineers. He is a Chartered Fellow of the Institution of Occupational Safety and Health, United Kingdom. Dr. Kam holds a Bachelor of Science degree in Civil Engineering from the University of Southampton, United Kingdom and a Doctoral degree in Mechanical Engineering (University College London) from the University of London, United Kingdom. Dr. Kam attended the Wharton Advanced Management Programme at the University of Pennsylvania, U.S.A. in 2005. He is a member of the board of directors of The Community Chest of Hong Kong.
CEO Compensation
- Jacob's compensation has been consistent with company performance over the past year.
- Jacob's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure
Average tenure and age of the MTR management team in years:
- The tenure for the MTR management team is about average.
Management Team
Jacob Kam
CEO & Director
HK$10M
56
Herbert Hui
Finance Director
HK$6M
55
2.8 yrs
Adi Lau
Operations Director
HK$9M
59
Neil Slater
Legal & European Business Director and Company Secretary
HK$6M
2.8 yrs
Linda So
Corporate Affairs Director
HK$5M
50
3.6 yrs
Margaret Cheng
Human Resources Director
HK$7M
52
2.8 yrs
Sammy Jim
General Manager of Corporate Finance
Jerry Li
Deputy Director of Strategy
Ted Suen
Chief Information Officer
Candy Ng
Head of Investor Relations & Retirement Benefits
7.3 yrs
Board of Directors Tenure
Average tenure and age of the MTR board of directors in years:
- The tenure for the MTR board of directors is about average.
Board of Directors
Frederick Ma
Non-Executive Chairman of the Board
HK$2M
66
3.3 yrs
Jacob Kam
CEO & Director
HK$10M
56
Abraham Shek
Independent Non-Executive Director
HK$500K
72
11.3 yrs
Eddy Fong
Independent Non-Executive Director
HK$500K
71
4.3 yrs
Allan Wong
Independent Non-Executive Director
HK$500K
67
3.7 yrs
Andrew Clifford Winawer Brandler
Independent Non-Executive Director
HK$300K
62
1.9 yrs
Vincent Cheng
Independent Non-Executive Director
HK$400K
70
9.8 yrs
Mable Chan
Non-Executive Director
52
1.5 yrs
Pamela Chan
Independent Non-Executive Director
HK$400K
71
5.8 yrs
Dorothy Chan
Independent Non-Executive Director
HK$400K
68
5.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | Value (HK$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 23. Oct 18 | Buy | Neil Slater | Individual | 12. Oct 18 | 12. Oct 18 | 552 | HK$40.14 | HK$22,157 | ||
| 23. Oct 18 | Buy | Tin-shing Lau | Individual | 12. Oct 18 | 12. Oct 18 | 121 | HK$40.14 | HK$4,857 | ||
| 20. Jul 18 | Buy | Wong Chan | Individual | 11. Jul 18 | 11. Jul 18 | 21 | HK$44.51 | HK$935 | ||
| 17. Jul 18 | Buy | Neil Slater | Individual | 11. Jul 18 | 11. Jul 18 | 1,701 | HK$44.51 | HK$75,712 | ||
| 17. Jul 18 | Buy | Siu-wa Cheung | Individual | 11. Jul 18 | 11. Jul 18 | 897 | HK$44.51 | HK$39,925 | ||
| 17. Jul 18 | Buy | Tin-shing Lau | Individual | 11. Jul 18 | 11. Jul 18 | 1,441 | HK$44.51 | HK$64,139 | ||
| 17. Jul 18 | Buy | Chi-fai Tang | Individual | 11. Jul 18 | 11. Jul 18 | 3,297 | HK$44.51 | HK$146,749 | ||
| 17. Jul 18 | Buy | Kwok-kuen Leong | Individual | 11. Jul 18 | 11. Jul 18 | 22,674 | HK$44.51 | HK$1,009,220 | ||
Management checks
We assess MTR's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) MTR has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Read This Before You Buy MTR Corporation Limited (HKG:66) Because Of Its P/E Ratio
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll apply a basic P/E ratio analysis to MTR Corporation Limited's (HKG:66), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleMTR Corporation Limited (HKG:66): What's The Analyst Consensus Outlook?
In December 2018, MTR Corporation Limited (HKG:66) announced its latest earnings update, whicha … confirmed
Simply Wall St - – Full articleMTR Corporation Limited's (HKG:66) Earnings Dropped -4.9%, How Did It Fare Against The Industry?
Understanding MTR Corporation Limited's (HKG:66) performance as a company requires examining more than earnings from one point in time. … Today I will take you through a basic sense check to gain perspective on how MTR is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 1.7%, indicating the rate at which 66 is growing has slowed down
Simply Wall St - – Full articleThe MTR (HKG:66) Share Price Is Up 70% And Shareholders Are Holding On
By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, MTR achieved compound earnings per share (EPS) growth of 3.3% per year. … This EPS growth is slower than the share price growth of 11% per year, over the same period.
Simply Wall St - – Full articleShould You Worry About MTR Corporation Limited's (HKG:66) CEO Pay Cheque?
This analysis aims first to contrast CEO compensation with other large companies. … How Does Lincoln Leong's Compensation Compare With Similar Sized Companies. … According to our data, MTR Corporation Limited has a market capitalization of HK$278b, and pays its CEO total annual compensation worth HK$15m.
Simply Wall St - – Full articleIs MTR Corporation Limited (HKG:66) A Financially Strong Company?
Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt. … Today I will analyse the latest financial data for 66 to determine is solvency and liquidity and whether the stock is a sound investment.
Simply Wall St - – Full articleIs MTR Corporation Limited’s (HKG:66) Cash Outlook Optimistic?
If you are currently a shareholder in MTR Corporation Limited (HKG:66), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Free cash flow (FCF) is the amount of cash MTR has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.
Simply Wall St - – Full articleBoasting A 9.8% Return On Equity, Is MTR Corporation Limited (HKG:66) A Top Quality Stock?
Our data shows MTR has a return on equity of 9.8% for the last year. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.098 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Should Investors Know About MTR Corporation Limited's (HKG:66) Return On Capital?
This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand MTR’s capital returns we will look at a useful metric called return on capital employed. … This will tell us if the company is growing your capital and placing you in good stead to sell your shares at a profit
Simply Wall St - – Full articleOnly 2 Days Left Before MTR Corporation Limited (HKG:66) Will Start Trading Ex-Dividend, Should Investors Buy?
Important news for shareholders and potential investors in MTR Corporation Limited (HKG:66): The dividend payment of HK$0.25 per share will be distributed into shareholder on 12 October 2018, and the stock will begin trading ex-dividend at an earlier date, 22 August 2018. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:? … Will the company be able to keep paying dividend based on the future earnings growth
Simply Wall St - – Full articleCompany Info
Description
MTR Corporation Limited designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland of China, Sweden, the United Kingdom, and internationally. It operates in Hong Kong Transport Operations; Hong Kong Station Commercial Businesses; Hong Kong Property Rental and Management Businesses; Hong Kong Property Development; Mainland of China and International Railway, Property Rental and Management Businesses; Mainland Of China Property Development; and Other Businesses. The company offers domestic and cross-boundary services, the Airport Express, and a light rail and bus feeder system. Its network consists of 256.6 kilometers of rail; 12 rail lines; and 93 stations. The company also offers intercity railway services; leases station retail space in stations, as well as advertising space in trains and stations; enables telecommunication services on the railway system; and develops, invests in, manages, and leases investment properties, including shopping malls and offices. In addition, it operates cable cars, and the Octopus access control system; and offers railway consultancy and project management services, as well as railway management, engineering, and technology training services. Further, it administers the operation of MTR academy; and provides general building and maintenance, engineering, property broking and administrative, tourist, fixed telecommunication network and related, insurance, financing, and technical support services. Additionally, the company offers station management, project bidding, commercial management and consultancy, business management and consultancy, commercial facilities strategy, corporate training management, rail transport training, economic and business information consultancy, and enterprise management consultancy. It also engages in the cable car system and theme village; and pre-operation mobilization activities. The company was founded in 1975 and is headquartered in Kowloon Bay, Hong Kong.
Details
| Name: | MTR Corporation Limited |
| 66 | |
| Exchange: | SEHK |
| Founded: | 1975 |
| HK$291,403,052,198 | |
| 6,141,265,589 | |
| Website: | http://www.mtr.com.hk |
| Address: |
MTR Corporation Limited MTR Headquarters Building, Telford Plaza, Kowloon Bay, Kowloon, Hong Kong |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SEHK | 66 | Ordinary Shares | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 05. Oct 2000 | |
| OTCPK | MTRJ.F | Ordinary Shares | Pink Sheets LLC | US | USD | 05. Oct 2000 | |
| DB | MRI | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 05. Oct 2000 | |
| SHSC | 66 | Ordinary Shares | Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect | HK | HKD | 05. Oct 2000 | |
| SZSC | 66 | Ordinary Shares | The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect | HK | HKD | 05. Oct 2000 | |
| OTCPK | MTCP.Y | UNSPONSORE ADR | Pink Sheets LLC | US | USD | 29. Mar 2017 |
Number of employees
Current staff
Industry
| Railroads | |
| Transportation |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 12:36 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/03/28 |
| Last earnings filing: | 2019/04/11 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
