SEHK:66

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet average 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


Market Performance


7 Day Return

-1.3%

66

0.9%

HK Transportation

0.3%

HK Market


1 Year Return

15.3%

66

10.8%

HK Transportation

1.3%

HK Market

Return vs Industry: 66 exceeded the Hong Kong Transportation industry which returned 10.8% over the past year.

Return vs Market: 66 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

66IndustryMarket
7 Day-1.3%0.9%0.3%
30 Day-2.5%-3.2%0.5%
90 Day-17.3%-16.1%-4.6%
1 Year18.2%15.3%13.6%10.8%4.9%1.3%
3 Year15.4%2.5%4.5%-6.1%15.3%3.7%
5 Year78.5%41.5%52.6%25.5%20.0%-0.006%

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?

18.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 66 (HK$44.35) is trading above our estimate of fair value (HK$31.53)

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


Price To Earnings Ratio

PE vs Industry: 66 is poor value based on its PE Ratio (18.8x) compared to the Transportation industry average (17.8x).

PE vs Market: 66 is poor value based on its PE Ratio (18.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 66 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 66 is overvalued based on its PB Ratio (1.5x) compared to the HK Transportation industry average (0.9x).


Next Steps

Future Growth

How is MTR forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 66's forecast earnings growth (10% per year) is above the savings rate (2%).

Earnings vs Market: 66's earnings (10% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 66's earnings are forecast to grow, but not significantly.

Revenue vs Market: 66's revenue (3.8% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 66's revenue (3.8% 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 (7.4%).


Next Steps

Past Performance

How has MTR performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 66's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: 66's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 66 had negative earnings growth (-12.2%) over the past year, making it difficult to compare to the Transportation industry average (-12.2%).


Return on Equity

High ROE: 66's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: 66 has a higher Return on Assets than the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: 66's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MTR's financial position?


Financial Position Analysis

Short Term Liabilities: 66's short term assets (HK$37.2B) exceeds its short term liabilities (HK$17.6B)

Long Term Liabilities: 66's short term assets (37.2B) do not cover its long term liabilities (84.6B)


Debt to Equity History and Analysis

Debt Level: 66's debt to equity ratio (20.4%) is considered satisfactory

Reducing Debt: 66's debt to equity ratio has increased from 13.6% to 20.4% over the past 5 years.

Debt Coverage: 66's debt is well covered by operating cash flow (43.9%).

Interest Coverage: 66's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet

Inventory Level: 66 has a high level of physical assets or inventory.

Debt Coverage by Assets: 66's debt is covered by short term assets (assets are 1.009360x debt).


Next Steps

Dividend

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

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.3%markettop25%6.2%industryaverage2.8%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 66's dividend (2.71%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 66's dividend (2.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

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: With its reasonable payout ratio (50.9%), 66's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 66's dividends in 3 years are forecast to be covered by earnings (60.3% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Jacob Kam (57yo)

0.5yrs

Tenure

HK$11,400,000

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: 66's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 66's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: 66 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$22,75616 Oct 19
Gillian Meller
EntityIndividual
Role
Chief Legal Officer
Legal & European Business Director and Company Secretary
Shares481
Max PriceHK$47.31
BuyHK$163,88414 Aug 19
Chi-fai Tang
EntityIndividual
Shares3,435
Max PriceHK$47.71
BuyHK$71,51725 Jul 19
Tin-shing Lau
EntityIndividual
Role
Chief Operating Officer
Operations Director
Shares1,499
Max PriceHK$47.71
BuyHK$84,78119 Jul 19
Gillian Meller
EntityIndividual
Role
Chief Legal Officer
Legal & European Business Director and Company Secretary
Shares1,777
Max PriceHK$47.71

Ownership Breakdown


Management Team

  • Adi Lau (60yo)

    Operations Director

    • Tenure: 0yrs
    • Compensation: HK$7.20m
  • Jacob Kam (57yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: HK$11.40m
  • Herbert Hui (56yo)

    Finance Director

    • Tenure: 3.3yrs
    • Compensation: HK$7.60m
  • Ted Suen

    Chief Information Officer

    • Tenure: 0yrs
  • Gillian Meller (46yo)

    Legal & European Business Director and Company Secretary

    • Tenure: 3.3yrs
    • Compensation: HK$7.00m
  • Margaret Cheng (53yo)

    Human Resources Director

    • Tenure: 3.3yrs
    • Compensation: HK$7.80m
  • Paul Chow

    Head of Internal Audit

    • Tenure: 0yrs
  • Sammy Jim

    General Manager of Corporate Finance

    • Tenure: 0yrs
  • Candy Ng

    Head of Investor Relations & Retirement Benefits

    • Tenure: 7.8yrs
  • Jerry Li

    Deputy Director of Strategy

    • Tenure: 0yrs

Board Members

  • Andrew Clifford Winawer Brandler (63yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$500.00k
  • James Kwan (67yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$500.00k
  • Eddy Fong (72yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$500.00k
  • Jacob Kam (57yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: HK$11.40m
  • Lucia Li Li (65yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$500.00k
  • Dorothy Chan (69yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$500.00k
  • Mable Chan (53yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: HK$400.00k
  • Pamela Chan (72yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$400.00k
  • Benjamin Tang (67yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$400.00k
  • Rex Auyeung (66yo)

    Chairman of the Board

    • Tenure: 0.3yrs

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$271.244b
  • Shares outstanding: 6.16b
  • Website: https://www.mtr.com.hk

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
66SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2000
MTRJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2000
MRIDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2000
66SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2000
66SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2000
MTCP.YOTCPK (Pink Sheets LLC)UNSPONSORE ADRUSUSDMar 2017

Biography

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 Ko ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:34
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.