SEHK:66

Stock Analysis Report

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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

Mediocre balance sheet with moderate growth potential.


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

-1.0%

66

0.9%

HK Transportation

1.1%

HK Market


1 Year Return

-5.1%

66

-8.1%

HK Transportation

8.3%

HK Market

Return vs Industry: 66 exceeded the Hong Kong Transportation industry which returned -8.1% over the past year.

Return vs Market: 66 underperformed the Hong Kong Market which returned 8.3% over the past year.


Shareholder returns

66IndustryMarket
7 Day-1.0%0.9%1.1%
30 Day6.4%8.1%5.6%
90 Day1.8%2.9%3.7%
1 Year-2.3%-5.1%-5.2%-8.1%12.8%8.3%
3 Year-1.4%-9.0%-12.8%-19.5%-2.8%-12.9%
5 Year45.9%15.4%13.7%-6.5%30.6%8.5%

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?

41.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 66 (HK$41.55) is trading above our estimate of fair value (HK$39.38)

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 (42x) compared to the XA Transportation industry average (16x).

PE vs Market: 66 is poor value based on its PE Ratio (42x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 66 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 66's PB Ratio (1.4x) is in line with the HK Transportation industry average.


Next Steps

Future Growth

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

63.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 66's forecast earnings growth (63.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 66's earnings (63.1% per year) are forecast to grow faster than the Hong Kong market (22.1% per year).

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

Revenue vs Market: 66's revenue (12% per year) is forecast to grow slower than the Hong Kong market (13.8% per year).

High Growth Revenue: 66's revenue (12% 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%).


Next Steps

Past Performance

How has MTR performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 66 has a large one-off loss of HK$6.7B impacting its June 30 2020 financial results.

Growing Profit Margin: 66's current net profit margins (12.7%) are lower than last year (25.8%).


Past Earnings Growth Analysis

Earnings Trend: 66's earnings have declined by 1.7% 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 (-57.7%) over the past year, making it difficult to compare to the Transportation industry average (-22.2%).


Return on Equity

High ROE: 66's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is MTR's financial position?


Financial Position Analysis

Short Term Liabilities: 66's short term assets (HK$40.5B) exceed its short term liabilities (HK$18.5B).

Long Term Liabilities: 66's short term assets (HK$40.5B) do not cover its long term liabilities (HK$89.1B).


Debt to Equity History and Analysis

Debt Level: 66's debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: 66's debt to equity ratio has increased from 11.4% to 22.5% over the past 5 years.

Debt Coverage: 66's debt is not well covered by operating cash flow (19%).

Interest Coverage: 66's interest payments on its debt are well covered by EBIT (16.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 66's dividend (2.96%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 66's dividend (2.96%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).


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: With its high payout ratio (124.2%), 66's dividend payments are not well covered by earnings.


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?

4.4yrs

Average management tenure


CEO

Jacob Kam (58 yo)

1.58yrs

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 ($USD1.38M) is above average for companies of similar size in the Hong Kong market ($USD846.70K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chak-pui Kam
Member of the Executive Directorate1.58yrsHK$10.70m0.0038%
HK$ 9.9m
Leung-wah Hui
Finance Director & Member of the Executive Directorate4.33yrsHK$6.40m0.00076%
HK$ 2.0m
Tin-shing Lau
Member of the Executive Directorate and MD of Operations & Mainland Businessno dataHK$6.00m0.0020%
HK$ 5.1m
Gillian Meller
Legal & European Business Director4.33yrsHK$5.90m0.0018%
HK$ 4.7m
Wai-ching Cheng
Member of the Executive Directorate4.42yrsHK$6.50m0.0019%
HK$ 5.0m
Mei-Chun Yeung
Commercial Director9.17yrsHK$6.40m0.011%
HK$ 27.9m
Chi-fai Tang
Property Director9.08yrsHK$6.60m0.0031%
HK$ 8.1m
Kwok-wah Jim
General Manager of Corporate Financeno datano datano data
Zhe Li
Deputy Director of Strategyno datano datano data
Yiu-Tat Suen
Chief Information Officerno datano datano data
Chui-lok Ng
Head of Investor Relations & Retirement Benefits8.83yrsno datano data
Wing-cheung Kwan
General Manager of Media & Corporate Communicationsno datano datano data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 66's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chak-pui Kam
Member of the Executive Directorate1.58yrsHK$10.70m0.0038%
HK$ 9.9m
Andrew Clifford Winawer Brandler
Independent Non-Executive Director3.5yrsHK$500.00kno data
Yuk-choi Kwan
Independent Non-Executive Director6.08yrsHK$500.00kno data
Wing-Kin Chow
Independent Non-Executive Director4.5yrsHK$500.00kno data
Ching Fong
Independent Non-Executive Director5.83yrsHK$500.00kno data
Ka-lai Li
Independent Non-Executive Director6.08yrsHK$500.00k0.000060%
HK$ 155.6k
Yuan Zhou
Independent Non-Executive Director3.5yrsHK$500.00kno data
Yuen Tak-fai Chan
Independent Non-Executive Director7.33yrsHK$500.00kno data
Wong Shui Chan
Independent Non-Executive Director7.33yrsHK$400.00k0.00017%
HK$ 440.8k
Kwok-bun Tang
Independent Non-Executive Director6.08yrsHK$400.00kno data
Pak-kuen Auyeung
Non-Executive Chairman of the Board1.33yrsHK$900.00kno data
Fan Chan
Non-Executive Director3.33yrsHK$400.00kno data

5.2yrs

Average Tenure

68yo

Average Age

Experienced Board: 66's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 66 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$259.265b
  • 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

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, Macao, Sweden, and the United Kingdom. It operates in Hong Kong Transpo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 12:40
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.