NZSE:MPG

Stock Analysis Report

Metro Performance Glass

Executive Summary

Metro Performance Glass Limited, together with its subsidiaries, supplies processed flat glass and related products for the residential and commercial building sectors in New Zealand and Australia.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Metro Performance Glass's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.4%

MPG

1.2%

NZ Building

0.8%

NZ Market


1 Year Return

-58.6%

MPG

-12.2%

NZ Building

-4.5%

NZ Market

Return vs Industry: MPG underperformed the NZ Building industry which returned -16.1% over the past year.

Return vs Market: MPG underperformed the NZ Market which returned -6.2% over the past year.


Shareholder returns

MPGIndustryMarket
7 Day2.4%1.2%0.8%
30 Day-37.9%-15.0%-14.1%
90 Day-37.9%-21.4%-17.0%
1 Year-58.6%-58.6%-10.3%-12.2%-1.0%-4.5%
3 Year-85.0%-86.7%-10.1%-15.4%30.1%14.0%
5 Year-88.2%-90.6%5.3%-6.1%62.3%26.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Metro Performance Glass undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPG (NZ$0.18) is trading below our estimate of fair value (NZ$0.95)

Significantly Below Fair Value: MPG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MPG is good value based on its PE Ratio (9.2x) compared to the Building industry average (12.1x).

PE vs Market: MPG is good value based on its PE Ratio (9.2x) compared to the NZ market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: MPG is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MPG is good value based on its PB Ratio (0.2x) compared to the XX Building industry average (0.9x).


Next Steps

Future Growth

How is Metro Performance Glass forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPG's forecast earnings growth (8.1% per year) is above the savings rate (1.3%).

Earnings vs Market: MPG's earnings (8.1% per year) are forecast to grow slower than the NZ market (9.6% per year).

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

Revenue vs Market: MPG's revenue is expected to decline over the next 3 years (-3% per year).

High Growth Revenue: MPG's revenue is forecast to decline over the next 3 years (-3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPG's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Metro Performance Glass performed over the past 5 years?

-24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPG has a large one-off loss of NZ$9.6M impacting its September 30 2019 financial results.

Growing Profit Margin: MPG's current net profit margins (1.4%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: MPG's earnings have declined by -24.5% per year over the past 5 years.

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

Earnings vs Industry: MPG had negative earnings growth (-73.4%) over the past year, making it difficult to compare to the Building industry average (5.3%).


Return on Equity

High ROE: MPG's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is Metro Performance Glass's financial position?


Financial Position Analysis

Short Term Liabilities: MPG's short term assets (NZ$70.9M) exceed its short term liabilities (NZ$40.9M).

Long Term Liabilities: MPG's short term assets (NZ$70.9M) do not cover its long term liabilities (NZ$139.2M).


Debt to Equity History and Analysis

Debt Level: MPG's debt to equity ratio (48.6%) is considered high.

Reducing Debt: MPG's debt to equity ratio has increased from 45.7% to 48.6% over the past 5 years.

Debt Coverage: MPG's debt is well covered by operating cash flow (42.3%).

Interest Coverage: MPG's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

What is Metro Performance Glass's current dividend yield, its reliability and sustainability?

11.47%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MPG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MPG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MPG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MPG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MPG is not paying a notable dividend for the NZ market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MPG's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Simon Mander

1.42s

Tenure

Mr. Simon J. Mander has been the Chief Executive Officer at Metro Performance Glass Limited since November 19, 2018. Mr. Mander served as Planning Director at Lion Breweries New Zealand for 2 years as and  ...


Leadership Team

NamePositionTenureCompensationOwnership
Simon Mander
Chief Executive Officer1.42yrsno data0.11% NZ$36.4k
Brent Mealings
Chief Financial Officer0.25yrno data0.0092% NZ$3.1k
Andrew Paterson
Investor Relations Manager & Company Secretaryno datano datano data
Dayna Saunders
Human Resources Director5.42yrsno datano data

1.4yrs

Average Tenure

Experienced Management: MPG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Eglinton
Independent Non-Executive Directorno datano datano data
Peter Griffiths
Independent Non-Executive Chair2.42yrsNZ$106.04k0.11% NZ$35.6k
Rhys Jones
Independent Non-Executive Director2yrsno data0.031% NZ$10.6k
Willem Roest
Independent Non-Executive Director5.75yrsNZ$92.00k0.013% NZ$4.6k
Russell Chenu
Independent Non-Executive Director5.75yrsNZ$100.00k0.013% NZ$4.6k
Angela Bull
Independent Non Executive Director2.92yrsNZ$75.88k0.036% NZ$12.0k
Graham Stuart
Independent Non Executive Director0.33yrno data0.054% NZ$18.2k

2.7yrs

Average Tenure

Experienced Board: MPG's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MPG 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

Metro Performance Glass Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Metro Performance Glass Limited
  • Ticker: MPG
  • Exchange: NZSE
  • Founded: 1987
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: NZ$33.739m
  • Shares outstanding: 185.38m
  • Website: https://www.metroglass.co.nz

Number of Employees


Location

  • Metro Performance Glass Limited
  • 5 Lady Fisher Place
  • Highbrook
  • Auckland
  • 2013
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPGNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJul 2014
MPPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2014
MPPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2014

Biography

Metro Performance Glass Limited, together with its subsidiaries, supplies processed flat glass and related products for the residential and commercial building sectors in New Zealand and Australia. Its glass products include splash backs, benchtops, and kitchen doors and mirrors; and mirrors, inline showers, two and three sided showers, bath end showers, bath screens, and shower and screen hardware. The company also offers balustrades, stairs, room dividers, doors, mirrors, furniture, and balustrade and door hardware; and exterior balustrades, pool fences, wind breaks, glass canopies, glass features, outdoor furniture, and balustrade and pool fence hardware. In addition, it provides installation services. Metro Performance Glass Limited was founded in 1987 and is headquartered in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 12:33
End of Day Share Price2020/04/08 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.