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Methven

NZSE:MVN
Snowflake Description

Proven track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MVN
NZSE
NZ$116M
Market Cap
  1. Home
  2. NZ
  3. Capital Goods
Company description

Methven Limited, together with its subsidiaries, designs, manufactures, and supplies showerware, tapware, and domestic water control valves primarily in New Zealand, Australia, and the United Kingdom. The last earnings update was 42 days ago. More info.


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MVN Share Price and Events
7 Day Returns
0%
NZSE:MVN
1.6%
Oceania Building
-1.8%
NZ Market
1 Year Returns
56.7%
NZSE:MVN
-2%
Oceania Building
8.4%
NZ Market
MVN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Methven (MVN) 0% 0% 3.8% 56.7% 27.3% 33.6%
Oceania Building 1.6% -1.6% 13.7% -2% 13.5% 24.4%
NZ Market -1.8% 2.3% 6% 8.4% 22.9% 45.3%
1 Year Return vs Industry and Market
  • MVN outperformed the Building industry which returned -2% over the past year.
  • MVN outperformed the Market in New Zealand which returned 8.4% over the past year.
Price Volatility
MVN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Methven 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 Methven 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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Methven.

NZSE:MVN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NZSE:MVN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
Equity Risk Premium S&P Global 6%
Building Unlevered Beta Simply Wall St/ S&P Global 1.17
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.172 (1 + (1- 28%) (27.06%))
1.268
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.37% + (1.268 * 5.96%)
9.93%

Discounted Cash Flow Calculation for NZSE:MVN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Methven 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.

NZSE:MVN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NZD, Millions) Source Present Value
Discounted (@ 9.93%)
2019 1.82 Est @ -16.87% 1.66
2020 1.62 Est @ -11.1% 1.34
2021 1.51 Est @ -7.06% 1.13
2022 1.44 Est @ -4.23% 0.99
2023 1.41 Est @ -2.25% 0.88
2024 1.40 Est @ -0.86% 0.79
2025 1.40 Est @ 0.11% 0.72
2026 1.41 Est @ 0.79% 0.66
2027 1.43 Est @ 1.26% 0.61
2028 1.45 Est @ 1.59% 0.56
Present value of next 10 years cash flows NZ$9.34
NZSE:MVN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NZ$1.45 × (1 + 2.37%) ÷ (9.93% – 2.37%)
NZ$19.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$19.64 ÷ (1 + 9.93%)10
NZ$7.62
NZSE:MVN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$9.34 + NZ$7.62
NZ$16.96
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$16.96 / 71.02
NZ$0.24
NZSE:MVN Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$0.24
Current discount Discount to share price of NZ$1.63
= -1 x (NZ$1.63 - NZ$0.24) / NZ$0.24
-582.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Methven is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Methven's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Methven's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:MVN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in NZD NZ$0.08
NZSE:MVN Share Price ** NZSE (2019-03-28) in NZD NZ$1.63
Oceania Building Industry PE Ratio Median Figure of 5 Publicly-Listed Building Companies 17.34x
New Zealand Market PE Ratio Median Figure of 90 Publicly-Listed Companies 17.35x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Methven.

NZSE:MVN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:MVN Share Price ÷ EPS (both in NZD)

= 1.63 ÷ 0.08

19.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Methven is overvalued based on earnings compared to the Oceania Building industry average.
  • Methven is overvalued based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Methven's expected growth come at a high price?
Raw Data
NZSE:MVN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
14.5%per year
Global Building Industry PEG Ratio Median Figure of 82 Publicly-Listed Building Companies 1.41x
New Zealand Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NZSE:MVN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.79x ÷ 14.5%

1.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Methven is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Methven's assets?
Raw Data
NZSE:MVN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in NZD NZ$0.69
NZSE:MVN Share Price * NZSE (2019-03-28) in NZD NZ$1.63
Oceania Building Industry PB Ratio Median Figure of 5 Publicly-Listed Building Companies 2.29x
New Zealand Market PB Ratio Median Figure of 126 Publicly-Listed Companies 1.57x
NZSE:MVN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:MVN Share Price ÷ Book Value per Share (both in NZD)

= 1.63 ÷ 0.69

2.35x

* Primary Listing of Methven.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Methven is overvalued based on assets compared to the Oceania Building industry average.
X
Value checks
We assess Methven's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Building industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Building industry average (and greater than 0)? (1 check)
  5. Methven has a total score of 0/6, 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 Methven expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

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!
Annual Growth Rate
14.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Methven expected to grow at an attractive rate?
  • Methven's earnings growth is expected to exceed the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Methven's earnings growth is expected to exceed the New Zealand market average.
  • Methven's revenue growth is expected to exceed the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:MVN Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:MVN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 14.5%
NZSE:MVN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 6.2%
Oceania Building Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
Global Building Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 5.7%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*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
Raw Data
NZSE:MVN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:MVN Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 124 9 1
2020-06-30 118 8 1
2019-06-30 109 7 1
NZSE:MVN Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2018-12-31 107 6 6
2018-09-30 106 9 6
2018-06-30 105 13 7
2018-03-31 104 11 6
2017-12-31 103 10 5
2017-09-30 102 6 5
2017-06-30 100 3 5
2016-07-01 104 12 7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Methven's earnings are expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).
  • Methven's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NZSE:MVN 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 1 Analyst Estimates (S&P Global) See Below

All data from Methven Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:MVN Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.12 0.12 0.12 1.00
2020-06-30 0.11 0.11 0.11 1.00
2019-06-30 0.10 0.10 0.10 1.00
NZSE:MVN Past Financials Data
Date (Data in NZD Millions) EPS *
2018-12-31 0.08
2018-09-30 0.09
2018-06-30 0.09
2018-03-31 0.09
2017-12-31 0.08
2017-09-30 0.08
2017-06-30 0.08
2016-07-01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Methven is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Methven's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Methven has a total score of 3/6, 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 Methven 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
Below we compare Methven's growth in the last year to its industry (Building).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Methven's year on year earnings growth rate has been positive over the past 5 years.
  • Methven's 1-year earnings growth exceeds its 5-year average (8% vs 4%)
  • Methven's earnings growth has exceeded the Oceania Building industry average in the past year (8% vs 5%).
Earnings and Revenue History
Methven's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Methven Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:MVN Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 106.95 5.88 32.94 2.62
2018-09-30 106.04 6.26 32.11 2.52
2018-06-30 105.14 6.64 31.29 2.43
2018-03-31 104.04 6.04 31.63 2.40
2017-12-31 102.94 5.45 31.96 2.36
2017-09-30 101.51 5.45 31.99 2.31
2017-06-30 100.08 5.44 32.02 2.27
2016-07-01 103.99 6.88 34.12 2.38
2015-12-31 100.87 6.99 34.00 2.44
2015-03-31 96.35 5.69 32.24 2.56
2014-12-31 96.20 5.25 31.30 2.70
2014-09-30 96.04 4.80 30.37 2.83
2014-06-30 96.38 4.76 30.71 2.85
2014-03-31 96.72 4.71 31.05 2.87
2013-12-31 97.12 5.17 31.06 2.77
2013-09-30 97.52 5.63 31.07 2.67
2013-06-30 97.97 5.39 31.86 2.58
2013-03-31 98.42 5.15 32.65 2.49
2012-12-31 100.36 5.37 33.88 2.53
2012-09-30 102.30 5.59 35.11 2.57
2012-06-30 104.25 6.02 35.16 2.64

*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.
  • Methven has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Methven used its assets more efficiently than the Oceania Building industry average last year based on Return on Assets.
  • Methven's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Methven's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Building industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Methven has a total score of 4/6, 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 Methven'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 Methven's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Methven is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Methven's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Methven's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x 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.
Raw Data

All data from Methven Company Filings, last reported 3 months ago.

NZSE:MVN Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 49.84 31.33 3.57
2018-09-30 49.84 31.33 3.57
2018-06-30 51.77 28.10 5.46
2018-03-31 51.77 28.10 5.46
2017-12-31 50.32 29.07 6.18
2017-09-30 50.32 29.07 6.18
2017-06-30 46.16 30.75 3.62
2016-07-01 48.84 24.36 2.24
2015-12-31 52.41 24.41 3.06
2015-03-31 49.90 24.76 2.01
2014-12-31 49.90 24.76 2.01
2014-09-30 51.80 22.74 2.80
2014-06-30 51.80 22.74 2.80
2014-03-31 42.87 16.55 2.10
2013-12-31 42.87 16.55 2.10
2013-09-30 45.51 16.24 1.80
2013-06-30 45.51 16.24 1.80
2013-03-31 45.28 20.17 2.89
2012-12-31 45.28 20.17 2.89
2012-09-30 46.87 22.46 3.16
2012-06-30 46.87 22.46 3.16
  • Methven's level of debt (62.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.6% vs 62.9% today).
  • Debt is not well covered by operating cash flow (17.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.6x coverage).
X
Financial health checks
We assess Methven's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Methven has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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 Methven'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
Dividend payments
4.91%
Current annual income from Methven dividends. Estimated to be 5.52% next year.
If you bought NZ$2,000 of Methven shares you are expected to receive NZ$98 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Methven's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.31%).
  • Methven's dividend is below the markets top 25% of dividend payers in New Zealand (5.53%).
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.
Raw Data
NZSE:MVN Annualized Past and Future Dividends
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 1 Analyst Estimates (S&P Global) See Below
Global Building Industry Average Dividend Yield Market Cap Weighted Average of 98 Stocks 2.3%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 75 Stocks 3.9%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NZSE:MVN Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.10 1.00
2020-06-30 0.09 1.00
2019-06-30 0.08 1.00
NZSE:MVN Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2018-08-29 0.080 5.994
2017-08-28 0.070 6.713
2016-09-13 0.090 7.426
2016-08-25 0.090 6.654
2016-03-30 0.080 6.192
2016-02-25 0.080 6.592
2015-05-25 0.080 7.238
2014-11-25 0.085 7.235
2014-06-30 0.095 8.528
2014-05-22 0.095 8.285
2013-05-28 0.090 6.820
2012-05-18 0.100 7.623
2011-11-29 0.090 8.219
2011-05-30 0.090 6.558
2010-11-29 0.110 6.836
2010-05-31 0.110 6.753
2009-07-01 0.118 7.408
2009-05-27 0.118 8.718
2009-04-14 0.125 10.534

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 fallen over the past 10 years.
Current Payout to shareholders
What portion of Methven's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Methven's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Methven afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Methven has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Banfield
COMPENSATION NZ$480,048
TENURE AS CEO 5.3 years
CEO Bio

Mr. David Banfield has been the Group Chief Executive Officer of Methven Ltd., since January 1, 2014 and serves as its Managing Director. As UK Managing Director of world-leading, water-filtering products brand, Brita, from 2000 to 2010, Mr. Banfield oversaw significant sales and profit growth and the establishment of the Brita brand's UK market leadership in water filtration, including tapware and strategic partnerships with appliance categories. He has been a Director of Methven Ltd. since May 25, 2015. He led Brita's successful international growth strategy in new and emerging markets including in Europe, Asia and North America.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year.
  • David's remuneration is higher than average for companies of similar size in New Zealand.
Management Team Tenure

Average tenure of the Methven management team in years:

3.2
Average Tenure
  • The tenure for the Methven management team is about average.
Management Team

David Banfield

TITLE
Group CEO
COMPENSATION
NZ$480K
TENURE
5.3 yrs

Jannine Mountford

TITLE
CFO & Company Secretary
TENURE
1.3 yrs

Aaron Latimer

TITLE
Group Director of Operations & Supply
TENURE
4.8 yrs

Matthew Jones

TITLE
Group Chief Marketing Officer
TENURE
2.1 yrs

Carl Cheater

TITLE
Head of People & Culture

Andy Grigor

TITLE
Group Head of Design & Innovation
TENURE
2.9 yrs

Rich Evans

TITLE
Chief Operating Officer of NZ Market
TENURE
3.2 yrs

Hamish Kofoed

TITLE
Group Head Of Specification

Martin Walker

TITLE
Chief Executive Officer of United Kingdom
TENURE
4.7 yrs

Andy Chen

TITLE
Chief Executive Officer of China
Board of Directors Tenure

Average tenure of the Methven board of directors in years:

2
Average Tenure
  • The average tenure for the Methven board of directors is less than 3 years, this suggests a new board.
Board of Directors

Alison Barrass

TITLE
Chairman
COMPENSATION
NZ$92K
TENURE
1.7 yrs

David Banfield

TITLE
Group CEO
COMPENSATION
NZ$480K
TENURE
3.9 yrs

Richard Cutfield

TITLE
Independent Director
COMPENSATION
NZ$65K
TENURE
18.1 yrs

Steve Tucker

TITLE
Independent Director
COMPENSATION
NZ$55K
TENURE
2.3 yrs

Tony Balfour

TITLE
Independent Director
COMPENSATION
NZ$38K
AGE
58
TENURE
1.5 yrs

Shelley Cave

TITLE
Independent Director
COMPENSATION
NZ$13K
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
X
Management checks
We assess Methven's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Methven 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

Is Methven Limited's (NZSE:MVN) 13% ROE Strong Compared To Its Industry?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each NZ$1 of shareholders' equity it has, the company made NZ$0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Methven Limited (NZSE:MVN): Why Return On Capital Employed Is Important

and looking to gauge the potential return on investment in Methven Limited (NZSE:MVN). … Your return is tied to MVN’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in Methven, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

How Has Methven Limited's (NZSE:MVN) Earnings Fared Against The Long Term Trend

Examining Methven Limited's (NZSE:MVN) past track record of performance is a valuable exercise for investors. … Below, I will assess MVN's latest performance announced on 31 December 2017 and weigh these figures against its longer term trend and industry movements. … MVN's trailing twelve-month earnings (from 31 December 2017) of NZ$5.80m has

Simply Wall St -

Best-In-Class NZSE Industrial Dividend Stocks

NZSE:MVN Historical Dividend Yield Jul 27th 18 Metro Performance Glass Limited (NZSE:MPG) MPG has a sumptuous dividend yield of 8.51% and the company has a payout ratio of 84.27%. … NZSE:MPG Historical Dividend Yield Jul 27th 18 Skellerup Holdings Limited (NZSE:SKL) SKL has an appealing dividend yield of 4.77% and pays 77.54% of it’s earnings as dividends , with analysts expecting this ratio to be 83.42% in the next three years. … NZSE:SKL Historical Dividend Yield Jul 27th 18 For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.

Simply Wall St -

What Does Methven Limited's (NZSE:MVN) Ownership Structure Look Like?

In this article, I will take a quick look at Methven Limited’s (NZSE:MVN) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … NZSE:MVN Ownership Summary July 24th 18

Simply Wall St -

Is Methven Limited (NZSE:MVN) Attractive At This PE Ratio?

and want to begin learning the link between Methven Limited (NZSE:MVN)’s fundamentals and stock market performance. … Methven Limited (NZSE:MVN) is trading with a trailing P/E of 12.5x, which is higher than the industry average of 12.3x. … While this makes MVN appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Should You Buy Methven Limited (NZSE:MVN) For Its Dividend?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Over the past 10 years, Methven Limited (NZSE:MVN) has returned an average of 8.00% per year to shareholders in terms of dividend yield. … Let's take a look at Methven in more detail.

Simply Wall St -

Reasons Why I Like Methven Limited (NZSE:MVN)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past

Simply Wall St -

What You Must Know About Methven Limited's (NZE:MVN) 11.53% ROE

Check out our latest analysis for Methven Breaking down Return on Equity Return on Equity (ROE) weighs Methven’s profit against the level of its shareholders’ equity. … ROE can be split up into three useful ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NZSE:MVN Last Perf Jun 5th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Methven Limited (NZE:MVN): Are Forecast Margins sustainable?

MVN's profit margin will help us understand the extent of this ability, as well as identify the forces behind earnings expectations. … Margin Calculation for MVN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 5.80 Million ÷ 102.94 Million = 5.64% Methven's margin has expanded in the past five years, as a result of 3.55% in average net income growth and decline in revenue growth of -1.34% on average, indicating that that despite the previous revenue decline, the company has managed to maintain positive earnigns growth and therefore increase the proportion of revenue that falls to the bottom line. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth.

Simply Wall St -

Company Info

Description

Methven Limited, together with its subsidiaries, designs, manufactures, and supplies showerware, tapware, and domestic water control valves primarily in New Zealand, Australia, and the United Kingdom. The company sells its products under the Aurajet, Satinjet, and FastFlow names. Methven Limited was founded in 1886 and is headquartered in Auckland, New Zealand. As of April 10, 2019, Methven Limited operates as a subsidiary of Gwail (Nz) Limited.

Details
Name: Methven Limited
MVN
Exchange: NZSE
Founded: 1886
NZ$115,764,397
71,021,103
Website: http://www.methven.com
Address: Methven Limited
41 Jomac Place,
Avondale,
Auckland,
1026,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE MVN Ordinary Shares New Zealand Stock Exchange NZ NZD 30. Nov 2004
Number of employees
Current staff
Staff numbers
0
Methven employees.
Industry
Building Products
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/11 10:31
End of day share price update: 2019/03/28 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


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.