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MHM

MHM AutomationNZSE:MHM Stock Report

Market Cap

NZ$40.7m

7D

0%

1Y

59.0%

Updated

16 Oct, 2021

Data

Company Financials
MHM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends0/6

MHM Overview

MHM Automation Limited, together with its subsidiaries, designs and supplies automated systems and equipment for the food processing and logistics sectors in New Zealand and Australia.

Price History & Performance

Summary of all time highs, changes and price drops for MHM Automation
Historical stock prices
Current Share PriceNZ$0.62
52 Week HighNZ$0.39
52 Week LowNZ$0.76
Beta1.94
1 Month Change-1.59%
3 Month Change0%
1 Year Change58.97%
3 Year Change195.24%
5 Year Change55.00%
Change since IPO-97.10%

Recent News & Updates

Sep 01
MHM Automation's (NZSE:MHM) Strong Earnings Are Of Good Quality

MHM Automation's (NZSE:MHM) Strong Earnings Are Of Good Quality

Even though MHM Automation Limited's ( NZSE:MHM ) recent earnings release was robust, the market didn't seem to notice...

Apr 15
Is MHM Automation (NZSE:MHM) Using Too Much Debt?

Is MHM Automation (NZSE:MHM) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Feb 21
Is MHM Automation Limited's(NZSE:MHM) Recent Stock Performance Tethered To Its Strong Fundamentals?

Is MHM Automation Limited's(NZSE:MHM) Recent Stock Performance Tethered To Its Strong Fundamentals?

MHM Automation (NZSE:MHM) has had a great run on the share market with its stock up by a significant 25% over the last...

Shareholder Returns

MHMNZ Metals and MiningNZ Market
7D0%4.3%-0.5%
1Y59.0%12.2%2.2%

Return vs Industry: MHM exceeded the NZ Metals and Mining industry which returned 12.2% over the past year.

Return vs Market: MHM exceeded the NZ Market which returned 2.2% over the past year.

Price Volatility

Is MHM's price volatile compared to industry and market?
MHM volatility
MHM Beta1.94
Industry Beta0.97
Market Beta1

Stable Share Price: MHM is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MHM's weekly volatility (5%) has been stable over the past year, but is still higher than 75% of NZ stocks.

About the Company

FoundedEmployeesCEOWebsite
1884158Richard Rookeshttps://mhmautomation.com

MHM Automation Limited, together with its subsidiaries, designs and supplies automated systems and equipment for the food processing and logistics sectors in New Zealand and Australia. The company operates through Automation, Fabrication, and Mercer Technologies segments. It designs and supplies automated systems that specializes in reverse packaging and materials handling equipment, which include reverse packaging and product handling equipment, vacuum packing systems, and carton erecting and lidding equipment; and offers plate freezing systems and chilling and freezing tunnels for meat and dairy processors.

MHM Automation Fundamentals Summary

How do MHM Automation's earnings and revenue compare to its market cap?
MHM fundamental statistics
Market CapNZ$40.68m
Earnings (TTM)NZ$2.45m
Revenue (TTM)NZ$51.40m

16.6x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MHM income statement (TTM)
RevenueNZ$51.40m
Cost of RevenueNZ$30.70m
Gross ProfitNZ$20.70m
ExpensesNZ$18.25m
EarningsNZ$2.45m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.037
Gross Margin40.27%
Net Profit Margin4.76%
Debt/Equity Ratio0%

How did MHM perform over the long term?

See historical performance and comparison

Valuation

Is MHM Automation 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: MHM (NZ$0.62) is trading below our estimate of fair value (NZ$1.96)

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


Price To Earnings Ratio

PE vs Industry: MHM is poor value based on its PE Ratio (16.6x) compared to the Oceanic Metals and Mining industry average (15x).

PE vs Market: MHM is good value based on its PE Ratio (16.6x) compared to the NZ market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MHM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MHM is overvalued based on its PB Ratio (3.9x) compared to the XO Metals and Mining industry average (2.5x).


Future Growth

How is MHM Automation forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MHM Automation has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has MHM Automation performed over the past 5 years?

47.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHM has high quality earnings.

Growing Profit Margin: MHM's current net profit margins (4.8%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: MHM has become profitable over the past 5 years, growing earnings by 47.3% per year.

Accelerating Growth: MHM's earnings growth over the past year (100.4%) exceeds its 5-year average (47.3% per year).

Earnings vs Industry: MHM earnings growth over the past year (100.4%) exceeded the Metals and Mining industry 35.4%.


Return on Equity

High ROE: MHM's Return on Equity (23.3%) is considered high.


Financial Health

How is MHM Automation's financial position?


Financial Position Analysis

Short Term Liabilities: MHM's short term assets (NZ$17.9M) do not cover its short term liabilities (NZ$21.7M).

Long Term Liabilities: MHM's short term assets (NZ$17.9M) exceed its long term liabilities (NZ$464.0K).


Debt to Equity History and Analysis

Debt Level: MHM is debt free.

Reducing Debt: MHM has no debt compared to 5 years ago when its debt to equity ratio was 123.8%.

Debt Coverage: MHM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MHM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is MHM Automation current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MHM'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?

5.5yrs

Average management tenure


CEO

Richard Rookes

6.25yrs

Tenure

NZ$373,303

Compensation

Mr. Richard Rookes has been the Chief Executive Officer of MHM Automation Limited (formerly known as Mercer Group Limited) since July 2015. Mr. Rookes serves as Fund Manager of Rakaia fund. He serves as Di...


Leadership Team

Experienced Management: MHM's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: MHM'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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MHM Automation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: MHM Automation Limited
  • Ticker: MHM
  • Exchange: NZSE
  • Founded: 1884
  • Industry: Steel
  • Sector: Materials
  • Market Cap: NZ$40.684m
  • Shares outstanding: 65.62m
  • Website: https://mhmautomation.com

Number of Employees


Location

  • MHM Automation Limited
  • 53 Lunns Road
  • Middleton
  • Christchurch
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 06:01
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.