NZSE:MFT

Stock Analysis Report

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Executive Summary

Mainfreight Limited provides supply chain logistics solutions in New Zealand, Australia, the Americas, Asia, and Europe.


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has Mainfreight's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MFT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

MFT

2.5%

NZ Logistics

3.1%

NZ Market


1 Year Return

3.0%

MFT

-6.7%

NZ Logistics

1.9%

NZ Market

Return vs Industry: MFT exceeded the NZ Logistics industry which returned -6.7% over the past year.

Return vs Market: MFT exceeded the NZ Market which returned 1.9% over the past year.


Shareholder returns

MFTIndustryMarket
7 Day5.3%2.5%3.1%
30 Day3.5%0.6%3.3%
90 Day21.1%23.3%17.5%
1 Year4.8%3.0%-4.4%-6.7%6.6%1.9%
3 Year86.3%75.9%9.3%2.2%44.3%22.3%
5 Year199.3%172.4%20.6%6.5%98.2%45.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mainfreight 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: MFT (NZ$41.4) is trading below our estimate of fair value (NZ$119.19)

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


Price To Earnings Ratio

PE vs Industry: MFT is poor value based on its PE Ratio (26.2x) compared to the Logistics industry average (18x).

PE vs Market: MFT is poor value based on its PE Ratio (26.2x) compared to the NZ market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MFT is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: MFT is overvalued based on its PB Ratio (4.3x) compared to the XO Logistics industry average (2x).


Next Steps

Future Growth

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

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFT's forecast earnings growth (9.6% per year) is above the savings rate (2.6%).

Earnings vs Market: MFT's earnings (9.6% per year) are forecast to grow faster than the NZ market (8.4% per year).

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

Revenue vs Market: MFT's revenue (6.5% per year) is forecast to grow faster than the NZ market (6.2% per year).

High Growth Revenue: MFT's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFT's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Mainfreight performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFT has high quality earnings.

Growing Profit Margin: MFT's current net profit margins (5.1%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: MFT's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: MFT's earnings growth over the past year (15.7%) exceeds its 5-year average (13.6% per year).

Earnings vs Industry: MFT earnings growth over the past year (15.7%) exceeded the Logistics industry -1.9%.


Return on Equity

High ROE: MFT's Return on Equity (16.5%) is considered low.


Next Steps

Financial Health

How is Mainfreight's financial position?


Financial Position Analysis

Short Term Liabilities: MFT's short term assets (NZ$613.0M) exceed its short term liabilities (NZ$555.2M).

Long Term Liabilities: MFT's short term assets (NZ$613.0M) do not cover its long term liabilities (NZ$783.1M).


Debt to Equity History and Analysis

Debt Level: MFT's debt to equity ratio (27.7%) is considered satisfactory.

Reducing Debt: MFT's debt to equity ratio has reduced from 59.9% to 27.7% over the past 5 years.

Debt Coverage: MFT's debt is well covered by operating cash flow (112.4%).

Interest Coverage: MFT's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MFT's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (3.06%).

High Dividend: MFT's dividend (1.43%) is low compared to the top 25% of dividend payers in the NZ market (5.63%).


Stability and Growth of Payments

Stable Dividend: MFT is not paying a notable dividend for the NZ market, therefore no need to check if payments are stable.

Growing Dividend: MFT is not paying a notable dividend for the NZ market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

18.3yrs

Average management tenure


CEO

Don Braid (60yo)

no data

Tenure

NZ$2,951,572

Compensation

Mr. Donald R. Braid, also known as Don, serves as the Managing Director at Owens Group Limited. Mr. Braid serves as Group Managing Director at Mainfreight Ltd. and Mainfreight International Inc. He has bee ...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD1.93M) is above average for companies of similar size in the NZ market ($USD1.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Plested
Founding Owner & Executive Chairmanno datano data17.03% NZ$696.3m
Donald Braid
Group MD & Directorno dataNZ$2.95m2.82% NZ$115.4m
Tim Williams
Group CFO & Group Financial Controller25.5yrsno data0.21% NZ$8.7m
Carl G. Howard-Smith
General Counsel42.5yrsno data0.089% NZ$3.7m
John Hepworth
President & Director of Mainfreight USAno datano datano data
Shawn Roach
President of Domestic & National Manager of Domestic Forwarding - USAno datano datano data
Chris Wilson
President of CaroTrans USA2.5yrsno datano data

18.3yrs

Average Tenure

76yo

Average Age

Experienced Management: MFT's management team is seasoned and experienced (18.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bruce Plested
Founding Owner & Executive Chairmanno datano data17.03% NZ$696.3m
Donald Braid
Group MD & Directorno dataNZ$2.95m2.82% NZ$115.4m
John Hepworth
President & Director of Mainfreight USAno datano datano data
Richard Prebble
Independent Director24.5yrsNZ$120.00k0.088% NZ$3.6m
Bryan Mogridge
Independent Director17.25yrsNZ$120.00k0.20% NZ$8.1m
Simon Cotter
Independent Director7.5yrsNZ$120.00k0.079% NZ$3.2m
Catherie Parsons
Independent Director3.5yrsNZ$120.00k0.00099% NZ$40.5k

17.3yrs

Average Tenure

66yo

Average Age

Experienced Board: MFT's board of directors are seasoned and experienced ( 17.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MFT insiders have sold more shares than they have bought 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

Mainfreight Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mainfreight Limited
  • Ticker: MFT
  • Exchange: NZSE
  • Founded: 1978
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: NZ$4.088b
  • Shares outstanding: 100.70m
  • Website: https://www.mainfreight.com

Number of Employees


Location

  • Mainfreight Limited
  • 2 Railway Lane
  • Otahuhu
  • Auckland
  • 1062
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFTNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 1996
MFGH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1996

Biography

Mainfreight Limited provides supply chain logistics solutions in New Zealand, Australia, the Americas, Asia, and Europe. It provides warehousing, domestic freight forwarding, and international air and ocean freight forwarding services. The company was founded in 1978 and is based 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 Analysis2020/07/07 10:33
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.