JSE:MDI

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Master Drilling Group

Executive Summary

Master Drilling Group Limited, an investment holding company, provides specialized drilling services to blue chip major and mid-tier companies in the mining, civil engineering, construction, and hydro-electric power sectors. More Details


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Master Drilling Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MDI is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MDI's weekly volatility has decreased from 14% to 7% over the past year.


Market Performance


7 Day Return

-11.0%

MDI

-0.03%

ZA Metals and Mining

1.0%

ZA Market


1 Year Return

-30.8%

MDI

32.6%

ZA Metals and Mining

-2.1%

ZA Market

Return vs Industry: MDI underperformed the ZA Metals and Mining industry which returned 32.6% over the past year.

Return vs Market: MDI underperformed the ZA Market which returned -2.2% over the past year.


Shareholder returns

MDIIndustryMarket
7 Day-11.0%-0.03%1.0%
30 Day-4.9%6.5%3.4%
90 Day-10.2%3.9%12.0%
1 Year-30.8%-30.8%37.6%32.6%3.0%-2.1%
3 Year-48.9%-51.3%234.4%198.2%3.4%-17.7%
5 Year-39.1%-42.9%418.0%335.4%50.6%8.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Master Drilling Group undervalued compared to its fair value and its price relative to the market?

10.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDI (ZAR6.85) is trading below our estimate of fair value (ZAR7.64)

Significantly Below Fair Value: MDI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MDI is good value based on its PE Ratio (5.7x) compared to the ZA Metals and Mining industry average (14.9x).

PE vs Market: MDI is good value based on its PE Ratio (5.7x) compared to the ZA market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MDI is good value based on its PB Ratio (0.5x) compared to the ZA Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Master Drilling Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MDI's forecast earnings growth is above the savings rate (9.3%).

Earnings vs Market: Insufficient data to determine if MDI's earnings are forecast to grow faster than the ZA market

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

Revenue vs Market: MDI's revenue (9.6% per year) is forecast to grow slower than the ZA market (10.3% per year).

High Growth Revenue: MDI's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDI's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Master Drilling Group performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDI has high quality earnings.

Growing Profit Margin: MDI's current net profit margins (8.7%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: MDI's earnings have declined by 7.9% per year over the past 5 years.

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

Earnings vs Industry: MDI had negative earnings growth (-24%) over the past year, making it difficult to compare to the Metals and Mining industry average (117.2%).


Return on Equity

High ROE: MDI's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Master Drilling Group's financial position?


Financial Position Analysis

Short Term Liabilities: MDI's short term assets ($94.6M) exceed its short term liabilities ($38.9M).

Long Term Liabilities: MDI's short term assets ($94.6M) exceed its long term liabilities ($50.2M).


Debt to Equity History and Analysis

Debt Level: MDI's debt to equity ratio (28.3%) is considered satisfactory.

Reducing Debt: MDI had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: MDI's debt is well covered by operating cash flow (45%).

Interest Coverage: MDI's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Master Drilling Group current dividend yield, its reliability and sustainability?

2.55%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MDI'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 MDI's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: MDI is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Danie Pretorius (62 yo)

8.5yrs

Tenure

US$646,103

Compensation

Mr. Daniel Coenraad Pretorius, also known as Danie founded Master Drilling Group Limited in 1986 and has been its Chief Executive Officer since July 17, 2012. Mr. Pretorius founded Master Drilling in 1986 ...


CEO Compensation Analysis

Compensation vs Market: Danie's total compensation ($USD646.10K) is above average for companies of similar size in the ZA market ($USD306.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Pretorius
Founder8.5yrsUS$646.10k0.33%
$ 3.4m
André van Deventer
CFO, Financial Director & Executive Director9.75yrsUS$687.36k0.58%
$ 6.0m
Gareth Sheppard
COO & Executive Director8.17yrsUS$665.21kno data
Barend Jordaan
Technical Director & Executive Director8.5yrsUS$678.42k1.18%
$ 12.2m
Fred Dixon
Chief Operating Officer of Exploration5.33yrsUS$302.60k0.069%
$ 719.3k
Roelof Swanepoel
Chief Strategy Officer1yrUS$152.21kno data
Waldo Hattingh
Group HR Managerno datano datano data
Louis Germishuys
Chief Operating Officer of South Africa & India Operations1yrno datano data
Andrew Beaven
Company Secretary5.08yrsno datano data

5.1yrs

Average Tenure

49.5yo

Average Age

Experienced Management: MDI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Pretorius
Founder8.5yrsUS$646.10k0.33%
$ 3.4m
André van Deventer
CFO, Financial Director & Executive Director9.75yrsUS$687.36k0.58%
$ 6.0m
Gareth Sheppard
COO & Executive Director8.17yrsUS$665.21kno data
Barend Jordaan
Technical Director & Executive Director8.5yrsUS$678.42k1.18%
$ 12.2m
Fred Dixon
Chief Operating Officer of Exploration5.33yrsUS$302.60k0.069%
$ 719.3k
Hendrik Van der Merwe
Independent Non-Executive Chairman6.5yrsUS$61.23kno data
Akhter Deshmukh
Independent Non-Executive Director8.17yrsUS$39.53kno data
Shane Ferguson
Non-Independent Non-Executive Director8.33yrsno datano data
Hendrik Faul
Independent Non-Executive Director0.58yrno datano data
Andries Brink
Lead Independent Director1.17yrsUS$29.34kno data
Octavia Matloa
Independent Non-Executive Director2.58yrsUS$29.34kno data

8.2yrs

Average Tenure

56yo

Average Age

Experienced Board: MDI's board of directors are considered experienced (8.2 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Master Drilling Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Master Drilling Group Limited
  • Ticker: MDI
  • Exchange: JSE
  • Founded: 1986
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: R1.036b
  • Shares outstanding: 151.26m
  • Website: https://www.masterdrilling.com

Number of Employees


Location

  • Master Drilling Group Limited
  • 4 Bosman Street
  • Fochville
  • Gauteng
  • 2515
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDIJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARDec 2012

Biography

Master Drilling Group Limited, an investment holding company, provides specialized drilling services to blue chip major and mid-tier companies in the mining, civil engineering, construction, and hydro-elec...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 17:40
End of Day Share Price2021/01/15 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.