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MDI

Master Drilling GroupJSE:MDI Stock Report

Last Price

R12.00

Market Cap

R1.7b

7D

2.0%

1Y

83.2%

Updated

24 Jan, 2022

Data

Company Financials
MDI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends0/6

MDI Stock Overview

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.

Price History & Performance

Summary of all time highs, changes and price drops for Master Drilling Group
Historical stock prices
Current Share PriceR12.00
52 Week HighR13.60
52 Week LowR6.51
Beta0.69
1 Month Change13.21%
3 Month Change-8.47%
1 Year Change83.21%
3 Year Change22.45%
5 Year Change-29.41%
Change since IPO33.33%

Recent News & Updates

Sep 07
Master Drilling Group (JSE:MDI) Takes On Some Risk With Its Use Of Debt

Master Drilling Group (JSE:MDI) Takes On Some Risk With Its Use Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

MDIZA Metals and MiningZA Market
7D2.0%2.6%-0.3%
1Y83.2%3.4%13.9%

Return vs Industry: MDI exceeded the ZA Metals and Mining industry which returned 3.4% over the past year.

Return vs Market: MDI exceeded the ZA Market which returned 13.9% over the past year.

Price Volatility

Is MDI's price volatile compared to industry and market?
MDI volatility
MDI Average Weekly Movement5.0%
Metals and Mining Industry Average Movement7.0%
Market Average Movement5.7%
10% most volatile stocks in ZA Market12.1%
10% least volatile stocks in ZA Market3.3%

Stable Share Price: MDI is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MDI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986n/aDanie Pretoriushttps://www.masterdrilling.com

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. The company offers rock boring services, including raise, horizontal, box hole, slot, reef, mobile tunnel, and blind shaft boring system; aircore, blast hole, core, grade control, hydrogeological, mud rotary, percussion, sonic, and underground drilling services; and support services, which include directional drilling, stage shaft and remote-operated shaft support, piling, and geo intelligence services. It operates in Africa, Central and North America, South America, and internationally.

Master Drilling Group Fundamentals Summary

How do Master Drilling Group's earnings and revenue compare to its market cap?
MDI fundamental statistics
Market CapUS$115.41m
Earnings (TTM)US$7.67m
Revenue (TTM)US$137.74m

15.7x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDI income statement (TTM)
RevenueUS$137.74m
Cost of RevenueUS$105.13m
Gross ProfitUS$32.61m
ExpensesUS$24.94m
EarningsUS$7.67m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 22, 2022

Earnings per share (EPS)0.051
Gross Margin23.67%
Net Profit Margin5.57%
Debt/Equity Ratio22.0%

How did MDI perform over the long term?

See historical performance and comparison

Valuation

Is Master Drilling Group 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: MDI (ZAR11.5) is trading below our estimate of fair value (ZAR30.57)

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


Price To Earnings Ratio

PE vs Industry: MDI is poor value based on its PE Ratio (15.1x) compared to the ZA Metals and Mining industry average (6x).

PE vs Market: MDI is poor value based on its PE Ratio (15.1x) compared to the ZA market (10.9x).


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 (0.7x) compared to the ZA Metals and Mining industry average (1.3x).


Future Growth

How is Master Drilling Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.6%

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

-20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDI has high quality earnings.

Growing Profit Margin: MDI's current net profit margins (5.6%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: MDI's earnings have declined by 20.5% 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 (-35.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (218.4%).


Return on Equity

High ROE: MDI's Return on Equity (4.5%) is considered low.


Financial Health

How is Master Drilling Group's financial position?


Financial Position Analysis

Short Term Liabilities: MDI's short term assets ($94.1M) exceed its short term liabilities ($68.8M).

Long Term Liabilities: MDI's short term assets ($94.1M) exceed its long term liabilities ($19.5M).


Debt to Equity History and Analysis

Debt Level: MDI's net debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: MDI's debt to equity ratio has reduced from 23.9% to 22% over the past 5 years.

Debt Coverage: MDI's debt is well covered by operating cash flow (68%).

Interest Coverage: MDI's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Dividend

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


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?

13.0yrs

Average management tenure


CEO

Danie Pretorius (63 yo)

36yrs

Tenure

US$320,309

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 ($USD320.31K) is about average for companies of similar size in the ZA market ($USD258.93K).

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


Leadership Team

Experienced Management: MDI's management team is seasoned and experienced (13 years average tenure).


Board Members

Experienced Board: MDI's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MDI insiders have only sold shares 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 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
  • Implied Market Cap: R1.740b
  • Shares outstanding: 151.26m
  • Website: https://www.masterdrilling.com

Number of Employees


Location

  • Master Drilling Group Limited
  • 4 Bosman Street
  • PO Box 902
  • Fochville
  • Gauteng
  • 2515
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/24 17:00
End of Day Share Price2022/01/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.