JSE:MPT

Stock Analysis Report

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Executive Summary

Mpact Limited engages in the paper and plastic packaging and recycling business in South Africa. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MPT is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MPT's weekly volatility has decreased from 107% to 8% over the past year.


Market Performance


7 Day Return

1.1%

MPT

1.6%

ZA Packaging

1.6%

ZA Market


1 Year Return

1.4%

MPT

-12.1%

ZA Packaging

2.0%

ZA Market

Return vs Industry: MPT exceeded the ZA Packaging industry which returned -10.7% over the past year.

Return vs Market: MPT underperformed the ZA Market which returned 3.1% over the past year.


Shareholder returns

MPTIndustryMarket
7 Day1.1%1.6%1.6%
30 Day14.1%6.2%6.6%
90 Day28.4%25.2%11.8%
1 Year5.7%1.4%-9.2%-12.1%7.5%2.0%
3 Year-36.9%-42.6%-52.0%-54.7%1.8%-18.7%
5 Year-57.7%-63.5%-60.9%-64.8%43.0%7.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mpact undervalued compared to its fair value and its price relative to the market?

0.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MPT (ZAR15.5) is trading above our estimate of fair value (ZAR7)

Significantly Below Fair Value: MPT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MPT is unprofitable, so we can't compare its PE Ratio to the XF Packaging industry average.

PE vs Market: MPT is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MPT is good value based on its PB Ratio (0.8x) compared to the XF Packaging industry average (1.1x).


Next Steps

Future Growth

How is Mpact forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.3%).

Earnings vs Market: MPT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MPT's is expected to become profitable in the next 3 years.

Revenue vs Market: MPT's revenue (2% per year) is forecast to grow slower than the ZA market (10.7% per year).

High Growth Revenue: MPT's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPT's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

  • Explore growth companies in the Materials industry.

Past Performance

How has Mpact performed over the past 5 years?

-45.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPT is currently unprofitable.

Growing Profit Margin: MPT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MPT is unprofitable, and losses have increased over the past 5 years at a rate of 45.4% per year.

Accelerating Growth: Unable to compare MPT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MPT is unprofitable, making it difficult to compare its past year earnings growth to the Packaging industry (0.8%).


Return on Equity

High ROE: MPT has a negative Return on Equity (-22.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is Mpact's financial position?


Financial Position Analysis

Short Term Liabilities: MPT's short term assets (ZAR4.3B) exceed its short term liabilities (ZAR2.0B).

Long Term Liabilities: MPT's short term assets (ZAR4.3B) exceed its long term liabilities (ZAR2.4B).


Debt to Equity History and Analysis

Debt Level: MPT's debt to equity ratio (54.4%) is considered high.

Reducing Debt: MPT's debt to equity ratio has reduced from 56.5% to 54.4% over the past 5 years.

Debt Coverage: MPT's debt is well covered by operating cash flow (78.8%).

Interest Coverage: MPT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.35%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

7.4yrs

Average management tenure


CEO

Bruce Strong (51 yo)

11.83yrs

Tenure

R11,725,472

Compensation

Mr. Bruce William Strong has been the Chief Executive Officer and Executive Director of Mpact Limited since March 2009. Mr. Strong served as the General Manager of the packaging and industrial paper divisi...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD788.78K) is about average for companies of similar size in the ZA market ($USD615.06K).

Compensation vs Earnings: Bruce's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Strong
CEO & Executive Director11.83yrsR11.73m0.41%
ZAR 10.4m
Brett David Clark
CFO & Executive Director8.58yrsR8.82m0.17%
ZAR 4.3m
John Hunt
Managing Director of Recycling Division12.75yrsR6.50m0.16%
ZAR 3.9m
Hugh Thompson
Managing Director of Paper Manufacturing Division11.25yrsR9.49m0.26%
ZAR 6.4m
Neelin Naidoo
Managing Director of Plastics Business7.17yrsR7.31mno data
Georgina Robinson
Group Legal Counsel5.67yrsno datano data
Penny Ntuli
Group Communications Manager2.17yrsno datano data
Ziyaad Carrim
Head of ICT7.42yrsno datano data
Donna Dickson
Group Company Secretary0.67yrno datano data

7.4yrs

Average Tenure

51yo

Average Age

Experienced Management: MPT's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bruce Strong
CEO & Executive Director11.83yrsR11.73m0.41%
ZAR 10.4m
Brett David Clark
CFO & Executive Director8.58yrsR8.82m0.17%
ZAR 4.3m
Maya Makanjee
Independent Non-Executive Director4.33yrsR549.89kno data
Andrew Thompson
Independent Non-Executive Director16.25yrsR533.44kno data
Anthony Phillips
Independent Non-Executive Chairmanno dataR1.03m0.0064%
ZAR 161.6k
P.C. Luthuli
Independent Non-Executive Director2.08yrsR469.86kno data
Nomalizo Langa-Royds
Independent Non-Executive Director9.75yrsR760.62kno data
Timothy Dacre Ross
Independent Non-Executive Director9.75yrsR721.88kno data
Neo Dongwana
Independent Non-Executive Director9.75yrsR705.97kno data

9.8yrs

Average Tenure

58yo

Average Age

Experienced Board: MPT's board of directors are considered experienced (9.8 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

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


Key Information

  • Name: Mpact Limited
  • Ticker: MPT
  • Exchange: JSE
  • Founded: NaN
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: R2.516b
  • Shares outstanding: 162.45m
  • Website: https://www.mpact.co.za

Number of Employees


Location

  • Mpact Limited
  • 3 Melrose Boulevard
  • 4th Floor
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPTJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJul 2011

Biography

Mpact Limited engages in the paper and plastic packaging and recycling business in South Africa. It operates through Paper and Plastics segments. The company manufactures recycled-based packaging and indus...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 17:00
End of Day Share Price2021/01/22 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.