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MPT

MpactJSE:MPT Stock Report

Last Price

R35.88

Market Cap

R5.3b

7D

5.5%

1Y

131.5%

Updated

23 Jan, 2022

Data

Company Financials +
MPT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

MPT Stock Overview

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

Rewards

Trading at 16.8% below our estimate of its fair value

Earnings are forecast to grow 22.4% per year

Became profitable this year

Risk Analysis

No risks detected for MPT from our risk checks.

Mpact Competitors

Transpaco

JSE:TPC

R590.6m

Nampak

JSE:NPK

R2.5b

Bowler Metcalf

JSE:BCF

R845.1m

Price History & Performance

Summary of all time highs, changes and price drops for Mpact
Historical stock prices
Current Share PriceR35.88
52 Week HighR37.50
52 Week LowR15.40
Beta1.03
1 Month Change8.83%
3 Month Change13.29%
1 Year Change131.48%
3 Year Change64.97%
5 Year Change21.34%
Change since IPO163.82%

Recent News & Updates

Shareholder Returns

MPTZA PackagingZA Market
7D5.5%2.9%-0.3%
1Y131.5%51.4%13.9%

Return vs Industry: MPT exceeded the ZA Packaging industry which returned 51.4% over the past year.

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

Price Volatility

Is MPT's price volatile compared to industry and market?
MPT volatility
MPT Average Weekly Movement6.6%
Packaging Industry Average Movement7.2%
Market Average Movement5.7%
10% most volatile stocks in ZA Market12.1%
10% least volatile stocks in ZA Market3.3%

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

Volatility Over Time: MPT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a5,153Bruce Stronghttps://www.mpact.co.za

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 industrial paper grades, such as containerboards and carton boards; and a range of printed and unprinted converted corrugated products, including boards for use in the manufacture of corrugated packaging, corrugated boxes, die-cut cases, folded glued cases, trays, and point-of-sale displays, cups, lids, and bags.

Mpact Fundamentals Summary

How do Mpact's earnings and revenue compare to its market cap?
MPT fundamental statistics
Market CapR5.25b
Earnings (TTM)R484.00m
Revenue (TTM)R11.92b

10.9x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MPT income statement (TTM)
RevenueR11.92b
Cost of RevenueR6.65b
Gross ProfitR5.27b
ExpensesR4.79b
EarningsR484.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 07, 2022

Earnings per share (EPS)3.31
Gross Margin44.21%
Net Profit Margin4.06%
Debt/Equity Ratio44.8%

How did MPT perform over the long term?

See historical performance and comparison

Valuation

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

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPT (ZAR35.88) is trading below our estimate of fair value (ZAR43.13)

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


Price To Earnings Ratio

PE vs Industry: MPT's PE Ratio (10.9x) is in line with the African Packaging industry average.

PE vs Market: MPT's PE Ratio (10.9x) is in line with the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: MPT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MPT's PB Ratio (1.5x) is in line with the XF Packaging industry average.


Future Growth

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

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPT's forecast earnings growth (22.4% per year) is above the savings rate (8.8%).

Earnings vs Market: MPT's earnings (22.4% per year) are forecast to grow faster than the ZA market (-0.2% per year).

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

Revenue vs Market: MPT's revenue (9.2% per year) is forecast to grow faster than the ZA market (6.3% per year).

High Growth Revenue: MPT's revenue (9.2% 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 (15.2%).


Past Performance

How has Mpact performed over the past 5 years?

-25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPT has high quality earnings.

Growing Profit Margin: MPT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MPT's earnings have declined by 25.8% per year over the past 5 years.

Accelerating Growth: MPT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MPT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Packaging industry (4.5%).


Return on Equity

High ROE: MPT's Return on Equity (14%) is considered low.


Financial Health

How is Mpact's financial position?


Financial Position Analysis

Short Term Liabilities: MPT's short term assets (ZAR4.7B) exceed its short term liabilities (ZAR2.6B).

Long Term Liabilities: MPT's short term assets (ZAR4.7B) exceed its long term liabilities (ZAR2.2B).


Debt to Equity History and Analysis

Debt Level: MPT's net debt to equity ratio (30.9%) is considered satisfactory.

Reducing Debt: MPT's debt to equity ratio has reduced from 59% to 44.8% over the past 5 years.

Debt Coverage: MPT's debt is well covered by operating cash flow (97.8%).

Interest Coverage: MPT's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

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

2.09%

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?

8.3yrs

Average management tenure


CEO

Bruce Strong (52 yo)

12.83yrs

Tenure

R12,293,725

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 ($USD815.63K) is about average for companies of similar size in the ZA market ($USD726.48K).

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


Leadership Team

Experienced Management: MPT's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: MPT's board of directors are seasoned and experienced ( 10.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Mpact Limited
  • Ticker: MPT
  • Exchange: JSE
  • Founded: NaN
  • Industry: Paper Packaging
  • Sector: Materials
  • Implied Market Cap: R5.253b
  • Shares outstanding: 146.40m
  • Website: https://www.mpact.co.za

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 17:01
End of Day Share Price2022/01/21 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.