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MFL

Metrofile HoldingsJSE:MFL Stock Report

Market Cap

R1.4b

7D

6.7%

1Y

34.7%

Updated

19 Oct, 2021

Data

Company Financials
MFL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends3/6

MFL Overview

Metrofile Holdings Limited, an investment holding company, provides records and information management services in South Africa, Botswana, Kenya, Mozambique, and the Middle East.

Price History & Performance

Summary of all time highs, changes and price drops for Metrofile Holdings
Historical stock prices
Current Share PriceR3.34
52 Week HighR2.32
52 Week LowR3.76
Beta0.26
1 Month Change8.44%
3 Month Change4.38%
1 Year Change34.68%
3 Year Change62.93%
5 Year Change-29.68%
Change since IPO37.13%

Recent News & Updates

Shareholder Returns

MFLZA ITZA Market
7D6.7%-2.2%0.7%
1Y34.7%-19.3%20.7%

Return vs Industry: MFL exceeded the ZA IT industry which returned -19.3% over the past year.

Return vs Market: MFL exceeded the ZA Market which returned 20.7% over the past year.

Price Volatility

Is MFL's price volatile compared to industry and market?
MFL volatility
MFL Beta0.26
Industry Beta0.75
Market Beta1

Stable Share Price: MFL is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MFL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19831,306Pfungwa Serimahttps://www.metrofilegroup.com

Metrofile Holdings Limited, an investment holding company, provides records and information management services in South Africa, Botswana, Kenya, Mozambique, and the Middle East. The company provides records storage and management services, including archive, active, hosting, and stationery; backup storage services comprising vault and managed services; confidential destruction services; records management consultancy and software integration; digital workforce; and image processing services, such as digital and analogue services. It also offers business process outsourcing services, which include proof of delivery solutions, track and trace management, sensitive information protection, procurement tracking solutions, claims processing, human resource services, electronic exam marking system, and business continuity and work area recovery services.

Metrofile Holdings Fundamentals Summary

How do Metrofile Holdings's earnings and revenue compare to its market cap?
MFL fundamental statistics
Market CapR1.39b
Earnings (TTM)R138.31m
Revenue (TTM)R933.47m

10.5x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MFL income statement (TTM)
RevenueR933.47m
Cost of RevenueR400.68m
Gross ProfitR532.78m
ExpensesR394.48m
EarningsR138.31m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.32
Gross Margin57.08%
Net Profit Margin14.82%
Debt/Equity Ratio82.8%

How did MFL perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

47%

Payout Ratio

Valuation

Is Metrofile Holdings 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: MFL (ZAR3.34) is trading below our estimate of fair value (ZAR8.73)

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


Price To Earnings Ratio

PE vs Industry: MFL is good value based on its PE Ratio (10.5x) compared to the ZA IT industry average (17.7x).

PE vs Market: MFL is good value based on its PE Ratio (10.5x) compared to the ZA market (11.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MFL is overvalued based on its PB Ratio (2.6x) compared to the ZA IT industry average (1x).


Future Growth

How is Metrofile Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.3%

Forecasted Software 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 Metrofile Holdings 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 Metrofile Holdings performed over the past 5 years?

-28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFL has high quality earnings.

Growing Profit Margin: MFL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MFL's earnings have declined by 28.5% per year over the past 5 years.

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

Earnings vs Industry: MFL has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (-3.7%).


Return on Equity

High ROE: MFL's Return on Equity (24.9%) is considered high.


Financial Health

How is Metrofile Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MFL's short term assets (ZAR268.3M) exceed its short term liabilities (ZAR208.8M).

Long Term Liabilities: MFL's short term assets (ZAR268.3M) do not cover its long term liabilities (ZAR573.9M).


Debt to Equity History and Analysis

Debt Level: MFL's debt to equity ratio (82.8%) is considered high.

Reducing Debt: MFL's debt to equity ratio has increased from 26.2% to 82.8% over the past 5 years.

Debt Coverage: MFL's debt is well covered by operating cash flow (52.1%).

Interest Coverage: MFL's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

What is Metrofile Holdings's current dividend yield, its reliability and sustainability?

4.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MFL's dividend (4.79%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: MFL's dividend (4.79%) is low compared to the top 25% of dividend payers in the ZA market (8.06%).


Stability and Growth of Payments

Stable Dividend: MFL's dividend payments have been volatile in the past 10 years.

Growing Dividend: MFL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47%), MFL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Pfungwa Serima (56 yo)

5.5yrs

Tenure

R11,170,095

Compensation

Mr. Pfungwa Gore Serima, BSc (CompSc) and Business Studies, has been the Group Chief Executive Officer of Metrofile Holdings Limited since April 1, 2016. Mr. Serima serves as the Executive Chairman of SAP...


CEO Compensation Analysis

Compensation vs Market: Pfungwa's total compensation ($USD768.85K) is above average for companies of similar size in the ZA market ($USD278.96K).

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


Leadership Team

Experienced Management: MFL's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: MFL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

Metrofile Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Metrofile Holdings Limited
  • Ticker: MFL
  • Exchange: JSE
  • Founded: 1983
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: R1.392b
  • Shares outstanding: 433.70m
  • Website: https://www.metrofilegroup.com

Number of Employees


Location

  • Metrofile Holdings Limited
  • 28 Fricker Road
  • First Floor
  • Illovo
  • Limpopo
  • 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 Analysis2021/10/19 17:03
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.