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MST

MustekJSE:MST Stock Report

Market Cap

R864.4m

7D

0.6%

1Y

90.4%

Updated

17 Oct, 2021

Data

Company Financials
MST fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends3/6

MST Overview

Mustek Limited procures, assembles, distributes, and services personal computers and complementary information and communications technology (ICT) products in South Africa.

Mustek Competitors

Apple

NasdaqGS:AAPL

US$2.4t

Cisco Systems

NasdaqGS:CSCO

US$233.0b

Reunert

JSE:RLO

R8.1b

Price History & Performance

Summary of all time highs, changes and price drops for Mustek
Historical stock prices
Current Share PriceR13.33
52 Week HighR6.00
52 Week LowR13.85
Beta0.20
1 Month Change0.23%
3 Month Change19.02%
1 Year Change90.43%
3 Year Change90.43%
5 Year Change172.04%
Change since IPO7.50%

Recent News & Updates

Shareholder Returns

MSTZA TechZA Market
7D0.6%0.8%1.6%
1Y90.4%22.5%21.3%

Return vs Industry: MST exceeded the ZA Tech industry which returned 22.5% over the past year.

Return vs Market: MST exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is MST's price volatile compared to industry and market?
MST volatility
MST Beta0.20
Industry Beta1.15
Market Beta1

Stable Share Price: MST is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MST's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19871,068David Kanhttps://www.mustek.co.za

Mustek Limited procures, assembles, distributes, and services personal computers and complementary information and communications technology (ICT) products in South Africa. It offers 3D printing products; computing products; tablets; displays; energy solutions, such as power back up products, LED lighting products, monitoring systems, batteries, and solar panels; networking and enterprise products; printers and scanners; point-of-sale solutions; training services; and peripherals, including flash memory storage and external USBs. The company was founded in 1987 and is headquartered in Midrand, South Africa.

Mustek Fundamentals Summary

How do Mustek's earnings and revenue compare to its market cap?
MST fundamental statistics
Market CapR864.44m
Earnings (TTM)R293.77m
Revenue (TTM)R8.04b

2.9x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MST income statement (TTM)
RevenueR8.04b
Cost of RevenueR6.85b
Gross ProfitR1.19b
ExpensesR894.20m
EarningsR293.77m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.53
Gross Margin14.78%
Net Profit Margin3.66%
Debt/Equity Ratio82.7%

How did MST perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

21%

Payout Ratio

Valuation

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

2.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MST (ZAR13.33) is trading above our estimate of fair value (ZAR8.17)

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


Price To Earnings Ratio

PE vs Industry: MST is good value based on its PE Ratio (2.9x) compared to the Global Tech industry average (17.3x).

PE vs Market: MST is good value based on its PE Ratio (2.9x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MST is good value based on its PB Ratio (0.6x) compared to the XX Tech industry average (1.7x).


Future Growth

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

4.7%

Forecasted Tech 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 Mustek 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 Mustek performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MST has high quality earnings.

Growing Profit Margin: MST's current net profit margins (3.7%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: MST's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: MST's earnings growth over the past year (238.3%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: MST earnings growth over the past year (238.3%) exceeded the Tech industry 24.4%.


Return on Equity

High ROE: MST's Return on Equity (21.8%) is considered high.


Financial Health

How is Mustek's financial position?


Financial Position Analysis

Short Term Liabilities: MST's short term assets (ZAR3.0B) exceed its short term liabilities (ZAR2.1B).

Long Term Liabilities: MST's short term assets (ZAR3.0B) exceed its long term liabilities (ZAR128.0M).


Debt to Equity History and Analysis

Debt Level: MST's debt to equity ratio (82.7%) is considered high.

Reducing Debt: MST's debt to equity ratio has reduced from 127.2% to 82.7% over the past 5 years.

Debt Coverage: MST's debt is well covered by operating cash flow (21.6%).

Interest Coverage: MST's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

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

6.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MST's dividend (6.75%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: MST's dividend (6.75%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.2%), MST'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?

13.2yrs

Average management tenure


CEO

David Kan (62 yo)

34.75yrs

Tenure

R11,074,000

Compensation

Mr. Chih-Hsing Kan, also known as David, is a Co-Founder of Mustek Limited in 1987 and has been its Chief Executive Officer since 1987. Mr. Kan has developed a culture of accessible, hands-on management an...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD757.33K) is above average for companies of similar size in the ZA market ($USD280.19K).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MST's management team is seasoned and experienced (13.2 years average tenure).


Board Members

Experienced Board: MST's board of directors are considered experienced (8.8 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

Mustek Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Mustek Limited
  • Ticker: MST
  • Exchange: JSE
  • Founded: 1987
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: R864.440m
  • Shares outstanding: 64.85m
  • Website: https://www.mustek.co.za

Number of Employees


Location

  • Mustek Limited
  • 322 15th Road
  • Randjespark
  • Midrand
  • Gauteng
  • 1685
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:05
End of Day Share Price2021/10/15 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.