Latest news with #Metcash
Yahoo
20-04-2025
- Business
- Yahoo
With 56% institutional ownership, Metcash Limited (ASX:MTS) is a favorite amongst the big guns
Institutions' substantial holdings in Metcash implies that they have significant influence over the company's share price A total of 11 investors have a majority stake in the company with 50% ownership Recent purchases by insiders We've discovered 2 warning signs about Metcash. View them for free. To get a sense of who is truly in control of Metcash Limited (ASX:MTS), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 56% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk). Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's delve deeper into each type of owner of Metcash, beginning with the chart below. See our latest analysis for Metcash Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Metcash does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Metcash's historic earnings and revenue below, but keep in mind there's always more to the story. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Metcash is not owned by hedge funds. Our data shows that Pendal Group Limited is the largest shareholder with 7.0% of shares outstanding. With 6.3% and 6.2% of the shares outstanding respectively, Ubique Asset Management Pty Ltd and State Street Global Advisors, Inc. are the second and third largest shareholders. A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that Metcash Limited insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own AU$8.4m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Metcash. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Metcash that you should be aware of before investing here. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Reuters
03-04-2025
- Business
- Reuters
Traders seek refuge in Aussie consumer staples as US tariffs spark market fall
April 3 (Reuters) - Shares of Australia's consumer staple companies (.AXSJ), opens new tab rose on Thursday, driven by grocers Coles ( opens new tab and Woolworths ( opens new tab, as investors moved to safer bets after U.S. President Donald Trump's reciprocal tariffs sparked global market turmoil. Shares of the sector ended 1.3% higher while the broader Australian market (.AXJO), opens new tab fell 0.9% to its lowest since March 14. Coles rose 2.1% to A$20.29 and Woolworths advanced 1.6% to A$30.02. Both shares hit their highest levels since March 4. President Trump's decision to impose a 10% tariff on most goods imported to the United States sent shockwaves globally, sparking fears of an escalating trade war and a hit to global economic growth. Australian Prime Minister Anthony Albanese called Trump's decision to impose tariff on its ally as "not the act of a friend" while also ruling out any reciprocal tariffs against the United States. "Consumer staples is generally an outperformer in nervous markets as investors gravitate towards businesses that have consistent demand due to needs from the consumer," said Mark Gardner, CEO and Head of Equities Advisory at MPC Markets. Australia's consumer staples sector makes up 3.8% of the benchmark index. Sectors like consumer staples tend to hold steady during market volatility, driven by demand for everyday essentials. The country's top supermarket chain Woolworths and its peer Coles dominate the supermarket industry and generate most of their earnings domestically. "Investors who have to or would like to invest in Australian equities, focusing on companies that generate 100% of the earnings onshore can be a relatively safer investment in this environment," Philip Pepe, a senior equities analyst with Shaw and Partners, said. Companies with "high foot traffic, high recurring revenue and who also offer alternatives to imported goods" are well-positioned to weather the tariff storm, Pepe said, referring to Coles, Woolworths and Metcash ( opens new tab. Shares of Metcash gained nearly 1% while those of pub operator Endeavour ( opens new tab rose 0.5%.
Yahoo
03-04-2025
- Business
- Yahoo
Traders seek refuge in Aussie consumer staples as US tariffs spark market fall
By Rajasik Mukherjee (Reuters) - Shares of Australia's consumer staple companies rose on Thursday, driven by grocers Coles and Woolworths, as investors moved to safer bets after U.S. President Donald Trump's reciprocal tariffs sparked global market turmoil. Shares of the sector ended 1.3% higher while the broader Australian market fell 0.9% to its lowest since March 14. Coles rose 2.1% to A$20.29 and Woolworths advanced 1.6% to A$30.02. Both shares hit their highest levels since March 4. President Trump's decision to impose a 10% tariff on most goods imported to the United States sent shockwaves globally, sparking fears of an escalating trade war and a hit to global economic growth. Australian Prime Minister Anthony Albanese called Trump's decision to impose tariff on its ally as "not the act of a friend" while also ruling out any reciprocal tariffs against the United States. "Consumer staples is generally an outperformer in nervous markets as investors gravitate towards businesses that have consistent demand due to needs from the consumer," said Mark Gardner, CEO and Head of Equities Advisory at MPC Markets. Australia's consumer staples sector makes up 3.8% of the benchmark index. Sectors like consumer staples tend to hold steady during market volatility, driven by demand for everyday essentials. The country's top supermarket chain Woolworths and its peer Coles dominate the supermarket industry and generate most of their earnings domestically. "Investors who have to or would like to invest in Australian equities, focusing on companies that generate 100% of the earnings onshore can be a relatively safer investment in this environment," Philip Pepe, a senior equities analyst with Shaw and Partners, said. Companies with "high foot traffic, high recurring revenue and who also offer alternatives to imported goods" are well-positioned to weather the tariff storm, Pepe said, referring to Coles, Woolworths and Metcash. Shares of Metcash gained nearly 1% while those of pub operator Endeavour rose 0.5%.
Yahoo
13-02-2025
- Business
- Yahoo
Is Metcash Limited's (ASX:MTS) Stock's Recent Performance A Reflection Of Its Financial Health?
Most readers would already know that Metcash's (ASX:MTS) stock increased by 3.6% over the past three months. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Metcash's ROE today. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. See our latest analysis for Metcash The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Metcash is: 16% = AU$258m ÷ AU$1.6b (Based on the trailing twelve months to October 2024). The 'return' is the income the business earned over the last year. So, this means that for every A$1 of its shareholder's investments, the company generates a profit of A$0.16. Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, Metcash's ROE looks acceptable. Further, the company's ROE is similar to the industry average of 14%. This probably goes some way in explaining Metcash's significant 25% net income growth over the past five years amongst other factors. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. We then performed a comparison between Metcash's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 25% in the same 5-year period. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Metcash is trading on a high P/E or a low P/E, relative to its industry. Metcash's significant three-year median payout ratio of 83% (where it is retaining only 17% of its income) suggests that the company has been able to achieve a high growth in earnings despite returning most of its income to shareholders. Besides, Metcash has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 71% of its profits over the next three years. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 18%. Overall, we are quite pleased with Metcash's performance. In particular, its high ROE is quite noteworthy and also the probable explanation behind its considerable earnings growth. Yet, the company is retaining a small portion of its profits. Which means that the company has been able to grow its earnings in spite of it, so that's not too bad. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
