Latest news with #MonadelphousGroup
Yahoo
26-07-2025
- Business
- Yahoo
Do Monadelphous Group's (ASX:MND) Earnings Warrant Your Attention?
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Monadelphous Group (ASX:MND). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How Quickly Is Monadelphous Group Increasing Earnings Per Share? The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. That means EPS growth is considered a real positive by most successful long-term investors. Over the last three years, Monadelphous Group has grown EPS by 16% per year. That's a pretty good rate, if the company can sustain it. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Monadelphous Group remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 11% to AU$2.0b. That's encouraging news for the company! In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image. See our latest analysis for Monadelphous Group In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Monadelphous Group's forecast profits? Are Monadelphous Group Insiders Aligned With All Shareholders? It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions. We note that Monadelphous Group insiders spent AU$158k on stock, over the last year; in contrast, we didn't see any selling. That's nice to see, because it suggests insiders are optimistic. We also note that it was the MD & Director, Zoran Bebic, who made the biggest single acquisition, paying AU$118k for shares at about AU$11.80 each. On top of the insider buying, it's good to see that Monadelphous Group insiders have a valuable investment in the business. Holding AU$78m worth of stock in the company is no laughing matter and insiders will be committed in delivering the best outcomes for shareholders. This would indicate that the goals of shareholders and management are one and the same. While insiders are apparently happy to hold and accumulate shares, that is just part of the big picture. That's because Monadelphous Group's CEO, Zoran Bebic, is paid at a relatively modest level when compared to other CEOs for companies of this size. The median total compensation for CEOs of companies similar in size to Monadelphous Group, with market caps between AU$1.5b and AU$4.9b, is around AU$2.0m. Monadelphous Group offered total compensation worth AU$1.6m to its CEO in the year to June 2024. That is actually below the median for CEO's of similarly sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally. Should You Add Monadelphous Group To Your Watchlist? As previously touched on, Monadelphous Group is a growing business, which is encouraging. On top of that, we've seen insiders buying shares even though they already own plenty. These factors alone make the company an interesting prospect for your watchlist, as well as continuing research. Even so, be aware that Monadelphous Group is showing 1 warning sign in our investment analysis , you should know about... There are plenty of other companies that have insiders buying up shares. So if you like the sound of Monadelphous Group, you'll probably love this curated collection of companies in AU that have an attractive valuation alongside insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
Yahoo
22-04-2025
- Business
- Yahoo
Here's What To Make Of Monadelphous Group's (ASX:MND) Decelerating Rates Of Return
There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Having said that, from a first glance at Monadelphous Group (ASX:MND) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Monadelphous Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = AU$96m ÷ (AU$877m - AU$324m) (Based on the trailing twelve months to December 2024). So, Monadelphous Group has an ROCE of 17%. That's a pretty standard return and it's in line with the industry average of 17%. View our latest analysis for Monadelphous Group Above you can see how the current ROCE for Monadelphous Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Monadelphous Group . Over the past five years, Monadelphous Group's ROCE and capital employed have both remained mostly flat. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. So don't be surprised if Monadelphous Group doesn't end up being a multi-bagger in a few years time. That probably explains why Monadelphous Group has been paying out 89% of its earnings as dividends to shareholders. These mature businesses typically have reliable earnings and not many places to reinvest them, so the next best option is to put the earnings into shareholders pockets. In summary, Monadelphous Group isn't compounding its earnings but is generating stable returns on the same amount of capital employed. Since the stock has gained an impressive 73% over the last five years, investors must think there's better things to come. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high. On a separate note, we've found 1 warning sign for Monadelphous Group you'll probably want to know about. While Monadelphous Group may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. 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
Yahoo
06-04-2025
- Business
- Yahoo
Those who invested in Monadelphous Group (ASX:MND) five years ago are up 72%
If you buy and hold a stock for many years, you'd hope to be making a profit. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the Monadelphous Group Limited (ASX:MND) share price is up 41% in the last five years, that's less than the market return. Over the last twelve months the stock price has risen a very respectable 9.0%. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, Monadelphous Group managed to grow its earnings per share at 8.1% a year. This EPS growth is reasonably close to the 7% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We know that Monadelphous Group has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts . It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Monadelphous Group's TSR for the last 5 years was 72%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! We're pleased to report that Monadelphous Group shareholders have received a total shareholder return of 14% over one year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 11% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Monadelphous Group better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Monadelphous Group you should know about. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. 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
Yahoo
21-03-2025
- Business
- Yahoo
Is Monadelphous Group Limited (ASX:MND) Potentially Undervalued?
Monadelphous Group Limited (ASX:MND), might not be a large cap stock, but it saw a decent share price growth of 15% on the ASX over the last few months. The company is inching closer to its yearly highs following the recent share price climb. As a stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's take a look at Monadelphous Group's outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Monadelphous Group Great news for investors – Monadelphous Group is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is A$21.19, but it is currently trading at AU$15.37 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, Monadelphous Group's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 28% over the next couple of years, the future seems bright for Monadelphous Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? Since MND is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on MND for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy MND. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Monadelphous Group you should know about. If you are no longer interested in Monadelphous Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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.
Yahoo
20-02-2025
- Business
- Yahoo
Monadelphous Group (ASX:MND) Is Due To Pay A Dividend Of A$0.33
Monadelphous Group Limited's (ASX:MND) investors are due to receive a payment of A$0.33 per share on 28th of March. The payment will take the dividend yield to 4.1%, which is in line with the average for the industry. Check out our latest analysis for Monadelphous Group Unless the payments are sustainable, the dividend yield doesn't mean too much. Prior to this announcement, Monadelphous Group was paying out 87% of earnings and more than 75% of free cash flows. This indicates that the company is more focused on returning cash to shareholders than growing the business, but it is still in a reasonable range to continue with. Over the next year, EPS is forecast to expand by 25.4%. If the dividend continues along recent trends, we estimate the payout ratio will be 64%, which would make us comfortable with the sustainability of the dividend, despite the levels currently being quite high. The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was A$1.23 in 2015, and the most recent fiscal year payment was A$0.66. This works out to be a decline of approximately 6.0% per year over that time. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. Given that the track record hasn't been stellar, we really want to see earnings per share growing over time. It's encouraging to see that Monadelphous Group has been growing its earnings per share at 8.1% a year over the past five years. Recently, the company has been able to grow earnings at a decent rate, but with the payout ratio on the higher end we don't think the dividend has many prospects for growth. In summary, while it's always good to see the dividend being raised, we don't think Monadelphous Group's payments are rock solid. In general, the distributions are a little bit higher than we would like, but we can't ignore the fact the quickly growing earnings gives this stock great potential in the future. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Monadelphous Group that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. 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
