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McGrath

ASX:MEA
Snowflake Description

Flawless balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MEA
ASX
A$32M
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

McGrath Limited operates as an integrated residential real estate services company in Australia. The last earnings update was 39 days ago. More info.


Add to Portfolio Compare Print
  • McGrath has significant price volatility in the past 3 months.
MEA Share Price and Events
7 Day Returns
8.6%
ASX:MEA
8.6%
AU Real Estate
5.3%
AU Market
1 Year Returns
-24%
ASX:MEA
-8%
AU Real Estate
-17.6%
AU Market
MEA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McGrath (MEA) 8.6% -35.6% -43.3% -24% -71.9% -
AU Real Estate 8.6% -31.4% -33.7% -8% -28.9% -26.9%
AU Market 5.3% -18.2% -22.6% -17.6% -14.1% -14.3%
1 Year Return vs Industry and Market
  • MEA underperformed the Real Estate industry which returned -8% over the past year.
  • MEA underperformed the Market in Australia which returned -17.6% over the past year.
Price Volatility
MEA
Industry
5yr Volatility vs Market

MEA Value

 Is McGrath undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for McGrath. This is due to cash flow or dividend data being unavailable. The share price is A$0.19.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McGrath's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McGrath's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MEA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in AUD A$-0.04
ASX:MEA Share Price ** ASX (2020-04-02) in AUD A$0.19
Australia Real Estate Industry PE Ratio Median Figure of 19 Publicly-Listed Real Estate Companies 12.64x
Australia Market PE Ratio Median Figure of 515 Publicly-Listed Companies 13.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McGrath.

ASX:MEA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MEA Share Price ÷ EPS (both in AUD)

= 0.19 ÷ -0.04

-4.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McGrath is loss making, we can't compare its value to the AU Real Estate industry average.
  • McGrath is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does McGrath's expected growth come at a high price?
Raw Data
ASX:MEA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.57x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Real Estate Industry PEG Ratio Median Figure of 9 Publicly-Listed Real Estate Companies 0.71x
Australia Market PEG Ratio Median Figure of 337 Publicly-Listed Companies 1.05x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for McGrath, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on McGrath's assets?
Raw Data
ASX:MEA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in AUD A$0.17
ASX:MEA Share Price * ASX (2020-04-02) in AUD A$0.19
Australia Real Estate Industry PB Ratio Median Figure of 34 Publicly-Listed Real Estate Companies 0.74x
Australia Market PB Ratio Median Figure of 1,614 Publicly-Listed Companies 1.22x
ASX:MEA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MEA Share Price ÷ Book Value per Share (both in AUD)

= 0.19 ÷ 0.17

1.11x

* Primary Listing of McGrath.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McGrath is overvalued based on assets compared to the AU Real Estate industry average.
X
Value checks
We assess McGrath's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. McGrath has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MEA Future Performance

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

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 McGrath 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.7%
Expected Real Estate industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McGrath expected to grow at an attractive rate?
  • Unable to compare McGrath's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare McGrath's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare McGrath's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:MEA Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 29.7%
Australia Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MEA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MEA Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
ASX:MEA Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-12-31 89 3 -7
2019-09-30 86 1 -11
2019-06-30 83 -1 -16
2019-03-31 86 1 -31
2018-12-31 90 3 -47
2018-09-30 95 2 -55
2018-06-30 99 2 -63
2018-03-31 106 4 -43
2017-12-31 114 7 -23
2017-09-30 122 10 -9
2017-06-30 129 12 5
2017-03-31 132 12 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if McGrath is high growth as no earnings estimate data is available.
  • Unable to determine if McGrath is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MEA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from McGrath Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MEA Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
ASX:MEA Past Financials Data
Date (Data in AUD Millions) EPS *
2019-12-31 -0.04
2019-09-30 -0.07
2019-06-30 -0.09
2019-03-31 -0.20
2018-12-31 -0.31
2018-09-30 -0.37
2018-06-30 -0.44
2018-03-31 -0.31
2017-12-31 -0.17
2017-09-30 -0.07
2017-06-30 0.04
2017-03-31 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if McGrath will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine McGrath's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. McGrath's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Real Estate companies here
  3. McGrath's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess McGrath's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McGrath has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MEA Past Performance

  How has McGrath performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McGrath's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McGrath does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare McGrath's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare McGrath's 1-year growth to the AU Real Estate industry average as it is not currently profitable.
Earnings and Revenue History
McGrath's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McGrath Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MEA Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 89.12 -6.95 46.67
2019-09-30 85.91 -11.26 48.24
2019-06-30 82.70 -15.57 49.80
2019-03-31 86.40 -31.39 50.46
2018-12-31 90.10 -47.20 51.12
2018-09-30 94.64 -55.15 53.19
2018-06-30 99.18 -63.10 55.27
2018-03-31 106.42 -43.22 55.23
2017-12-31 113.67 -23.34 55.20
2017-09-30 121.52 -9.23 53.99
2017-06-30 129.36 4.87 52.78
2017-03-31 131.63 7.78 51.47
2016-12-31 133.90 10.70 50.17
2016-09-30 127.43 9.53 50.02
2016-06-30 120.96 8.36 49.87
2016-03-31 110.15 6.70 46.59
2015-12-31 99.33 5.05 43.31
2015-09-30 92.59 5.89 37.74
2015-06-30 85.86 6.73 32.16
2014-06-30 72.44 8.99 25.88
2013-06-30 56.04 4.39 21.55

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if McGrath has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if McGrath has efficiently used its assets last year compared to the AU Real Estate industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if McGrath improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess McGrath's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McGrath has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MEA Health

 How is McGrath's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McGrath's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McGrath is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • McGrath's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of McGrath's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • McGrath has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McGrath Company Filings, last reported 3 months ago.

ASX:MEA Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 28.39 0.00 8.09
2019-09-30 28.39 0.00 8.09
2019-06-30 30.85 0.00 10.29
2019-03-31 30.85 0.00 10.29
2018-12-31 36.75 0.00 16.49
2018-09-30 36.75 0.00 16.49
2018-06-30 42.39 0.00 10.93
2018-03-31 42.39 0.00 10.93
2017-12-31 74.45 0.00 3.41
2017-09-30 74.45 0.00 3.41
2017-06-30 98.69 6.13 8.00
2017-03-31 98.69 6.13 8.00
2016-12-31 94.43 9.26 5.26
2016-09-30 94.43 9.26 5.26
2016-06-30 96.30 12.57 12.49
2016-03-31 96.30 12.57 12.49
2015-12-31 87.22 14.91 14.03
2015-09-30 87.22 14.91 14.03
2015-06-30 14.30 6.37 2.84
2014-06-30 12.76 7.19 3.87
2013-06-30 5.50 8.24 1.15
  • McGrath has no debt.
  • McGrath has no debt compared to 5 years ago when it was 52.1%.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • McGrath has sufficient cash runway for 1.2 years based on current free cash flow.
  • McGrath has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 51.7% each year.
X
Financial health checks
We assess McGrath's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McGrath has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MEA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from McGrath dividends.
If you bought A$2,000 of McGrath shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate McGrath's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate McGrath's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MEA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 4.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 371 Stocks 5.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 3.2%
Australia Top 25% Dividend Yield 75th Percentile 8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MEA Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
ASX:MEA Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-18 0.000 0.000
2018-08-20 0.000 0.000
2018-02-14 0.000 0.000
2017-08-23 0.020 3.537
2017-02-22 0.020 3.162
2016-08-23 0.035 3.787
2016-02-23 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as McGrath has not reported any payouts.
  • Unable to verify if McGrath's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of McGrath's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as McGrath has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess McGrath's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McGrath afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McGrath has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MEA Management

 What is the CEO of McGrath's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Geoff Lucas
COMPENSATION A$588,639
AGE 53
TENURE AS CEO 2.2 years
CEO Bio

Mr. Geoffrey Lucas, also known as Geoff, B.Com, CPA, FAICD, has been Chief Executive Officer of McGrath Ltd since February 27, 2018. Mr. Lucas rejoined McGrath Limited in February 2018. He served as Chief Operating Officer at McGrath Limited until August 12, 2016. Mr. Lucas has over 26 years commercial experience. Mr. Lucas has both strong commercial judgement and hands-on experience of corporate governance. Mr. Lucas served as Chief Executive Officer of Credit Corp. Group Ltd. since 2005 until March 2008. Mr. Lucas served as Managing Director of Credit Corp., from December 2005 to March 2008 and its Director of Finance and Commercial since 2002 and also served as its Company Secretary from July 14, 2000 to July 4, 2005. He served as Managing Director of St Malo Australia Limited, Chief Financial Officer and Company Secretary of Australian Innovation Limited and Company Secretary of Cabonne Limited. He worked with Qantas Airways Limited for six years and served as Finance and Administration Director of a large Australian software developer. His background in accounting, finance and financial services, he specialises in developing and executing strategies for growth and the development of a professional leadership team. With experience in both private and public listed companies, he has previously led companies engaged in a variety of sectors most recently technology and financial services. Mr. Lucas served as an Executive Director of Credit Corp. Group Ltd. from 2000 to March 2008. He holds B.com and FAICD and is a Certified Public Accountant.

CEO Compensation
  • Geoff's compensation has increased whilst company is loss making.
  • Geoff's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the McGrath management team in years:

2.4
Average Tenure
55
Average Age
  • The tenure for the McGrath management team is about average.
Management Team

Geoff Lucas

TITLE
Chief Executive Officer
COMPENSATION
A$589K
AGE
53
TENURE
2.2 yrs

John McGrath

TITLE
Founder & Executive Director
COMPENSATION
A$553K
AGE
55
TENURE
32.3 yrs

Howard Herman

TITLE
Chief Financial Officer
COMPENSATION
A$348K
AGE
68
TENURE
0.8 yrs

Chris Mourd

TITLE
Head of Franchise Network
COMPENSATION
A$442K
TENURE
2.8 yrs

Rob Fearnley

TITLE
Head of Company Owned Property Management
COMPENSATION
A$276K
TENURE
2.6 yrs

Terri Sissian

TITLE
Communications Director

Scott Kennedy-Green

TITLE
Chief Auctioneer

Philip Mackey

TITLE
Company Secretary
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure of the McGrath board of directors in years:

2.2
Average Tenure
  • The average tenure for the McGrath board of directors is less than 3 years, this suggests a new board.
Board of Directors

Peter Lewis

TITLE
Non-Executive Independent Chairman
COMPENSATION
A$140K
AGE
55
TENURE
2.2 yrs

John McGrath

TITLE
Founder & Executive Director
COMPENSATION
A$553K
AGE
55
TENURE
20.1 yrs

Andrew Robinson

TITLE
Non-Executive Independent Director
COMPENSATION
A$100K
TENURE
2.2 yrs

Wayne Mo

TITLE
Non-Executive Director
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
28. Oct 19 Buy Yunhui Lin Individual 14. Sep 19 25. Oct 19 5,927,796 A$0.36 A$1,292,999
06. Aug 19 Sell Perpetual Limited Company 02. Aug 19 02. Aug 19 -568,583 A$0.20 A$-113,717
05. Aug 19 Sell Perpetual Limited Company 18. Jul 19 30. Jul 19 -777,348 A$0.24 A$-167,399
12. Jul 19 Sell Perpetual Limited Company 30. May 19 10. Jul 19 -1,748,287 A$0.26 A$-453,314
31. May 19 Sell Perpetual Limited Company 06. May 19 29. May 19 -2,546,058 A$0.28 A$-656,427
X
Management checks
We assess McGrath's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McGrath has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MEA News

Simply Wall St News

Do Institutions Own McGrath Limited (ASX:MEA) Shares?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' McGrath is not a large company by global standards. … Our analysis of the ownership of the company, below, shows that institutions own shares in the company. … Private Company Ownership We can see that Private Companies own 18%, of the shares on issue.

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Did You Manage To Avoid McGrath's (ASX:MEA) Devastating 72% Share Price Drop?

And over the last year the share price fell 38%, so we doubt many shareholders are delighted. … Over the last three years, McGrath's revenue dropped 6.4% per year. … Having said that the 35% annualized share price decline highlights the risk of investing in unprofitable companies.

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What You Must Know About McGrath Limited's (ASX:MEA) Financial Strength

The direct benefit for McGrath Limited (ASX:MEA), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Does MEA's growth rate justify its decision for financial flexibility over lower cost of capital … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital.

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What Percentage Of McGrath Limited (ASX:MEA) Shares Do Insiders Own?

The big shareholder groups in McGrath Limited (ASX:MEA) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

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Is McGrath Limited (ASX:MEA) A Financially Sound Company?

The direct benefit for McGrath Limited (ASX:MEA), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Is MEA growing fast enough to value financial flexibility over lower cost of capital. … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital

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At AU$00.345, Is McGrath Limited (ASX:MEA) A Buy?

saw significant share price volatility over the past couple of months on the ASX, rising to the highs of A$0.46 and falling to the lows of A$0.34. … This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … Great news for investors – McGrath is still trading at a fairly cheap price

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Why McGrath Limited (ASX:MEA) Could Be A Buy

What’s more interesting is that, McGrath’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. … 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 an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

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Is McGrath Limited (ASX:MEA) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MEA Price per share = A$0.42 Earnings per share = A$0.036 ∴ Price-Earnings Ratio = A$0.42 ÷ A$0.036 = 11.7x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with MEA, then MEA’s P/E would naturally be higher since investors would reward MEA’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with MEA, MEA’s P/E would again be higher since investors would reward MEA’s lower risk with a higher price as well.

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Have Investors Already Priced In McGrath Limited's (ASX:MEA) Growth?

Great news for investors – McGrath is still trading at a fairly cheap price. … 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. … If you are no longer interested in McGrath, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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Top Rated ASX Stocks You Can Buy For Cheap

MEA's shares are currently hovering at around -44% under its intrinsic level of $0.97, at the market price of $0.55, based on my discounted cash flow model. … In addition to this, MEA’s PE ratio is around 15.2x relative to its real estate peer level of 14.7x, meaning that relative to its competitors, MEA can be bought at a cheaper price right now. … Additionally, DHR’s PE ratio stands at around 3.4x compared to its metals and mining peer level of 14.7x, implying that relative to its comparable company group, we can buy DHR’s stock at a cheaper price today.

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MEA Company Info

Description

McGrath Limited operates as an integrated residential real estate services company in Australia. It operates through Company Owned Sales, Company Owned Property Management, Franchise Services, and Other segments. The company provides residential property sales, property management, mortgage broking, auction, real estate training and conferences, and other IT network services, as well as manages franchise offices. As of June 30, 2019, it operated 30 owned offices and 67 franchise offices. The company was founded in 1988 and is headquartered in Pyrmont, Australia.

Details
Name: McGrath Limited
MEA
Exchange: ASX
Founded: 1988
A$31,701,487
166,849,935
Website: http://www.mcgrath.com.au
Address: McGrath Limited
55 Pyrmont Street,
Pyrmont,
New South Wales, 2009,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MEA Ordinary Shares Australian Securities Exchange AU AUD 07. Dec 2015
CHIA MEA Ordinary Shares Chi-X Australia AU AUD 07. Dec 2015
Number of employees
Current staff
Staff numbers
382
McGrath employees.
Industry
Real Estate Services
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/02 10:54
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2019/08/25
Last earnings filing: 2020/02/23
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.