Macmahon Holdings Limited
Macmahon Holdings Limited Fundamental Analysis
Macmahon Holdings Limited (MCHHF) shows moderate financial fundamentals with a PE ratio of 17.72, profit margin of 3.60%, and ROE of 13.05%. The company generates $2.6B in annual revenue with strong year-over-year growth of 19.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MCHHF's fundamental strength across five key dimensions:
Efficiency Score
WeakMCHHF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMCHHF trades at attractive valuation levels.
Growth Score
ExcellentMCHHF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMCHHF maintains a strong and stable balance sheet.
Profitability Score
WeakMCHHF struggles to sustain strong margins.
Key Financial Metrics
Is MCHHF Expensive or Cheap?
P/E Ratio
MCHHF trades at 17.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MCHHF's PEG of 0.51 indicates potential undervaluation.
Price to Book
The market values Macmahon Holdings Limited at 2.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.64 times EBITDA. This is generally considered low.
How Well Does MCHHF Make Money?
Net Profit Margin
For every $100 in sales, Macmahon Holdings Limited keeps $3.60 as profit after all expenses.
Operating Margin
Core operations generate 6.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.05 in profit for every $100 of shareholder equity.
ROA
Macmahon Holdings Limited generates $5.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Macmahon Holdings Limited produces operating cash flow of $336.76M, showing steady but balanced cash generation.
Free Cash Flow
Macmahon Holdings Limited produces free cash flow of $168.56M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.08 in free cash annually.
FCF Yield
MCHHF converts 10.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How MCHHF Stacks Against Its Sector Peers
| Metric | MCHHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.72 | 27.01 | Better (Cheaper) |
| ROE | 13.05% | 949.00% | Weak |
| Net Margin | 3.60% | -16159.00% (disorted) | Weak |
| Debt/Equity | 0.66 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.26 | 4.42 | Neutral |
| ROA | 5.38% | -6411.00% (disorted) | Weak |
MCHHF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Macmahon Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.65%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
18.25%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
79.10%
Industry Style: Cyclical, Commodity, Value
High Growth