Magellan Financial Group Limited
Magellan Financial Group Limited Fundamental Analysis
Magellan Financial Group Limited (MFG.AX) shows moderate financial fundamentals with a PE ratio of 12.57, profit margin of 49.33%, and ROE of 14.31%. The company generates $0.3B in annual revenue with weak year-over-year growth of -10.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 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 MFG.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMFG.AX demonstrates superior asset utilization.
Valuation Score
ExcellentMFG.AX trades at attractive valuation levels.
Growth Score
WeakMFG.AX faces weak or negative growth trends.
Financial Health Score
ExcellentMFG.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateMFG.AX maintains healthy but balanced margins.
Key Financial Metrics
Is MFG.AX Expensive or Cheap?
P/E Ratio
MFG.AX trades at 12.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFG.AX's PEG of -0.96 indicates potential undervaluation.
Price to Book
The market values Magellan Financial Group Limited at 1.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.43 times EBITDA. This signals the market has high growth expectations.
How Well Does MFG.AX Make Money?
Net Profit Margin
For every $100 in sales, Magellan Financial Group Limited keeps $49.33 as profit after all expenses.
Operating Margin
Core operations generate 50.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.31 in profit for every $100 of shareholder equity.
ROA
Magellan Financial Group Limited generates $13.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Magellan Financial Group Limited generates strong operating cash flow of $154.75M, reflecting robust business health.
Free Cash Flow
Magellan Financial Group Limited generates strong free cash flow of $154.35M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.84 in free cash annually.
FCF Yield
MFG.AX converts 7.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
54.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How MFG.AX Stacks Against Its Sector Peers
| Metric | MFG.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.57 | 18.89 | Better (Cheaper) |
| ROE | 14.31% | 818.00% | Weak |
| Net Margin | 49.33% | 2473.00% | Weak |
| Debt/Equity | 0.00 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 54.63 | 692.63 | Strong Liquidity |
| ROA | 13.75% | -24053.00% (disorted) | Strong |
MFG.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Magellan Financial Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-53.45%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-57.53%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-60.70%
Industry Style: Value, Dividend, Cyclical
Declining