Buying at 20c, not overly expensive, good work in hand and strong pipeline of projects subject to tender. Mining is strengthening with growing optimism.
Company
P/E Ratio 15.46
P/B Ratio 1.23
P/S Ratio 0.68
Previous Close 0.23
52 Week High 0.28
52 Week Low 0.20
10yr 5yr 1yr 2yr Forecast
Sales -19.5% -21.7% 14.1%
Cash Flow -6.6% -14.0% 102.4%
Earnings -7.5% -19.0% 944.4% --
Dividends -- -- -- --
Book Value -8.4% -9.7% 22.8%
1H19 HIGHLIGHTS
Significant uplift in financial performance
• 1H19 Revenue of $542.2m, up 101% on 1H18
• 1H19 EBIT1 of $39.9m, up 311% on 1H18
• 1H19 EBITDA1 of $89.1m, up 94% on 1H18
• 1H19 NPAT1 of $32.3m, up 304% on 1H18
• Underlying basic EPS1 of 1.53cps, up 273% on 1H18
Outlook
Reaffirm FY19 Guidance and strong outlook
• Significant order book of ~$4.8 billion
• Healthy tender pipeline of ~$7 billion
• Forecast net debt position of $25 million to $35 million at June 19
• FY19 expected Revenue of $0.95 billion - $1.05 billion2
• FY19 expected EBIT of $70 - 80 million2
Profile
Sector: Basic Materials
Industry: Mining Support Services & Equipment
Employees: 3913
Macmahon Holdings Limited (Macmahon) is principally engaged in the provision of contract mining services. The Company has three operating segments: Surface Mining, Underground Mining and International Mining, which are aggregated into the Mining segment. The Mining segment operates in two principal geographical areas, including Australia and Overseas. The Mining segment provides a range of mining services for surface and underground operations, from mine development to materials delivery, which include a range of engineering services, including design, construction and on site services to deliver on client needs from the design phase to completion. The Company offers various services, including surface mining; underground mining, and plant, maintenance and engineering. Macmahon's Mining Services business provides a range of services, including drilling, shotcreting, raise drilling, shaft sinking and engineering design to various projects.