Monadelphous Group Limited (MND)

Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today Ľ it's FREE! Already a member? Login now!

General Information
Company Name: Monadelphous Group Limited
Stock Code: MND
GICS Sub-Industry: Construction & Engineering
Market Cap ($M): 852
Equiv. Shares (M): 93

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 9.140 $ 9.300 $ 9.390 $ 9.120 $ 9.320 494,471 $ -0.180  -1.931 %

Current Broker Consensus Recommendation more
Recommendation: Sell (3.6)
Recommendation Date: 16th Apr 2015
Brokers Surveyed: 5

Company Overview

Business Description:
Monadelphous Group Limited (MND) is an Australian engineering group providing construction, maintenance and industrial services to the resources, energy and infrastructure sectors throughout Australia. MND has two divisions including Engineering Construction and Maintenance and Industrial Services. MND is headquartered in Perth, Western Australia, with a major office in Brisbane, Queensland the company has facilities, workshops and projects across Australia, China and Papua New Guinea.

Strategy Analysis:
Monadelphous strategic objective is to establish a resilient business through economic cycles with the ability to deliver quality earnings growth by the provision of contracting services to the resources, energy and infrastructure sectors. Diversification into the infrastructure sector is a well-considered strategy, which could eventually help to insulate it from an inevitable downturn in resource and energy project work. Engineering and construction contracting work prospects remain positive with a healthy forward work load combined with strengthening resources and energy project pipelines, should ensure high levels of tendering activity in the short term. But long term future growth is highly dependent on increasing levels of resource and energy sector activity and the flow of projects. Customers ultimately maintain strong bargaining power over Mondelphous due to an ability to substitute contractors. Monadelphous Group reported NPAT up 37.54% to $79.1m for the half-year ended 31 December 2012. Revenues from ordinary activities were $1.29bn, up 46.16% from the same period last year. This result has been driven by an extraordinary surge in construction work. Diluted EPS was 86.9 cents compared to 64.3 cents last year. Net operating cash flow was $43.35m compared to $68.41m last year. The interim dividend declared was 62 cents compared with 50 cents last year. Looking beyond the current financial year, after two consecutive years of growth of more than 30%, 2013/14 is currently anticipated to be a period of consolidation in which the achievement of any revenue growth will be challenging.

Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 92.2 100.1 -17.6 9.1 75.0 8.2 100.0
2015  F 111.9 121.4 -19.3 7.5 92.0 10.1 100.0
2014  A 138.7 150.5 -11.8 11.5 123.0 7.1 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Cardno (CDD) $571 M -0.0527 -0.2942 -0.0820 6.8168 9.6585 10.5215 10.43 7.32 6.74
Leighton (LEI) $7,000 M -- -- 0.0683 -- 14.6656 13.7281 6.04 4.21 4.43
Monadelphous (MND) $869 M -0.1184 -0.2181 -0.1924 6.1993 7.9285 9.8178 13.20 9.80 8.67
RCR Tomlinson (RCR) $239 M 0.1861 -0.1890 0.0439 5.1917 6.4012 6.1319 5.81 5.99 6.40
UGL (UGL) $274 M -0.1853 -0.3492 -0.1162 3.6491 5.6067 6.3440 0.00 0.00 1.03

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
MND 0.68 7.36 2.34 10.00 0.36
Market 0.91 16.4 1.30 2.38 1.62
Sector 0.72 8.87 0.77 10.00 0.35

Name Position Start Date
Mr Calogero (John) Giovanni Battista Rubino Executive Chairman 18 January 1991
Mr Robert Velletri Managing Director 26 August 1992
Mr Peter Dempsey Non-Executive Director 30 May 2003
Mr Christopher Percival Michelmore Non-Executive Director 01 October 2007
Mr Dietmar Voss Non-Executive Director 10 March 2014

Name Position
Philip Trueman Company Secretary
D. Foti Executive General Manager, Engineering Construction
A. Erdash Executive General Manager, Maintenance & Industrial Services
Kristy Glasgow Financial Controller,Company Secretary

Substantial Shareholders
Holding Name
10,190,835 (10.98%) BlackRock Group

Calendar of Events
Date Event
16 February 2016 Report (Interim)
16 October 2015 Report (Annual)
18 August 2015 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at


Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investing and Trading in US Shares

An educational booklet that shows how to use international share trading to diversify your investments.

More details...


Markets melt up

By Michael McCarthy (chief market strategist, CMC Markets) 19/12/2014 | Traders and investors caught short heading into the FOMC scrambled for cover in Europe and the US, in many cases driving indices to their best one day performance for 2015.

Aussie Investors take their foot off the accelerator

By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 | Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade.

Fed Feeds Frenzy

By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 | In spite of a frenzied pre-mortem, a benign statement from the US Federal Reserve‚Äôs Open Market Committee and steadying commodity markets drove investors back into share markets overnight. A calmer, stronger ruble helped offset European growth fears, highlighted in the overnight session by further declines in inflation.

Household brands Woolworths and Telstra Heavy Lifting

By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 | Offshore jitters sent ripples through to Australian stocks. The open saw the local equities take 65 points off the index, catalysed by a mass-exit in energy stocks, yet again.

Steady open as Woodside investors wait on details of possible Wheatstone acquisition

By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 | Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.

MYEFO and Lima - December could be nasty.

BR Securities Australia Pty Ltd 2/12/2014 | December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.


Sponsored Links