Magellan Financial Group Limited (MFG)
Views and News
Essentials
A funds manager with a focus on (a) global leaders likely to prosper as China and other BRICS countries move rapidly towards higher living standards, and (b) infrastructure.
Recent News Highlights
As at 04/09/2012 : see details at www.magellangroup.com.au (new window? Shift+Click)
| 28/08/2012 Investor Briefing |
Half-yearly Performance & Estimates - MFG
| Year-end June | FY11A | 1H12A | FY12A | 1H13A | FY13A | FY14E | FY15E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 125.0 | 168.0 |
| EBITDA, $m | 0.00 | 0.00 | 0.00 | 20.2 | 92.2 | 92.5 | 129.9 |
| EBIT, $m | 0.00 | 0.00 | 0.00 | 20.1 | 92.1 | 92.4 | 129.8 |
| Report NPAT, $m | 5.8 | 5.3 | 13.7 | 15.2 | 66.7 | ||
| Adj. NPAT, $m | 66.7 | 71.4 | 97.5 | ||||
| Reported EPS, ¢ | 4.00 | 3.00 | 9.00 | 9.00 | 40.00 | ||
| Adjusted EPS, ¢ | 40.00 | 43.00 | 58.90 | ||||
| EPS %FY/Growth | 33% | 125% | 23% | 344% | 8% | 37% | |
| Dividend, ¢ | 1.5 | 1.5 | 4.5 | 5.0 | 21.5 | 34.00 | 48.00 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 0 | 0 | 0 | ******% | ******% | 74.0% | 77.3% |
| NPAT Margin | 0 | 0 | 0 | ******% | ******% | 57.1% | 58.0% |
| ROE, % | 5% | 0 | 9% | 9 | 44% | ||
| EBIT/Interest | -3.2 | 0.0 | -6.9 | -13.42 | -31.04 | ||
| Net Debt / Equity | -0.01 | 0 | -0.01 | -0.11 | -0.25 | ||
| CashFlow/Sh, ¢ | 5.5 | 1.8 | 8.9 | 8.4 | 20.5 | 42.4 | 60.1 |
| Y/E Shares, m | 151.9 | 152.6 | 152.6 | 152.6 | 152.8 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Company Overview
The old adage, "If you like the fund, buy the manager", certainly applies in this case.
The recent price rise to a market capitalisation of $459m at a share price of $3.03 appears justified on the typical 7% benchmark of FUM (funds under management) which was $4,134m at 31 July 2012. This has been steadily and quite rapidly rising virtually monthly over several years as investors are attracted to its investment themes. The extract from the latest Investor Briefing highlights this growth in Funds Under Management, gathering momentum:
Russell Research in the media
Stock Picks for The Bull.com.au - 11 March 2013
HOLD Magellan Financial Group (MFG)
We continue to say “add to positions” in this dynamically growing funds manager. We said it was set for growth in this publication in October last year when the price was $3.31. Funds under management have risen substantially in the past few years and now exceed $10.4 billion after winning a major UK mandate, initially of $3.1 billion. Now globally recognised for its investment focus, we believe there’s plenty more to come.
Stock Picks for Sunday Herald Sun – 24 February 2013
HOLD Magellan Financial Group, MFG, $7.45
The price of this funds manager has boomed as its successful investment themes have brought critical mass. Much more to come.
Stock Picks for The Bull.com.au - 1 October 2012
HOLD Magellan Financial Group Limited, MFG ($3.38)
This innovative funds manager has caught the flavour – the penetration of top brands into the BRICs countries – and has won the attention of both retail and wholesale investors. Profit tripled in FY12 as funds under management rose from $2.75bn in June 2011 to $4.15bn in August 2012. With the Magellan Global Fund and Magellan Infrastructure Fund substantially outperforming, MFG is well set for growth despite its recent price upswing.
Wave Chart
Profile
Magellan Financial Group
Rating: ♠
Category: Best Stock ; Large
Action: Accumulate
Website: www.magellangroup.com.au
| ASX code: | MFG |
| Closing Price, 30/12/2013: | $ 10.680 |
| Market Capitalisation: | $ 1,658 million |
| 52 Week High: | $ 12.87 |
| 52 Week Low: | $ 5.108 |
| Sector: | Asset Management & Custody Banks |
| Index: | S&P/ASX 200 Index |
Summary of Fundamentals
| Year-end June | FY12A | FY13A | FY14E | FY15E |
|---|---|---|---|---|
| NPAT, $m | 13.7 | 66.7 | 71.0 | 97.0 |
| Reported EPS, ¢ | 9.00 | 40.00 | ||
| Adjusted EPS, ¢ | 29.20 | 42.65 | 59.50 | |
| EPS Growth, % | 125% | 224% | 46% | 40% |
| P/E Ratio, x | 118.67 | 36.58 | 25.04 | 17.95 |
| Dividend, ¢ | 4.5 | 21.5 | 33.50 | 46.00 |
| Franking, % | 100% | 100% | 100% | 100% |
| Div. Yield, % | 0.42 | 2.01 | 3.14 | 4.31 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 30 December 2013
Other Highlights
| Sector: | Asset Management & Custody Banks |
| Return on Equity, FY13 : | 44% |
| Net Debt to Equity, FY13 : | -25 % |
| EBIT / Interest Cover, FY13 : | -31.04 x |
| Gicscode: | 40203010 |
| First Listed: | 1-Jul-04 |
Business Activities
Magellan Financial Group Limited (MFG) is an Australian specialist funds manager with a global focus. It manages institutional and public funds in infractructure projects and notably in global businesses leveraged to the developing economies.
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |