Morningstar

Magellan Financial Group Ltd MFG

Morningstar Rating
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Stock XASX Rating as of
A$9.95 −0.07 (0.70%)
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As of Delayed Price Closed

Company Report

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We're Not Yet Confident Magellan Can Turn Its Earnings Around

Shaun Ler

Magellan Financial Group is an active manager of listed equities and infrastructure. The firm historically had considerable success in growing funds under management, owing to its record of outperformance all the way from 2008 to 2019, product expansion initiatives, and strong distribution capabilities. Excess cash is invested in funds, listed shares, and unlisted investments under its principal investments segment.

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Price vs Fair Value

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MFG is trading at a 271% premium.
Price
A$9.95
Fair Value
A$86.90
Uncertainty
Very High
1-Star Price
A$91.74
5-Star Price
A$7.80
Economic Moat
Xchg
Capital Allocation
Khnsshck

Bulls Say, Bears Say

Bulls

The sheer scale of Magellan’s funds under management means it is still capable of maintaining earnings from the compounding of investment returns despite periodic outflows.

Bears

Most of Magellan's earnings come from a few funds, meaning it has a high reliance on key investment personnel and the performance of its main funds. Should key people leave, or its main funds underperform for a prolonged period, outflows could be material.

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Trading Information

Previous Close Price
A$10.02
Day Range
A$9.92–10.13
52-Week Range
A$6.06–10.96
Bid/Ask
A$9.89 / A$10.00
Market Cap
A$1.78 Bil
Volume/Avg
374,089 / 687,688

Key Statistics

Price/Earnings (Normalized)
8.82
Price/Sales
4.10
Dividend Yield (Trailing)
6.54%
Dividend Yield (Forward)
6.54%
Total Yield
6.83%

Company Profile

Magellan Financial Group is an Australia-based niche funds manager. Established in 2006, the firm specializes in the management of equity and infrastructure funds for domestic retail and institutional investors. Magellan has historically been particularly successful in winning mandates from global institutional investors. Current FUM is split across global equities, infrastructure and Australian equities.
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Small Value
Total Number of Employees
135
Website
https://www.magellangroup.com.au

Competitors

Valuation

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Metric
MFG
JHG
PTM
Price/Earnings (Normalized)
 8.8212.6811.92
Price/Book Value
 1.991.372.02
Price/Sales
 4.102.723.53
Price/Cash Flow
 38.0311.359.55
Price/Earnings
MFG
JHG
PTM

Financial Strength

Metric
MFG
JHG
PTM
Quick Ratio
 —3.85—
Current Ratio
 —4.05—
Interest Coverage
 —50.19—
Quick Ratio
MFG
JHG
PTM

Profitability

Metric
MFG
JHG
PTM
Return on Assets (Normalized)
 15.96%8.52%12.80%
Return on Equity (Normalized)
 18.28%12.13%14.00%
Return on Invested Capital (Normalized)
 —10.82%—
Return on Assets
MFG
JHG
PTM

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