Macmahon Holdings Limited (MAH) AI Stock Analysis

• Market Cap: AU$609.04M
• Dividend Yield: 3.93%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.79
• Revenue Growth: 19.01%
• EPS Growth: -34.62%
• Country: AU
• Employees: 9,676
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): 0.02
• Shares Outstanding: 2,154,985,800
• 10 Day Avg. Volume: 2,863,435
• 30 Day Avg. Volume: 1,553,260
• PEG Ratio: 0.24
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.40
• Price Target Upside: 37.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: AU$0.50 ▲(72.41%Upside)

Macmahon Holdings Limited has a strong financial foundation with robust revenue growth and cash flow, but faces challenges with weak technical indicators and low net profit margins. The valuation is moderate, with a reasonable P/E ratio and a solid dividend yield.

Macmahon Holdings Limited Business Overview & Revenue Model

Company Description

Macmahon Holdings Limited provides mining and civil construction services to mining companies in Australia, Indinesia, Malaysia, and South Africa. The company operates in three segments: Surface Mining, Underground Mining, and International Mining. Its surface mining services include mine planning and analysis, drill and blast, bulk and selective mining, crushing and screening, fixed plant maintenance, water management, and equipment operation and maintenance. The company also provides underground mining services, including mine development and production, raise and production drilling, cable bolting, shotcreting, remote shaft lining, and shaft sinking. In addition, it offers topsoil and overburden stripping, bulk earthworks, road design and construction, and train loading facilities; water infrastructure, including dams, creek diversions, flood levies, and drainage structures; revegetation; non-process infrastructure, as well as rehabilitation monitoring and maintenance; and engineering services comprising shaft lining and maintenance, emergency egress system, pump stations and rising mains, and sire workshops and infrastructure, as well as conveying, crushing, materials handling. Further, the company provides equipment maintenance and management support services; and advisory operational improvement services, which include operator coaching and training, and cultural change programs for employees, as well as advisory and assistance services with mine planning, maintenance, and employee engagement. Macmahon Holdings Limited was incorporated in 1963 and is headquartered in Perth, Australia.

How the Company Makes Money

Macmahon Holdings Limited primarily generates revenue through contracts in the mining and construction industries. Its key revenue streams include mining services, where the company undertakes contract mining operations for major resource companies, and civil construction projects, which involve infrastructure development and maintenance. The company also earns income from equipment hire and maintenance services. Significant partnerships with leading mining firms and long-term contracts contribute to Macmahon's steady earnings. Additionally, its diverse portfolio across various minerals and geographical locations helps mitigate market risks and stabilize revenue streams.

Macmahon Holdings Limited Financial Statement Overview

Summary

Macmahon Holdings Limited shows strong revenue growth and improved gross margins. The balance sheet is robust with decreasing leverage, and cash flow generation is strong, providing flexibility for growth and debt servicing. However, net profitability needs enhancement to boost overall financial performance.

Income Statement

Macmahon Holdings Limited has demonstrated a strong revenue growth trend, with an increase from 1.69 billion AUD in 2022 to 2.03 billion AUD in 2024. Gross profit margin has significantly improved, reflecting enhanced operational efficiency. However, the net profit margin remains relatively low, which indicates potential areas for cost optimization. EBIT and EBITDA margins are stable, indicating consistent earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet shows a healthy equity ratio of approximately 43.6%, suggesting a strong capital base. The debt-to-equity ratio has decreased over time, indicating better leverage management. However, the return on equity is moderate, pointing to room for improving profitability relative to shareholders' equity.

Cash Flow

Macmahon Holdings has shown impressive growth in free cash flow, which has increased significantly over the years, supporting further investments and debt reduction. The operating cash flow to net income ratio is robust, indicating that the company efficiently converts earnings into cash. The strong cash flow positions the company well for future opportunities and challenges.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.24B	2.03B	1.91B	1.70B	1.35B	1.38B
Gross Profit	1.68B	1.55B	1.31B	1.18B	864.25M	807.45M
EBITDA	216.36M	306.18M	292.21M	251.56M	243.33M	221.62M
Net Income	46.71M	53.23M	57.67M	27.40M	77.23M	64.95M
Balance Sheet
Total Assets	1.73B	1.45B	1.46B	1.34B	1.14B	923.02M
Cash, Cash Equivalents and Short-Term Investments	221.81M	194.58M	218.16M	197.96M	182.08M	141.84M
Total Debt	458.70M	341.17M	420.11M	413.47M	312.43M	202.75M
Total Liabilities	1.06B	817.84M	855.87M	778.78M	607.62M	425.19M
Stockholders Equity	668.84M	633.51M	608.85M	559.50M	535.86M	497.83M
Cash Flow
Free Cash Flow	135.17M	120.78M	73.60M	65.00M	32.40M	112.23M
Operating Cash Flow	278.42M	270.82M	266.85M	227.91M	238.99M	193.69M
Investing Cash Flow	-191.29M	-142.41M	-193.14M	-170.52M	-201.83M	-96.41M
Financing Cash Flow	-68.41M	-151.07M	-55.20M	-45.47M	5.91M	-69.25M

Macmahon Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MAH, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.28, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MAH.

Macmahon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAH	67 Neutral	AU$609.04M	13.12	7.28%	3.93%	19.01%	-34.62%
OMH	63 Neutral	AU$217.83M	15.41	2.22%	2.25%	11.90%	-49.32%
MMI	53 Neutral	AU$365.89M	―	-87.03%	―	30.32%	-22.58%
AIS	51 Neutral	AU$154.93M	6.83	8.30%	―	-7.16%	―
Sector *	43 Neutral	AU$1.35B	-6.12	-40.62%	4.33%	-4.78%	-43.21%
SVM	42 Neutral	AU$436.68M	―	-77.74%	―	―	-654.93%
CAY	26 Underperform	AU$395.63M	―	-33.55%	―	―	-175.00%

Macmahon Holdings Limited Corporate Events

Macmahon Holdings to Release Shares from Escrow Post-Decmil Acquisition

Macmahon Holdings Limited announced the release of 11,484,998 fully paid ordinary shares from voluntary escrow on July 1, 2025, related to its acquisition of Decmil in 2024. This move signifies a strategic step in integrating Decmil’s operations, potentially enhancing Macmahon’s market position and operational capabilities in the mining and civil infrastructure sectors.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.37 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Holdings Expands Order Book with $80 Million in New Contracts

Macmahon Holdings Limited’s subsidiary, Decmil, has secured two new contracts worth approximately $80 million, enhancing Macmahon’s order book. The contracts involve the construction of an accommodation village for Eva Copper Mine in Queensland and a satellite warehouse and operations facility for Arrow Energy. These projects signify Decmil’s continued success in securing strategically aligned work, contributing to Macmahon’s strong performance in FY25, with new work exceeding $400 million. The projects are expected to bolster Macmahon’s industry positioning and demonstrate Decmil’s capability in delivering high-quality infrastructure solutions.

The most recent analyst rating on (AU:MAH) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on Macmahon Holdings Limited stock, see the AU:MAH Stock Forecast page.

Macmahon Secures $172 Million in New Mining Contracts

Macmahon Holdings Limited has secured a significant underground mining services contract at the Deflector Underground Gold Copper Mine in Western Australia, expected to add $105 million to its orderbook. The contract, starting May 2025, requires no significant capital expenditure beyond sustaining capital, leveraging Macmahon’s existing presence at the site. Additionally, Macmahon has been confirmed as the mining contractor for Genesis Minerals Limited’s Gwalia and Ulysses Gold Projects, adding $67 million to its orderbook. This new contract, commencing in April 2025, also requires no significant capital expenditure, maintaining the company’s FY25 capital expenditure budget and earnings guidance.

Macmahon Secures $900m Contract Extension at Byerwen Mine

Macmahon Holdings Limited has secured a three-year contract extension worth $900 million for its mining services at the Byerwen coking coal mine in Queensland’s Bowen Basin. This extension, which continues services from October 2025, strengthens Macmahon’s order book without requiring additional capital expenditure, as existing resources and personnel are already in place. The ongoing partnership with Byerwen Coal Pty Ltd, a joint venture between QCoal Group and JFE Steel, has been pivotal in stabilizing Macmahon’s business over the past eight years, and the company is focused on enhancing operational efficiencies through this continued collaboration.

Macmahon Holdings Ceases 789,922 Share Rights

Macmahon Holdings Limited announced the cessation of 789,922 share rights due to the lapse of conditional rights, as the conditions for these securities were not met or became unattainable. This cessation may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s ability to meet certain operational or financial conditions.