Macmahon Holdings Limited (MAH) AI Stock Analysis

• Market Cap: $598.54M
• Dividend Yield: 4.37%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.72
• 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: 1,117,921
• 30 Day Avg. Volume: 1,464,843
• PEG Ratio: -0.95
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.45
• 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: $0.37
• Price Target Upside: 33.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Macmahon Holdings Limited has a strong financial base with robust revenue growth and cash flow, though profitability improvements are needed. The technical indicators show a short-term positive trend but caution for potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield, contributing to the stock's overall appeal.

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 displays a solid financial footing with strong revenue growth and improved gross margins. The balance sheet is robust with decreasing leverage, while cash flow generation is strong, providing flexibility for growth and debt servicing. The main area for improvement lies in enhancing net profitability 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	298.04M	276.52M	182.07M	192.92M
	EBIT
97.70M	101.66M	104.76M	88.06M	82.60M	87.33M
	EBITDA
216.36M	314.81M	304.92M	263.09M	243.33M	231.97M
	Net Income Common Stockholders
46.71M	53.23M	57.67M	27.40M	77.23M	64.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
221.81M	194.58M	218.16M	197.96M	182.08M	141.84M
	Total Assets
1.73B	1.45B	1.46B	1.34B	1.14B	923.02M
	Total Debt
458.70M	341.17M	420.11M	413.47M	312.43M	202.75M
	Net Debt
236.90M	146.59M	201.95M	215.51M	130.35M	60.91M
	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: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MAH, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.27, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 80.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	69 Neutral	$598.54M	12.90	7.28%	4.37%	19.01%	-34.62%
Sector *	49 Neutral	$1.96B	-1.15	-21.28%	3.71%	1.17%	-30.86%

Macmahon Holdings Limited Corporate Events

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.

Macmahon Holdings Corrects Financial Presentation Error

Macmahon Holdings Limited announced a correction to a typographical addition error in the Cash Flow Appendix of their FY25 Half Year Results presentation. The error involved incorrect summation of prior year totals for ‘Net operating cash flow’ and ‘Net cash flow’, which have now been corrected, potentially impacting stakeholder perceptions and financial transparency.

Macmahon Holdings Announces Director’s Share Acquisition

Macmahon Holdings Limited has reported a change in the director’s interest for Hamish Tyrwhitt, who has acquired 105,919 fully paid ordinary shares through the conversion of share rights under the Non-Executive Director Salary Sacrifice Plan. This transaction reflects the company’s ongoing employee share ownership strategy and could impact stakeholder perceptions regarding executive alignment with shareholder interests.

Macmahon Holdings Director Acquires Additional Shares

Macmahon Holdings Limited has announced a change in the interests of their director, David Gibbs. As part of the Non-Executive Director Salary Sacrifice Plan, Gibbs has acquired 105,919 Fully Paid Ordinary Shares upon the vesting of share rights. This change has increased his holdings to 506,339 shares held by the Macmahon Holdings Limited Employee Share Ownership Plans Trust, along with 105,918 share rights.

Macmahon Holdings Director Increases Stake with Share Acquisition

Macmahon Holdings Limited has reported a change in the director’s interest in securities, with Director Dharmendra Chandran acquiring 118,099 fully paid ordinary shares through the vesting of share rights under the Non-Executive Director Salary Sacrifice Plan. This change signifies a strategic reinforcement of the director’s stake in the company, aligning his interests with the company’s performance and potentially influencing the company’s governance and strategic decisions.

Macmahon Holdings Issues New Securities

Macmahon Holdings Limited announced the issuance of 329,937 ordinary fully paid securities as part of a notification regarding unquoted equity securities. This development is significant for the company’s financial structure and may influence its market standing by impacting investor perceptions and potentially altering shareholder value.

Macmahon Holdings Sees Strong Revenue Growth Amid Decmil Acquisition

Macmahon Holdings Limited reported strong financial growth in the first half of 2025, with a 22% increase in revenue to $1.2 billion, driven by new work and the acquisition of Decmil. The integration of Decmil has been completed, contributing to a diversified revenue stream and improved earnings. The company achieved a higher operating cash flow and increased its order book with significant new projects. Despite a temporary increase in net debt and gearing due to the acquisition, Macmahon is on track to reduce these figures by the end of the fiscal year, reaffirming its financial guidance for FY25.

Macmahon Holdings Announces Dividend for Shareholders

Macmahon Holdings Limited has announced a new dividend distribution for its shareholders, with a distribution amount of AUD 0.0055 per share. The dividend relates to the financial period ending on December 31, 2024, and will be paid on April 10, 2025, with a record date of March 20, 2025. This announcement reflects the company’s financial health and commitment to providing returns to its investors, potentially strengthening its position in the mining services industry.

Macmahon Holdings Releases Interim Financial Report for 2024

Macmahon Holdings Limited released its condensed consolidated interim financial report for the half-year ended 31 December 2024. The report includes financial statements and declarations from directors and auditors, indicating the company’s performance and financial position over the six-month period.

Macmahon Holdings Reports Revenue Increase Amid Decline in Profits

Macmahon Holdings Limited reported a 21.98% increase in revenue to AUD 1,178.7 million for the six months ending 31 December 2024, compared to the same period in the previous year. However, profit after tax decreased by 17.83% to AUD 30 million. This financial outcome reflects a challenging period for the company, impacting its earnings per share, which fell by 18.97%. The interim dividend declared is 0.550 cents per share, with a franked amount of 0.236 cents, payable on 10 April 2025.