Mcpherson'S Limited (MCP) AI Stock Analysis

• Market Cap: AU$35.99M
• Dividend Yield: 8.87%
• Average Volume (3M): 466.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: -44.48%
• EPS Growth: -419.84%
• Country: AU
• Employees: 876
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Household & Personal Products
• EPS (TTM): >-0.01
• Shares Outstanding: 143,949,140
• 10 Day Avg. Volume: 109,787
• 30 Day Avg. Volume: 466,523
• PEG Ratio: 0.52
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.28
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: AU$0.50 ▲(92.31%Upside)

McPherson's Limited is facing significant financial and valuation challenges, notably with declining revenues and negative profitability. Technical analysis provides a neutral outlook, with some short-term positive trends. The company must improve operational efficiency and profitability to enhance its stock attractiveness.

Mcpherson'S Limited Business Overview & Revenue Model

Company Description

McPherson's Limited provides health, wellness, and beauty products in Australia, New Zealand, Asia, and internationally. It offers beauty care, hair care, skin care, and personal care items, including facial wipes, cotton pads, and foot comfort products; and vitamins and supplements, as well as various kitchen essentials, such as baking papers, cling wraps, and aluminium foils. The company sells its products primarily under the owned brands, including Dr. LeWinn's, A'kin, Manicare, Lady Jayne, Swisspers, Multix, Fusion Health, Oriental Botanicals, Moosehead, and Maseur. The company was founded in 1860 and is based in Kingsgrove, Australia.

How the Company Makes Money

McPherson's Limited generates revenue through the sale of its proprietary and agency consumer products across multiple retail channels, including supermarkets, pharmacies, and e-commerce platforms. The company earns income by leveraging its extensive distribution network and established brand portfolio, which includes popular names in the health, wellness, and beauty sectors. In addition, MCP benefits from strategic partnerships and licensing agreements with global brands, enhancing its product offerings and market reach. The company's earnings are influenced by its ability to innovate, maintain strong retailer relationships, and adapt to changing consumer preferences.

Mcpherson'S Limited Financial Statement Overview

Summary

McPherson's Limited is experiencing significant financial challenges, particularly in its income statement with declining revenues and persistent profitability issues. The balance sheet shows moderate leverage, and while cash flow generation is a relative strength, the overall financial health remains under pressure due to operational inefficiencies.

Income Statement

McPherson's Limited has experienced declining revenue over recent years, with a sharp decrease from 2023 to 2024. The company has a negative EBIT and EBITDA margin in 2024, indicating operational inefficiencies. The net profit margin has consistently been negative for the past few years, reflecting ongoing challenges in profitability. Overall, the income statement suggests financial difficulties and the need for significant improvement in operational performance.

Balance Sheet

The balance sheet shows a relatively stable equity position, but the company's debt-to-equity ratio has increased, indicating rising leverage. The total debt has decreased slightly from 2023 to 2024, but the overall financial stability is at risk due to the negative net income. The equity ratio remains reasonable, suggesting some level of shareholder protection, but the company's financial health could be compromised if the profitability issues persist.

Cash Flow

The cash flow statement indicates positive operating cash flow and free cash flow in 2024, which is a positive sign amidst profitability challenges. The free cash flow growth rate is substantial compared to 2023, showing improvement in cash generation. The operating cash flow to net income ratio is strong, suggesting good cash conversion efficiency, but this is overshadowed by negative net income. Overall, cash flow management is a relative strength for the company.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	111.97M	144.63M	210.26M	214.00M	200.50M	222.19M
Gross Profit	47.71M	35.09M	103.07M	46.02M	43.39M	65.93M
EBITDA	-10.27M	-4.92M	3.10M	7.29M	2.57M	19.61M
Net Income	-18.48M	-15.99M	-5.06M	333.00K	-5.37M	6.06M
Balance Sheet
Total Assets	129.41M	146.90M	190.06M	215.76M	199.59M	190.82M
Cash, Cash Equivalents and Short-Term Investments	11.72M	24.77M	7.03M	13.14M	7.35M	7.15M
Total Debt	8.22M	19.85M	25.45M	29.38M	20.93M	24.67M
Total Liabilities	41.26M	57.26M	80.61M	94.95M	84.96M	100.59M
Stockholders Equity	88.15M	89.64M	109.45M	120.81M	114.62M	90.23M
Cash Flow
Free Cash Flow	5.00M	9.64M	4.70M	16.32M	168.00K	17.52M
Operating Cash Flow	7.71M	12.34M	6.55M	18.57M	2.69M	19.33M
Investing Cash Flow	14.66M	16.29M	-1.85M	-2.25M	-31.80M	-8.14M
Financing Cash Flow	-20.73M	-10.90M	-10.91M	-10.59M	29.42M	-14.51M

Mcpherson'S Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MCP, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.26, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MCP.

Mcpherson'S Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABY	68 Neutral	AU$66.71M	37.56	4.65%	―	5.51%	244.64%
Sector *	63 Neutral	$16.70B	11.33	-6.96%	2.94%	1.73%	-24.85%
MCP	49 Neutral	AU$35.99M	―	-14.68%	8.87%	-44.48%	-419.84%
81B		€5.19M	―	-11.13%	314.41%	―	―
S66	60 Neutral	AU$22.28M	25.00	2.68%	2.24%	16.45%	83.33%
CCX	46 Neutral	AU$34.32M	―	-38.51%	―	-53.71%	37.00%
SKN	30 Underperform	AU$3.15M	―		―	252.94%	81.95%

Mcpherson'S Limited Corporate Events

McPherson’s Limited Transitions to New Distribution Model with Symbion Partnership

McPherson’s Limited has announced a strategic shift in its operating model by transitioning from direct-to-store orders to utilizing a third-party logistics provider and pharmacy wholesalers. This change is marked by a new three-year agreement with Symbion Pty Ltd, starting June 2025, which will handle an estimated $10-$15 million in annual revenue previously managed under the direct-to-store model. This move is expected to streamline operations and potentially enhance McPherson’s market positioning by leveraging Symbion’s distribution capabilities.