Mcpherson'S Limited (MCP) AI Stock Analysis

• Market Cap: AU$38.15M
• Dividend Yield: 8.87%
• Average Volume (3M): 88.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -44.48%
• EPS Growth: -419.84%
• Country: AU
• Employees: 876
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Household & Personal Products
• EPS (TTM): >-0.01
• Shares Outstanding: 143,949,140
• 10 Day Avg. Volume: 99,377
• 30 Day Avg. Volume: 88,368
• PEG Ratio: 0.05
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.77
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: AU$0.50 ▲(92.31%Upside)

McPherson's Limited faces significant financial and operational challenges, reflected in its weak income statement and negative valuation metrics. While cash flow management shows some resilience, the overall sentiment remains bearish, with technical indicators pointing to continued pressure on the stock. Improving operational performance and addressing profitability concerns are critical for enhancing the stock's outlook.

Mcpherson'S Limited Business Overview & Revenue Model

Company Description

McPherson's Limited (MCP) is an Australian company that operates in the consumer products sector, primarily focusing on health, wellness, and beauty. The company is known for its diverse range of branded products, which include skin care, hair care, vitamins, and household essentials. McPherson's Limited distributes its products through various channels, including supermarkets, pharmacies, and e-commerce platforms, catering to both domestic and international markets.

How the Company Makes Money

McPherson's Limited generates revenue through the sale of its consumer products, which are distributed under well-known brands. The company leverages multiple sales channels, including retail chains, online platforms, and direct-to-consumer sales, to reach a broad customer base. Key revenue streams include sales of health and wellness products, beauty and personal care items, and household essentials. Strategic partnerships with retailers and expansion into international markets also play a significant role in the company's earnings, enhancing its market presence and driving sales growth.

Mcpherson'S Limited Financial Statement Overview

Summary

McPherson's Limited faces significant challenges with declining revenues and profitability concerns. The balance sheet shows moderate leverage, but operational inefficiencies are a concern. Cash flow generation is a relative strength, indicating resilience despite profitability issues. The company needs to improve operational margins and reduce debt to ensure long-term viability.

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	76.55M	58.18M	46.02M	43.39M	65.93M
	EBIT
-13.98M	-8.18M	8.49M	875.00K	831.00K	26.46M
	EBITDA
-10.27M	-4.92M	8.51M	7.44M	2.57M	23.51M
	Net Income Common Stockholders
-18.48M	-15.99M	-5.06M	333.00K	-5.37M	6.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.72M	24.77M	7.03M	13.14M	7.35M	7.15M
	Total Assets
129.41M	146.90M	190.06M	215.76M	199.59M	190.82M
	Total Debt
8.22M	19.85M	25.45M	29.38M	20.93M	24.67M
	Net Debt
-3.50M	-4.92M	18.42M	16.24M	13.57M	17.52M
	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: Neutral
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Negative
• 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:MCP, the sentiment is Neutral. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.26, and below the 200-day MA of 0.33, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:MCP.

Mcpherson'S Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COL	77 Outperform	$29.13B	26.25	30.87%	3.18%	6.00%	4.02%
TRS	73 Outperform	€246.99M	39.92	3.33%	1.98%	3.37%	-25.24%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
MCP	47 Neutral	AU$38.15M	―	-14.68%	8.87%	-44.48%	-419.84%
PLS	47 Neutral	$4.12B	23.42	-1.04%	―	-65.07%	-102.37%

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.

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

McPherson’s Limited has announced a strategic shift in its operating model by exiting its warehousing and direct-to-store orders, opting instead to partner with third-party logistics and pharmacy wholesalers. This transition includes a new three-year agreement with Sigma Company Limited, which will handle orders previously managed directly by McPherson’s, impacting annual revenue of approximately $50 – $55 million. This move is expected to streamline operations and potentially enhance the company’s market positioning by leveraging Sigma’s distribution capabilities.