Mayfield Childcare Ltd. (MFD) AI Stock Analysis

• Market Cap: AU$26.40M
• Dividend Yield: 1.43%
• Average Volume (3M): 30.02K
• Price to Earnings (P/E): 97.2
• Beta (1Y): 0.37
• Revenue Growth: 13.92%
• EPS Growth: N/A
• Country: AU
• Employees: 1,100
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Personal Products & Services
• EPS (TTM): 0.02
• Shares Outstanding: 75,424,610
• 10 Day Avg. Volume: 41,191
• 30 Day Avg. Volume: 30,022
• PEG Ratio: 0.88
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.79
• 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: 58 Neutral
• Price Target: AU$0.50 ▲(42.86%Upside)

Mayfield Childcare Ltd. has a solid financial foundation with strong revenue growth and cash flow management. However, high leverage and low profitability margins are significant concerns. The technical analysis shows bearish trends, and the valuation is stretched, indicating potential overvaluation. These factors combined result in a moderate overall stock score.

Mayfield Childcare Ltd. Business Overview & Revenue Model

Company Description

Mayfield Childcare Ltd. (MFD) is an Australian-based company that operates in the childcare and early education sector. The company primarily provides long day care services for children ranging from infants to preschool age. With a focus on delivering high-quality education and care, Mayfield Childcare Ltd. operates a network of childcare centers across various locations, offering programs designed to foster children's development and learning in a safe and nurturing environment.

How the Company Makes Money

Mayfield Childcare Ltd. generates revenue primarily through the fees charged for its childcare and early education services. These fees are typically derived from parents and guardians who enroll their children in the company's long day care programs. The company's revenue model may also be supported by government subsidies or funding programs that assist families with the cost of childcare, thereby indirectly contributing to the company's earnings. Additionally, strategic partnerships with educational institutions or community organizations may enhance their service offerings, thereby attracting more enrollments and increasing revenue. However, specific details on such partnerships or additional revenue streams are not provided.

Mayfield Childcare Ltd. Financial Statement Overview

Summary

Mayfield Childcare Ltd. is experiencing strong revenue growth and effective cash flow management, which supports future expansions. Although the leverage is high, a stable equity base and improving operational efficiency are positive. The focus should be on enhancing profitability margins and managing debt levels.

Income Statement

Mayfield Childcare Ltd. shows a strong revenue growth trajectory, with a notable increase of 15.41% from 2023 to 2024. The gross profit margin remains robust at 100%, indicating efficient cost management. However, the net profit margin is low at 0.27%, suggesting high operating costs or other expenses impacting profitability. EBIT and EBITDA margins show improvement, with EBIT margin at 19.86% for 2024, reflecting enhanced operational efficiency.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.58, indicating significant leverage which could pose financial risk. However, the equity ratio at 26.60% shows adequate capitalization. Return on equity has improved, though it remains low at 0.37%, suggesting limited returns on shareholder investments. The balance sheet reflects a stable asset base with consistent shareholder equity.

Cash Flow

Mayfield Childcare Ltd. demonstrates strong cash flow management with a free cash flow growth rate of 44.98% in 2024, indicating efficient capital expenditure and operational cash flow. The operating cash flow to net income ratio is significantly high at 49.26, suggesting robust cash generation relative to net income. Free cash flow to net income ratio also supports the company's ability to generate cash from operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
87.16M	76.51M	68.98M	39.73M	32.79M
	Gross Profit
87.16M	76.51M	10.25M	6.78M	2.65M
	EBIT
4.42M	1.13M	10.17M	5.38M	6.22M
	EBITDA
17.54M	13.18M	20.03M	9.99M	10.67M
	Net Income Common Stockholders
239.64K	-1.43M	4.88M	2.57M	3.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.00K	362.67K	2.66M	2.27M	1.57M
	Total Assets
246.10M	235.71M	219.23M	226.61M	71.40M
	Total Debt
168.63M	160.41M	141.09M	144.08M	36.50M
	Net Debt
168.53M	160.05M	138.44M	141.82M	34.93M
	Total Liabilities
180.64M	170.32M	149.45M	161.01M	41.30M
	Stockholders Equity
65.46M	65.38M	69.78M	65.61M	30.10M
Cash Flow		Free Cash Flow
10.56M	7.28M	13.77M	8.83M	9.44M
	Operating Cash Flow
11.81M	9.19M	15.12M	9.86M	10.45M
	Investing Cash Flow
-3.82M	-6.29M	-1.16M	-11.65M	-1.08M
	Financing Cash Flow
-8.24M	-5.20M	-10.88M	2.53M	-8.46M

Mayfield Childcare Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 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:MFD, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.41, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:MFD.

Mayfield Childcare Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KME	70 Outperform	AU$23.05M	11.47	8.55%	1.23%	11.73%	66.51%
GEM	66 Neutral	AU$975.45M	14.38	7.43%	4.56%	3.24%	21.10%
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%
MFD	58 Neutral	AU$26.40M	97.22	0.37%	1.43%	13.92%	―
CGO	43 Neutral	€2.68M	―	-125.87%	―	-8.24%	3.01%

Mayfield Childcare Ltd. Corporate Events

Mayfield Childcare Seeks Interim Orders to Maintain Shareholding Status Quo

Mayfield Childcare Limited has sought interim orders from the Takeovers Panel in response to concerns about certain parties potentially dealing with their shares in the company. These orders, which restrict the disposal or transfer of shares by specified connected parties, aim to maintain the status quo while the Panel considers the application. The interim orders will remain in effect until further notice or until the proceedings are resolved, potentially impacting the company’s shareholding structure and stakeholder interests.

Mayfield Childcare Seeks Takeovers Panel Intervention Over Voting Power Concerns

Mayfield Childcare Limited has submitted an application to the Takeovers Panel concerning alleged undisclosed associations related to its upcoming annual general meeting, where board composition resolutions are to be considered. The company claims that connected parties have acquired significant voting power in Mayfield’s shares, potentially influencing the company’s control. Mayfield is seeking interim and final orders to prevent these parties from acquiring more shares, exercising voting rights, and to ensure compliance with disclosure regulations.

Mayfield Childcare Granted Extension for AGM

Mayfield Childcare Ltd. has received an extension from ASIC to hold its Annual General Meeting by 30 June 2025, due to the need to prepare and lodge an application with the Takeovers Panel. This extension allows the company additional time to address regulatory requirements, potentially impacting its operational timeline and stakeholder engagement.

Mayfield Childcare Reports Positive Turnaround Amid Sector Challenges

Mayfield Childcare Limited has reported a positive shift in profitability and performance under the leadership of CEO Daniel Stone, despite facing challenges such as declining occupancy and sector-wide pressures. The company has improved its occupancy rates, reduced its Wage to Revenue ratio, and increased its underlying EBITDA margins through strategic cost rationalization and efficiency programs. The Precious Cargo centers continue to underperform, but the overall group performance shows significant improvement, indicating a successful turnaround strategy.

Genius Education Alters Stake in Mayfield Childcare

Genius Education Holdings Pty Ltd and Genius Education Group Pty Ltd have altered their substantial holding in Mayfield Childcare Ltd, with a decrease in voting power from 34.23% to 30.62%. This change is attributed to the transfer of shares to Citicorp Nominees Pty Ltd under a Prime Brokerage Agreement, reflecting strategic adjustments in their investment portfolio.

Mayfield Childcare Postpones AGM for Strategic Application

Mayfield Childcare Limited has announced the postponement of its Annual General Meeting, originally scheduled for May 20, 2025, to prepare an application with the Takeovers Panel. This move indicates potential strategic developments that could impact the company’s operations and stakeholder interests, with further details to be provided at a later date.

Mayfield Childcare Receives Invalid Meeting Request from Genius Education

Mayfield Childcare Ltd. announced it received notices from Genius Education Holdings Pty Ltd, aiming to propose a resolution for the removal of a director. However, the request to hold a General Meeting was deemed invalid, and Mayfield will not proceed with the meeting, impacting the company’s governance dynamics.

Mayfield Childcare Limited Announces 2025 AGM with Hybrid Participation Options

Mayfield Childcare Limited has announced its 2025 Annual General Meeting (AGM) scheduled for May 20, 2025, in a hybrid format, allowing shareholders to participate either in person or virtually. The company emphasizes its commitment to effective communication and corporate governance, proposing amendments to its Constitution in line with best practices and regulatory requirements, which will be reviewed during the AGM.

Mayfield Childcare Experiences Change in Substantial Holder Interests

Mayfield Childcare Limited has announced a change in the interests of its substantial holder, Riversdale Road Shareholding Company Pty Ltd, along with associated entities and individuals. The change, effective from January 3, 2025, resulted in a decrease in voting power from 14.33% to 13.3% due to the dilution caused by the placement of new ordinary shares. This adjustment in shareholding reflects a shift in the company’s ownership dynamics, potentially impacting its governance and strategic decision-making processes.

Mayfield Childcare Announces Early Start for New CEO

Mayfield Childcare Limited, a company listed on the Australian Securities Exchange, has announced the early commencement of its new CEO, Daniel Stone, on March 31, 2025. This transition follows the retirement of the former CEO, Ashok Naveinthiran, earlier in March. The appointment of Daniel Stone is expected to bring new leadership dynamics to Mayfield, potentially impacting its strategic direction and operations.