Mayfield Childcare Ltd. (MFD) AI Stock Analysis

• Market Cap: AU$33.00M
• Dividend Yield: N/A
• Average Volume (3M): 23.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 18.84%
• EPS Growth: -1657.69%
• Country: AU
• Employees: 1,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -0.29
• Shares Outstanding: 75,424,610
• 10 Day Avg. Volume: 24,882
• 30 Day Avg. Volume: 23,486
• PEG Ratio: -1.15
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 3.04
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: AU$0.50 ▲(4.17% Upside)

Mayfield Childcare Ltd. benefits from strong financial performance, particularly in revenue growth and cash flow management. However, high leverage and low profitability margins are significant risks. The technical analysis shows a positive trend, but valuation concerns due to a negative P/E ratio and no dividend yield weigh heavily on the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective service offerings, enhancing long-term business sustainability.

Cash Flow Management

Efficient cash flow management supports operational stability and provides flexibility for future investments and debt servicing.

Operational Efficiency

Improved operational efficiency suggests better cost management and resource utilization, contributing to sustainable profitability.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth opportunities, affecting long-term stability.

Low Profit Margins

Low profit margins indicate challenges in converting revenue into profit, which could hinder reinvestment and shareholder returns over time.

Return on Equity

Low return on equity suggests limited efficiency in generating returns on shareholder investments, potentially impacting investor confidence.

Mayfield Childcare Ltd. Business Overview & Revenue Model

Company Description

Mayfield Childcare Limited provides long day childcare (LDC) services in Victoria, Australia. The company operates 36 LDC centers in Victoria, Queensland, and South Australia. Mayfield Childcare Limited was incorporated in 2015 and is based in Malvern East, Australia.

How the Company Makes Money

Mayfield Childcare Ltd. generates revenue primarily through tuition fees charged to parents for childcare services. These fees vary based on the age of the child, the specific programs selected, and the number of hours required. In addition to tuition, MFD may offer supplementary services such as after-school care, holiday camps, and educational workshops, which contribute additional revenue. The company also seeks partnerships with local authorities and governmental organizations, potentially receiving funding or grants aimed at supporting early childhood education initiatives. Furthermore, MFD may engage in community outreach programs or collaborations with educational institutions that enhance its visibility and attract more clients, thereby bolstering its earnings.

Mayfield Childcare Ltd. Financial Statement Overview

Summary

Mayfield Childcare Ltd. shows strong revenue growth and effective cash flow management, with a notable increase in free cash flow. However, high leverage and low net profit margins indicate financial risks and limited profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.01M	87.16M	76.51M	68.98M	39.73M	32.79M
Gross Profit	48.54M	87.16M	3.22M	10.25M	6.78M	2.65M
EBITDA	5.83M	17.54M	13.18M	20.22M	9.99M	10.67M
Net Income	-20.84M	239.64K	-1.43M	4.88M	2.57M	3.74M
Balance Sheet
Total Assets	221.55M	246.10M	235.71M	219.23M	226.61M	71.40M
Cash, Cash Equivalents and Short-Term Investments	380.57K	103.00K	362.67K	2.66M	2.27M	1.57M
Total Debt	163.03M	168.63M	160.41M	141.09M	144.08M	36.50M
Total Liabilities	173.66M	180.64M	170.32M	149.45M	161.01M	41.30M
Stockholders Equity	47.90M	65.46M	65.38M	69.78M	65.61M	30.10M
Cash Flow
Free Cash Flow	9.42M	10.56M	7.28M	13.77M	8.83M	9.44M
Operating Cash Flow	10.53M	11.81M	9.19M	15.12M	9.86M	10.45M
Investing Cash Flow	-3.68M	-3.82M	-6.29M	-1.16M	-11.65M	-1.08M
Financing Cash Flow	-6.62M	-8.24M	-5.20M	-10.88M	2.53M	-8.46M

Mayfield Childcare Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MFD, the sentiment is Positive. The current price of 0.48 is below the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.44, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 62.16 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MFD.

Mayfield Childcare Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFD	66 Neutral	AU$33.00M	-1.59	-37.06%	―	18.84%	-1657.69%
NDO	66 Neutral	AU$138.48M	10.08	12.24%	12.81%	26.16%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KME	48 Neutral	AU$31.39M	-5.99	10.80%	1.82%	-2.81%	-503.02%

Mayfield Childcare Ltd. Corporate Events

Mayfield Childcare Updates Securities Trading Policy

Mayfield Childcare Limited has updated its Securities Trading Policy to include references to Trading Windows related to the release of the company’s Quarterly Report. This administrative update aligns with ASX Listing Rule 12.10 and reflects Mayfield’s commitment to maintaining transparency and regulatory compliance, potentially impacting how stakeholders engage with the company’s securities.

Embark Early Education Revises Takeover Bid Timeline for Mayfield Childcare

Embark Early Education Limited, a company listed on the ASX, has announced a revision in its timeline for a conditional off-market takeover bid for Mayfield Childcare Limited. Initially planned for November and December 2025, the new indicative dates for the ASIC lodgement and dispatch of the Bidder’s Statement are now set for December 19, 2025, and January 5, 2026, respectively. This adjustment reflects Embark’s ongoing efforts to finalize the necessary documentation, potentially impacting the timeline for stakeholders involved in the acquisition process.

Mayfield Childcare Corrects ASX Appendix 4C Filing

Mayfield Childcare Limited announced a correction to its Appendix 4C lodged with the ASX on 31 October 2025, due to an administrative oversight where the document was not dated and signed. The updated document has been released, ensuring compliance with ASX requirements. This correction is crucial for maintaining transparency and accuracy in financial reporting, which is vital for stakeholder trust and the company’s reputation in the childcare industry.

Mayfield Childcare Releases Q3 FY25 Investor Update

Mayfield Childcare Limited has released its Q3 FY25 investor update, providing a general overview of its current activities. The presentation is intended for informational purposes and does not constitute financial advice or an offer to purchase securities. The company emphasizes that the information is prepared with care but does not guarantee accuracy or completeness, and it includes forward-looking statements subject to risks and uncertainties.

Mayfield Childcare Reports Revenue Growth and Strategic Developments in Q3 FY25

Mayfield Childcare Limited reported a 5% increase in revenue for the third quarter of FY25, attributed to stabilized occupancy and improved efficiency. The company achieved a 14% rise in underlying Centre EBITDA, reflecting disciplined cost management and operational improvements. Mayfield also announced a partnership with Melbourne Victory Football Club, enhancing community visibility and engagement. The company terminated its Incubator Agreement with Steps Learning Pty Ltd and ceased negotiations for a proposed divestment of 10 centers. Strong operating cash inflows led to a $2.4M debt reduction, positioning the company for continued progress.

Mayfield Childcare Releases Top 20 Security Holders Report

Mayfield Childcare Limited has released its Top 20 Security Holders report following an Initial Substantial Holder notice. This update provides insights into the company’s shareholder structure, highlighting key stakeholders and their respective holdings. The announcement is part of Mayfield’s commitment to transparency and may influence investor perceptions and market positioning.

Mayfield Childcare to Host Q3 FY25 Results Webcast

Mayfield Childcare Limited announced that CEO Daniel Stone and CFO Chris Hayes will host a webcast to discuss the company’s Q3 FY25 results. This event, scheduled for October 31, 2025, allows shareholders to engage with the company’s leadership and gain insights into its financial performance, potentially impacting stakeholder confidence and market positioning.

Mayfield Childcare Welcomes Embark as New Substantial Shareholder

Mayfield Childcare Limited announced that Embark Early Education Limited has become a substantial shareholder with a 19.9% stake. This investment is seen as a positive endorsement of Mayfield’s performance and potential, with the company committed to executing strategies for sustainable growth and enhancing shareholder value.

Mayfield Childcare Transitions Share Registry Services to Xcend

Mayfield Childcare Limited announced a change in its shareholder registry services provider from MUFG Corporate Markets to Xcend Pty Ltd, effective after market close on October 31, 2025. This transition is expected to streamline operations and potentially enhance shareholder communication, reflecting Mayfield’s commitment to operational efficiency and stakeholder engagement.

Mayfield Childcare Ends Divestment Plans with Steps Learning

Mayfield Childcare Limited announced the termination of its Incubator Agreement with Steps Learning Pty Ltd and the cessation of negotiations regarding the proposed divestment of 10 childcare centers. The company decided that the divestment was not the most value-accretive path and remains committed to maximizing shareholder value while focusing on community-centered, evidence-based childcare services.

Mayfield Childcare Director Increases Shareholding

Mayfield Childcare Limited has announced a change in the director’s interest, with Director Roseanne Celeste Healy acquiring 35,000 fully paid ordinary shares, increasing her total holdings to 50,000 shares. This on-market purchase reflects a significant personal investment in the company, potentially signaling confidence in the company’s future prospects and stability, which may have positive implications for stakeholders.

Mayfield Childcare Addresses ASX Query on Financial Report

Mayfield Childcare Limited has addressed a query from the ASX regarding its half-year financial report, confirming compliance with accounting standards and a true representation of its financial performance. Despite a qualified opinion from its auditor concerning related party disclosures, the company maintains that it has a robust risk management and internal control system. Mayfield plans to enhance its internal review procedures to ensure future unmodified audit opinions and believes its financial condition supports continued ASX listing, with sufficient assets and extended finance facilities.

Mayfield Childcare Director Acquires Shares, Signaling Confidence

Mayfield Childcare Limited announced a change in the director’s interest, with Director Roseanne Celeste Healy acquiring 15,000 fully paid ordinary shares through an on-market purchase valued at $5,775. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which may positively influence stakeholder perception and market positioning.

Mayfield Childcare Announces Amended Constitution

Mayfield Childcare Limited announced the approval of its amended Constitution by a special resolution of shareholders at its Annual General Meeting. This amendment reflects the company’s ongoing commitment to corporate governance and may impact its operational framework, potentially influencing its industry positioning and stakeholder relations.