Metcash Limited (MTS) AI Stock Analysis

• Market Cap: $3.59B
• Dividend Yield: 6.16%
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.57
• Revenue Growth: 4.04%
• EPS Growth: -14.50%
• Country: AU
• Employees: 9,000
• Sector: Consumer Defensive
• Sector Strength: 85
• Industry: Food Distribution
• EPS (TTM): 0.24
• Shares Outstanding: 1,098,581,800
• 10 Day Avg. Volume: 2,899,939
• 30 Day Avg. Volume: 2,682,656
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $4.10
• Price Target Upside: 24.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Metcash Limited demonstrates solid financial performance, with strong cash flow and efficient equity return. However, high leverage and cost management challenges pose risks. Technical indicators suggest potential short-term price weakness. The attractive valuation and high dividend yield offer positive long-term prospects.

Metcash Limited Business Overview & Revenue Model

Company Description

Metcash Limited (MTS) is an Australian conglomerate that operates in the wholesale distribution and marketing sector. The company is primarily involved in the distribution of food and other grocery items to independent retailers and smaller chains. Metcash services a network of independent grocery stores, liquor outlets, and hardware stores across Australia, providing them with a wide range of products, logistics support, and retail solutions. Its core sectors include food, liquor, and hardware, with key brands such as IGA, Cellarbrations, and Mitre 10 under its umbrella.

How the Company Makes Money

Metcash Limited generates revenue by functioning as a wholesale distributor to independent retailers in Australia. The company's primary revenue streams come from the sale of food and grocery products, liquor, and hardware supplies. Metcash purchases products in bulk from manufacturers and suppliers, which it then sells to retail partners at a markup. The company benefits from economies of scale, allowing it to offer competitive pricing to its retail customers. Additionally, Metcash supports its retail partners with marketing, merchandising, and logistics services, which further enhance its revenue. Significant partnerships with independent grocery stores and retail networks ensure a steady demand for its products and services, contributing to its earnings.

Metcash Limited Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
15.91B	15.80B	15.16B	14.32B	13.03B
	Gross Profit
780.40M	1.81B	1.65B	1.45B	1.29B
	EBIT
480.40M	467.60M	428.30M	354.90M	296.90M
	EBITDA
624.60M	511.80M	467.70M	389.00M	212.70M
	Net Income Common Stockholders
257.20M	259.00M	245.40M	239.00M	-56.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.30M	89.50M	104.70M	124.60M	276.60M
	Total Assets
5.80B	5.38B	5.20B	4.85B	4.70B
	Total Debt
1.41B	1.49B	1.32B	1.03B	1.07B
	Net Debt
1.31B	1.40B	1.22B	910.00M	799.40M
	Total Liabilities
4.27B	4.29B	4.11B	3.56B	3.32B
	Stockholders Equity
1.52B	1.07B	1.08B	1.28B	1.36B
Cash Flow		Free Cash Flow
346.70M	220.60M	310.60M	389.90M	56.00M
	Operating Cash Flow
482.60M	372.70M	432.30M	475.50M	117.50M
	Investing Cash Flow
-287.90M	-156.60M	-121.70M	-171.70M	-36.40M
	Financing Cash Flow
-186.90M	-231.30M	-330.50M	-454.30M	51.40M

Metcash Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MTS, the sentiment is Positive. The current price of 3.29 is above the 20-day moving average (MA) of 3.19, above the 50-day MA of 3.15, and above the 200-day MA of 3.24, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 45.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MTS.

Metcash Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COL	77 Outperform	$29.51B	26.59	30.87%	2.97%	6.00%	4.02%
ING	76 Outperform	€1.38B	15.39	38.76%	5.57%	1.77%	-15.93%
BXB	75 Outperform	$28.77B	22.96	26.45%	2.82%	3.86%	―
WES	73 Outperform	$90.26B	34.46	30.35%	2.59%	3.04%	3.65%
WOW	69 Neutral	$39.51B	24.39	32.27%	3.27%	5.26%	―
Sector *	64 Neutral	$8.85B	14.84	5.05%	174.27%	3.54%	3.75%
MTS	64 Neutral	$3.59B	13.50	19.53%	6.16%	4.04%	-14.50%

Metcash Limited Corporate Events

Metcash Limited Announces Cessation of Performance Rights

Metcash Limited announced the cessation of 26,128 performance rights due to unmet conditions, effective April 30, 2025. This development may impact the company’s capital structure and reflects the challenges in meeting performance criteria, potentially affecting stakeholder confidence and market perception.

Metcash Limited Announces Change in Substantial Holder Interests

Metcash Limited has announced a change in the interests of a substantial holder, Ubiqu© Asset Management Pty Ltd. The substantial holder’s voting power has increased from 6.28% to 5.18% due to on-market purchases totaling $37,917,942, affecting 12,092,561 votes. This change signifies a strategic move by Ubiqu© Asset Management Pty Ltd, potentially impacting Metcash Limited’s shareholder dynamics and market positioning.

Metcash Limited Announces Cessation of Securities

Metcash Limited announced the cessation of 72,500 performance rights due to unmet conditions as of February 28, 2025. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments in response to performance metrics.

Metcash Limited Announces Director’s Interest Change

Metcash Limited has announced a change in the director’s interest notice, specifically involving Douglas Jones. The change involves an off-market transfer of 223,701 ordinary shares from the director to Kamasco Pty Ltd ATF The Kamasco Family Trust and Kamasco Pty Ltd ATF the D and R Jones Super Fund, both of which the director is a beneficiary. This transaction does not alter the total number of shares held by the director but changes the nature of the holding from direct to indirect, potentially impacting the company’s internal governance and stakeholder perceptions.

Metcash Limited Adopts New Equity Incentive Plan Rules

Metcash Limited has announced the adoption of new Equity Incentive Plan Rules by its board of directors, effective from November 28, 2024. This move is aimed at structuring the company’s employee incentive scheme, potentially impacting its operational dynamics and aligning employee performance with shareholder interests.

Metcash Director Increases Shareholding, Signaling Confidence in Future Growth

Metcash Limited announced a change in the director’s interest, with Marina Simone Go acquiring 6,500 additional ordinary shares through an on-market trade. This transaction increases her total holdings to 23,535 shares, reflecting continued confidence in the company’s performance and potential growth. The acquisition, valued at $20,832.50, highlights the director’s commitment to the company’s future, potentially influencing stakeholder perceptions and market positioning.

Metcash Updates Director’s Interest Notice for Marina Go

Metcash Limited has announced a change in the director’s interest notice for Marina Simone Go, who identified an acquisition of 35 shares through the Metcash Dividend Reinvestment Plan prior to her appointment as a director. This update ensures transparency and compliance with ASX regulations, as Metcash commits to informing Ms. Go of future share issuance dates to facilitate timely reporting.