Monadelphous Group Ltd

MND: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$43.43	Hlbk	Brktyqkwm

Monadelphous Earnings: Sales Hold Up, but Labour Shortage an Issue

Mark Taylor

Aug 22, 2023

We maintain our AUD 14.25 per share fair value estimate for no-moat Monadelphous. Fiscal 2023 sales of AUD 1.829 billion, down 5% on last year and at the upper end of management guidance, beat our forecast by 1.5% due to stronger-than-expected engineering construction. Adjusted net profit after tax of AUD 52 million, or AUD 0.51 per share, disappointed by 4% on a weaker-than-expected EBIT margin of 4%. It was broadly flat on fiscal 2022, but missing by 4.3% on our forecast. Shares appreciated modestly with earnings and trade in 3-star territory at a 6% discount to our fair value estimate.

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