Overview
Metcash Ltd (ASX: MTS) is a major Australian wholesaler and distributor whose Food, Liquor and Hardware operations serve independent retailers and other customers. The company combines a large distribution business with familiar retail brands, giving it exposure to several everyday consumer and trade channels. Its shares recently traded at A$3.02, within a 52-week range of A$2.55 to A$3.76. The investment case brings together a price-to-earnings ratio of about 11.6x, reported revenue growth of 30.00% and a 5.90% dividend yield, balanced against the operating demands of distribution and the need to assess the quality and durability of earnings.
Metcash is an Australian wholesale and distribution business with exposure to food, liquor and hardware. Its Food segment supplies independent supermarkets, convenience outlets and food-service customers; Liquor distributes to independent retailers and hotels; and Hardware serves independent outlets and includes company-owned stores. Its portfolio includes IGA and Foodland in food, Mitre 10, Home Hardware and Total Tools in hardware, and Cellarbrations, IGA Liquor and the Bottle-O in liquor. The business provides scale and established brands across several consumer-facing channels, while remaining closely connected to the fortunes of independent retail.
Key facts
- Ticker
- MTS
- Exchange
- AU
- ISIN
- AU000000MTS0
- Sector
- Consumer Defensive
- Industry
- Food Distribution
- Country
- Australia
- Currency
- AUD
- Price
- A$3.02
- Previous close
- A$3.05
- Day change
- -A$0.03 (-0.98%)
- Market cap
- 3.4B
- 52W low
- A$2.55
- 52W high
- A$3.76
Price and trend
Last price: A$3.02
- Price
- A$3.02
- 52W range
- A$2.55 – A$3.76
- 50-day SMA
- A$2.97
- 200-day SMA
- A$3.05
- Price vs 50D SMA
- 1.83%
- Price vs 200D SMA
- -1.01%
Valuation
- P/E
- 11.62
- PEG
- 1.63
- EPS
- 0.26
- Dividend yield
- 5.90%
- Beta
- 0.41
Metcash trades on a price-to-earnings ratio of about 11.6x, with a PEG ratio of about 1.63. The supplied figures also show revenue growth of 30.00% and trailing revenue of A$17.4B, although a single growth figure does not establish how growth will develop. The dividend yield of 5.90% may appeal to investors focused on income, but its sustainability depends on future earnings and the company’s financial position. The supplied profit-margin figure is 161.00%, an unusually high result that warrants verification before it is used to draw conclusions about profitability.
Profitability and growth
- Revenue growth
- 30.00%
- Revenue TTM
- 17.4B
- Profit margin
- 161.00%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
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- Price
- A$3.02
- Target price
- A$3.38
- Target vs last price
- 11.81% from last price
The supplied target price is A$3.38, equivalent to 11.81% from the last price of A$3.02. This is secondary context rather than a substitute for assessing Metcash’s operating performance, valuation and dividend capacity.
Risks
Metcash’s performance is tied to demand and trading conditions across independent food, liquor and hardware retailers, as well as the execution of its wholesale and distribution operations. The supplied profit-margin figure of 161.00% is unusually high and should be treated cautiously unless clarified against the company’s reported accounts. The 5.90% dividend yield is not guaranteed, and the share price remains exposed to market and business risks. Its beta of 0.41 is a historical measure and does not ensure lower volatility in future.
FAQ
What does Metcash do?
Metcash is an Australian wholesaler and distributor serving independent retailers across food, liquor and hardware. Its operations include brands such as IGA, Mitre 10, Total Tools, Cellarbrations and the Bottle-O.
How does Metcash’s dividend profile look?
The supplied figures show a dividend yield of 5.90% and a dividend per share of A$0.18. Dividends can vary and are not guaranteed, so the yield should be considered alongside the company’s financial performance and capital needs.
How is MTS trading relative to its recent range and moving averages?
At A$3.02, the share price is within its 52-week range of A$2.55 to A$3.76. It is 1.83% above its 50-day moving average and 1.01% below its 200-day moving average, presenting a mixed short- and longer-term technical picture.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
