WEBULL

Assessing Monadelphous Group’s Valuation As Earnings Growth And Insider Ownership Support Sentiment

Simply Wall St · 4d ago

Why earnings growth and insider ownership matter for Monadelphous Group

Recent commentary on Monadelphous Group (ASX:MND) has focused on its 15% annual earnings per share growth over three years, steady EBIT margins, and 7.3% revenue growth, alongside insider holdings of about A$110 million.

See our latest analysis for Monadelphous Group.

At a share price of A$27.00, Monadelphous Group has seen firm momentum, with a 15.53% 90 day share price return and a 94.28% 1 year total shareholder return, which indicates recent optimism around its earnings trend and perceived risk profile.

If you are interested in companies where growth and ownership often go hand in hand, this could be a useful moment to broaden your search with fast growing stocks with high insider ownership.

With Monadelphous Group trading at A$27.00, above the A$23.39 analyst price target and with a value score of 1, you have to ask yourself: is this a quality name still on sale, or is the market already pricing in future growth?

Most Popular Narrative: 15% Overvalued

With Monadelphous Group last closing at A$27.00 against a narrative fair value of A$23.39, the current price sits above that central estimate, putting more weight on how much of the future story you think is already reflected.

Expanding into adjacent sectors such as battery energy storage, hydrogen, and water infrastructure, along with targeted acquisitions (e.g., High Energy Service), is broadening the company's market exposure and diversifying revenue streams, reducing dependence on mining and fossil fuels, and enhancing future earnings stability.

Read the complete narrative.

Analysts are leaning on moderate top line growth, steady margins, and a higher future P/E multiple to support that fair value. Curious how those moving parts fit together, and what kind of earnings base they imply several years out? The full narrative breaks down the revenue build, profitability assumptions, and valuation math in a way that shows exactly what has to go right.

Result: Fair Value of A$23.39 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there is still the risk that a thinner greenfield project pipeline, combined with heavy reliance on a few major customers, could unsettle revenue and earnings expectations.

Find out about the key risks to this Monadelphous Group narrative.

Build Your Own Monadelphous Group Narrative

If you see the numbers differently or simply prefer to test your own assumptions against the data, you can build a personalised thesis in just a few minutes with Do it your way.

A great starting point for your Monadelphous Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If you stop with just one stock, you could miss some compelling angles. You can use the Simply Wall St screener to quickly spot ideas that fit your style.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.