# Monadelphous Group (MND.AU)

Canonical: https://gigainvestors.com/s/MND.AU

Analysis as of: 2026-10-16T07:40:57.463Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 28.36 per share; close as of 2026-10-15.

Estimated value: low AUD 12.71 per share, central AUD 15.45 per share, high AUD 17.64 per share. Buy at or below the central value AUD 15.45 per share. Valuation as of 2026-10-16T07:40:57.463Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.05×

- FY2020: 0.03×

- FY2021: 0.03×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.05×

- FY2026: 0.05×

### moat: pass

- ROIC, median of available years: 17.0%

- ROIC, second-lowest year: 11.9%

- Typical minus recent gross margin: -0.3 pp

- Typical gross margin (annual median): 7.2%

- Recent gross margin (lower of latest and 3-year median): 7.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.0%

- ROIC including acquisitions, ten-year median: 15.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 26.5%

- FY2018: 26.1%

- FY2019: 17.7%

- FY2020: 11.9%

- FY2021: 11.3%

- FY2022: 14.2%

- FY2023: 13.6%

- FY2024: 16.2%

- FY2025: 20.3%

- FY2026: 33.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 379M

- Net income, five-year total: AUD 379M

- Return on incremental invested capital: 885.3%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -5.7 pp

- Working capital / revenue, final three-year average: 10.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.07×

- FY2023: 0.94×

- FY2024: 0.40×

- FY2025: 1.34×

- FY2026: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 26.1% vs 20.3%

- Per-share earnings: 0.71 to 0.83 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 1.3%

- Market cap gain: AUD 1.8B

- Cumulative retained earnings: AUD 97M

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 1.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 1.9%

- Per-share value change: AUD 0.12

- Per-share value, starting three-year median: AUD 0.71

- Per-share value, ending three-year median: AUD 0.83

- Average buyback yield: 0.3%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 53M

- Cumulative net income, 10 years: AUD 642M

- ROIC, first three-year median: 26.1%

- ROIC, last three-year median: 20.3%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.61

- FY2018: AUD 0.76

- FY2019: AUD 0.53

- FY2020: AUD 0.38

- FY2021: AUD 0.49

- FY2022: AUD 0.54

- FY2023: AUD 0.55

- FY2024: AUD 0.63

- FY2025: AUD 0.83

- FY2026: AUD 1.25

### accounting: pass

- Sloan accruals: -9.6%

- Receivables to sales index (DSRI): 1.34×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.93×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -8.0%

- FY2018: 2.9%

- FY2019: 5.1%

- FY2020: -11.6%

- FY2021: 2.6%

- FY2022: -1.6%

- FY2023: -5.2%

- FY2024: -14.1%

- FY2025: 0.3%

- FY2026: -9.6%

## Holders

## Price story

Price needs cash profits to grow 12.2% a year for ten years · sales +28.9%

Story as of 2026-10-16T10:00:11.736Z; price observation 2026-10-15.

Price needs cash profits to grow 12.2% a year for ten years

### Sales · FY2025–2026

sales +28.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 1.2B 

- FY2018: AUD 1.7B 

- FY2019: AUD 1.5B 

- FY2020: AUD 1.5B 

- FY2021: AUD 1.8B 

- FY2022: AUD 1.8B 

- FY2023: AUD 1.7B 

- FY2024: AUD 2.0B 

- FY2025: AUD 2.2B 

- FY2026: AUD 2.8B 

### Gross margin · FY2026

gross margin 7.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 10.1% 

- FY2018: 8.4% 

- FY2019: 8.7% 

- FY2020: 6.8% 

- FY2021: 6.4% 

- FY2022: 6.8% 

- FY2023: 6.9% 

- FY2024: 6.8% 

- FY2025: 7.5% 

- FY2026: 7.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are AUD 2.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2026: revenue 2786805000; grossProfit 220885000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MND.AU: Monadelphous Group Limited, an engineering group, provides construction, maintenance, and industrial services to resources, energy, and infrastructure sectors in Australia, China, Mongolia, Papua New Guinea, China, Vietnam, the Philippines, and internationally. It offers project management and construction services; earthworks, structural concrete and inground services, modularization, structural, mechanical, piping, heavy lift, electrical and instrumentation, commissioning, demolition, design and construction of non-process infrastructure, high voltage electrical construction, and balance-of-plant design and construction of renewable energy developments; process and non-process maintenance services; and front-end scoping, shutdown planning, management, and execution of mechanical and electrical maintenance services, shutdowns, sustaining capital works, fixed plant maintenance services, access solutions, specialist coatings, rail maintenance, and high-voltage electrical maintenance services. In addition, it offers turnkey heavy lift solutions, and civil and electrical services. Monadelphous Group Limited was founded in 1972 and is headquartered in Perth, Australia.

### Why customers stay

Margins ranged from 6.8% to 7.9% during 2024–26; it earns 17% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2024: grossProfit / revenue = 6.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2025: grossProfit / revenue = 7.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2026: grossProfit / revenue = 7.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); 10-year return on capital observations [[2017,0.2654215428819212],[2018,0.2609837249943947],[2019,0.17709780229335773],[2020,0.11891818140472689],[2021,0.11334023893278128],[2022,0.14243879660602066],[2023,0.13624106048729537],[2024,0.16190312272313873],[2025,0.20303853460138108],[2026,0.33472195712804154]]; median 0.16950046250824824. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 7% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); Gross margin observations: [[2021,0.06395824233722483],[2022,0.0677078296124073],[2023,0.0689488865491041]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2017: growth capex 0; upkeep 12368000; owner earnings 63649000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2018: growth capex 7192000; upkeep 17847000; owner earnings 71479000. Growth capex / owner earnings = 0.10061696442311728.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2019: growth capex 0; upkeep 19707000; owner earnings 44668200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2020: growth capex 0; upkeep 12586000; owner earnings 37437200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2021: growth capex 0; upkeep 8191000; owner earnings 52452400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2022: growth capex 0; upkeep 9856000; owner earnings 55898400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2023: growth capex 0; upkeep 19042000; owner earnings 50066400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2024: growth capex 29235399.882677026; upkeep 59646600.117322974; owner earnings 25100399.882677026. Growth capex / owner earnings = 1.16473841131327.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2025: growth capex 0; upkeep 13879000; owner earnings 112173000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); FY2026: growth capex 0; upkeep 38547000; owner earnings 135733000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); Dividend observations: [[2017,50258000],[2018,53635000],[2019,52603000],[2020,41521000],[2021,33726000],[2022,39430000],[2023,42086000],[2024,44174000],[2025,61122000],[2026,83680000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 5.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MND.AU SharesStats.PercentInsiders = 5.906000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.2% yearly over ten years; actual growth was 3.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:57.463Z); Ten-year compound average after fade. Initial solved rate 0.16225985948013377. Price 28.36; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.9311477157631004 → FY2026 1.3366546262412995. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 9.32 per share

- 2016-11: AUD 10.65 per share

- 2016-12: AUD 11.23 per share

- 2017-01: AUD 10.39 per share

- 2017-02: AUD 12.77 per share

- 2017-03: AUD 12.33 per share

- 2017-04: AUD 12.49 per share

- 2017-05: AUD 13.00 per share

- 2017-06: AUD 13.99 per share

- 2017-07: AUD 15.23 per share

- 2017-08: AUD 15.25 per share

- 2017-09: AUD 15.70 per share

- 2017-10: AUD 16.97 per share

- 2017-11: AUD 18.72 per share

- 2017-12: AUD 17.37 per share

- 2018-01: AUD 17.56 per share

- 2018-02: AUD 16.46 per share

- 2018-03: AUD 15.20 per share

- 2018-04: AUD 16.15 per share

- 2018-05: AUD 14.51 per share

- 2018-06: AUD 15.06 per share

- 2018-07: AUD 14.74 per share

- 2018-08: AUD 14.35 per share

- 2018-09: AUD 16.08 per share

- 2018-10: AUD 14.39 per share

- 2018-11: AUD 14.03 per share

- 2018-12: AUD 13.77 per share

- 2019-01: AUD 14.77 per share

- 2019-02: AUD 17.81 per share

- 2019-03: AUD 17.35 per share

- 2019-04: AUD 18.95 per share

- 2019-05: AUD 19.07 per share

- 2019-06: AUD 18.81 per share

- 2019-07: AUD 18.93 per share

- 2019-08: AUD 15.91 per share

- 2019-09: AUD 15.75 per share

- 2019-10: AUD 15.34 per share

- 2019-11: AUD 16.35 per share

- 2019-12: AUD 16.68 per share

- 2020-01: AUD 17.54 per share

- 2020-02: AUD 14.42 per share

- 2020-03: AUD 10.28 per share

- 2020-04: AUD 11.30 per share

- 2020-05: AUD 11.82 per share

- 2020-06: AUD 10.82 per share

- 2020-07: AUD 8.91 per share

- 2020-08: AUD 11.29 per share

- 2020-09: AUD 10.14 per share

- 2020-10: AUD 9.14 per share

- 2020-11: AUD 12.79 per share

- 2020-12: AUD 13.47 per share

- 2021-01: AUD 12.96 per share

- 2021-02: AUD 11.58 per share

- 2021-03: AUD 10.40 per share

- 2021-04: AUD 12.75 per share

- 2021-05: AUD 9.88 per share

- 2021-06: AUD 10.45 per share

- 2021-07: AUD 10.78 per share

- 2021-08: AUD 10.62 per share

- 2021-09: AUD 9.11 per share

- 2021-10: AUD 10.05 per share

- 2021-11: AUD 9.41 per share

- 2021-12: AUD 9.65 per share

- 2022-01: AUD 8.93 per share

- 2022-02: AUD 11.29 per share

- 2022-03: AUD 10.95 per share

- 2022-04: AUD 10.65 per share

- 2022-05: AUD 11.24 per share

- 2022-06: AUD 9.95 per share

- 2022-07: AUD 10.35 per share

- 2022-08: AUD 13.17 per share

- 2022-09: AUD 13.06 per share

- 2022-10: AUD 13.68 per share

- 2022-11: AUD 13.73 per share

- 2022-12: AUD 13.36 per share

- 2023-01: AUD 13.91 per share

- 2023-02: AUD 12.00 per share

- 2023-03: AUD 12.55 per share

- 2023-04: AUD 12.37 per share

- 2023-05: AUD 12.17 per share

- 2023-06: AUD 11.72 per share

- 2023-07: AUD 13.62 per share

- 2023-08: AUD 14.67 per share

- 2023-09: AUD 14.13 per share

- 2023-10: AUD 14.05 per share

- 2023-11: AUD 14.18 per share

- 2023-12: AUD 14.84 per share

- 2024-01: AUD 13.84 per share

- 2024-02: AUD 14.13 per share

- 2024-03: AUD 14.18 per share

- 2024-04: AUD 13.49 per share

- 2024-05: AUD 13.80 per share

- 2024-06: AUD 12.84 per share

- 2024-07: AUD 12.97 per share

- 2024-08: AUD 12.88 per share

- 2024-09: AUD 12.91 per share

- 2024-10: AUD 12.62 per share

- 2024-11: AUD 12.76 per share

- 2024-12: AUD 14.00 per share

- 2025-01: AUD 15.81 per share

- 2025-02: AUD 16.12 per share

- 2025-03: AUD 15.33 per share

- 2025-04: AUD 16.14 per share

- 2025-05: AUD 17.25 per share

- 2025-06: AUD 17.56 per share

- 2025-07: AUD 19.49 per share

- 2025-08: AUD 21.47 per share

- 2025-09: AUD 22.50 per share

- 2025-10: AUD 23.24 per share

- 2025-11: AUD 26.79 per share

- 2025-12: AUD 26.51 per share

- 2026-01: AUD 31.14 per share

- 2026-02: AUD 32.41 per share

- 2026-03: AUD 27.26 per share

- 2026-04: AUD 27.96 per share

- 2026-05: AUD 31.06 per share

- 2026-06: AUD 30.99 per share

- 2026-07: AUD 29.27 per share

- 2026-08: AUD 28.83 per share

- 2026-09: AUD 30.93 per share

- 2026-10: AUD 29.81 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 11.58 per share, central AUD 12.86 per share, high AUD 14.56 per share

- FY2018: low AUD 14.72 per share, central AUD 16.49 per share, high AUD 18.85 per share

- FY2019: low AUD 10.13 per share, central AUD 11.33 per share, high AUD 12.93 per share

- FY2020: low AUD 8.93 per share, central AUD 9.91 per share, high AUD 11.20 per share

- FY2021: low AUD 7.55 per share, central AUD 8.38 per share, high AUD 9.50 per share

- FY2022: low AUD 7.67 per share, central AUD 8.52 per share, high AUD 9.65 per share

- FY2023: low AUD 7.20 per share, central AUD 7.99 per share, high AUD 9.05 per share

- FY2024: low AUD 8.32 per share, central AUD 9.21 per share, high AUD 10.40 per share

- FY2025: low AUD 8.66 per share, central AUD 9.63 per share, high AUD 10.92 per share

- FY2026: low AUD 12.59 per share, central AUD 15.30 per share, high AUD 17.48 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.