MTS - metcash

 MTS - metcash

29/6/26

Fundamentals

https://www.fool.com.au/tickers/asx-mts/

https://www.tradingview.com/symbols/ASX-MTS/financials-overview/

https://stockanalysis.com/quote/asx/mts/statistics/

https://simplywall.st/stocks/au/consumer-retailing/asx-mts/metcash-shares

https://au.finance.yahoo.com/quote/MTS.AX/

Over the last 5 years, Metcash Limited (ASX: MTS) has maintained robust portfolio resilience, with group revenues expanding to $19.6 billion in FY 2026. While long-term debt increased to fund acquisitions (like Superior Food), net debt and leverage have remained tightly controlled (around 1.0x), and the company continues to yield solid dividends.

Financial Highlights (5-Year Overview)

1. Revenue & Sales

• FY 2026 Revenue: Reached $19.6 billion (a 3.8% increase excluding the ongoing decline in tobacco sales).
• Diversified Growth: Over the 5-year period, Metcash successfully expanded its three core pillars—Food (IGA supermarkets), Liquor, and Hardware. The Hardware and Tools division saw particular growth, bolstered by acquisitions and market share gains. 

2. Profitability

• EBITDA: Showed steady, incremental 5-year growth, with FY 2026 EBITDA reaching $761.7 million.
• Net Profit: Metcash's net profit has remained remarkably consistent over this period, usually hovering between $257 million and $283 million annually. The most recent figures (FY 2026) show a net income of approximately $279.1 million.
• Margins: Due to the low-margin, high-volume nature of wholesale distribution, profit margins have remained stable at around 1.6%.

3. Debt & Leverage

• Total Debt & Leverage: Metcash has taken on additional debt over the last several years to fund major strategic expansions, such as the $410 million acquisition of Superior Food. 
• Manageable Ratios: Despite the increase in total debt—with long-term debt stepping up year-over-year—management has successfully kept the net debt leverage ratio strictly controlled at 1.0x. This indicates a highly disciplined balance sheet.

4. Cash Flow & Shareholder Returns

• Cash Flow: The company has a strong cash generation engine. For example, FY 2026 operating cash flow reached $558 million, allowing the business to self-fund strategic initiatives.
• Dividends: Metcash has reliably paid dividends over the past 5 years, providing a solid yield that frequently sits between 5% and 7%. 

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