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Matrix Composites & Engineering Ltd (MCE) Fair Value & Analysis

Industrials · AU · Market cap A$89.2M

MC Matrix Composites & Engineering Ltd MCE · AU
PriceA$0.3975
Fair ValueA$0.0500
Upside-87.4%
Quality26/100
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Expensive Growth
Loss-making · -20.3% net margin
Low debt · negative free cash flow
Trails peers (1/10)
Narrow moat 20/100
Evidence: Low Range A$0.0200 – A$0.0800 Share as image

Fair value as of: Jul 13, 2026

From 2 valuation models · updated 28 days ago

Fair value updated Jul 13, 2026, revised from A$0.2300 to A$0.0500 (−78.3%) since Jun 24, 2026.

Below-average quality, and screening another 87% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$0.0800). The favourable scenario is already priced in.
  • Weak quality (26/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide (A$0.0200 to A$0.0800). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

A$0.4000 A$0.1158 Fair Value A$0.0500 May 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range A$0.1158 – A$0.4000 · fair‑value band A$0.0200 – A$0.0800 · the A$0.3975 price screens above the A$0.0500 fair value. Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Matrix Composites & Engineering Ltd (MCE) currently trades at A$0.3975, while our model-based Fair Value estimate is A$0.0500, implying the stock looks roughly 87.4% overvalued today. The Quality Score stands at 26/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Matrix Composites & Engineering Ltd generated revenue of A$62.2M at a net margin of -20.3%. Revenue declined 31.8% year over year. It earns a return on equity of -48.6%. Net debt stands at A$18.7M. Fundamentals as of Jul 13, 2026

Our scenario range runs from A$0.0200 (bear case) to A$0.0800 (bull case); at A$0.3975, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 134% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -87%, MCE screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EV/EBITDA A$0.1800 A$0.2100 A$0.2500 54
NCAV (Graham) A$0.0700 A$0.0900 A$0.1300 50
All 2 models by family
Multiples
EV/EBITDA A$0.1800 A$0.2100 A$0.2500 54
Asset-Based
NCAV (Graham) A$0.0700 A$0.0900 A$0.1300 50

Widest divergence: Multiples (A$0.2100) versus Asset-Based (A$0.0900). Highest evidence: EV/EBITDA (54).

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Key figures & financial health

Revenue (TTM) A$62.2M
Revenue growth (YoY) -31.8%
Net margin -20.3%
Return on equity -48.6%
Free cash flow −A$5.3M FY2025
Operating margin -27.9%
More key figures
EPS (TTM) A$-0.0600
Net debt A$18.7M FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 26/100

Of which business quality 29 · Market factors (momentum, volatility) 78

Profitability 20
Margins and returns on capital today
Quality Growth 13
Are margins and returns improving?
Cashflow 4
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 38
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 84
Price trend over the last 3–12 months (market factor)
52W Momentum 99
Distance to the 52-week high (market factor)
Net Issuance 50
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Matrix Composites & Engineering Ltd engages in the design, manufacture, and supply of engineered composite products in Australia, Brazil, the United States, the United Kingdom, Japan, and internationally.

Full company description

Matrix Composites & Engineering Ltd engages in the design, manufacture, and supply of engineered composite products in Australia, Brazil, the United States, the United Kingdom, Japan, and internationally. It offers autonomous underwater vehicles/unmanned underwater vehicles buoyancy, distributed buoyancy module systems, drill riser buoyancy systems, matrix longitudinal groove system (LGS) for drilling operation and surf applications; MarineShield, a wraparound corrosion protection system for the preservation of pipelines, risers, piles, and other critical field infrastructure; installation buoyancy products; and Matrix Subsea Test Center services. The company also provides Kinetica, an impact and energy absorption system; Paragon, a standard of epoxy resins and grouts; Matrix Fibrenetic, a lightweight carbon fibre repair system; and Matrix Rotolining, an internal lining system; and conductor and low friction centralizers. In addition, it offers equipment hire; Humiclean non-toxic and non-VOC cleaning agent; Humidur applicator training; Humidur char passive fire protection; Humidur FP anti-corrosion coating; Humidur FP fast spray; Humidur FP non-skid aggregate coating; Humidur TC topcoat; Humidur WF22 anti corrosion coating; Matrix Fibrenetic composites repairs; and Matrix non-skid aggregate. The company serves defense, energy, infrastructure, mining, and renewables industries. Matrix Composites & Engineering Ltd was incorporated in 1990 and is headquartered in Henderson, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Matrix Composites & Engineering Ltd reported revenue of A$74.8M in FY2025 versus A$17.6M in FY2021, a compound +43.5%/yr. Reported net income was −A$2.2M in FY2025.

Growth Quality 38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
A$74.8M
Latest YoY
−12.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+37.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.2%
Avg. growth/yr (17Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.3%
Revenue +43.5%/yr
FY21 A$17.6M
FY22 A$28.6M
FY23 A$47.2M
FY24 A$85.0M
FY25 A$74.8M
Net income
FY21 −A$27.9M
FY22 −A$4.8M
FY23 A$8.7M
FY24 A$3.6M
FY25 −A$2.2M

MCE screens 87% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Matrix Composites & Engineering Ltd Fair Value". https://www.fairvalue-calculator.com/stock/MCE

Peer Group

Engineering & Construction · 839 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 26 · Bottom 25%
Fair Value upside −87% · Bottom 25%
Return on assets -7% · Bottom 25%
Net margin (TTM) -20% · Bottom 25%
Operating margin (TTM) -28% · Bottom 25%
Revenue growth -32% · Bottom 25%

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/B 2.15× · Pricier than median
P/S (TTM) 1.01× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 16
FUTURE 0 · sector 17
PAST 0 · sector 26
HEALTH 100 · sector 94
DIVIDEND 0 · sector 33

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Matrix Composites & Engineering Ltd (MCE) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of A$0.0500 versus a price of A$0.3975, about −87% (overvalued).
What is the fair value of MCE?
Our model-based fair value for Matrix Composites & Engineering Ltd is A$0.0500 (as of Jul 13, 2026), built from audited fundamentals. The current price is A$0.3975.
What is the quality score of MCE?
Matrix Composites & Engineering Ltd has a Quality Score of 26/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Matrix Composites & Engineering Ltd (MCE)?
Matrix Composites & Engineering Ltd reported trailing-twelve-month revenue of about A$62.2M (latest available figure, as of Jul 13, 2026).
What is the net profit margin of MCE?
The net profit margin of Matrix Composites & Engineering Ltd is about -20.3%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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