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Metcash Limited (MTS) Fair Value & Analysis

Consumer Defensive · AU · Market cap A$3.2B

ML Metcash Limited MTS · AU
PriceA$3.16
Fair ValueA$5.33
Upside+68.7%
Quality47/100
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Mixed Growth
Thin margins · 1.6% net margin
Low debt · generates free cash flow
6.08% dividend yield
Mixed vs. peers (8/15)
Narrow moat 41/100
Evidence: High Range A$3.47 – A$6.66 Share as image

Fair value as of: Jul 16, 2026

From 23 valuation models · updated 26 days ago

Fair value updated Jul 16, 2026, revised from A$5.41 to A$5.33 (−1.5%) since Jun 24, 2026. Share price +6.6% over the past month.

Below-average quality, screening 69% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (A$3.47). The market is more pessimistic than our downside scenario.
  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (A$3.47 to A$6.66) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

A$4.00 A$2.57 Fair Value A$5.33 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range A$2.57 – A$4.00 · fair‑value band A$3.47 – A$6.66 · the A$3.16 price screens below the A$5.33 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

Metcash Limited (MTS) currently trades at A$3.16, while our model-based Fair Value estimate is A$5.33, implying the stock looks roughly 68.7% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Metcash Limited generated revenue of A$17.3B at a net margin of 1.6%. Revenue grew 0.1% year over year. It earns a return on equity of 17.5%. Net debt stands at A$1.8B. Fundamentals as of Jul 16, 2026

Our scenario range runs from A$3.47 (bear case) to A$6.66 (bull case); at A$3.16, the current price sits below 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 about 24% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -40% fair-value upside, at 69%, MTS screens cheaper 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
Growth DCF A$3.34 A$4.73 A$6.57 80
Residual Income A$1.61 A$2.12 A$5.92 76
Rev-Margin DCF A$3.29 A$5.23 A$7.32 74
All 23 models by family
DCF Models
FCF DCF A$3.25 A$4.77 A$6.87 38
Owner Earnings A$3.06 A$4.50 A$6.47 31
5Y Revenue Exit A$3.29 A$5.19 A$7.54 39
5Y EBITDA Exit A$4.54 A$7.43 A$10.68 41
5Y P/E Exit A$3.22 A$5.07 A$6.91 38
10Y Revenue Exit A$3.14 A$4.81 A$6.90 36
10Y EBITDA Exit A$4.01 A$6.29 A$9.14 37
10Y P/E Exit A$3.20 A$4.73 A$6.44 35
Earnings-Based
Graham-Dodd A$1.73 A$4.20 A$5.44 54
PEG = 1.0 A$0.7500 A$1.07 A$1.39 46
EPV A$2.69 A$3.16 A$3.56 59
Multiples
P/E Multiple A$4.00 A$5.33 A$6.66 63
P/S Multiple A$3.24 A$4.31 A$5.39 58
P/B Multiple A$3.24 A$4.31 A$5.39 55
EV/EBIT A$5.10 A$6.89 A$8.69 53
EV/EBITDA A$6.11 A$8.25 A$10.39 54
EV/Revenue A$3.55 A$5.20 A$6.85 43
Asset-Based
NCAV (Graham) A$0.7800 A$1.04 A$1.55 50
Growth DCF
Growth DCF A$3.34 A$4.73 A$6.57 80
Rev-Margin DCF A$3.29 A$5.23 A$7.32 74
Economic Profit
Residual Income A$1.61 A$2.12 A$5.92 76
ROIC Compounder A$2.81 A$3.49 A$4.24 72
Growth Earnings
Growth-Adj P/E A$3.06 A$4.37 A$5.68 68

Widest divergence: Multiples (A$5.20) versus Asset-Based (A$1.04). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) A$17.4B
Revenue growth (YoY) +0.3%
Net margin 1.6%
Return on equity 16.7%
Free cash flow A$383M FY2026
P/E ratio 11.7
More key figures
Operating margin 2.8%
EPS (TTM) A$0.2500
Dividend yield 6.1%
EPS growth (YoY) -3.5%
Net debt A$1.8B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 48 · Market factors (momentum, volatility) 52

Profitability 48
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 56
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

Metcash Limited operates as a wholesale distribution and marketing company in Australia. It operates through Food, Liquor, and Hardware segments. The Food segment distributes a range of products and services to independent supermarket, convenience retail outlets, and food service customers.

Full company description

Metcash Limited operates as a wholesale distribution and marketing company in Australia. It operates through Food, Liquor, and Hardware segments. The Food segment distributes a range of products and services to independent supermarket, convenience retail outlets, and food service customers. The Liquor segment engages in the distribution of liquor products to independent retail outlets and hotels. The Hardware segment distributes hardware products to independent retail outlets; and operates company owned retail stores. It sells its products under the IGA, Foodland, Mitre 10, Home Hardware, Total Tools, Cellarbrations, IGA Liquor, and the Bottle-O brand names. Metcash Limited was founded in 1927 and is based in Macquarie Park, Australia.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Metcash Limited reported revenue of A$17.4B in FY2026 versus A$15.2B in FY2022, a compound +3.4%/yr. Reported net income was A$279M in FY2026, compounding +3.3%/yr from FY2022.

Growth Quality 58/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
A$17.4B
Latest YoY
+0.2%
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.
+3.2%
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.
+3.9%
Avg. growth/yr (32Y) 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.
+6.5%
Revenue +3.4%/yr
FY22 A$15.2B
FY23 A$15.8B
FY24 A$15.9B
FY25 A$17.3B
FY26 A$17.4B
Net income +3.3%/yr
FY22 A$245M
FY23 A$259M
FY24 A$257M
FY25 A$283M
FY26 A$279M
Character of growth · EPS growth decomposed (2016-2026) +2.6 % p.a.
Revenue per share +0.9 pp

of which total revenue +2.4 pp · buybacks/dilution −1.5 pp

EBIT margin +9.3 pp
Tax rate −0.4 pp
Residual (interest, one-offs) −7.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Metcash Limited Fair Value". https://www.fairvalue-calculator.com/stock/MTS

Peer Group

Food Distribution · 77 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 47 · Below median
Fair Value upside +69% · Top 25%
Return on equity (TTM) 17% · Above median
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 0% · Below median
Dividend yield (TTM) 6.1% · Top 25%
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Food Distribution median · lower = cheaper

P/E (TTM) 11.7× · Cheaper than median
P/B 1.33× · Cheaper than median
P/S (TTM) 0.13× · Cheaper than median
P/FCF 5.9× · Pricier than median
EV/EBITDA 4.8× · Cheaper than median
PEG 1.63× · 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 100 · sector 21
FUTURE 2 · sector 14
PAST 67 · sector 36
HEALTH 88 · sector 94
DIVIDEND 100 · sector 42

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 Food Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Sysco Corporation SYY $81.69 $60.58 -26%
US Foods Holding USFD $99.13 $55.10 -44%
Performance Food Group PFGC $113.17 $37.94 -66%
Jerónimo Martins, SGPS, S.A JMT €17.68 €21.59 +22%
CP Axtra Public Company CPAXT 14.90 THB 17.04 THB +14%
The Chefs' Warehouse, Inc CHEF $95.79 $37.27 -61%
Olam Group VC2 1.33 SGD 2.12 SGD +59%
United Natural Foods, Inc UNFI $50.19 $6.00 -88%
The Andersons, Inc ANDE $79.24 $47.78 -40%
Zhejiang Dongri Limited 600113 ¥31.11 ¥6.75 -78%

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Frequently asked questions

Is Metcash Limited (MTS) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of A$5.33 versus a price of A$3.16, about +69% (undervalued).
What is the fair value of MTS?
Our model-based fair value for Metcash Limited is A$5.33 (as of Jul 16, 2026), built from audited fundamentals. The current price is A$3.16.
What is the quality score of MTS?
Metcash Limited has a Quality Score of 47/100. 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 Metcash Limited (MTS)?
Metcash Limited reported trailing-twelve-month revenue of about A$17.3B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of MTS?
The net profit margin of Metcash Limited is about 1.6%, meaning it keeps roughly 1.6% of revenue as net income. Based on the latest reported figures.
Does Metcash Limited pay a dividend?
Metcash Limited currently shows a dividend yield of about 5.94% relative to its recent price (as of Jul 16, 2026).

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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