Mainfreight [NZX.MFT]: Will This Growth Stock Continue to Deliver Throughout 2021 and Beyond?

This question is on many people’s minds at the moment…and rightfully so.

Will Mainfreight [NZX:MFT] be the first NZX-listed stock to reach $100 per share? Or has it hit its price ceiling? In other words, are we too late to buy?

From the viewpoint of a potential investor in the company, let’s take a deep dive into the risks and returns that Mainfreight stock offers in order to make our best estimate.

 

Source: Mainfreight

 

Mainfreight is New Zealand’s premier freight logistics company.

They command a domestic market share of 45% in transport, and 30% in supply chain logistics.

The company provides international services through more than 165 branches worldwide.

These services include:

  • Freight forwarding by road, rail, and sea.
  • Handling of hazardous goods.
  • Managed warehousing.
  • Customs clearance and domestic distribution.

Now, let’s take a look at some relevant data in order to assess Mainfreight’s financial health:

 

Source: Bloomberg

 

Mainfreight has performed fantastically in recent history.

So good, in fact, that they have managed to yield a total return of 372.77% over the last five years.

Comparatively, the NZ benchmark index — the S&P/NZX Gross Index — has returned 86.69% over the same period.

So, what is the future of Mainfreight? Will it continue to flourish in a post-Covid world? Is there still value and growth to be found here?

 

Please select below:



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Sam is an intern analyst at Wealth Morning. He is currently completing his major in finance, while juggling his roles as President of the Massey University Investment Club and student fund manager. He won the Investment Club stock challenge, where he achieved a return of 44% over a 3-month period. Furthermore, he has received the INFINZ scholarship award for being the top 3rd year finance student in 2020. His role involves contributing research and writing financial reports for Wealth Morning’s readers.


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