The Monadelphous Group Limited (ASX: MND) share price has fallen today, despite reporting revenue of $1.61 billion in line with its FY19 guidance.
What were Monadelphous' full-year highlights?
For the year ended 30 June 2019 (FY19), Monadelphous reported an underlying net profit after tax (NPAT) of $57.4 million.
Monadelphous said the result reflects significant growth in its Maintenance and Industrial Services divisions, with resources construction activity levels falling at the end of the year.
Despite securing $1.35 billion in new contracts and extensions in the last 12 months, Monadelphous' share price fell 3.5% in early trade as revenues fell 9.85% on the prior corresponding period (pcp).
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in 10.3% lower on pcp at $106.8 million while net profit fell 29% on pcp to $50.57 million.
The company's Maintenance and Industrial Services division reported record annual revenue, largely due to higher activity levels in iron ore as well as offshore oil and gas, but earnings were still soft for FY19.
Underlying earnings per share (EPS) came in at 61.0 cents per share (cps), while reported EPS was lower at 53.7 cps for the year.
On the balance sheet side, Monadelphous reported an ending cash balance of $164 million with cash flow from operations (CFO) of $16.0 million.
The Monadelphous Board declared a final dividend of 23 cps, taking the company's full-year dividend to a fully franked 48 cps.
How has the Monadelphous share price performed in 2019?
Taking into account this morning's 3.5% drop, the Monadelphous share price is still up 27.8% so far this year.
Monadelphous shares are currently trading at 23x earnings, which is a little higher than the S&P/ASX 200 (INDEXASX: XJO) index average, but does offer investors a 3.3% per annum yield.
I'm personally not looking to invest in the construction sector at this point in the cycle, and I think Monadelphous shares remain a little on the pricey side at more than $17 per share.
