A: Like you, I thought mining service company Monadelphous would have done better by now, given that the “commodities boom” and operations  normalising post-Covid should lead to increased work. But there are cost pressures (particularly with labour costs) that are impacting margins.

The major brokers are reasonably positive with 1 buy recommendation and 4 neutral recommendations. The target price is $12.69 (range $12.00 to $13.85), about 25.5% above the last ASX price of $10.11. It is trading on a forecast PE for FY21 of 16.7 times (not overly demanding), with a forecast dividend yield of 4.6%.