Macmahon Holdings (ASX:MAH) is trading at 5.1 times its price-to-earnings ratio at an approximately 8.4% earnings per share compound annual growth rate, screening "cheaply" compared to its peers, said Euroz Hartleys in a Thursday note.

The company has secured a three-year extension for its contract at the Byerwen coking coal mine in Queensland, contributing about AU$900 million to Macmahon's secured order book.

The research firm noted that the extension comes with no additional capital expenditure required as the company already has existing staff and mining fleet

at the operation.

Euroz Hartleys maintained its buy recommendation and AU$0.43 price target for Macmahon Holdings, both under review.