company background image
MP1

MegaportASX:MP1 Stock Report

Market Cap

AU$2.8b

7D

0.2%

1Y

20.6%

Updated

22 Oct, 2021

Data

Company Financials +
MP1 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

MP1 Overview

Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, New Zealand, Hong Kong, Singapore, Japan, North America, and Europe.

Price History & Performance

Summary of all time highs, changes and price drops for Megaport
Historical stock prices
Current Share PriceAU$17.52
52 Week HighAU$10.67
52 Week LowAU$18.55
Beta0.73
1 Month Change-0.29%
3 Month Change8.02%
1 Year Change20.58%
3 Year Change419.88%
5 Year Change563.64%
Change since IPO798.46%

Recent News & Updates

Sep 03
Calculating The Fair Value Of Megaport Limited (ASX:MP1)

Calculating The Fair Value Of Megaport Limited (ASX:MP1)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Megaport Limited...

Shareholder Returns

MP1AU ITAU Market
7D0.2%1.6%0.7%
1Y20.6%8.6%21.4%

Return vs Industry: MP1 exceeded the Australian IT industry which returned 8.6% over the past year.

Return vs Market: MP1 matched the Australian Market which returned 21.4% over the past year.

Price Volatility

Is MP1's price volatile compared to industry and market?
MP1 volatility
MP1 Beta0.73
Industry Beta1.68
Market Beta1

Stable Share Price: MP1 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MP1's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013200Vincent Englishhttps://www.megaport.com

Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, New Zealand, Hong Kong, Singapore, Japan, North America, and Europe. It operates a platform that enables customers to connect their network to other services, as well as creates agile network that connects in multiple regions; and Megaport virtual edge platform that enables businesses to connect to Megaport’s ecosystem of service providers. The company also offers internet exchange services; and marketplace, an online hub to interconnect service providers and enterprise customers for businesses.

Megaport Fundamentals Summary

How do Megaport's earnings and revenue compare to its market cap?
MP1 fundamental statistics
Market CapAU$2.83b
Earnings (TTM)-AU$55.00m
Revenue (TTM)AU$78.28m

35.1x

P/S Ratio

-50.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MP1 income statement (TTM)
RevenueAU$78.28m
Cost of RevenueAU$36.21m
Gross ProfitAU$42.07m
ExpensesAU$97.07m
Earnings-AU$55.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.35
Gross Margin53.74%
Net Profit Margin-70.26%
Debt/Equity Ratio4.3%

How did MP1 perform over the long term?

See historical performance and comparison

Valuation

Is Megaport undervalued compared to its fair value and its price relative to the market?

9.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MP1 (A$17.52) is trading below our estimate of fair value (A$19.45)

Significantly Below Fair Value: MP1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MP1 is unprofitable, so we can't compare its PE Ratio to the Australian IT industry average.

PE vs Market: MP1 is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MP1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MP1 is overvalued based on its PB Ratio (15.2x) compared to the AU IT industry average (3.2x).


Future Growth

How is Megaport forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

69.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MP1 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MP1 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MP1's is expected to become profitable in the next 3 years.

Revenue vs Market: MP1's revenue (24.2% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: MP1's revenue (24.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MP1's Return on Equity is forecast to be low in 3 years time (11.3%).


Past Performance

How has Megaport performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MP1 is currently unprofitable.

Growing Profit Margin: MP1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MP1 is unprofitable, and losses have increased over the past 5 years at a rate of 21.2% per year.

Accelerating Growth: Unable to compare MP1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MP1 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-11.2%).


Return on Equity

High ROE: MP1 has a negative Return on Equity (-30.49%), as it is currently unprofitable.


Financial Health

How is Megaport's financial position?


Financial Position Analysis

Short Term Liabilities: MP1's short term assets (A$150.3M) exceed its short term liabilities (A$33.5M).

Long Term Liabilities: MP1's short term assets (A$150.3M) exceed its long term liabilities (A$6.7M).


Debt to Equity History and Analysis

Debt Level: MP1's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: MP1's debt to equity ratio has increased from 0.01% to 4.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MP1 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MP1 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Megaport current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MP1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MP1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MP1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MP1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MP1's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Vincent English

4.5yrs

Tenure

AU$3,547,236

Compensation

Mr. Vincent English has been Chief Financial Officer of Digicel Group since 2005. In 2005 as Chief Financial Officer, Vincent assumed responsibilities during an aggressive growth time in the Company’s evol...


CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD2.66M) is above average for companies of similar size in the Australian market ($USD1.38M).

Compensation vs Earnings: Vincent's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: MP1's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: MP1's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MP1 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Megaport Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Megaport Limited
  • Ticker: MP1
  • Exchange: ASX
  • Founded: 2013
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$2.827b
  • Shares outstanding: 157.03m
  • Website: https://www.megaport.com

Number of Employees


Location

  • Megaport Limited
  • 825 Ann Street
  • Level 3
  • Fortitude Valley
  • Queensland
  • 4006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.