| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | AU$17.52 |
| 52 Week High | AU$10.67 |
| 52 Week Low | AU$18.55 |
| Beta | 0.73 |
| 1 Month Change | -0.29% |
| 3 Month Change | 8.02% |
| 1 Year Change | 20.58% |
| 3 Year Change | 419.88% |
| 5 Year Change | 563.64% |
| Change since IPO | 798.46% |
Recent News & Updates
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
| MP1 | AU IT | AU Market | |
|---|---|---|---|
| 7D | 0.2% | 1.6% | 0.7% |
| 1Y | 20.6% | 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
| MP1 volatility | |
|---|---|
| MP1 Beta | 0.73 |
| Industry Beta | 1.68 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2013 | 200 | Vincent English | https://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
| MP1 fundamental statistics | |
|---|---|
| Market Cap | AU$2.83b |
| Earnings (TTM) | -AU$55.00m |
| Revenue (TTM) | AU$78.28m |
35.1x
P/S Ratio-50.0x
P/E RatioIs MP1 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MP1 income statement (TTM) | |
|---|---|
| Revenue | AU$78.28m |
| Cost of Revenue | AU$36.21m |
| Gross Profit | AU$42.07m |
| Expenses | AU$97.07m |
| Earnings | -AU$55.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.35 |
| Gross Margin | 53.74% |
| Net Profit Margin | -70.26% |
| Debt/Equity Ratio | 4.3% |
How did MP1 perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/22 07:05 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.