Executive Summary
Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, the Asia-Pacific, North America, and Europe.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Excellent balance sheet with limited growth.
Share Price & News
How has Megaport's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MP1's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.6%
MP1
2.6%
AU IT
0.1%
AU Market
1 Year Return
203.8%
MP1
34.7%
AU IT
19.5%
AU Market
Return vs Industry: MP1 exceeded the Australian IT industry which returned 34.4% over the past year.
Return vs Market: MP1 exceeded the Australian Market which returned 19.4% over the past year.
Shareholder returns
| MP1 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | 2.6% | 0.1% |
| 30 Day | 5.4% | 10.5% | 4.0% |
| 90 Day | 21.8% | 16.9% | 4.8% |
| 1 Year | 203.8%203.8% | 37.2%34.7% | 24.9%19.5% |
| 3 Year | 372.1%372.1% | 66.6%53.6% | 39.7%20.9% |
| 5 Year | n/a | 143.6%114.0% | 59.0%23.1% |
Price Volatility Vs. Market
How volatile is Megaport's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Does Megaport (ASX:MP1) Have A Healthy Balance Sheet?3 weeks ago | Simply Wall St
How Much Are Megaport Limited (ASX:MP1) Insiders Taking Off The Table?1 month ago | Simply Wall St
Did The Underlying Business Drive Megaport's (ASX:MP1) Lovely 374% Share Price Gain?Valuation
Is Megaport undervalued compared to its fair value and its price relative to the market?
13.8x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: MP1 (A$10.88) is trading above our estimate of fair value (A$1.45)
Significantly Below Fair Value: MP1 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MP1 is unprofitable, so we can't compare its PE Ratio to the 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 (13.3x) compared to the AU IT industry average (2.7x).
Next Steps
Future Growth
How is Megaport forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
53.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MP1 is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: MP1 is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: MP1 is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: MP1's revenue (31.9% per year) is forecast to grow faster than the Australian market (3.8% per year).
High Growth Revenue: MP1's revenue (31.9% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MP1 is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Megaport performed over the past 5 years?
-37.2%
Last years 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: Insufficient data to determine if MP1's year-on-year earnings growth rate was positive over the past 5 years.
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 (60.9%).
Return on Equity
High ROE: MP1 has a negative Return on Equity (-30.35%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Megaport's financial position?
Financial Position Analysis
Short Term Liabilities: MP1's short term assets (A$85.1M) exceed its short term liabilities (A$14.2M).
Long Term Liabilities: MP1's short term assets (A$85.1M) exceed its long term liabilities (A$2.1M).
Debt to Equity History and Analysis
Debt Level: MP1's debt to equity ratio (2.3%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if MP1's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Inventory Level: MP1 has a high level of physical assets or inventory.
Debt Coverage by Assets: MP1's debt is covered by short term assets (assets are 33.2x debt).
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 a year based on its current free cash flow.
Forecast Cash Runway: MP1 has sufficient cash runway for 2.8 years if free cash flow continues to reduce at historical rates of -20.3% each year.
Next Steps
Dividend
What is Megaport's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate MP1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate MP1's dividend yield against the top 25% of dividend payers, as the company has not reported any 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
What is the CEO of Megaport's salary, the management and board of directors tenure and is there insider trading?
3.0yrs
Average management tenure
CEO
Vincent English 0
2.8yrs
Tenure
AU$2,065,029
Compensation
Mr. Vincent English has been the Chief Financial Officer at Digicel Group since 2005. Mr. English assumed responsibilities during an aggressive growth time in its evolution, with nine country mobile phone  ...
CEO Compensation Analysis
Compensation vs Market: Vincent's total compensation ($USD1.43M) is above average for companies of similar size in the Australian market ($USD959.05K).
Compensation vs Earnings: Vincent's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
3.0yrs
Average Tenure
Experienced Management: MP1's management team is considered experienced (3 years average tenure).
Board Age and Tenure
1.8yrs
Average Tenure
Experienced Board: MP1's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 3,701,370 |
| Max Price | AU$9.99 |
| Entity | Individual |
| Shares | 500,000 |
| Max Price | AU$6.10 |
| Entity | Company |
| Shares | 2,527,117 |
| Max Price | AU$3.91 |
| Entity | Individual |
| Role | Chairman of the Board Founder & Non Executive Chairman of the Board |
| Shares | 5,000,000 |
| Max Price | AU$4.00 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.9%.
Management Team
Pete Hase
Chief Commercial Officer
- Tenure: 0.9yrs
- Compensation: AU$1.01m
Bevan Slattery (48yo)
Founder & Non Executive Chairman of the Board
- Tenure: 4.5yrs
- Compensation: AU$242.25k
Steve Loxton
Chief Financial Officer
- Tenure: 1.9yrs
- Compensation: AU$1.07m
Darren Wilson
Operations Director
- Tenure: 1.4yrs
Brynn Maddux
Executive Vice President of Terraforming Americas
Eric Troyer
Chief Marketing Officer
- Tenure: 4.3yrs
Vincent English
CEO & Director
- Tenure: 2.8yrs
- Compensation: AU$2.07m
Brent Van Dussen
Principal Engineer
Celia Pheasant
Company Secretary
- Tenure: 4.5yrs
Anna Tichborne
General Counsel
- Tenure: 3.3yrs
Board Members
Jay Adelson
Non-Executive Director
- Tenure: 0.8yrs
- Compensation: AU$34.16k
Bevan Slattery (48yo)
Founder & Non Executive Chairman of the Board
- Tenure: 4.5yrs
- Compensation: AU$242.25k
Vincent English
CEO & Director
- Tenure: 2.8yrs
- Compensation: AU$2.07m
Naomi Seddon
Non-Executive Director
- Tenure: 0.6yrs
- Compensation: AU$7.50k
Company Information
Megaport Limited's company bio, 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$1.629b
- Shares outstanding: 143.88m
- Website: https://www.megaport.com
Location
- Megaport Limited
- 825 Ann Street
- Level 3
- Fortitude Valley
- Queensland
- 4006
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MP1 | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2015 |
| MP1 | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2015 |
| MGPP.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 2015 |
Biography
Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, the Asia-Pacific, North America, and Europe. The company operates a platform that enables customers to connect their network to other services. It also offers Internet exchange services. The company was founded in 2013 and is headquartered in Fortitude Valley, Australia.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/28 10:51 |
| End of Day Share Price | 2020/01/28 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.