Middle East Glass Manufacturing CompanyE (CASE:MEGM) - Share price, News & Analysis

MEGM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	0/6

MEGM Overview

Middle East Glass Manufacturing Company S.A.E.

Rewards

Trading at 65.2% below our estimate of its fair value

Earnings grew by 1987.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (EGP631M)

Price History & Performance

Summary of all time highs, changes and price drops for Middle East Glass Manufacturing CompanyE
Historical stock prices
Current Share Price	ج.م12.54
52 Week High	ج.م0
52 Week Low	ج.م0
Beta	0.41
1 Month Change	0%
3 Month Change	0%
1 Year Change	0%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	1,220.00%

Shareholder Returns

	MEGM	EG Packaging	EG Market
7D	0%	-0.7%	-0.8%
1Y	0%	101.7%	11.1%

Return vs Industry: MEGM underperformed the EG Packaging industry which returned 101.7% over the past year.

Return vs Market: MEGM underperformed the EG Market which returned 11.1% over the past year.

Price Volatility

Is MEGM's price volatile compared to industry and market?
MEGM volatility
MEGM Beta	0.41
Industry Beta	1.18
Market Beta	1

Stable Share Price: MEGM is less volatile than 75% of EG stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: MEGM's weekly volatility (0%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	n/a	Abdulgalil Abdul Besher	https://meg.com.eg

Middle East Glass Manufacturing Company S.A.E. manufactures and sells glass containers in Egypt. It offers food jars, specialty bottles, juice bottles, soft drinks bottles, carbonated bottles, pharmaceutical bottles, and others. It also exports its products.

Middle East Glass Manufacturing CompanyE Fundamentals Summary

How do Middle East Glass Manufacturing CompanyE's earnings and revenue compare to its market cap?
MEGM fundamental statistics
Market Cap	ج.م631.05m
Earnings (TTM)	ج.م188.14m
Revenue (TTM)	ج.م1.72b

3.4x

P/E Ratio

0.4x

P/S Ratio

Is MEGM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEGM income statement (TTM)
Revenue	ج.م1.72b
Cost of Revenue	ج.م1.09b
Gross Profit	ج.م630.85m
Expenses	ج.م442.71m
Earnings	ج.م188.14m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	3.74
Gross Margin	36.57%
Net Profit Margin	10.91%
Debt/Equity Ratio	258.6%

How did MEGM perform over the long term?

See historical performance and comparison

Valuation

Is Middle East Glass Manufacturing CompanyE undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MEGM (EGP12.54) is trading below our estimate of fair value (EGP36.03)

Significantly Below Fair Value: MEGM is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: MEGM is good value based on its PE Ratio (3.4x) compared to the African Packaging industry average (9.8x).

PE vs Market: MEGM is good value based on its PE Ratio (3.4x) compared to the EG market (11.6x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: MEGM is good value based on its PB Ratio (0.9x) compared to the XF Packaging industry average (1.3x).

Future Growth

How is Middle East Glass Manufacturing CompanyE forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Middle East Glass Manufacturing CompanyE has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Middle East Glass Manufacturing CompanyE performed over the past 5 years?

69.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MEGM has high quality earnings.

Growing Profit Margin: MEGM's current net profit margins (10.9%) are higher than last year (0.6%).

Past Earnings Growth Analysis

Earnings Trend: MEGM has become profitable over the past 5 years, growing earnings by 69.4% per year.

Accelerating Growth: MEGM's earnings growth over the past year (1987.9%) exceeds its 5-year average (69.4% per year).

Earnings vs Industry: MEGM earnings growth over the past year (1987.9%) exceeded the Packaging industry 6.7%.

Return on Equity

High ROE: Whilst MEGM's Return on Equity (25.66%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Middle East Glass Manufacturing CompanyE's financial position?

Financial Position Analysis

Short Term Liabilities: MEGM's short term assets (EGP1.7B) exceed its short term liabilities (EGP1.1B).

Long Term Liabilities: MEGM's short term assets (EGP1.7B) exceed its long term liabilities (EGP1.6B).

Debt to Equity History and Analysis

Debt Level: MEGM's debt to equity ratio (258.6%) is considered high.

Reducing Debt: MEGM's debt to equity ratio has reduced from 619.7% to 258.6% over the past 5 years.

Debt Coverage: MEGM's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: MEGM's interest payments on its debt are not well covered by EBIT (2.4x coverage).

Balance Sheet

Dividend

What is Middle East Glass Manufacturing CompanyE current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

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

High Dividend: Unable to evaluate MEGM'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 MEGM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MEGM'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 MEGM's dividend in 3 years as they are not forecast to pay a notable one for the EG market.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

CEO

Abdulgalil Abdul Besher

no data

Tenure

Mr. Abdulgalil Abdul Haque Besher serves as Chairman and Managing Director of Middle East Glass Manufacturing Company S.A.E.

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2021/10/22 14:31
End of Day Share Price	2021/10/20 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data