Mega Lifesciences (SET:MEGA) - Share price, News & Analysis

MEGA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	6/6
Financial Health	6/6
Dividends	3/6

MEGA Stock Overview

Rewards

Trading at 7.1% below our estimate of its fair value

Earnings are forecast to grow 7.82% per year

Earnings grew by 58.4% over the past year

Risk Analysis

Unstable dividend track record

Mega Lifesciences Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mega Lifesciences
Historical stock prices
Current Share Price	฿54.00
52 Week High	฿56.50
52 Week Low	฿34.50
Beta	0
1 Month Change	13.09%
3 Month Change	24.86%
1 Year Change	47.95%
3 Year Change	60.00%
5 Year Change	100.00%
Change since IPO	153.52%

Shareholder Returns

	MEGA	TH Pharmaceuticals	TH Market
7D	11.3%	-0.4%	-0.5%
1Y	47.9%	-18.6%	4.4%

Return vs Industry: MEGA exceeded the TH Pharmaceuticals industry which returned -18.4% over the past year.

Return vs Market: MEGA exceeded the TH Market which returned 3.6% over the past year.

Price Volatility

Is MEGA's price volatile compared to industry and market?
MEGA volatility
MEGA Average Weekly Movement	5.2%
Pharmaceuticals Industry Average Movement	6.4%
Market Average Movement	5.1%
10% most volatile stocks in TH Market	9.8%
10% least volatile stocks in TH Market	2.6%

Stable Share Price: MEGA is not significantly more volatile than the rest of TH stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

Founded	Employees	CEO	Website
1982	n/a	Vivek Dhawan	https://www.megawecare.com

Mega Lifesciences Public Company Limited, together with its subsidiaries, manufactures, markets, and sells health food supplements, prescription pharmaceutical products, over-the-counter (OTC) products, herbal products, vitamins, and fast moving consumer goods. The company operates through Brands, Distribution, and Original Equipment Manufacture segments. It provides various complementary medicines for bone and joint, children, diabetic, heart, herbal, liver and digestive, skin, slimming, and well-being care, as well as men’s and women’s care products and sports supplements; gastrointestinal and pain care OTC medicines; and prescription medicines in the areas of iron supplement, anticoagulant, diabetology, cardiology, dermatology, gastroenterology, neurology, pain, osteoporosis, respiratory, urology, oncology, and nephrology.

Mega Lifesciences Fundamentals Summary

How do Mega Lifesciences's earnings and revenue compare to its market cap?
MEGA fundamental statistics
Market Cap	฿47.08b
Earnings (TTM)	฿2.23b
Revenue (TTM)	฿14.72b

21.1x

P/E Ratio

3.2x

P/S Ratio

Is MEGA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEGA income statement (TTM)
Revenue	฿14.72b
Cost of Revenue	฿8.32b
Gross Profit	฿6.40b
Other Expenses	฿4.18b
Earnings	฿2.23b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)	2.55
Gross Margin	43.49%
Net Profit Margin	15.13%
Debt/Equity Ratio	1.3%

How did MEGA perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

7.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MEGA (THB54) is trading below our estimate of fair value (THB58.12)

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

Price To Earnings Ratio

PE vs Industry: MEGA is good value based on its PE Ratio (21.1x) compared to the Asian Pharmaceuticals industry average (23.1x).

PE vs Market: MEGA is poor value based on its PE Ratio (21.1x) compared to the TH market (18.1x).

Price to Earnings Growth Ratio

PEG Ratio: MEGA is poor value based on its PEG Ratio (2.7x)

Price to Book Ratio

PB vs Industry: MEGA is overvalued based on its PB Ratio (5.5x) compared to the XA Pharmaceuticals industry average (2.1x).

Future Growth

How is Mega Lifesciences forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEGA's forecast earnings growth (7.8% per year) is above the savings rate (2%).

Earnings vs Market: MEGA's earnings (7.8% per year) are forecast to grow slower than the TH market (18.6% per year).

High Growth Earnings: MEGA's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEGA's revenue (7.7% per year) is forecast to grow slower than the TH market (10.4% per year).

High Growth Revenue: MEGA's revenue (7.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MEGA's Return on Equity is forecast to be high in 3 years time (23.6%)

Past Performance

How has Mega Lifesciences performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MEGA has high quality earnings.

Growing Profit Margin: MEGA's current net profit margins (15.1%) are higher than last year (11%).

Past Earnings Growth Analysis

Earnings Trend: MEGA's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: MEGA's earnings growth over the past year (58.4%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: MEGA earnings growth over the past year (58.4%) exceeded the Pharmaceuticals industry 9.9%.

Return on Equity

High ROE: MEGA's Return on Equity (25.8%) is considered high.

Financial Health

How is Mega Lifesciences's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MEGA's short term assets (THB9.6B) exceed its short term liabilities (THB4.6B).

Long Term Liabilities: MEGA's short term assets (THB9.6B) exceed its long term liabilities (THB395.5M).

Debt to Equity History and Analysis

Debt Level: MEGA has more cash than its total debt.

Reducing Debt: MEGA's debt to equity ratio has reduced from 9% to 1.3% over the past 5 years.

Debt Coverage: MEGA's debt is well covered by operating cash flow (1783.5%).

Interest Coverage: MEGA's interest payments on its debt are well covered by EBIT (187.8x coverage).

Balance Sheet

Dividend

What is Mega Lifesciences's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.56%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MEGA's dividend (2.56%) is higher than the bottom 25% of dividend payers in the TH market (1.79%).

High Dividend: MEGA's dividend (2.56%) is low compared to the top 25% of dividend payers in the TH market (5.47%).

Stability and Growth of Payments

Stable Dividend: MEGA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MEGA's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54%), MEGA's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (66.8%), MEGA's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

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

9.3yrs

Average board tenure

CEO

Vivek Dhawan (60 yo)

34.33yrs

Tenure

Mr. Vivek Dhawan has been the Chief Executive Officer of Mega Lifesciences Public Company Limited since 1988 and has been its Chief Coach since 2013. Mr. Dhawan started with Medicap and built Lupin Laborat...

Board Members

Experienced Board: MEGA's board of directors are considered experienced (9.3 years average tenure).

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	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31