OTCPK:MGAW.Y

Stock Analysis Report

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Executive Summary

Megaworld Corporation, together with its subsidiaries, develops, markets, and leases real estate properties in the Philippines.


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Megaworld's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGAW.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.3%

MGAW.Y

8.3%

US Real Estate

2.7%

US Market


1 Year Return

-51.7%

MGAW.Y

-17.3%

US Real Estate

9.1%

US Market

Return vs Industry: MGAW.Y underperformed the US Real Estate industry which returned -17.4% over the past year.

Return vs Market: MGAW.Y underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

MGAW.YIndustryMarket
7 Day9.3%8.3%2.7%
30 Day9.0%3.7%4.5%
90 Day-19.2%-25.3%2.3%
1 Year-51.4%-51.7%-16.7%-17.3%11.5%9.1%
3 Yearn/a-19.9%-21.7%30.6%22.0%
5 Year-50.3%-52.2%-25.8%-28.0%57.2%39.5%

Price Volatility Vs. Market

How volatile is Megaworld's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

5.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGAW.Y ($10.5) is trading above our estimate of fair value ($2.07)

Significantly Below Fair Value: MGAW.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGAW.Y is good value based on its PE Ratio (5x) compared to the Real Estate industry average (15.7x).

PE vs Market: MGAW.Y is good value based on its PE Ratio (5x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: MGAW.Y is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: MGAW.Y is good value based on its PB Ratio (0.5x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

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

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGAW.Y's forecast earnings growth (4.1% per year) is above the savings rate (2.2%).

Earnings vs Market: MGAW.Y's earnings (4.1% per year) are forecast to grow slower than the US market (21.7% per year).

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

Revenue vs Market: MGAW.Y's revenue (2.3% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: MGAW.Y's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGAW.Y's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Megaworld performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGAW.Y has high quality earnings.

Growing Profit Margin: MGAW.Y's current net profit margins (27.3%) are higher than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: MGAW.Y's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: MGAW.Y's earnings growth over the past year (16.4%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: MGAW.Y earnings growth over the past year (16.4%) exceeded the Real Estate industry -6.4%.


Return on Equity

High ROE: MGAW.Y's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Megaworld's financial position?


Financial Position Analysis

Short Term Liabilities: MGAW.Y's short term assets (PHP190.5B) exceed its short term liabilities (PHP57.5B).

Long Term Liabilities: MGAW.Y's short term assets (PHP190.5B) exceed its long term liabilities (PHP87.2B).


Debt to Equity History and Analysis

Debt Level: MGAW.Y's debt to equity ratio (37.5%) is considered satisfactory.

Reducing Debt: MGAW.Y's debt to equity ratio has increased from 27% to 37.5% over the past 5 years.

Debt Coverage: MGAW.Y's debt is well covered by operating cash flow (30.4%).

Interest Coverage: MGAW.Y earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGAW.Y's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: MGAW.Y's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

Stable Dividend: MGAW.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: MGAW.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.7%), MGAW.Y's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGAW.Y's dividends in 3 years are forecast to be well covered by earnings (15.3% payout ratio).


Next Steps

Management

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

16.0yrs

Average board tenure


CEO

Andrew Tan (70yo)

no data

Tenure

Dr. Andrew Lim Tan has been the Chairman and Chief Executive Officer at Global Estate Resorts, Inc. since January 2011. Dr. Tan is a Co-owner at The Andresons Group, Inc and served as the Chief Executive O ...


Board Members

NamePositionTenureCompensationOwnership
Andrew Tan
Chairmanno datano data0.30% PHP5.2m
Kingson Uy Sian
Executive Director13.08yrsno data0.0019% PHP33.2k
Enrique Santos Sy
Director10.83yrsno data0.00025% PHP4.3k
Roberto Guevara
Independent Director18.92yrsno datano data
Katherine Tan
Director30.75yrsno data0.0059% PHP102.6k
Cresencio Aquino
Independent Director2.17yrsno datano data
Jesus Varela
Independent Vice Chairman of the Boardno datano datano data

16.0yrs

Average Tenure

68yo

Average Age

Experienced Board: MGAW.Y's board of directors are seasoned and experienced ( 16 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.


Top Shareholders

Company Information

Megaworld Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Megaworld Corporation
  • Ticker: MGAW.Y
  • Exchange: OTCPK
  • Founded: 1989
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: ₱88.155b
  • Listing Market Cap: ₱1.739b
  • Shares outstanding: 32.06b
  • Website: https://www.megaworldcorp.com

Number of Employees


Location

  • Megaworld Corporation
  • Alliance Global Tower
  • 30th Floor
  • Taguig
  • 1634
  • Philippines

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEGPSE (Philippines Stock Exchange)YesCommon SharesPHPHPJun 1994
MGAW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 1994
MGAW.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2013

Biography

Megaworld Corporation, together with its subsidiaries, develops, markets, and leases real estate properties in the Philippines. It operates through Real Estate, Rental, and Hotel Operations segments. It develops mixed-use planned communities or townships, including residential, commercial, office, leisure, entertainment, and educational/training components. The company’s real estate portfolio comprises residential condominium units, subdivision lots and townhouses, and condominium-hotel projects, as well as office projects and retail spaces. It is also involved in the lease of office and retail spaces; and property-related activities, such as project design, construction oversight, and property management, as well as provision of business process outsourcing, educational facilities, restaurants, cafes, cocktail bars, lounges, inns, apartments, private clubs, and other related businesses. In addition, the company owns, leases, and manages hotels. As of July 30, 2019, Megaworld Corporation had 17 lifestyle malls across the Philippines, and a total retail space portfolio of approximately 710,000 square meters. The company was formerly known as Megaworld Properties & Holdings, Inc. and changed its name to Megaworld Corporation in August 1999. The company was founded in 1989 and is based in Taguig, the Philippines. Megaworld Corporation is a subsidiary of Alliance Global Group, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 04:25
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.