OTCPK:MGPP.F

Stock Analysis Report

Executive Summary

Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, the Asia-Pacific, North America, and Europe.


Snowflake Analysis

High growth potential with adequate balance sheet.

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: MGPP.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

MGPP.F

-0.8%

US IT

-1.1%

US Market


1 Year Return

n/a

MGPP.F

34.7%

US IT

17.8%

US Market

Return vs Industry: Insufficient data to determine how MGPP.F performed against the US IT industry.

Return vs Market: Insufficient data to determine how MGPP.F performed against the US Market.


Shareholder returns

MGPP.FIndustryMarket
7 Day3.9%-0.8%-1.1%
30 Day6.7%3.3%1.5%
90 Day26.0%12.2%6.6%
1 Yearn/a36.1%34.7%20.2%17.8%
3 Year429.8%429.8%107.6%98.6%47.5%38.1%
5 Yearn/a144.9%123.2%71.2%52.4%

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

No news available

Valuation

Is Megaport 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: MGPP.F ($8) is trading below our estimate of fair value ($17.78)

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


Price To Earnings Ratio

PE vs Industry: MGPP.F is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: MGPP.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MGPP.F is overvalued based on its PB Ratio (11x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

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

61.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGPP.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: MGPP.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MGPP.F's is expected to become profitable in the next 3 years.

Revenue vs Market: MGPP.F's revenue (33.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MGPP.F's revenue (33.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGPP.F's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Megaport performed over the past 5 years?

-8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGPP.F is currently unprofitable.

Growing Profit Margin: MGPP.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MGPP.F is unprofitable, and losses have increased over the past 5 years at a rate of -8.8% per year.

Accelerating Growth: Unable to compare MGPP.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MGPP.F is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12%).


Return on Equity

High ROE: MGPP.F has a negative Return on Equity (-22.65%), 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: MGPP.F's short term assets (A$131.7M) exceed its short term liabilities (A$19.7M).

Long Term Liabilities: MGPP.F's short term assets (A$131.7M) exceed its long term liabilities (A$10.3M).


Debt to Equity History and Analysis

Debt Level: MGPP.F's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MGPP.F's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: MGPP.F has a high level of physical assets or inventory.

Debt Coverage by Assets: MGPP.F's debt is covered by short term assets (assets are 23x 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: MGPP.F has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MGPP.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

2.8yrs

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 ($USD1.37M) is below average for companies of similar size in the US market ($USD2.51M).

Compensation vs Earnings: Vincent's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Bevan Slattery
Founder & Non Executive Chairman of the Board4.6yrsAU$242.25k12.52% A$145.1m
Vincent English
CEO & Director2.8yrsAU$2.07m0.37% A$4.2m
Steve Loxton
Chief Financial Officer2yrsAU$1.07m0.0025% A$28.5k
Peter Hase
Chief Commercial Officer1yrsAU$1.01m0.00081% A$9.4k
Celia Pheasant
Company Secretary4.6yrsno datano data
Darren Wilson
Operations Director1.5yrsno datano data
Anna Tichborne
General Counsel3.4yrsno datano data
Eric Troyer
Chief Marketing Officer4.4yrsno datano data
Melanie Vongswang
Chief People Officer0.08yrsno datano data
Brynn Maddux
Executive Vice President of Terraforming Americas0yrsno datano data

2.8yrs

Average Tenure

Experienced Management: MGPP.F's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bevan Slattery
Founder & Non Executive Chairman of the Board4.6yrsAU$242.25k12.52% A$145.1m
Vincent English
CEO & Director2.8yrsAU$2.07m0.37% A$4.2m
Jay Adelson
Non-Executive Director0.9yrsAU$34.16kno data
Naomi Seddon
Lead Independent Director0yrsAU$7.50kno data

2.9yrs

Average Tenure

Experienced Board: MGPP.F's board of directors are not considered experienced ( 2.9 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: MGPP.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.3%.


Top Shareholders

Company Information

Megaport Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Megaport Limited
  • Ticker: MGPP.F
  • Exchange: OTCPK
  • Founded: 2013
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$1.747b
  • Listing Market Cap: AU$1.159b
  • Shares outstanding: 144.11m
  • Website: https://www.megaport.com

Location

  • Megaport Limited
  • 825 Ann Street
  • Level 3
  • Fortitude Valley
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MP1ASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2015
MP1CHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2015
MGPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:21
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.