Macquarie Telecom Group Limited (MAQ) AI Stock Analysis

• Market Cap: AU$1.72B
• Dividend Yield: N/A
• Average Volume (3M): 74.69K
• Price to Earnings (P/E): 49.5
• Beta (1Y): 1.12
• Revenue Growth: 1.75%
• EPS Growth: 0.42%
• Country: AU
• Employees: 470
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.69
• Shares Outstanding: 25,773,731
• 10 Day Avg. Volume: 43,199
• 30 Day Avg. Volume: 74,688
• PEG Ratio: 2.32
• Price to Book (P/B): 6.61
• Price to Sales (P/S): 12.28
• P/FCF Ratio: 76.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$91.27
• Price Target Upside: 40.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: AU$71.00 ▲(9.62% Upside)

Macquarie Telecom Group Limited shows strong financial performance with solid revenue growth and operational efficiency. However, cash flow challenges and a high P/E ratio suggest potential risks. The technical analysis indicates positive momentum, but the valuation remains a concern.

Macquarie Telecom Group Limited Business Overview & Revenue Model

Company Description

Macquarie Telecom Group Limited (MAQ) is an Australian telecommunications and technology company, providing a range of services including cloud, data center, and telecom solutions. The company operates primarily in the sectors of telecommunications, cloud computing, and managed services, focusing on delivering reliable and high-performance solutions tailored for businesses. Core products include data center services, cloud hosting, and voice services, catering to various industries such as finance, healthcare, and government.

How the Company Makes Money

Macquarie Telecom generates revenue through multiple key streams, primarily from its telecommunications services, cloud solutions, and data center operations. The company earns money by charging customers for voice, internet, and mobile services, as well as through subscription fees for cloud hosting and managed services. Additionally, revenue is generated from the leasing of data center space and infrastructure. Strategic partnerships with technology providers and enterprises enhance its offerings and expand its customer base, contributing to consistent earnings growth. The company's focus on providing tailored solutions allows it to differentiate itself in a competitive market, driving customer loyalty and recurring revenue.

Macquarie Telecom Group Limited Financial Statement Overview

Summary

Macquarie Telecom Group Limited demonstrates solid revenue growth and operational efficiency, with strong gross and EBIT margins. The balance sheet is stable with a healthy equity ratio, though returns on equity could be improved. Cash flow management presents challenges, with negative free cash flow growth highlighting potential liquidity concerns.

Income Statement

Macquarie Telecom Group Limited shows a strong revenue growth trajectory with a 11.4% increase in the latest annual period. The gross profit margin improved significantly to 41.5%, indicating enhanced cost management. However, the net profit margin remains modest at 9.4%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.26, indicating prudent leverage management. The return on equity is relatively low at 4.4%, suggesting limited returns on shareholder investments. The equity ratio stands at 66.7%, highlighting a strong equity base relative to total assets, which is a positive sign of financial stability.

Cash Flow

Operating cash flow is robust, covering net income by 1.10 times, indicating good cash generation from operations. However, the free cash flow is negative, and its growth rate is concerning at -73.1%, which may pose challenges for future investments and debt servicing. The free cash flow to net income ratio is negative, reflecting cash flow pressures.

Breakdown	TTM	Dec 2024	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	276.64M	369.65M	345.06M	309.31M	285.08M	265.52M
Gross Profit	115.09M	153.51M	89.94M	61.03M	54.06M	56.24M
EBITDA	77.04M	97.88M	103.09M	88.36M	73.75M	64.55M
Net Income	26.39M	34.85M	17.69M	8.46M	12.54M	13.54M
Balance Sheet
Total Assets	729.79M	729.79M	541.49M	520.70M	452.63M	350.22M
Cash, Cash Equivalents and Short-Term Investments	62.36M	62.36M	58.51M	2.95M	19.81M	37.89M
Total Debt	128.88M	128.88M	132.86M	251.83M	208.40M	123.78M
Total Liabilities	242.79M	242.79M	222.51M	375.02M	316.25M	228.08M
Stockholders Equity	487.00M	487.00M	318.98M	145.68M	136.38M	122.14M
Cash Flow
Free Cash Flow	-12.83M	-17.30M	30.34M	-6.52M	-97.12M	-22.40M
Operating Cash Flow	75.39M	109.92M	96.13M	88.88M	41.96M	41.74M
Investing Cash Flow	-108.58M	-108.58M	-111.80M	-95.40M	-139.08M	-64.14M
Financing Cash Flow	-10.93M	-25.11M	12.45M	-10.33M	75.67M	43.23M

Macquarie Telecom Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MAQ, the sentiment is Positive. The current price of 64.77 is below the 20-day moving average (MA) of 66.36, above the 50-day MA of 64.45, and below the 200-day MA of 67.19, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 28.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MAQ.

Macquarie Telecom Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABB	―	AU$1.71B	52.37	5.89%	1.10%	18.74%	14.89%
TUA	―	AU$3.75B	394.25	1.57%	―	34.09%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAQ	―	AU$1.72B	49.46	7.40%	―	1.75%	0.42%