Macquarie Telecom Group Limited (MAQ) AI Stock Analysis

• Market Cap: AU$1.73B
• Dividend Yield: N/A
• Average Volume (3M): 74.69K
• Price to Earnings (P/E): 49.6
• Beta (1Y): 1.09
• 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$95.12
• Price Target Upside: 48.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: AU$73.00 ▲(14.24% Upside)

Macquarie Telecom Group Limited's overall stock score is primarily driven by its strong financial performance, particularly in revenue growth and operational efficiency. However, the high P/E ratio suggests potential overvaluation, and cash flow challenges pose risks. Technical indicators show a positive trend, but caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates successful market expansion and product adoption, supporting long-term business sustainability.

Operational Efficiency

Improved gross margins reflect effective cost management, which can lead to better profitability and competitive positioning over time.

Financial Stability

Prudent leverage management with a low debt-to-equity ratio enhances financial stability and provides flexibility for future growth investments.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth may hinder the company's ability to invest in new opportunities and service debt, posing long-term financial risks.

Low Return on Equity

Low return on equity indicates inefficiencies in generating returns from shareholder investments, potentially affecting investor confidence and capital raising.

Modest Net Profit Margin

A modest net profit margin highlights potential challenges in achieving higher profitability, which could impact long-term earnings growth and shareholder value.

Macquarie Telecom Group Limited Business Overview & Revenue Model

Company Description

Macquarie Telecom Group Limited provides telecommunication, cloud computing, cybersecurity, and data center services to corporate and government customers in Australia. The company offers voice services, such as teams calling, unified communications, and video and Web conferencing services, as well as Hello, a cloud-based hosted voice system; managed mobility services and mobile device management; and cloud services, including hybrid, VMWare, and private cloud services, as well as dedicated servers, colocation, managed hosting, management tools, SD-WAN, SD-LAN, and data center extension services. It also provides data services, including Internet, fixed wireless ethernet, private IP-VPN, Cisco Meraki, business NBN, international data links, SIP trunking, SaaS enabled WAN, secure re mote access, and business Ethernet access. The company was incorporated in 1992 and is headquartered in Sydney, Australia.

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 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	276.64M	181.34M	369.65M	345.06M	285.08M	309.31M
Gross Profit	115.09M	61.65M	153.51M	89.94M	54.06M	61.03M
EBITDA	77.04M	53.05M	97.88M	103.09M	73.75M	88.36M
Net Income	26.39M	14.83M	34.85M	17.69M	12.54M	8.46M
Balance Sheet
Total Assets	729.79M	562.76M	729.79M	541.49M	452.63M	520.70M
Cash, Cash Equivalents and Short-Term Investments	62.36M	84.77M	62.36M	58.51M	19.81M	2.95M
Total Debt	128.88M	130.78M	128.88M	132.86M	213.24M	251.83M
Total Liabilities	242.79M	225.70M	242.79M	222.51M	316.25M	375.02M
Stockholders Equity	487.00M	337.06M	487.00M	318.98M	136.38M	145.68M
Cash Flow
Free Cash Flow	-12.83M	28.93M	-17.30M	30.34M	-97.12M	-6.52M
Operating Cash Flow	75.39M	45.58M	109.92M	96.13M	41.96M	88.88M
Investing Cash Flow	-108.58M	-45.64M	-108.58M	-111.80M	-139.08M	-95.40M
Financing Cash Flow	-10.93M	-2.67M	-25.11M	12.45M	75.67M	-10.33M

Macquarie Telecom Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.90
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 63.9 is above the 20-day moving average (MA) of 63.76, below the 50-day MA of 65.04, and below the 200-day MA of 64.46, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
MAQ	62 Neutral	AU$1.73B	49.65	7.40%	―	1.75%	0.42%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ABB	54 Neutral	AU$1.71B	52.19	5.89%	1.27%	18.74%	14.89%
TUA	53 Neutral	AU$3.85B	403.45	1.57%	―	34.09%	―

Macquarie Telecom Group Limited Corporate Events

Macquarie Telecom Group Highlights Strategic Initiatives at Investor Day

Macquarie Telecom Group Limited held an Investor Day, where management presented an overview of its business operations, including data centers, cloud services, government solutions, and telecommunications. The event highlighted the company’s strategic initiatives and provided insights into its capital structure and funding. This presentation underscores Macquarie’s commitment to expanding its market presence and enhancing its service offerings, potentially impacting its industry positioning and stakeholder interests.

Macquarie Technology Group Announces Director Departure

Macquarie Technology Group Limited announced that Adelle Maree Howse has ceased to be a director as of November 21, 2025. This change in the board of directors is part of the company’s compliance with ASX listing rules, and it reflects the ongoing adjustments in leadership that could impact the company’s strategic direction and governance.

Macquarie Technology Group AGM Resolutions Passed

Macquarie Technology Group Limited announced the results of its Annual General Meeting held on November 21, 2025. All resolutions were passed based on the votes cast by members attending the meeting and proxies held, indicating strong shareholder support for the company’s current strategies and leadership.

Macquarie Technology Group Issues Performance Rights to Boost Employee Engagement

Macquarie Technology Group Limited has announced the issuance of 109,680 performance rights as part of an employee incentive scheme. This move is aimed at aligning employee interests with company performance, potentially impacting the company’s operational efficiency and stakeholder engagement positively.

Macquarie Technology Group Releases Corporate Governance Statement

Macquarie Technology Group Limited has released its Corporate Governance Statement for the financial year ending June 30, 2025. The statement, approved by the board, outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations. It includes details on the board’s roles, responsibilities, and the processes for appointing directors and senior executives. This release reinforces the company’s commitment to transparency and accountability, potentially strengthening its position in the market and providing assurance to stakeholders about its governance practices.

Macquarie Technology Group Announces 2025 AGM Details

Macquarie Technology Group Limited has announced its Annual General Meeting (AGM) scheduled for November 21, 2025, in Sydney, Australia. The company is offering both physical attendance and a webcast option for shareholders, encouraging them to submit proxy votes in advance. The AGM will cover the financial statements, a remuneration report, the election of David Buckingham as a director, and the approval of rights grants to executive directors David and Aidan Tudehope. This meeting is crucial for stakeholders as it addresses key governance and compensation matters, impacting the company’s strategic direction and executive management.

Macquarie Technology Group Announces 2025 AGM Details

Macquarie Technology Group Limited has announced its Annual General Meeting (AGM) scheduled for November 21, 2025, at its Sydney office. In compliance with recent legislative changes, the company will not send hard copies of the meeting notice to shareholders who prefer electronic communication. The notice and related documents can be accessed online, and shareholders are encouraged to submit proxy forms and questions in advance. This move reflects the company’s adaptation to digital communication trends, potentially enhancing shareholder engagement and operational efficiency.

Macquarie Telecom Group Limited Announces Proxy Voting Procedures for AGM

Macquarie Telecom Group Limited has issued a notice regarding the procedures for appointing a proxy and voting at their upcoming Annual General Meeting. The document outlines the steps for securityholders to appoint a proxy, provide voting directions, and submit the necessary forms by the specified deadline. This announcement is crucial for stakeholders as it ensures their voting rights are exercised and their voices are heard in the company’s decision-making process.

Macquarie Telecom Group Schedules 2025 Annual General Meeting

Macquarie Telecom Group Limited has announced its Annual General Meeting, scheduled to be held at their Sydney office on November 21, 2025. This meeting is a significant event for stakeholders as it provides an opportunity to discuss the company’s future strategies and performance, potentially impacting its operations and market positioning.

Macquarie Technology Group Appoints New Director

Macquarie Technology Group Limited has announced the appointment of David Buckingham as a director, effective from September 24, 2025. The announcement indicates that Buckingham currently holds no relevant interests in securities as both a registered and non-registered holder, nor does he have any interests in contracts related to the company. This appointment may influence the company’s strategic direction and governance, potentially impacting stakeholders and market perceptions.

Macquarie Technology Group Appoints David Buckingham as Independent Non-Executive Director

Macquarie Technology Group Limited has appointed David Buckingham as an Independent Non-Executive Director, effective 24 September 2025. Buckingham brings over 30 years of experience in telecommunications, media, and technology, and his appointment is expected to enhance the company’s board capabilities during a significant growth phase. This strategic move aims to leverage Buckingham’s expertise to support the company’s ongoing expansion and strengthen its market position.