Macquarie Telecom Group Limited (MAQ) AI Stock Analysis

• Market Cap: AU$1.56B
• Dividend Yield: N/A
• Average Volume (3M): 74.69K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.26
• Revenue Growth: 1.75%
• EPS Growth: 0.42%
• Country: AU
• Employees: 470
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.63
• 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$91.29
• Price Target Upside: 47.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.2
• Revenue Forecast (FY): AU$386.05M

• Rating: 62 Neutral
• Price Target: AU$64.00 ▲(3.63% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Recurring enterprise & government contracts

Macquarie Telecom sells mission-critical telecom and data centre services under multi-year contracts to enterprise and government clients. This recurring, contract-driven revenue base increases predictability, supports retention and upsell, and underpins durable revenue visibility over 2–6 months and beyond.

Strong gross and operating margins

Improved gross margin (41.5%) and healthy EBIT/EBITDA margins indicate structural cost management and operating leverage in network and data‑centre operations. Sustained margins provide buffer versus pricing pressure and support reinvestment capacity and long‑term profitability resilience.

Conservative leverage and strong equity base

Low leverage (D/E ~0.26) and a high equity ratio (~66.7%) give the company financial flexibility for capex and expansion without aggressive refinancing risk. This balance-sheet conservatism supports stability through business cycles and funds strategic infrastructure investments.

Negative Factors

Negative free cash flow & weak FCF growth

Despite operating cash generation, sharply negative free cash flow and a -73% FCF growth rate signal material cash conversion headwinds. Persistently weak FCF constrains organic investment, limits balance-sheet optionality, and can impair ability to fund growth or absorb shocks over the medium term.

Low return on equity

ROE around 4.4% indicates the business currently delivers modest returns on invested capital. For a capital‑intensive telecom/data‑centre operator, low ROE raises questions about capital allocation efficiency and may limit long‑term shareholder value creation absent improvement.

Modest net profit margin

While top-line growth and gross margin gains exist, a single‑digit net margin (~9.4%) shows limited bottom‑line conversion after operating and financing costs. This narrows buffers for reinvestment or margin shocks and suggests further focus is needed to translate operational gains into sustainable net profitability.

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. Overall, the company is on a positive growth trajectory but needs to address cash flow issues for sustained financial health.

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	Jun 2024	Jun 2023	Jun 2021	Jun 2019	Jun 2018
Income Statement
Total Revenue	286.40M	369.65M	345.06M	309.31M	265.52M	233.59M
Gross Profit	97.92M	153.51M	89.94M	61.03M	56.24M	84.63M
EBITDA	78.70M	97.88M	103.09M	88.36M	64.55M	41.19M
Net Income	24.79M	34.85M	17.69M	8.46M	13.54M	17.01M
Balance Sheet
Total Assets	795.90M	729.79M	541.49M	520.70M	350.22M	143.69M
Cash, Cash Equivalents and Short-Term Investments	12.15M	62.36M	58.51M	2.95M	37.89M	30.30M
Total Debt	119.42M	128.88M	132.86M	251.83M	123.78M	0.00
Total Liabilities	292.18M	242.79M	222.51M	375.02M	228.08M	50.33M
Stockholders Equity	503.72M	487.00M	318.98M	145.68M	122.14M	93.36M
Cash Flow
Free Cash Flow	-103.41M	-17.30M	30.34M	-6.52M	-22.40M	20.21M
Operating Cash Flow	71.80M	109.92M	96.13M	88.88M	41.74M	42.94M
Investing Cash Flow	-149.78M	-108.58M	-111.80M	-95.40M	-64.14M	-33.83M
Financing Cash Flow	45.33M	-25.11M	12.45M	-10.33M	43.23M	-10.53M

Macquarie Telecom Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 61.76 is below the 20-day moving average (MA) of 64.26, below the 50-day MA of 66.61, and below the 200-day MA of 65.32, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 18.51 is Positive, 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$1.56B	26.24	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$1.44B	72.38	5.89%	1.27%	18.74%	14.89%
TUA	53 Neutral	AU$3.42B	303.20	1.57%	―	34.09%	―

Macquarie Telecom Group Limited Corporate Events

Macquarie Technology Extends EBITDA Growth Streak and Accelerates Data Centre Expansion

Macquarie Technology Group reported its 22nd consecutive half of EBITDA growth, delivering $57.9 million in EBITDA for the half-year to 31 December 2025, up 3% on the prior period, with strong operating cash flow and 95% of revenue from contracted recurring sources. The group maintains a robust balance sheet with substantial undrawn debt and is actively investing in capacity expansion, including the IC3 SuperWest data centre development and a new 150MW+ Sydney campus option, positioning it for continued growth in data centre, cloud, and cyber services.

The company plans significant FY26 capital expenditure, particularly on IC3 SuperWest, while aligning its data centre assets in a new corporate structure to support future external funding. Management expects FY26 EBITDA of $114 million to $117 million and is targeting growth in less capital-intensive cloud and cyber offerings, including new sovereign and AI-focused products for government and defence supply chain customers, while maintaining telecom revenue and margins into the second half.

The most recent analyst rating on (AU:MAQ) stock is a Buy with a A$90.00 price target. To see the full list of analyst forecasts on Macquarie Telecom Group Limited stock, see the AU:MAQ Stock Forecast page.

Macquarie Technology Group Delivers Revenue Growth and Expands Data Centre Capacity

Macquarie Technology Group reported first-half 2026 revenue of $193.4 million, up 5% year on year, with EBITDA rising 3% to $57.9 million, marking its 22nd consecutive half of EBITDA growth. However, earnings per share and net profit after tax each fell 9%, to 63.4 cents and $16.3 million respectively, even as operating cash flow reached $42.2 million and cash conversion remained strong at 109%.

The group highlighted the resilience of its business model, with 95% of revenue coming from contracted monthly recurring revenue and a strong balance sheet that includes $393 million of undrawn debt capacity. Macquarie is actively progressing a data centre expansion pipeline, keeping construction of its IC3 SuperWest facility on time and on budget, and has secured an additional $50 million debt facility to accelerate capacity delivery beyond the initial 6MW phase, underscoring its growth ambitions in the data centre market.

The most recent analyst rating on (AU:MAQ) stock is a Buy with a A$90.00 price target. To see the full list of analyst forecasts on Macquarie Telecom Group Limited stock, see the AU:MAQ Stock Forecast page.

Macquarie Technology Lifts Revenue but Profit Slips and No Interim Dividend

Macquarie Technology Group Limited reported a 5% increase in revenue and other revenue to A$193.4 million for the half-year ended 31 December 2025, while net profit attributable to members declined 9% to A$16.3 million. The company’s net tangible asset backing per ordinary security rose to A$18.86 from A$17.61 a year earlier, reflecting continued balance sheet strengthening.

No interim dividend was declared for the period, continuing the policy of retaining earnings despite higher revenues and asset backing. Management confirmed that the interim results were prepared using consistent accounting policies and should be read alongside the latest annual financial report, underscoring a stable reporting framework for investors and other stakeholders.

The most recent analyst rating on (AU:MAQ) stock is a Buy with a A$90.00 price target. To see the full list of analyst forecasts on Macquarie Telecom Group Limited stock, see the AU:MAQ Stock Forecast page.

Macquarie Technology Names Lisa Brock as New Chair Amid Board Renewal

Macquarie Technology Group has announced that long-serving Chair Peter James will retire from the board following the release of the company’s half-year results in February, with current non-executive director and Audit and Risk Management Committee chair Lisa Brock appointed as his successor. James’ 13-year tenure on the board, including 11 years as Chair, coincided with a period of strong expansion, including 11 consecutive years of profitable growth and a ten-fold increase in the share price, as the company evolved into an integrated cloud, cyber, data centre and telecom group. Brock, who brings board experience across infrastructure and transportation and a track record in business leadership, will lead the board as Macquarie Technology embarks on its next phase of significant investment and growth in digital infrastructure, while newly appointed director David Buckingham will assume the role of Audit and Risk Management Committee chair and the company plans to add another independent non-executive director in the coming months, signalling continued board renewal and governance focus.

The most recent analyst rating on (AU:MAQ) stock is a Hold with a A$73.00 price target. To see the full list of analyst forecasts on Macquarie Telecom Group Limited stock, see the AU:MAQ Stock Forecast page.