Megaport (MP1) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: N/A
• Average Volume (3M): 690.21K
• Price to Earnings (P/E): 314.8
• Beta (1Y): 1.61
• Revenue Growth: 3.02%
• EPS Growth: 55.33%
• Country: AU
• Employees: 200
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 160,749,480
• 10 Day Avg. Volume: 727,022
• 30 Day Avg. Volume: 690,206
• PEG Ratio: -5.52
• Price to Book (P/B): 5.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.19
• 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: $11.64
• Price Target Upside: -2.39% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Megaport Ltd. demonstrates strong financial performance with significant revenue growth and improved profitability, supporting a positive outlook. However, technical indicators suggest some short-term bearish sentiment, and the high P/E ratio indicates potential overvaluation concerns. The absence of earnings call insights and corporate events means the analysis is focused on financials and market trends.

Megaport Business Overview & Revenue Model

Company Description

Megaport Ltd. (MP1) is a global leader in elastic interconnection services, operating in the telecommunications and technology sectors. The company provides a platform that enables customers to connect their network to other networks and cloud service providers in a quick, flexible, and scalable manner. Megaport's core products include its Network as a Service (NaaS) offerings, which facilitate direct, private, and secure connections over its global Software Defined Network (SDN).

How the Company Makes Money

Megaport Ltd. generates revenue primarily through its Network as a Service (NaaS) offerings, which allow customers to create dedicated connections to various cloud providers and data centers. The company charges customers based on the bandwidth they require and the duration of their connections, allowing for flexible, on-demand pricing models. Key revenue streams include monthly recurring charges from customers for using the Megaport platform to manage their interconnections and additional fees for data transfer. Significant partnerships with major cloud service providers like Amazon Web Services, Microsoft Azure, and Google Cloud enhance Megaport's service offerings and contribute to its revenue by attracting a broader customer base seeking efficient and scalable interconnection solutions.

Megaport Financial Statement Overview

Summary

Megaport Ltd. is on a positive financial trajectory with strong revenue growth and improved profitability. The balance sheet is robust, characterized by low leverage and high equity. Cash flow has significantly improved, underscoring effective financial management. While historical volatility in profits and equity fluctuations are noted, the overall financial health is promising.

Income Statement

Megaport Ltd. has demonstrated strong revenue growth, with a 27.54% increase in the most recent year, along with improved profitability metrics. The gross profit margin improved significantly, reaching 20.7% from 4.0% the previous year. The net profit margin also turned positive at 4.9%, indicating a positive shift in operational efficiency and cost management. However, historical volatility in profitability remains a concern.

Balance Sheet

The company maintains a solid balance sheet characterized by a low debt-to-equity ratio of 0.10, indicating minimal leverage and financial risk. The equity ratio is strong at 71.8%, demonstrating the company's reliance on equity financing. However, past fluctuations in stockholders' equity and liabilities warrant cautious monitoring.

Cash Flow

Megaport Ltd. has shown exceptional improvement in cash flow management. The free cash flow turned positive to AUD 30.3 million from a negative position, and the operating cash flow to net income ratio is robust at 5.22, highlighting efficient cash conversion. This positive trajectory in cash flow metrics supports financial stability and future growth opportunities.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
206.91M	195.27M	153.08M	109.73M	78.28M	58.04M
	Gross Profit
144.84M	158.86M	6.10M	-20.42M	-22.77M	-23.93M
	EBIT
43.04M	4.62M	-19.53M	-46.47M	-46.98M	-45.26M
	EBITDA
17.60M	40.39M	28.79M	-6.32M	-36.69M	-30.67M
	Net Income Common Stockholders
6.04M	9.61M	-9.77M	-48.49M	-55.00M	-48.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
89.80M	72.43M	48.45M	82.55M	136.31M	166.88M
	Total Assets
242.88M	214.70M	202.23M	220.38M	220.56M	247.09M
	Total Debt
21.30M	15.79M	19.96M	27.27M	15.76M	21.24M
	Net Debt
-68.51M	-56.65M	-28.50M	-55.27M	-120.56M	-145.63M
	Total Liabilities
67.28M	60.62M	74.30M	78.14M	40.15M	36.13M
	Stockholders Equity
175.60M	154.08M	127.93M	142.25M	180.41M	210.97M
Cash Flow		Free Cash Flow
42.48M	30.32M	-24.57M	-49.71M	-30.79M	-48.55M
	Operating Cash Flow
57.55M	50.17M	8.23M	-9.83M	-8.29M	-20.36M
	Investing Cash Flow
-25.25M	-19.85M	-32.73M	-50.26M	-22.44M	-27.57M
	Financing Cash Flow
-8.68M	-7.43M	-10.40M	5.87M	4.87M	142.83M

Megaport Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MP1, the sentiment is Positive. The current price of 11.93 is above the 20-day moving average (MA) of 10.63, above the 50-day MA of 10.46, and above the 200-day MA of 8.81, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MP1.

Megaport Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MP1	70 Outperform	$1.92B	314.78	3.84%	―	3.02%	55.33%
TNE	70 Outperform	€10.48B	88.36	34.02%	0.76%	17.97%	14.29%
BVS	67 Neutral	AU$986.38M	13.76	57.04%	0.73%	18.63%	―
NXT	61 Neutral	$8.69B	―	-2.06%	―	-2.69%	-17.50%
Sector *	60 Neutral	$11.39B	10.50	-6.42%	2.97%	7.77%	-11.17%
APX	50 Neutral	$241.79M	―	-19.32%	―	-13.61%	86.37%
DUB	40 Underperform	AU$104.93M	―	-131.93%	―	15.31%	61.52%

Megaport Corporate Events

ECP Asset Management and EC Pohl & Co Cease Substantial Holding in Megaport

Megaport Limited has announced that ECP Asset Management Pty Ltd and EC Pohl & Co Pty Ltd have ceased to be substantial holders in the company as of May 9, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence its market positioning and stakeholder interests.

The most recent analyst rating on (AU:MP1) stock is a Buy with a A$16.05 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

JPMorgan Chase & Co. Ceases Substantial Holding in Megaport Ltd

JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders in Megaport Ltd, a company involved in providing network services. This change reflects various transactions involving securities lending and proprietary trading, impacting the company’s shareholder structure. The cessation of substantial holding may influence Megaport’s market perception and stakeholder interests.

JPMorgan Acquires Significant Stake in Megaport Ltd

JPMorgan Chase & Co. and its affiliates have become substantial holders in Megaport Ltd, acquiring a 5.15% voting power with over 8 million ordinary shares. This move signifies a notable investment in Megaport, potentially impacting its market position and signaling confidence in its growth prospects, which could influence stakeholder perceptions and future strategic directions.

Megaport Limited Announces Cessation of Restricted Stock Units

Megaport Limited announced the cessation of 32,325 restricted stock units due to the lapse of conditional rights, as the conditions for these securities were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic focus.

Megaport Ltd. Announces Change in Substantial Holder Interests

Megaport Ltd. has announced a change in the interests of a substantial holder, with State Street Bank and Trust Company and its subsidiaries being the primary entities involved. This update reflects changes in voting power and relevant interests in the company’s securities, which may impact the control and management of voting rights within the company.

AustralianSuper Reduces Stake in Megaport Limited

AustralianSuper Pty Ltd has reduced its voting power in Megaport Limited from 10.28% to 9.27%, reflecting a decrease in its holdings of ordinary shares. This change in substantial holding may impact Megaport’s shareholder dynamics and could influence future strategic decisions, as AustralianSuper remains a significant stakeholder.

Megaport Ltd. Announces New Securities Issuance

Megaport Ltd. has announced the issuance of 298,803 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code MP1. This move reflects the company’s ongoing efforts to enhance its financial flexibility and support its growth strategy in the competitive technology sector.

Megaport Ltd. Announces Change in Substantial Holder Interests

Megaport Ltd. has announced a change in the interests of a substantial holder, with State Street Corporation and its subsidiaries being involved in the voting securities of the company. This change reflects a shift in the voting power and relevant interests in Megaport Ltd., potentially impacting the company’s governance and stakeholder dynamics.

Megaport Achieves Record Half-Year Performance with Strategic Growth Initiatives

Megaport Limited reported a record performance for the half-year ended December 31, 2024, with significant increases in annual recurring revenue, total revenue, and net cash flow. The company’s strategic investments in product innovation and global network expansion have contributed to its growth, with notable achievements including the deployment of a 400G backbone, the launch of a compute platform, and the expansion into new markets such as Brazil and Italy. These developments position Megaport as a leading player in the NaaS connectivity platform space, enhancing its market presence and offering new revenue opportunities for stakeholders.

Megaport Ltd. Reports Revenue Growth but Profit Decline in H1 2024

Megaport Ltd. reported its financial results for the half-year ending December 31, 2024, revealing a 12% increase in revenue from ordinary activities compared to the previous year. Despite the revenue growth, the company experienced an 80% decline in net profit after tax, attributed to increased costs impacting EBITDA, which decreased by 9%. No dividends were declared for this period, and the net tangible asset backing per share rose to 78.91 cents from 58.93 cents. The financial report was reviewed by Deloitte Touche Tohmatsu, and no significant changes in control of entities were reported.