Megaport (MP1) AI Stock Analysis

• Market Cap: AU$2.35B
• Dividend Yield: N/A
• Average Volume (3M): 548.97K
• Price to Earnings (P/E): 386.0
• Beta (1Y): 1.33
• Revenue Growth: 3.02%
• EPS Growth: 55.33%
• Country: AU
• Employees: 200
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Infrastructure
• EPS (TTM): 0.01
• Shares Outstanding: 160,941,330
• 10 Day Avg. Volume: 493,262
• 30 Day Avg. Volume: 548,968
• PEG Ratio: -6.25
• Price to Book (P/B): 6.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.07
• 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$13.40
• Price Target Upside: -8.40% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: AU$15.00 ▲(2.53%Upside)

Megaport Ltd. is on a positive financial trajectory with strong revenue and cash flow performance. Technical indicators show bullish momentum, but caution is needed due to overbought signals. The high P/E ratio suggests potential overvaluation, which tempers the overall score.

Megaport Business Overview & Revenue Model

Company Description

Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, New Zealand, Hong Kong, Singapore, Japan, North America, and Europe. It operates a platform that enables customers to connect their network to other services, as well as creates agile network that connects in multiple regions. The company also offers Megaport Virtual Edge, an on-demand and vendor-neutral Network Function Virtualization service that enables branch-to-cloud connectivity on Megaport's global software-defined network; internet exchange services; and Megaport Marketplace, an online hub the interconnects service providers and enterprise customers. In addition, it provides cloud connectivity solutions; and virtual routing for cloud networking. The company was founded in 2013 and is headquartered in Fortitude Valley, Australia.

How the Company Makes Money

Megaport makes money primarily through its subscription-based model where businesses pay for access to its Software Defined Network (SDN) services. The company's revenue streams are driven by monthly recurring charges for its core connectivity products, including Virtual Cross Connects, Internet Exchange services, and Cloud Routing solutions. Megaport's partnerships with major cloud service providers like AWS, Google Cloud, and Microsoft Azure enhance its value proposition, making it easier for customers to establish direct and secure connections to these platforms. Additionally, Megaport benefits from its extensive partner ecosystem, which includes data centers and service providers, further expanding its service offerings and customer base.

Megaport Financial Statement Overview

Summary

Megaport Ltd. shows strong revenue growth and improved profitability with a positive net profit margin. The balance sheet is robust with low leverage and high equity, while cash flow metrics have significantly improved, indicating effective financial management. Historical volatility in profits and equity fluctuations remain concerns.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	195.27M	153.08M	109.73M	78.28M	58.04M
Gross Profit	158.86M	6.10M	-20.42M	-22.77M	-23.93M
EBITDA	40.39M	28.79M	-6.32M	-36.69M	-30.67M
Net Income	9.61M	-9.77M	-48.49M	-55.00M	-48.71M
Balance Sheet
Total Assets	214.70M	202.23M	220.38M	220.56M	247.09M
Cash, Cash Equivalents and Short-Term Investments	72.43M	48.45M	82.55M	136.31M	166.88M
Total Debt	15.79M	19.96M	27.27M	15.76M	21.24M
Total Liabilities	60.62M	74.30M	78.14M	40.15M	36.13M
Stockholders Equity	154.08M	127.93M	142.25M	180.41M	210.97M
Cash Flow
Free Cash Flow	30.32M	-24.57M	-49.71M	-30.79M	-48.55M
Operating Cash Flow	50.17M	8.23M	-9.83M	-8.29M	-20.36M
Investing Cash Flow	-19.85M	-32.73M	-50.26M	-22.44M	-27.57M
Financing Cash Flow	-7.43M	-10.40M	5.87M	4.87M	142.83M

Megaport Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.63 is above the 20-day moving average (MA) of 13.63, above the 50-day MA of 13.39, and above the 200-day MA of 9.89, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 66.96 is Neutral, neither overbought nor oversold. The STOCH value of 96.76 is Negative, 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
TYR	76 Outperform	AU$523.37M	16.84	15.36%	―	7.50%	204.66%
MP1	72 Outperform	AU$2.35B	386.02	3.84%	―	3.02%	55.33%
B4P	64 Neutral	AU$78.66M	17.36	13.68%	―	10.59%	―
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	5.39%	9.34%	-42.23%
FCT	49 Neutral	AU$30.84M	―	-54.77%	―	-14.50%	-77.33%
SEN	41 Neutral	AU$33.12M	―	-31.58%	―	22.29%	64.62%
NNG	35 Underperform	AU$4.05M	―		―	-50.39%	-74.68%

Megaport Corporate Events

Megaport to Release FY25 Results and Host Investor Briefing

Megaport Limited has announced that its FY25 Appendix 4E and Annual Report will be released on 21 August 2025, with a presentation of the FY25 results by CEO Michael Reid and CFO Leticia Dorman via a webcast. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, reinforcing its position in the industry as a leader in network connectivity solutions.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Yarra Capital Management Ceases Substantial Holding in Megaport

Megaport Limited has announced that Yarra Capital Management Limited and its associated entities have ceased to be substantial holders of the company’s shares as of June 26, 2025. This change involved both acquisition and disposal of shares, with the entities selling more shares than they acquired, which may affect the company’s shareholder composition and influence in the market.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$9.50 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Limited Announces Quotation of New Securities on ASX

Megaport Limited has announced the quotation of 191,849 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of June 4, 2025. This move is part of the company’s ongoing efforts to enhance its financial flexibility and market presence, potentially impacting its operational capabilities and offering new opportunities for stakeholders.

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 as of May 12, 2025. This change in holdings involves the sale and purchase of securities by JPMorgan Chase Bank, N.A. and J.P. Morgan Securities Australia Limited, impacting their voting securities in the company. The announcement signifies a shift in the financial positioning of Megaport’s stakeholders, potentially affecting investor confidence and market perception.

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 Acquires Substantial Stake in Megaport

JPMorgan Chase & Co. and its affiliates have become a substantial holder in Megaport Ltd, acquiring a 5.20% voting power through various securities transactions. This development indicates a significant investment by JPMorgan in Megaport, potentially influencing the company’s strategic direction and market perception.

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.

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.