Megaport (MP1) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: N/A
• Average Volume (3M): 613.04K
• Price to Earnings (P/E): 390.5
• Beta (1Y): 1.51
• Revenue Growth: 16.28%
• EPS Growth: -102.98%
• Country: AU
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 161,811,370
• 10 Day Avg. Volume: 441,780
• 30 Day Avg. Volume: 613,037
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 9.87
• Enterprise Value/Gross Profit: 25.91
• Enterprise Value/Ebitda: 53.39
• 1Y Price Target: $15.46
• Price Target Upside: 6.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 53 Neutral
• Price Target: AU$15.00 ▲(3.45% Upside)

Megaport's overall stock score is primarily influenced by its solid revenue growth and strong gross profit margin, which are offset by significant challenges in profitability and cash flow conversion. The technical analysis shows a mixed picture with some positive trends but lacks strong momentum. Valuation is a major concern due to the extremely negative P/E ratio and lack of dividend yield, indicating potential risks for investors.

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 shows strong revenue growth and a high gross profit margin, but struggles with profitability and cash flow conversion. The balance sheet is stable with low leverage, but the negative return on equity indicates inefficiencies in generating shareholder returns.

Income Statement

Megaport has shown a consistent revenue growth trajectory, with a 9.74% increase in the latest year. The gross profit margin is strong at 83.05%, indicating effective cost management. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -0.13% and a negative EBIT margin. The EBITDA margin remains positive at 19.34%, suggesting some operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.16, indicating a conservative leverage approach. However, the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio stands at 68.66%, showing a solid equity base relative to total assets.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 1.19, indicating sufficient cash generation to cover net income. However, free cash flow has declined by 20.09%, and the free cash flow to net income ratio is below 1, suggesting potential issues in converting earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	227.06M	227.06M	195.27M	153.08M	109.73M	78.28M
Gross Profit	86.54M	188.56M	158.86M	6.10M	-20.42M	-22.77M
EBITDA	41.98M	43.92M	40.39M	28.79M	-6.32M	-36.69M
Net Income	-292.00K	-292.00K	9.61M	-9.77M	-48.49M	-55.00M
Balance Sheet
Total Assets	260.20M	260.20M	214.70M	202.23M	220.38M	220.56M
Cash, Cash Equivalents and Short-Term Investments	102.07M	102.07M	72.43M	48.45M	82.55M	136.31M
Total Debt	28.30M	28.30M	15.79M	19.96M	27.27M	15.76M
Total Liabilities	81.52M	81.52M	60.62M	74.30M	78.14M	40.15M
Stockholders Equity	178.69M	178.69M	154.08M	127.93M	142.25M	180.41M
Cash Flow
Free Cash Flow	45.73M	33.95M	30.32M	-24.57M	-49.71M	-30.79M
Operating Cash Flow	67.22M	68.25M	50.17M	8.23M	-9.83M	-8.29M
Investing Cash Flow	-34.29M	-34.29M	-19.85M	-32.73M	-50.26M	-22.44M
Financing Cash Flow	-4.40M	-6.03M	-7.43M	-10.40M	5.87M	4.87M

Megaport Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MP1, the sentiment is Neutral. The current price of 14.5 is below the 20-day moving average (MA) of 15.47, below the 50-day MA of 15.22, and above the 200-day MA of 12.35, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of 16.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:MP1.

Megaport Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
B4P	67 Neutral	AU$112.87M	16.24	19.30%	―	13.74%	70.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TYR	60 Neutral	AU$584.71M	32.60	8.20%	―	1.06%	-30.96%
SEN	54 Neutral	AU$48.02M	1.55	-64.51%	―	-38.38%	-277.78%
MP1	53 Neutral	$2.35B	390.50	-0.15%	―	16.28%	-102.98%
FCT	42 Neutral	AU$22.79M	―	-54.62%	―	-22.47%	39.26%
NNG	35 Underperform	AU$4.05M	―	―	―	-50.39%	-74.68%

Megaport Corporate Events

Megaport Limited Announces Cessation of Restricted Stock Units

Megaport Limited announced the cessation of 32,780 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 regarding the company’s equity management and strategic financial decisions.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.50 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Announces Director’s Interest Change

Megaport Limited announced a change in the director’s interest, specifically involving Michael Reid. The change pertains to the lapse of 2,301 performance restricted stock units (PRSUs) that were due to vest on September 1, 2025, as the conditions for vesting were not met. This adjustment reflects the company’s adherence to its Restricted Stock Unit program and shareholder-approved plans, potentially impacting the director’s stake and signaling the company’s commitment to performance-based incentives.

The most recent analyst rating on (AU:MP1) stock is a Hold with a A$15.50 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

Megaport Limited has announced the quotation of 870,034 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of September 3, 2025. This move is part of the company’s strategy to enhance its financial flexibility and potentially expand its market presence, offering stakeholders an opportunity to engage with the company’s growth trajectory.

The most recent analyst rating on (AU:MP1) stock is a Buy with a A$16.77 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.

Megaport Issues Restricted Stock Units to Boost Employee Incentives

Megaport Limited announced the issuance of 372,869 restricted stock units under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market positioning by aligning employee interests with company performance.

The most recent analyst rating on (AU:MP1) stock is a Buy with a A$16.77 price target. To see the full list of analyst forecasts on Megaport stock, see the AU:MP1 Stock Forecast page.