MCS Services Limited (MSG) AI Stock Analysis

• Market Cap: AU$1.39M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: N/A
• EPS Growth: 51.22%
• Country: AU
• Employees: 642
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): <0.01
• Shares Outstanding: 198,099,660
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.00
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.68
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: AU$0.01 ▲(10.00% Upside)

The score is primarily held down by weak financial performance—recent losses and 2025’s zero reported revenue—despite improved cash flow and low reported leverage. Valuation signals are also pressured because the negative P/E reflects loss-making operations, while technical and earnings-call/event inputs are not available to offset the fundamental risk.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates enhanced operational efficiency and financial stability, providing a stronger foundation for future growth.

Debt Management

Zero debt and positive equity reduce financial risk, allowing the company to focus on strategic investments without the burden of debt.

Strategic Asset Sale

The strategic sale of non-core assets can streamline operations and improve financial health, enabling focus on core business areas.

Negative Factors

Revenue Decline

Zero revenue raises concerns about the company's ability to sustain operations and maintain market presence, impacting long-term viability.

Eroding Equity

Eroding equity and negative ROE indicate declining shareholder value and financial instability, challenging future capital raising efforts.

Volatile Cash Flow

Volatile cash flow and inability to cover losses suggest financial unpredictability, complicating long-term strategic planning.

MCS Services Limited Business Overview & Revenue Model

Company Description

MCS Services Limited, together with its subsidiaries, provides security services in Australia. The company also provides security alarm and CCTV systems tailored for business or home, as well as loss prevention solutions It serves various industries, such as retail, event, educational, marine, industrial, healthcare. The company was founded in 2005 and is headquartered in Joondalup, Australia.

How the Company Makes Money

MCS Services Limited makes money through the provision of security services and solutions. The primary revenue streams include the deployment of security personnel, which involves staffing client locations with trained security guards for access control, surveillance, and safety management. Additional income is generated from mobile patrol services, providing regular security checks and responses to alarms. The company also earns revenue from alarm monitoring services, where it offers 24/7 monitoring of security systems for clients. Furthermore, MCS Services Limited installs and maintains electronic security systems, such as CCTV and alarm systems, which contribute to its revenue. Significant partnerships with corporate and government clients enhance its revenue opportunities, leveraging long-term contracts and repeat business.

MCS Services Limited Financial Statement Overview

Summary

MCS Services Limited is facing severe financial difficulties, characterized by declining revenues, persistent losses, and negative cash flows. While the company has reduced its debt, its overall financial health remains precarious, with significant challenges in profitability and cash generation. The current trajectory suggests the need for strategic realignment to stabilize operations and improve financial performance.

Income Statement

The company has faced significant challenges in recent years, with a marked decline in total revenue from AUD 43.8M in 2022 to AUD 0.538M in 2024, indicating a sharp downturn in business operations. The net profit margin is negative, with net income also deeply in the red at AUD -812K for 2024, suggesting operational inefficiencies and a struggle to maintain profitability. Additionally, the company has consistently reported negative EBIT and EBITDA margins, pointing to ongoing operational and financial challenges.

Balance Sheet

The balance sheet shows a weakening position, with stockholders' equity declining from AUD 3.78M in 2022 to AUD 1.53M in 2024. The company has managed to reduce its total debt to zero, which is a positive aspect, but the equity ratio has decreased, indicating a lower proportion of assets financed by equity. Return on equity is significantly negative due to the negative net income, further highlighting the company's financial distress.

Cash Flow

Free cash flow has been consistently negative, with a substantial decrease in operating cash flow from AUD -177K in 2022 to AUD -247K in 2024. This trend highlights liquidity issues and poor cash generation from core business activities. The operating cash flow to net income ratio is unfavorable, indicating the company's inability to translate earnings into cash flow effectively.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	538.00K	38.65M	43.80M	38.08M
Gross Profit	-179.00	0.00	-538.00K	5.46M	6.82M	6.84M
EBITDA	-279.21K	-37.00K	1.31M	-1.40M	1.49M	2.11M
Net Income	-396.17K	-396.00K	-812.00K	-1.88M	1.07M	1.55M
Balance Sheet
Total Assets	4.12M	4.12M	4.93M	11.27M	8.89M	8.14M
Cash, Cash Equivalents and Short-Term Investments	94.00K	94.00K	712.00K	1.85M	3.89M	4.61M
Total Debt	0.00	0.00	0.00	3.00M	224.00K	275.00K
Total Liabilities	2.98M	2.98M	3.41M	8.92M	5.11M	5.45M
Stockholders Equity	1.14M	1.14M	1.53M	2.35M	3.78M	2.69M
Cash Flow
Free Cash Flow	656.97K	706.00K	-694.00K	-1.59M	-432.00K	2.73M
Operating Cash Flow	711.97K	761.00K	-247.00K	-1.25M	-177.00K	2.87M
Investing Cash Flow	161.00K	86.00K	1.49M	-3.50M	-491.00K	-189.00K
Financing Cash Flow	-111.00K	-111.00K	-2.14M	2.71M	-53.00K	-146.00K

MCS Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AVA	53 Neutral	AU$24.45M	-3.78	-25.77%	―	4.84%	-12.12%
PKD	52 Neutral	AU$4.97M	-50.00	-599.49%	―	254.91%	75.86%
IMB	48 Neutral	AU$310.92M	-11.63	-73.85%	―	43.58%	-357.04%
MSG	45 Neutral	AU$1.39M	-5.50	-61.10%	―	―	51.22%
DTI	45 Neutral	AU$8.94M	-2.78	-39.15%	―	11.15%	26.53%
SCT	36 Underperform	AU$1.63M	-0.72	―	―	-12.49%	51.70%

MCS Services Limited Corporate Events

MCS Services Ltd Successfully Passes All Resolutions at 2025 AGM

MCS Services Limited announced that all resolutions from its 2025 Annual General Meeting were passed, including the adoption of the remuneration report, the re-election of Paul Simmons as a director, and the approval of an additional 10% placement capacity. This outcome reflects strong shareholder support and positions the company to continue its focus on traffic management services for infrastructure projects.

MCS Services Ltd Announces Sale of Traffic Division to Altus Traffic

MCS Services Limited announced at its 2025 Annual General Meeting that it has agreed to sell its traffic division, Highways Traffic (HWT), to Altus Traffic Pty Ltd, pending shareholder approval. This strategic move aims to consolidate the company’s financial position, allowing it to settle outstanding debts and maintain a healthy balance sheet. The company is exploring future strategic directions, including potential mergers or acquisitions, to maximize shareholder returns. If the sale is not completed within a six-month moratorium, MCS’s securities may be suspended, but the company remains committed to providing fair returns to its investors.

MCS Services to Sell Highways Traffic Subsidiary to Altus Traffic

MCS Services Limited has entered into an agreement to sell its Highways Traffic Pty Ltd subsidiary to Altus Traffic Pty Ltd for $1.4 million, pending shareholder approval. This strategic decision follows the sale of its larger MCS Security subsidiary and is driven by the limited scale and profitability of Highways Traffic, as well as the competitive landscape and regulatory costs. Altus, a leading traffic management company in Australia and New Zealand, is expected to integrate Highways Traffic effectively, leveraging its extensive resources and experience in acquisitions.

MCS Services Limited Announces 2025 Annual General Meeting

MCS Services Limited has announced its 2025 Annual General Meeting, scheduled for November 28, 2025, in West Perth, Australia. Shareholders are encouraged to participate either in person or by proxy vote, with all voting conducted by poll. The company is promoting electronic communication to enhance environmental sustainability and efficiency, urging shareholders to update their communication preferences online.

MCS Services Limited Reports Q3 2025 Financial Activities

MCS Services Limited reported its activities and cash flow for the quarter ending September 30, 2025, showing cash and net receivables totaling $1.24 million. The report highlights a decrease in cash from the previous quarter and outlines cash flow movements across operating, investing, and financing activities, indicating a net cash outflow, which may impact the company’s operational liquidity and financial strategy.

MCS Services Ltd Announces AGM Date and Director Nominations

MCS Services Ltd, listed on the ASX under the ticker MSG, has announced that its Annual General Meeting will be held on November 28, 2025. A key agenda item for the meeting is the re-election and appointment of directors, with nominations closing on October 17, 2025. This announcement could impact the company’s governance structure and strategic direction.