ME Group International (MEGP) AI Stock Analysis

• Market Cap: £540.14M
• Dividend Yield: 4.7%
• Average Volume (3M): 376.85K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.66
• Revenue Growth: 2.34%
• EPS Growth: 8.14%
• Country: UK
• Employees: 1,127
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.07
• Shares Outstanding: 377,723,330
• 10 Day Avg. Volume: 392,899
• 30 Day Avg. Volume: 376,846
• PEG Ratio: 1.92
• Price to Book (P/B): 4.45
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 24.58
• 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: £220.00
• Price Target Upside: 50.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 190.00p ▲(29.96% Upside)

ME Group International's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's robust revenue and profit growth, along with a stable balance sheet, contribute positively to its score. However, the current downtrend in stock price and oversold technical conditions present a risk. The low P/E ratio and high dividend yield enhance its valuation appeal, but investors should be cautious of the current market momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and adapt to evolving customer needs, supporting long-term business sustainability.

Operational Efficiency

High EBIT and EBITDA margins reflect effective cost management and operational efficiency, which enhance profitability and competitive positioning over time.

Balance Sheet Health

A strong balance sheet with moderate leverage and solid equity position provides financial stability and flexibility for future growth initiatives.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to fund new projects and investments, potentially impacting future expansion and innovation.

Cash Flow Conversion

Lower conversion of earnings into cash may indicate inefficiencies in cash management, affecting liquidity and the ability to reinvest in business operations.

Stock Price Downtrend

A prolonged stock price downtrend can impact investor confidence and may reflect underlying challenges in market perception or operational performance.

ME Group International Business Overview & Revenue Model

Company Description

ME Group International plc operates, sells, and services a range of instant-service equipment in the United Kingdom, Continental Europe, Ireland, and Asia. The company operates coin-operated automatic photobooths for identification and fun purposes, as well as vending equipment, including digital photo kiosks, laundry machines, business service equipment, amusement machines, and children's rides. As of October 31, 2021, it had 27,867 photobooths and 43,817 vending units. The company was formerly known as Photo-Me International plc and changed its name to ME Group International plc in August 2022. ME Group International plc was incorporated in 1962 and is based in Epsom, the United Kingdom.

How the Company Makes Money

ME Group International generates revenue through multiple streams, including the sale of its core products and services in the technology and manufacturing sectors. The company capitalizes on its expertise in developing advanced technology solutions, which are marketed to both individual consumers and businesses. Additionally, MEGP earns income from long-term contracts and partnerships with key industry players, enabling it to secure stable revenue. The company also explores strategic alliances and joint ventures to expand its market reach and enhance its product offerings, further contributing to its financial growth.

ME Group International Financial Statement Overview

Summary

ME Group International displays robust financial health with consistent revenue and profit growth, efficient operational management, and a stable balance sheet. While cash flow slightly decreased, the company maintains strong cash generation capabilities. The financial statements reflect a well-managed company with a positive outlook in the industrial goods sector.

Income Statement

ME Group International shows strong revenue growth with a 3.43% increase from 2023 to 2024. Gross profit margin remains robust at 35.57%, indicating efficient cost management. Net profit margin is healthy at 17.57%, showing profitability. The EBIT margin at 24.16% and EBITDA margin at 37.64% demonstrate operational efficiency and strong earnings before interest and taxes. Overall, the company has consistently improved its revenue and profitability over the years, reflecting solid financial performance.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.33, indicating a moderate level of leverage. Return on Equity (ROE) is strong at 30.07%, showing effective use of equity. The equity ratio of 57.53% highlights a solid equity position relative to total assets, providing stability. The balance sheet reflects a healthy financial structure, though there is room for improvement in reducing liabilities further.

Cash Flow

Operating cash flow to net income ratio is 1.61, indicating strong cash flow generation relative to net income. Free cash flow to net income ratio is 0.60, showing effective conversion of earnings into cash. Free cash flow growth rate from 2023 to 2024 is -3.37%, reflecting a slight decline but overall cash flow remains strong and supports operational and capital expenditure needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	311.32M	307.89M	297.66M	259.78M	214.40M	186.38M
Gross Profit	115.15M	109.49M	102.64M	81.56M	35.87M	22.16M
EBITDA	117.01M	115.87M	107.94M	94.34M	63.17M	28.10M
Net Income	57.06M	54.09M	50.67M	38.79M	21.71M	-24.80M
Balance Sheet
Total Assets	322.64M	312.64M	332.52M	326.37M	272.94M	261.73M
Cash, Cash Equivalents and Short-Term Investments	74.93M	86.15M	111.09M	136.19M	99.36M	107.18M
Total Debt	48.45M	59.76M	90.51M	118.09M	80.94M	95.45M
Total Liabilities	127.43M	132.77M	173.53M	193.72M	143.25M	147.86M
Stockholders Equity	195.22M	179.87M	158.99M	132.65M	127.97M	112.18M
Cash Flow
Free Cash Flow	38.83M	32.55M	33.69M	42.23M	27.49M	38.98M
Operating Cash Flow	92.93M	87.17M	83.33M	74.90M	53.87M	86.08M
Investing Cash Flow	-45.88M	-47.57M	-52.68M	-31.13M	-33.91M	-46.20M
Financing Cash Flow	-56.89M	-60.67M	-56.95M	-7.50M	-21.85M	-18.30M

ME Group International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 146.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MEGP, the sentiment is Negative. The current price of 146.2 is below the 20-day moving average (MA) of 152.70, below the 50-day MA of 160.10, and below the 200-day MA of 189.23, indicating a bearish trend. The MACD of -4.02 indicates Positive momentum. The RSI at 29.66 is Positive, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MEGP.

ME Group International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JSG	80 Outperform	£515.04M	15.39	12.46%	3.18%	6.55%	18.44%
GFRD	71 Outperform	£529.61M	15.68	27.48%	3.65%	5.78%	-6.80%
JHD	70 Neutral	£581.69M	14.17	22.36%	5.91%	-4.70%	-2.21%
MEGP	67 Neutral	£540.14M	9.41	31.56%	4.70%	2.34%	8.14%
MGAM	67 Neutral	£634.03M	23.08	8.04%	4.87%	-7.30%	-59.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AVON	53 Neutral	£579.21M	74.24	6.27%	1.02%	10.74%	237.07%

ME Group International Corporate Events

ME Group Ends Offer Period, Focuses on Core Growth

ME Group International announced the termination of its offer period after failing to receive a satisfactory offer from potential buyers, following its strategic review aimed at enhancing shareholder value. Despite this, the company remains focused on its long-term strategy to grow its core laundry and photobooth operations, with expected record profitability and strong financial performance for the year ending October 2025.

The most recent analyst rating on (GB:MEGP) stock is a Hold with a £190.00 price target. To see the full list of analyst forecasts on ME Group International stock, see the GB:MEGP Stock Forecast page.

ME Group International Reports Strong Growth Driven by Laundry Operations

ME Group International has announced a trading update for the fiscal year ending October 2025, highlighting strong financial performance driven by its Wash.ME laundry operations, which saw double-digit revenue growth. Despite challenges such as warm weather affecting demand and regulatory changes in Germany impacting photo booth revenues, the company installed a record number of laundry machines and continued its rollout of next-generation photobooths. The Group is exploring strategic options to enhance shareholder value and remains focused on its core laundry and photobooth activities, positioning itself for continued growth despite economic uncertainties.

The most recent analyst rating on (GB:MEGP) stock is a Buy with a £212.00 price target. To see the full list of analyst forecasts on ME Group International stock, see the GB:MEGP Stock Forecast page.

ME Group International to Release Trading Update for FY 2025

ME Group International plc has announced that it will release a trading update for the fiscal year ending 31 October 2025 on 7 November 2025. This announcement is significant as it provides stakeholders with insights into the company’s operational performance and strategic positioning in the automated self-service equipment industry. The update is expected to reflect the company’s ongoing innovation and diversification efforts, as well as its established partnerships and contracts in high-traffic locations.

The most recent analyst rating on (GB:MEGP) stock is a Buy with a £212.00 price target. To see the full list of analyst forecasts on ME Group International stock, see the GB:MEGP Stock Forecast page.