ME Group International (MEGP) AI Stock Analysis

• Market Cap: £806.99M
• Dividend Yield: 4.16%
• Average Volume (3M): 301.57K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.75
• Revenue Growth: 3.43%
• EPS Growth: 7.24%
• Country: UK
• Employees: 1,127
• Sector: Industrials
• Sector Strength: 83
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.14
• Shares Outstanding: 377,098,330
• 10 Day Avg. Volume: 234,413
• 30 Day Avg. Volume: 301,571
• PEG Ratio: 0.12
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.31
• 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: £305.00
• Price Target Upside: 32.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: 253.00p ▲(10.00%Upside)

ME Group International's strong financial performance and bullish technical indicators are the primary drivers of its high score. The company's stable valuation and positive corporate events further support a positive outlook. The absence of earnings call data did not impact the score.

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 the deployment and operation of its self-service equipment, such as photo booths, laundry machines, and amusement devices. The company's primary revenue stream comes from the fees charged for using these machines, which are strategically placed in high-traffic areas like shopping malls, transport hubs, and supermarkets. Additionally, ME Group International may engage in partnerships with retail and commercial entities to expand its machine placements and increase transaction volumes. The company also benefits from the sale and lease of its equipment to third-party operators, diversifying its income sources beyond direct consumer transactions.

ME Group International Financial Statement Overview

Summary

ME Group International demonstrates robust financial health with consistent revenue and profit growth, efficient operational management, and a stable balance sheet. The slight decline in cash flow growth does not overshadow the strong cash generation capabilities, reflecting a well-managed company with a positive outlook.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
307.89M	297.66M	259.78M	214.40M	186.38M
	Gross Profit
109.49M	102.64M	81.56M	35.87M	22.16M
	EBIT
74.39M	67.50M	56.83M	7.20M	-25.88M
	EBITDA
115.87M	107.94M	94.34M	36.04M	28.10M
	Net Income Common Stockholders
54.09M	50.67M	38.79M	21.71M	-24.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.15M	111.09M	136.19M	99.36M	107.18M
	Total Assets
312.64M	332.52M	326.37M	272.94M	261.73M
	Total Debt
59.76M	90.51M	118.09M	80.94M	95.45M
	Net Debt
-26.38M	-20.58M	-18.10M	-18.43M	-11.72M
	Total Liabilities
132.77M	173.53M	193.72M	143.25M	147.86M
	Stockholders Equity
179.87M	158.99M	132.65M	127.97M	112.18M
Cash Flow		Free Cash Flow
32.55M	33.69M	42.23M	27.49M	38.98M
	Operating Cash Flow
87.17M	83.33M	74.90M	53.87M	86.08M
	Investing Cash Flow
-47.57M	-52.68M	-31.13M	-33.91M	-46.20M
	Financing Cash Flow
-60.67M	-56.95M	-7.50M	-21.85M	-18.30M

ME Group International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.00
• 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 GB:MEGP, the sentiment is Positive. The current price of 230 is above the 20-day moving average (MA) of 214.43, above the 50-day MA of 203.09, and above the 200-day MA of 200.82, indicating a bullish trend. The MACD of 3.33 indicates Negative momentum. The RSI at 67.41 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MEGP.

ME Group International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEGP	81 Outperform	£806.99M	14.90	31.92%	4.16%	3.43%	7.24%
JSG	78 Outperform	£578.14M	16.58	12.12%	3.79%	10.34%	33.59%
STEM	74 Outperform	£300.57M	6.37	21.08%	5.68%	-10.24%	-11.60%
PAGE	68 Neutral	£869.78M	30.40	10.00%	8.53%	-13.50%	-62.86%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
RWA	56 Neutral	£142.42M	29.69	-3.96%	12.11%	-16.16%	-145.46%
HAS	53 Neutral	£1.13B	―	-2.60%	0.03%	-6.95%	-117.14%

ME Group International Corporate Events

ME Group International Explores Strategic Options Amid Share Price Movements

ME Group International, a company currently experiencing share price movement and media speculation, is exploring strategic options to enhance shareholder value, including the possibility of seeking potential offerors for the company. While no firm offers have been received, the company is in an ‘offer period’ as defined by the Takeover Code, indicating potential changes in its market positioning and implications for stakeholders.

The most recent analyst rating on (GB:MEGP) stock is a Buy with a £235.00 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 Strengthens Board with New Appointments

ME Group International plc has announced two significant appointments to its Board of Directors. Vladimir Crasneanscki has been appointed as an Executive Director, continuing his responsibilities in managing UK operations and investor relations, while Gregory Barker, Lord Barker of Battle, joins as an independent Non-executive Director. These appointments are expected to enhance the Board’s skillset and experience, supporting the company’s growth strategy.

The most recent analyst rating on (GB:MEGP) stock is a Buy with a £235.00 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 Updates Share Capital and Voting Rights

ME Group International PLC announced that its issued share capital consists of 377,098,336 ordinary shares, with an equal number of voting rights. This update, in line with the FCA’s Disclosure Guidance and Transparency Rules, informs shareholders about the denominator for calculating their interest in the company. The announcement underscores the company’s commitment to transparency and regulatory compliance, potentially impacting shareholder engagement and market perception.

The most recent analyst rating on (GB:MEGP) stock is a Buy with a £235.00 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 Achieves Record Profitability in H1 2025

ME Group International has reported record profitability for the first half of 2025, driven by strong performance in its laundry business, with profits before tax up 14% and revenue up 2%. The Group’s laundry operations saw a 13.3% increase in revenue, supported by the installation of 550 new machines, while photobooth revenue declined due to a technical issue that has since been resolved. The company completed a strategic acquisition in Belgium, adding 116 profitable photobooths to its portfolio. With a strong financial position and a focus on expanding its core activities, ME Group is poised for continued growth despite challenging global markets.

The most recent analyst rating on (GB:MEGP) stock is a Buy with a £235.00 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 H1 2025

ME Group International plc announced that it will release a trading update for the six months ending April 30, 2025, on June 2, 2025. This update is anticipated to provide insights into the company’s operational performance and strategic positioning in the automated self-service equipment market. The announcement is significant for stakeholders as it may impact perceptions of the company’s growth and market strategy.

The most recent analyst rating on (GB:MEGP) stock is a Buy with a £235.00 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 Announces Share Capital and Voting Rights Update

ME Group International has announced that its issued share capital consists of 376,853,753 ordinary shares, with an equivalent number of voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s rules. The company does not hold any shares in treasury, indicating all shares are available for trading, which may impact shareholder decisions and market activity.

ME Group International Successfully Concludes 2025 AGM with All Resolutions Passed

ME Group International held its 2025 Annual General Meeting, where all proposed resolutions were passed. Key decisions included the approval of the directors’ remuneration report, a final dividend, and the re-election of board members. The meeting also authorized directors to allot shares and make market purchases, indicating strategic flexibility for future growth.