ME Group International (MEGP) AI Stock Analysis

• Market Cap: £802.70M
• Dividend Yield: 3.75%
• Average Volume (3M): 305.55K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.72
• Revenue Growth: 3.43%
• EPS Growth: 7.24%
• Country: UK
• Employees: 1,127
• Sector: Industrials
• Sector Strength: 90
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.14
• Shares Outstanding: 376,853,760
• 10 Day Avg. Volume: 282,714
• 30 Day Avg. Volume: 305,552
• PEG Ratio: 1.77
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.02
• 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: £235.00
• Price Target Upside: 10.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ―

ME Group International receives a strong overall stock score due to its robust financial performance, highlighted by consistent revenue and profit growth, efficient cost management, and strategic advancements. The valuation is reasonable and offers an attractive dividend yield. Positive corporate events further support the growth outlook, while technical analysis presents mixed signals but does not detract significantly from the stock's attractiveness.

ME Group International Business Overview & Revenue Model

Company Description

ME Group International (MEGP) is a leading company that specializes in the provision of instant-service equipment. The company operates across various sectors, including photobooths, laundry units, and other self-service machines that cater to consumer needs for convenience and efficiency. Its core products and services focus on delivering automated solutions that enhance users' experiences in everyday tasks.

How the Company Makes Money

ME Group International (MEGP) primarily generates revenue through the deployment and operation of its self-service machines, which include photobooths, laundry units, and other automated kiosks. These machines are strategically placed in high-traffic areas where they can attract a significant number of users. The company earns money by charging consumers for each use of these machines, thus ensuring a steady stream of income. Additionally, MEGP may enter into partnerships or agreements with commercial property owners to place machines in desirable locations, which can also contribute to revenue through shared earnings or leasing arrangements. The company's focus on maintaining and updating its machines ensures a high level of service, encouraging repeat use and customer satisfaction.

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
304.19M	307.89M	297.66M	259.78M	214.40M	186.38M
	Gross Profit
105.51M	109.49M	102.64M	81.56M	35.87M	22.16M
	EBIT
70.23M	74.39M	67.50M	56.83M	7.20M	-25.88M
	EBITDA
112.19M	115.87M	107.94M	94.34M	36.04M	28.10M
	Net Income Common Stockholders
52.90M	54.09M	50.67M	38.79M	21.71M	-24.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
84.79M	86.15M	111.09M	136.19M	99.36M	107.18M
	Total Assets
292.11M	312.64M	332.52M	326.37M	272.94M	261.73M
	Total Debt
76.64M	59.76M	90.51M	118.09M	80.94M	95.45M
	Net Debt
-8.15M	-26.38M	-20.58M	-18.10M	-18.43M	-11.72M
	Total Liabilities
157.70M	132.77M	173.53M	193.72M	143.25M	147.86M
	Stockholders Equity
132.80M	179.87M	158.99M	132.65M	127.97M	112.18M
Cash Flow		Free Cash Flow
34.35M	32.55M	33.69M	42.23M	27.49M	38.98M
	Operating Cash Flow
88.46M	87.17M	83.33M	74.90M	53.87M	86.08M
	Investing Cash Flow
-58.08M	-47.57M	-52.68M	-31.13M	-33.91M	-46.20M
	Financing Cash Flow
-58.34M	-60.67M	-56.95M	-7.50M	-21.85M	-18.30M

ME Group International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 212.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 212.5 is above the 20-day moving average (MA) of 206.11, above the 50-day MA of 192.57, and above the 200-day MA of 198.14, indicating a bullish trend. The MACD of 5.13 indicates Positive momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.48 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	79 Outperform	£802.70M	14.83	31.92%	3.75%	3.43%	7.24%
JSG	78 Outperform	£587.92M	16.69	12.12%	2.81%	10.34%	33.59%
STEM	68 Neutral	£286.71M	6.08	21.08%	7.25%	-10.24%	-11.60%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
HAS	64 Neutral	£1.18B	―	-2.60%	4.18%	-6.95%	-117.14%
PAGE	61 Neutral	£852.72M	29.80	10.00%	6.04%	-13.50%	-62.86%
RWA	56 Neutral	£149.95M	29.69	-3.96%	10.83%	-16.16%	-145.46%

ME Group International Corporate Events

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.

ME Group International Announces Change in Voting Rights Structure

ME Group International PLC, a UK-based company, has announced a significant change in its voting rights structure due to an acquisition or disposal of shares by FMR LLC, a Boston-based entity. As of February 28, 2025, FMR LLC holds 6.4191% of the voting rights in ME Group International, a change that was officially notified on March 4, 2025. This adjustment in shareholding could influence the company’s governance and strategic decisions, impacting stakeholders and potentially altering its market position.

abrdn plc Increases Stake in ME Group International PLC

ME Group International PLC, a UK-based company, has announced a significant change in its shareholder voting rights. The investment management entities affiliated with abrdn plc have increased their voting rights in ME Group International PLC to 6.41% following a secondary placing of ordinary shares. This change reflects a strategic move by abrdn plc, as their voting rights have surpassed the 5% notifiable threshold, indicating a strengthened position in the company.

ME Group International Announces Current Share Capital and Voting Rights

ME Group International has announced its current issued share capital, consisting of 376,828,753 ordinary shares, which equates to the total number of voting rights in the company. This information is crucial for shareholders to determine their interest or changes in interest under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they engage with the company’s governance.

ME Group International Sees Major Shift in Voting Rights

ME Group International PLC has announced a significant change in its voting rights structure. FPCI Montefiore Investment IV, based in Paris, France, has reduced its stake from 12.011% to 5.004% of the voting rights in the company. This adjustment in holdings reflects a strategic realignment by Montefiore Investment, which could impact ME Group International’s governance and influence within the market.

ME Group International PLC Announces Change in Major Holdings

ME Group International PLC, a UK-based company, has announced a change in its major holdings. The notification details an acquisition or disposal of voting rights by abrdn plc affiliated investment management entities, which now hold 5.006376% of the voting rights in ME Group International PLC. This change in holdings could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and market positioning.

ME Group Reports Record Profitability and Strategic Progress in 2024

ME Group International PLC reported another record year of profitability for the fiscal year ending 31 October 2024, driven by a 3.4% increase in revenue, primarily from the expansion of its laundry services, and significant margin improvements. The company successfully executed its Wash.ME growth strategy, resulting in a 19.1% increase in laundry vending revenue and the installation of a record number of laundry machines. The launch of the Kee.ME automated key-cutting service underscores ME Group’s commitment to innovation. Despite foreign exchange headwinds, the company remains highly cash generative and returned cash to shareholders with a 6.8% increase in total dividends. ME Group’s strong financial performance and strategic advancements position it for continued growth and long-term success.