Mercantile Ports and Logistics (MPL) AI Stock Analysis

• Market Cap: £3.12M
• Dividend Yield: N/A
• Average Volume (3M): 150.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -20.32%
• EPS Growth: 68.59%
• Country: UK
• Employees: 45
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): -0.04
• Shares Outstanding: 356,312,680
• 10 Day Avg. Volume: 261,429
• 30 Day Avg. Volume: 150,854
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1.50
• Price Target Upside: 63.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: 1.50p ▲(63.04% Upside)

Mercantile Ports and Logistics faces significant financial and valuation challenges, with negative earnings and strained cash flow. Technical analysis offers a slightly more positive outlook, with some longer-term support levels. However, the overall financial instability and lack of earnings visibility weigh heavily on the stock's attractiveness.

Positive Factors

Strategic Location

MPL's strategic location near major trade routes enhances its ability to attract global shipping clients, providing a competitive edge in logistics and port services.

Long-term Contracts

Long-term contracts with shipping companies ensure a steady income flow, contributing to revenue stability and financial predictability over time.

Equity Financing Stability

A stable equity ratio indicates that MPL is financed by equity rather than debt, providing financial cushioning and reducing risk from leverage.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market share and competitiveness, potentially impacting long-term growth and profitability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies, which can hinder the company's ability to invest in growth and innovation.

Rising Leverage

Increasing leverage poses financial risks, as higher debt levels can strain cash flow and limit the company's financial flexibility.

Mercantile Ports and Logistics Business Overview & Revenue Model

Company Description

Mercantile Ports and Logistics (MPL) is a leading provider of integrated logistics and port services, primarily operating in the shipping and trade sectors. The company specializes in offering a comprehensive range of services, including cargo handling, warehousing, and transportation management, aimed at facilitating the movement of goods through its strategically located ports. MPL focuses on optimizing supply chain efficiency and providing innovative logistics solutions to its clients, which encompass a diverse array of industries such as retail, manufacturing, and agriculture.

How the Company Makes Money

MPL generates revenue through multiple streams, primarily by charging fees for its port and logistics services. Key revenue streams include cargo handling fees, storage and warehousing charges, and transportation management services. Additionally, MPL may enter into long-term contracts with shipping companies and freight forwarders, ensuring a steady income flow. The company also capitalizes on partnerships with local and international businesses, enhancing its service offerings and market reach. Factors contributing to MPL's earnings include its strategic location near major trade routes, investment in advanced logistics technology, and a strong reputation for reliability and efficiency in the supply chain sector.

Mercantile Ports and Logistics Financial Statement Overview

Summary

Mercantile Ports and Logistics faces significant financial challenges. The income statement reflects persistent losses and declining revenues. The balance sheet shows increasing leverage, though equity financing is stable. Cash flow is strained with negative free cash flow growth, indicating inefficiencies in cash generation.

Income Statement

Mercantile Ports and Logistics has faced significant challenges on the income statement front. The gross profit margin has been inconsistent, with recent figures showing a decline. Notably, the net profit margin is negative due to persistent losses. The revenue growth rate has fluctuated, and recent years have seen declining revenues. Both EBIT and EBITDA margins are negative, indicating operational inefficiencies and difficulties in covering operating expenses.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio has been increasing, indicating rising leverage which could pose financial risks. The return on equity is negative, reflecting operational losses against shareholder equity. However, the equity ratio remains relatively stable, suggesting a reasonable proportion of the company is financed by equity rather than debt. This stability offers some financial cushioning.

Cash Flow

Cash flow analysis shows some areas of concern. The free cash flow growth rate has been negative, indicating challenges in generating cash surplus. However, the operating cash flow to net income ratio suggests some improvement in cash generation relative to net losses. The free cash flow to net income ratio also highlights the difficulty in converting earnings into cash flow, partly due to the ongoing capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.35M	5.46M	4.87M	1.80M	745.00K
Gross Profit	2.02M	3.04M	3.42M	917.00K	697.00K
EBITDA	-6.64M	-9.46M	-286.00K	1.70M	-2.37M
Net Income	-18.63M	-21.22M	-9.62M	-6.02M	-6.56M
Balance Sheet
Total Assets	111.17M	127.00M	144.27M	154.62M	154.01M
Cash, Cash Equivalents and Short-Term Investments	911.00K	3.05M	389.00K	4.57M	3.90M
Total Debt	52.29M	48.86M	43.90M	43.33M	41.21M
Total Liabilities	56.66M	53.37M	52.89M	54.40M	56.34M
Stockholders Equity	54.60M	73.69M	91.40M	100.21M	97.67M
Cash Flow
Free Cash Flow	348.00K	-2.15M	-1.52M	-7.63M	-10.83M
Operating Cash Flow	348.00K	-498.00K	-92.00K	-5.52M	-2.44M
Investing Cash Flow	577.00K	-1.62M	-1.39M	-2.09M	-8.32M
Financing Cash Flow	-2.89M	3.90M	-2.78M	8.53M	125.00K

Mercantile Ports and Logistics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MPL, the sentiment is Negative. The current price of 0.92 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.40, and below the 200-day MA of 1.15, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 19.75 is Positive, neither overbought nor oversold. The STOCH value of 9.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MPL.

Mercantile Ports and Logistics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCN	78 Outperform	£346.56M	8.79	10.79%	3.51%	―	―
FSJ	73 Outperform	£175.50M	3.91	27.15%	―	-12.37%	―
BMS	71 Outperform	£77.39M	12.62	7.45%	2.76%	-7.13%	24.03%
RNO	70 Outperform	£160.97M	10.63	25.68%	0.62%	1.53%	-7.99%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
MPL	41 Neutral	£3.12M	―	-29.04%	―	-20.32%	68.59%
CKNHF	―	$1.47B	14.84	15.43%	2.96%	―	―

Mercantile Ports and Logistics Corporate Events

Mercantile Ports & Logistics Reports 2024 Results and Strategic Growth Plans

Mercantile Ports & Logistics Limited reported revenues of £4.35 million for the year ended 31 December 2024, despite facing challenges such as government elections in Maharashtra and procedural issues with regulatory clearances. The company is in advanced negotiations to resolve its debt obligations, which is expected to provide financial stability and support its growth strategy. The company plans to diversify its revenue streams and expand its service offerings, with a focus on container handling operations in the second half of 2025. Karanja Port, a key asset, received ISPS certification, enhancing its capability to handle a wider variety of cargo and vessel types. The port’s strategic positioning as an alternative logistics node to Jawaharlal Nehru Port Authority is expected to drive future growth.