MTR (0066) AI Stock Analysis

• Market Cap: HK$215.05B
• Dividend Yield: 4.35%
• Average Volume (3M): 7.37M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.51
• Revenue Growth: -0.99%
• EPS Growth: 80.58%
• Country: HK
• Employees: 31,822
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 1.44
• Shares Outstanding: 6,224,823,000
• 10 Day Avg. Volume: 4,532,962
• 30 Day Avg. Volume: 7,372,856
• PEG Ratio: 0.11
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 2.81
• P/FCF Ratio: -182.01
• 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: HK$24.00
• Price Target Upside: -20.53% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$39.00 ▲(29.14% Upside)

MTR's strong financial performance and attractive valuation are the primary drivers of its score. The stock's technical indicators suggest a strong upward trend, though caution is advised due to overbought signals. Cash flow management remains a concern, but the company's overall financial health is solid.

Positive Factors

Market position & franchise strength

MTR's dominant rail network creates a durable, high-barrier franchise with captive commuter demand and regulatory ties to city infrastructure. This entrenched market position supports stable fare revenue and long-term pricing leverage versus new entrants.

Diversified, complementary revenue streams

Revenue mix of fares plus property development and station retail reduces single-source risk. Property and leasing revenues create recurring and development upside tied to station catchments, smoothing cyclicality in transit cash flows over multi-year cycles.

Improving margins and profitability

Sustained margin expansion and rising net profits point to operational efficiency and pricing power. Healthier EBIT/EBITDA margins increase sustainable cash generation potential from core operations, supporting reinvestment and long-term returns.

Negative Factors

Negative free cash flow from heavy capex

Persistent negative FCF driven by large capital spending burdens financial flexibility. Over time this can force external financing, compress discretionary capital for growth or dividends, and increase sensitivity to interest and funding market conditions.

Reliance on cyclical property development

Material exposure to property development ties earnings to real estate cycles and regulatory shifts. Downturns or tighter property policy can sharply reduce development profits and cash receipts, amplifying revenue and cashflow volatility for the business.

Revenue growth volatility / inconsistent trend

A large negative revenue growth datapoint suggests volatile top-line performance or data inconsistency, complicating forecasting. Persistent revenue swings undermine capital allocation, raise execution risk on long-term projects, and strain stakeholder confidence.

MTR Business Overview & Revenue Model

Company Description

MTR Corporation Limited designs, constructs, operates, maintains, and invests in railways in Hong Kong, Australia, Mainland China, Macao, Sweden, and the United Kingdom. It operates through Hong Kong Transport Operations; Hong Kong Station Commercial Businesses; Hong Kong Property Rental and Management Businesses; Hong Kong Property Development; Mainland China and International Railway, Property Rental and Management Businesses; Mainland China Property Development; and Other Businesses segments. The company offers domestic and cross-boundary railway services, airport express, and a light rail and bus feeder system. It operates 266.3 kilometers of rail network; and 98 stations. The company also provides intercity railway services; leases advertising, office, retail, and car parking spaces at railway stations; offers telecommunication and bandwidth services in railway premises; provides estate management services; and invests in, develops, manages, and leases properties, including shopping malls and offices. In addition, it is involved in the construction, operation, and maintenance of mass transit railway systems. Further, it operates Octopus, a contactless smartcard common payment system; and provides railway consultancy and project management services, as well as offers railway management, engineering, and technology training services. Additionally, the company administers the operation of MTR academy; and provides station management, financing, technical support, and mobile and fixed telecommunication network and related services. It also operates cable car system and a theme village. MTR Corporation Limited was founded in 1975 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

MTR Corporation generates revenue primarily through passenger fares from its railway services, which constitute the largest portion of its income. Additionally, the company derives significant earnings from property development, benefiting from its real estate holdings near railway stations, which include residential, commercial, and retail projects. Other revenue streams include advertising, leasing of retail space in stations, and consultancy services provided to international railway projects. Strategic partnerships with government bodies and private developers further enhance its revenue potential.

MTR Financial Statement Overview

Summary

MTR shows strong revenue and profit growth with efficient operations. The balance sheet is robust with manageable leverage and strong equity. However, cash flow management is a concern due to negative free cash flow from high capital expenditures.

Income Statement

MTR has demonstrated strong revenue growth, with an 8.5% increase from 2023 to 2024. The gross profit margin improved significantly, reflecting enhanced operational efficiency. The net profit margin also more than doubled, indicating strong profitability. EBIT and EBITDA margins are healthy, showing robust core operations.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.42, indicating a conservative use of leverage. ROE improved to 8.5%, showing increased efficiency in generating profits from equity. The equity ratio of 50.5% suggests a solid financial position with reasonable equity financing.

Cash Flow

Free cash flow improved but remains negative, highlighting ongoing capital expenditures. Operating cash flow covers net income well, suggesting strong cash generation from operations. However, free cash flow to net income is less favorable, indicating potential cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.10B	60.01B	56.98B	47.81B	47.20B	42.54B
Gross Profit	19.19B	13.71B	9.60B	2.47B	3.03B	95.00M
EBITDA	31.26B	27.06B	17.32B	17.90B	17.80B	2.71B
Net Income	17.46B	15.77B	7.78B	9.83B	9.55B	-4.81B
Balance Sheet
Total Assets	402.60B	367.50B	346.43B	327.08B	292.08B	290.57B
Cash, Cash Equivalents and Short-Term Investments	56.80B	27.89B	22.38B	16.37B	21.20B	21.22B
Total Debt	92.30B	77.68B	59.63B	47.99B	43.90B	50.50B
Total Liabilities	191.39B	181.37B	167.57B	147.17B	112.05B	113.59B
Stockholders Equity	210.55B	185.63B	178.34B	179.29B	179.71B	176.79B
Cash Flow
Free Cash Flow	-3.56B	-925.00M	-1.14B	-12.53B	-1.17B	-5.35B
Operating Cash Flow	16.79B	18.49B	11.20B	6.76B	7.47B	772.00M
Investing Cash Flow	-17.95B	-20.27B	-7.72B	-1.99B	5.97B	-675.00M
Financing Cash Flow	28.43B	8.50B	1.87B	-4.57B	-14.53B	2.84B

MTR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0066, the sentiment is Positive. The current price of 30.2 is below the 20-day moving average (MA) of 31.92, below the 50-day MA of 31.06, and above the 200-day MA of 28.06, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 82.02 is Negative, neither overbought nor oversold. The STOCH value of 95.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0066.

MTR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0066	76 Outperform	HK$215.05B	12.42	9.59%	4.35%	-0.99%	80.58%
3898	76 Outperform	HK$76.68B	13.99	9.42%	4.07%	14.48%	12.74%
0062	67 Neutral	HK$5.55B	20.51	1.61%	7.48%	2.87%	-35.74%
3969	65 Neutral	HK$60.50B	10.71	7.39%	5.51%	0.19%	4.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0525	63 Neutral	HK$23.03B	16.16	4.61%	3.48%	―	―
2169	51 Neutral	HK$2.72B	40.24	7.66%	0.87%	-14.80%	11.92%

MTR Corporate Events

MTR Sets Out Updated Board and Executive Roles Effective February 2026

MTR Corporation Limited has announced an updated list of its Board of Directors and Executive Directorate members, together with their respective roles on key governance committees and advisory panels, effective 1 February 2026. The disclosure confirms Dr Jacob Kam as Chairman of the Board and Jeny Yeung as Chief Executive Officer, and sets out the participation of non-executive, independent non-executive, and executive members across core committees such as Audit & Risk, Nominations, Remuneration, Capital Works, Environmental & Social Responsibility, Finance & Investment, and the Technology Advisory Panel. The refreshed governance map underscores the company’s emphasis on structured oversight of financial, operational, environmental, social, and technological matters as it manages large-scale rail and property operations in Hong Kong and the Chinese Mainland, providing greater transparency for investors and other stakeholders on how strategic and risk-related decisions are overseen.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$38.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Updates Board and Executive Committee Structure Effective 2026

MTR Corporation Limited has announced the updated composition of its Board of Directors and Executive Directorate, detailing the roles and committee memberships of its non-executive, independent non-executive and executive members, including the Chief Executive Officer. The new structure, effective from 28 January 2026, clarifies leadership responsibilities across key governance and oversight bodies such as audit and risk, nominations, remuneration, capital works, environmental and social responsibility, finance and investment, and technology, underscoring the company’s emphasis on strong corporate governance and strategic oversight of its transport, capital projects and mainland China businesses.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$38.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Updates Board and Executive Directorate Roles Effective 2026

MTR Corporation Limited has announced an updated list of members of its Board and Executive Directorate, along with their respective roles on key governance committees and advisory panels, effective from 1 January 2026. The structure confirms Dr Jacob Kam Chak-pui as Chairman, with Jeny Yeung Mei-chun serving as Chief Executive Officer and Executive Director, and details participation by government officials and independent non-executive directors across major committees including audit and risk, nominations, remuneration, capital works, environmental and social responsibility, finance and investment, and technology advisory functions, underscoring continued emphasis on oversight, infrastructure development and strategic governance of the corporation.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$34.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Announces Board and Executive Directorate Composition

MTR Corporation Limited has announced the composition of its Board and Executive Directorate, highlighting the roles and functions of its members. This update is crucial for stakeholders as it outlines the leadership structure that will guide the company’s strategic direction and operational decisions, potentially impacting its market positioning and future growth.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$34.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Appoints New Alternate Director

MTR Corporation Limited has announced the appointment of Mr. Lai Yat-ching as an Alternate Director, effective from November 20, 2025. Mr. Lai, who has a substantial background in government service and holds various positions in Hong Kong’s public sector, will serve as an alternate to Mr. Hui Ching-yu, a Non-executive Director of the company. This appointment is expected to strengthen the company’s governance by leveraging Mr. Lai’s extensive experience in financial services and trade.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$34.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Announces Change in Board of Directors

MTR Corporation Limited has announced the cessation of Mr. Bruno Luk Kar-kin as an Alternate Director to Mr. Hui Ching-yu, a Non-executive Director of the company, effective from 6 November 2025. Mr. Luk has confirmed there are no disagreements with the board or other matters that need to be addressed regarding his departure, ensuring a smooth transition and maintaining stability within the company’s governance structure.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.

MTR Corporation Appoints New Hong Kong Transport Services Director

MTR Corporation Limited has announced the appointment of Mr. Wilson Kwong Wing-tsuen as the Hong Kong Transport Services Director, effective January 28, 2026. Mr. Kwong will oversee the company’s railway transport operations and commercial businesses in Hong Kong, reporting directly to the CEO. With extensive experience in the transportation and logistics sector, Mr. Kwong’s appointment is expected to bolster MTR’s operational capabilities and strengthen its industry position.

The most recent analyst rating on (HK:0066) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on MTR stock, see the HK:0066 Stock Forecast page.