Magic Empire Global Ltd. (MEGL) AI Stock Analysis

• Market Cap: $12.58M
• Dividend Yield: N/A
• Average Volume (3M): 83.43K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: -7.05%
• EPS Growth: -875.61%
• Country: US
• Employees: 8
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.12
• Shares Outstanding: 4,064,050
• 10 Day Avg. Volume: 194,653
• 30 Day Avg. Volume: 83,427
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.07
• Enterprise Value/Revenue: -0.07
• Enterprise Value/Gross Profit: 0.25
• Enterprise Value/Ebitda: 0.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ―

Magic Empire Global Ltd. has an overall stock score of 43, reflecting significant financial and technical challenges. The company suffers from declining revenues, persistent losses, and negative cash flow, which are exacerbated by poor technical indicators suggesting downward momentum. Valuation concerns are highlighted by a negative P/E ratio and lack of dividends. While the strong cash position offers some stability, strategic improvements in financial performance are critical.

Magic Empire Global Ltd. Business Overview & Revenue Model

Company Description

Magic Empire Global Limited provides initial public offering sponsorship, financial and independent financial advisory, post-listing compliance advisory, and underwriting services to corporations in Hong Kong. The company was incorporated in 2016 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Magic Empire Global Ltd. generates revenue through fees and commissions earned from its investment banking activities. The company provides corporate finance advisory services, underwriting services for equity and debt offerings, and asset management solutions. MEGL earns a significant portion of its income by advising clients on mergers and acquisitions, capital raising, and other strategic financial transactions. Additionally, the company may have partnerships with other financial institutions that help expand its client base and service offerings.

Magic Empire Global Ltd. Financial Statement Overview

Summary

Magic Empire Global Ltd. faces significant financial challenges, particularly in achieving profitability and managing cash flows. Despite a solid cash position, the company struggles with declining revenues and persistent losses. The balance sheet provides some stability, but the income and cash flow statements indicate areas needing strategic focus. Improvements in revenue growth, cost control, and cash flow optimization are crucial.

Income Statement

The income statement reflects a challenging period for Magic Empire Global Ltd., with declining revenues and consistent net losses. Gross Profit Margin has turned negative, indicating increased cost pressures. The Net Profit Margin and EBIT Margin are also negative, highlighting profitability challenges. There is a notable lack of revenue growth, with a decline over the recent periods. These factors contribute to a low score, suggesting significant room for improvement in revenue generation and cost management.

Balance Sheet

The balance sheet presents a mixed picture. On the positive side, the company has a strong cash position relative to its debt, resulting in a low Debt-to-Equity Ratio. However, the Return on Equity is negative due to net losses, and the Equity Ratio indicates a high reliance on equity financing. The stability provided by strong cash reserves is a key strength, but overall profitability concerns weigh on the score.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows indicating cash outflows from operations. While the company has managed to secure cash through investing activities, the Operating Cash Flow to Net Income Ratio is unfavorable, reflecting inefficiencies in converting income into cash. The Free Cash Flow to Net Income Ratio is also negative, highlighting the strain on cash resources. These factors contribute to a lower score, emphasizing the need for improved cash management strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.78M	13.79M	10.97M	16.79M	20.42M
Gross Profit	-3.36M	4.08M	1.60M	8.02M	20.22M
EBITDA	-2.57M	1.76M	-1.27M	4.78M	7.96M
Net Income	-4.73M	-483.81K	-3.84M	1.58M	4.20M
Balance Sheet
Total Assets	136.14M	138.26M	144.11M	25.70M	16.34M
Cash, Cash Equivalents and Short-Term Investments	127.51M	92.41M	121.81M	11.69M	7.88M
Total Debt	4.27M	1.75M	3.65M	5.46M	2.39M
Total Liabilities	6.61M	3.99M	1.07M	52.29K	12.41M
Stockholders Equity	129.54M	134.27M	136.33M	5.51M	3.93M
Cash Flow
Free Cash Flow	-4.65M	-1.81M	-910.36K	678.65K	-3.99M
Operating Cash Flow	-4.65M	94.49K	-910.36K	678.65K	-3.99M
Investing Cash Flow	39.75M	-27.92M	-14.60M	0.00	0.00
Financing Cash Flow	0.00	-1.58M	125.63M	3.13M	-3.80M

Magic Empire Global Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEGL, the sentiment is Neutral. The current price of 1.56 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.47, and below the 200-day MA of 1.66, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 49.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MEGL.

Magic Empire Global Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCPL	54 Neutral	11.42M	-0.13	0.00%	―	-82.44%	22.28%
ABTS	47 Neutral	17.36M	-13.88	0.00%	―	31.69%	86.25%
MEGL	43 Neutral	$12.58M	―	-3.59%	―	-7.05%	-875.61%
GREE	41 Neutral	25.55M	-1.04	35.49%	―	-18.74%	0.00%
MIGI	39 Underperform	8.37M	-0.31	300.74%	―	-11.36%	64.27%
LGHL	39 Underperform	1.09M	-0.01	-260.46%	―	-123.11%	56.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%