Megaworld (MGAWY) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 4.62%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.27
• Revenue Growth: 5.60%
• EPS Growth: 6.40%
• Country: US
• Employees: 813
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.56
• Shares Outstanding: 162,376,140
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: <0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 5.91
• Enterprise Value/Market Cap: 12.57K
• Enterprise Value/Revenue: 185.01
• Enterprise Value/Gross Profit: 294.64
• Enterprise Value/Ebitda: 431.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $8.00 ▲(9.14% Upside)

The score is driven primarily by strong profitability and cash-flow quality, supported by very attractive valuation (low P/E and solid yield). These positives are tempered by the sharp TTM revenue/FCF decline and some near-term technical overbought signals.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates Megaworld's successful market expansion and product adoption, strengthening its competitive position in the real estate sector.

Cash Flow Generation

Strong cash generation relative to profits enhances Megaworld's ability to reinvest in growth opportunities and maintain financial flexibility, supporting long-term sustainability.

Profitability Margins

High profitability margins demonstrate efficient operations and pricing power, contributing to Megaworld's durable competitive advantage in the real estate market.

Negative Factors

ROE Efficiency

While the ROE indicates effective equity use, there is room for improvement. Enhancing ROE could boost shareholder returns and reflect better capital efficiency.

Operating Cash Flow Efficiency

Low operating cash flow efficiency could limit Megaworld's ability to cover operational expenses and invest in growth, potentially impacting long-term financial health.

Net Profit Margin Trend

A declining net profit margin, if persistent, could signal challenges in cost management or pricing power, potentially affecting future profitability and competitiveness.

Megaworld Business Overview & Revenue Model

Company Description

Megaworld Corporation, together with its subsidiaries, develops, sells, and leases real estate properties in the Philippines. The company operates through Real Estate, Rental, Hotel Operations, and Corporate and Others segments. It develops mixed-use planned communities or townships, including residential, commercial, office, leisure, entertainment, educational/training components. The company's real estate portfolio comprises residential condominium units, subdivision lots and townhouses, and condominium-hotel projects, as well as office projects and retail spaces. It is also involved in the leasing of office and retail spaces; and property-related activities, such as project design, construction oversight, and property management, as well as provision of business process outsourcing, educational facilities, marketing, and e-commerce activities. In addition, it owns and manages hotels. The company was formerly known as Megaworld Properties & Holdings, Inc. and changed its name to Megaworld Corporation in August 1999. The company was incorporated in 1989 and is based in Taguig, the Philippines. Megaworld Corporation is a subsidiary of Alliance Global Group, Inc.

How the Company Makes Money

Megaworld generates revenue primarily through the sale of residential units in its various developments, including condominiums, townhouses, and single-detached homes. The company also earns income from leasing commercial spaces within its mixed-use properties, such as office buildings and retail centers. Additionally, Megaworld benefits from rental income from its investment properties and various service offerings related to property management. Strategic partnerships with banks and financial institutions facilitate financing options for homebuyers, further boosting sales. The company's strong brand presence and diversified real estate portfolio contribute significantly to its overall earnings.

Megaworld Financial Statement Overview

Summary

Strong profitability (TTM ~63% gross margin and ~26% net margin) and generally solid cash conversion support the score. Offsetting these positives are a sharp TTM revenue decline (~23%) with lower earnings/FCF and balance-sheet comparability concerns due to unusually small TTM figures versus prior annual data.

Income Statement

Profitability is a clear strength: the company consistently posts strong gross and net margins across the annual periods, and TTM (Trailing-Twelve-Months) margins remain solid (about 63% gross margin and ~26% net margin). Growth, however, has turned into the key near-term concern—TTM revenue is down ~23% versus the prior period after several years of healthy annual growth, and earnings are lower in step with the revenue decline. Overall: high profitability, but a weakening top-line trajectory in the latest TTM.

Balance Sheet

Leverage appears moderate based on the annual debt-to-equity range (~0.45–0.47), suggesting the balance sheet is not overly stretched for the sector. Returns on equity are steady but not standout (mid-to-high single digits), indicating decent profitability relative to capital but not exceptional efficiency. A major red flag is the sharp mismatch in TTM balance-sheet scale versus prior years (debt, equity, and assets are dramatically lower than the annual figures), which raises comparability/data-consistency risk and reduces confidence in the most recent balance-sheet snapshot.

Cash Flow

Cash generation looks strong relative to earnings: free cash flow is consistently close to net income across periods (generally ~0.83–0.98), supporting earnings quality. The latest TTM (Trailing-Twelve-Months) free cash flow is healthy, though it is down ~24%, aligning with the recent revenue slowdown. One caution: annual operating cash flow coverage is low in several years (before improving sharply in TTM), pointing to volatility and potential working-capital swings typical of property development.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.47B	75.77B	64.38B	55.11B	46.38B	39.27B
Gross Profit	51.79B	47.43B	40.59B	35.09B	28.42B	24.52B
EBITDA	35.34B	33.58B	29.97B	24.68B	20.35B	18.68B
Net Income	21.04B	18.75B	17.35B	13.46B	13.43B	9.89B
Balance Sheet
Total Assets	484.48B	469.64B	440.57B	409.21B	397.98B	375.69B
Cash, Cash Equivalents and Short-Term Investments	19.18B	21.42B	25.12B	27.75B	43.79B	40.17B
Total Debt	102.54B	110.58B	103.39B	95.51B	94.22B	86.45B
Total Liabilities	189.38B	190.90B	179.90B	168.19B	168.27B	163.16B
Stockholders Equity	261.06B	246.29B	227.82B	209.23B	198.84B	185.46B
Cash Flow
Free Cash Flow	13.04B	10.83B	3.47B	7.00B	2.69B	18.67B
Operating Cash Flow	24.34B	11.37B	4.20B	7.74B	2.81B	19.10B
Investing Cash Flow	-13.28B	-14.34B	-9.21B	-12.43B	11.42B	-6.33B
Financing Cash Flow	-7.72B	-720.47M	2.37B	-11.35B	-13.23B	4.30B

Megaworld Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGAWY, the sentiment is Positive. The current price of 7.33 is below the 20-day moving average (MA) of 7.38, above the 50-day MA of 7.10, and above the 200-day MA of 6.81, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 62.12 is Neutral, neither overbought nor oversold. The STOCH value of 88.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGAWY.

Megaworld Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGAWY	74 Outperform	$1.21B	3.33	8.44%	4.62%	5.60%	6.40%
AXR	69 Neutral	$110.24M	10.51	8.04%	―	-27.32%	-15.12%
FPH	68 Neutral	$578.07M	6.43	12.52%	―	-1.52%	81.35%
FOR	66 Neutral	$1.32B	8.24	9.82%	―	10.13%	-18.11%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ARL	53 Neutral	$278.30M	50.11	0.95%	―	-0.58%	―