Megaworld (MGAWY) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: 4.62%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.30
• Revenue Growth: 5.60%
• EPS Growth: 6.40%
• Country: US
• Employees: 813
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 162,293,120
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.30
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 4.57
• Enterprise Value/Market Cap: 13.04K
• Enterprise Value/Revenue: 173.01
• Enterprise Value/Gross Profit: 296.90
• Enterprise Value/Ebitda: 390.83
• 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: 77 Outperform
• Price Target: $8.50 ▲(15.96% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by strong financial performance (high profitability and improving leverage, tempered by cash-flow volatility) and a highly attractive valuation (very low P/E plus a solid dividend yield). Technicals are supportive but not strongly bullish, keeping the overall score in the upper-70s.

Positive Factors

Strong profitability and margins

Megaworld reports consistently high gross and operating margins and a net margin near 25%, which is durable for a developer. Sustained margin levels support internal funding for projects, dividend capacity and resilience to cyclical revenue swings over the next 2–6 months.

Improving leverage and solid balance sheet

Leverage has meaningfully improved, with debt-to-equity down to ~0.39, signalling lower refinancing and interest-rate risk for a capital-intensive developer. A stronger balance sheet increases financial flexibility to fund new townships and absorb cyclical downturns without immediate capital raises.

Material improvement in free cash flow

Free cash flow recovered sharply in 2025 and approached 81% of net income, improving the firm's ability to self-fund developments, service debt and sustain dividends. This structural improvement reduces reliance on external financing over the medium term.

Negative Factors

Volatile operating cash conversion

Historically inconsistent conversion of profits to cash is a structural risk for a real-estate developer. Periods of very low operating cash coverage (2021–2024) imply potential need for external funding during downturns, increasing refinancing risk and constraining project timing.

Margin compression versus prior years

Eroding gross and EBITDA margins point to structural pressures from cost, pricing or product-mix changes. If sustained, margin compression will reduce internal cash generation and limit reinvestment or dividend capacity, making growth more capital-intensive relative to returns.

Modest returns on equity

ROE around 6%–8% indicates the business generates only modest returns on deployed capital. For a large developer, this suggests heavy capital requirements translate into limited incremental shareholder value, potentially constraining long-term EPS and dividend growth.

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 and durable profitability with steady revenue growth, and leverage has improved to a manageable level. The main detractors are softer margins versus prior years and historically volatile cash-flow conversion despite the recent rebound.

Income Statement

Revenue has grown steadily from 2021–2025 (accelerating to 3.75% in 2025 after near-flat growth in 2024), and profitability is a clear strength with consistently high gross and operating margins and a solid net margin around ~25%. However, margins have softened versus 2022–2024 levels (notably gross and EBITDA margins), suggesting some pressure from mix, pricing, or costs even as revenue expanded.

Balance Sheet

Leverage looks manageable for a developer: debt-to-equity improved to ~0.39 in 2025 from ~0.45 in prior years, while equity and assets have continued to grow. Returns on equity are stable but modest (~6%–8%), indicating the balance sheet is solid but not generating especially strong returns relative to its capital base.

Cash Flow

Cash generation improved meaningfully in 2024–2025, with free cash flow rising strongly in 2025 and free cash flow staying relatively close to net income (roughly ~81% in 2025). The main weakness is volatility and periods of weaker conversion of earnings into operating cash flow (very low coverage in 2021–2024 before rebounding in 2025), which is a notable risk factor for a capital-intensive real estate business.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.57B	82.38B	68.76B	59.76B	51.89B
Gross Profit	48.93B	46.23B	38.10B	32.94B	26.15B
EBITDA	36.31B	34.04B	29.89B	24.91B	21.05B
Net Income	21.48B	19.01B	17.30B	13.58B	13.89B
Balance Sheet
Total Assets	488.85B	469.64B	440.57B	409.21B	397.98B
Cash, Cash Equivalents and Short-Term Investments	20.78B	21.42B	25.12B	27.75B	43.79B
Total Debt	103.39B	110.58B	103.39B	95.51B	94.22B
Total Liabilities	185.85B	190.90B	179.90B	168.19B	168.27B
Stockholders Equity	267.25B	246.29B	227.82B	209.23B	198.84B
Cash Flow
Free Cash Flow	14.46B	10.83B	3.47B	7.00B	2.69B
Operating Cash Flow	17.80B	11.37B	4.20B	7.74B	2.81B
Investing Cash Flow	-10.21B	-14.34B	-9.21B	-12.43B	11.42B
Financing Cash Flow	-8.23B	-720.47M	2.37B	-11.35B	-13.23B

Megaworld Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGAWY, the sentiment is Negative. The current price of 7.33 is below the 20-day moving average (MA) of 7.59, below the 50-day MA of 7.50, and above the 200-day MA of 7.00, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of 24.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGAWY.

Megaworld Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	83 Outperform	$149.87M	8.82	7.98%	―	-27.32%	-15.12%
MGAWY	77 Outperform	$1.14B	3.08	8.13%	4.62%	5.60%	6.40%
FOR	66 Neutral	$1.31B	20.39	9.82%	―	10.13%	-18.11%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FPH	62 Neutral	$563.59M	5.51	8.87%	―	-1.52%	81.35%
ARL	47 Neutral	$244.86M	-91.47	-0.47%	―	-0.58%	―