Megaworld (MGAWY) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: 4.62%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.26
• 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: 162,444,080
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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

Megaworld demonstrates strong financial performance with robust revenue growth and healthy profitability margins. The balance sheet is stable with a conservative debt-to-equity ratio, and cash flow generation is strong. However, there is room for improvement in ROE and cash flow efficiency.

Income Statement

Megaworld has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 72.7%, indicating robust expansion. The company maintains healthy profitability margins, with a gross profit margin of 63.47% and a net profit margin of 24.50%. The EBIT and EBITDA margins are also strong at 38.68% and 43.26%, respectively, showcasing efficient operations. However, the net profit margin slightly decreased from the previous year, which could be a point of concern if the trend continues.

Balance Sheet

Megaworld's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.42, indicating a conservative leverage approach. The return on equity (ROE) is moderate at 7.93%, suggesting effective use of equity to generate profits. The equity ratio stands at 53.38%, highlighting a strong equity base relative to total assets. While the company has managed its debt well, the ROE could be improved to enhance shareholder returns.

Cash Flow

The company exhibits a positive cash flow trajectory with a significant free cash flow growth rate of 27.96% in the TTM period. The operating cash flow to net income ratio is 0.19, indicating that operating cash flows are supporting net income. The free cash flow to net income ratio is high at 96.12%, reflecting strong cash generation relative to profits. Despite these strengths, the operating cash flow coverage ratio is relatively low, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.16B	75.77B	64.38B	55.11B	46.38B	39.27B
Gross Profit	38.58B	47.43B	40.59B	35.09B	28.42B	24.52B
EBITDA	25.61B	33.58B	29.97B	24.68B	20.35B	18.68B
Net Income	15.81B	18.75B	17.35B	13.46B	13.43B	9.89B
Balance Sheet
Total Assets	8.34B	469.64B	440.57B	409.21B	397.98B	375.69B
Cash, Cash Equivalents and Short-Term Investments	330.26M	21.42B	25.12B	27.75B	43.79B	40.17B
Total Debt	1.77B	110.58B	103.39B	95.51B	94.22B	86.45B
Total Liabilities	3.26B	190.90B	179.90B	168.19B	168.27B	163.16B
Stockholders Equity	4.49B	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	13.77B	11.37B	4.20B	7.74B	2.81B	19.10B
Investing Cash Flow	-7.89B	-14.34B	-9.21B	-12.43B	11.42B	-6.33B
Financing Cash Flow	-2.38B	-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: Negative
• RSI: Negative
• 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 above the 20-day moving average (MA) of 7.11, above the 50-day MA of 6.90, and above the 200-day MA of 6.72, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 76.29 is Negative, neither overbought nor oversold. The STOCH value of 94.74 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	$1.20B	3.32	8.44%	4.62%	5.60%	6.40%
FOR	71 Outperform	$1.42B	8.32	9.99%	―	10.13%	-18.11%
FPH	71 Outperform	$634.68M	4.41	12.52%	―	-1.52%	81.35%
AXR	67 Neutral	$115.18M	11.07	8.04%	―	-27.32%	-15.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ARL	53 Neutral	$259.40M	44.64	0.95%	―	-0.58%	―