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MTR Corporation (MTRJF)
:MTRJF

MTR (MTRJF) AI Stock Analysis

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Positive Factors
Financial Performance
FY24 underlying profit more than doubled to HKD17.5bn, ahead of estimates on stronger-than-expected development.
Transportation Operations
Revenue from Hong Kong transportation operations surged 19.2% on higher patronage.
Valuation
The stock is now trading at a 31% discount to the appraised current NAV and is attractively valued from a historical perspective.
Negative Factors
Debt Levels
Higher gearing ahead due to rail network expansion.
Earnings Outlook
Home prices play a crucial role in dictating the company’s future earnings outlook and share price performance.

MTR (MTRJF) vs. SPDR S&P 500 ETF (SPY)

MTR Business Overview & Revenue Model

Company DescriptionMTR 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 Financial Statement Overview

Summary
MTR shows strong revenue and profit growth, supported by efficient operations. The balance sheet is robust with moderate leverage and strong equity. However, negative free cash flow due to high capital expenditures indicates a need for improved cash flow management.
Income Statement
85
Very Positive
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
78
Positive
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
70
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
60.01B56.98B47.81B47.20B42.54B
Gross Profit
13.71B10.91B2.47B3.03B95.00M
EBIT
11.76B15.68B1.82B2.46B-422.00M
EBITDA
27.06B11.56B17.90B17.80B2.71B
Net Income Common Stockholders
15.77B7.78B9.83B9.55B-4.81B
Balance SheetCash, Cash Equivalents and Short-Term Investments
27.89B22.38B16.37B21.20B21.22B
Total Assets
367.50B346.43B327.08B292.08B290.57B
Total Debt
77.68B59.63B58.13B54.13B60.79B
Net Debt
49.80B37.26B47.89B43.38B48.91B
Total Liabilities
181.37B167.57B147.17B112.05B113.59B
Stockholders Equity
185.63B178.34B179.29B179.71B176.79B
Cash FlowFree Cash Flow
-925.00M-1.14B-12.53B-1.17B-5.35B
Operating Cash Flow
18.49B11.20B6.76B7.47B772.00M
Investing Cash Flow
-20.27B-7.72B-1.99B5.97B-675.00M
Financing Cash Flow
8.50B1.87B-4.57B-14.53B2.84B

MTR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$21.87B9.688.65%5.33%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
$6.91B9.547.63%5.54%
$2.68B10.993.59%4.68%
$6.38B11.609.62%2.54%
DEKWO
€512.25M21.271.11%6.31%
48
Neutral
HK$6.24B98.117.42%0.42%-27.29%-5.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MTRJF
MTR
3.15
0.10
3.28%
CRYYF
China Railway Signal & Communication
0.43
0.00
0.00%
GNGYF
Guangshen Railway Company
0.21
-0.07
-25.00%
ZHUZF
Zhuzhou CRRC Times Electric Co
4.30
0.58
15.59%
DE:KWO
Transport International Holdings Limited
0.94
-0.09
-8.74%
HK:2169
Canggang Railway Limited
1.60
0.61
61.62%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.