Megaport Ltd
ASX:MP1

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Megaport Ltd Logo
Megaport Ltd
ASX:MP1
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Price: 7.57 AUD -9.45% Market Closed
Market Cap: 1.2B AUD
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Intrinsic Value

The intrinsic value of one MP1 stock under the Base Case scenario is 8.02 AUD. Compared to the current market price of 7.57 AUD, Megaport Ltd is Undervalued by 6%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

MP1 Intrinsic Value
8.02 AUD
Undervaluation 6%
Intrinsic Value
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Base Case
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Megaport Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Megaport Ltd

Current Assets 105.1m
Cash & Short-Term Investments 72.4m
Receivables 26.6m
Other Current Assets 6.1m
Non-Current Assets 109.6m
PP&E 43.3m
Intangibles 48.7m
Other Non-Current Assets 17.6m
Current Liabilities 45.7m
Accounts Payable 786k
Accrued Liabilities 23.5m
Other Current Liabilities 21.5m
Non-Current Liabilities 14.9m
Long-Term Debt 6.1m
Other Non-Current Liabilities 8.8m
Efficiency

Earnings Waterfall
Megaport Ltd

Revenue
195.3m USD
Cost of Revenue
-58.5m USD
Gross Profit
136.8m USD
Operating Expenses
-131.2m USD
Operating Income
5.6m USD
Other Expenses
4m USD
Net Income
9.6m USD

Free Cash Flow Analysis
Megaport Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Megaport reported significant Q2 growth with revenue reaching $48.6 million, a 31% year-on-year increase, and a substantial raise in EBITDA to $15.1 million, reflecting a 529% surge. Total cash flow advanced by $19.2 million, while operating cash flow climbed $15 million from the previous year. Cash reserves grew to $62.5 million, a $7.3 million quarterly hike. The company weathered a foreign exchange headwind, yet achieved a $7.6 million quarterly net increase in annual recurring revenue (ARR), now totaling $192 million. Additionally, key performance indicators like total services and Megaport Cloud Routers saw considerable gains, up 39% and 32% respectively. Despite higher investments in go-to-market initiatives, gross margins remained steady at 70%, and closing net cash rose 18% quarter-on-quarter to $45.8 million.

What is Earnings Call?
Fundamental Scores

MP1 Profitability Score
Profitability Due Diligence

Megaport Ltd's profitability score is 40/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
ROE is Increasing
ROIC is Increasing
40/100
Profitability
Score

Megaport Ltd's profitability score is 40/100. The higher the profitability score, the more profitable the company is.

MP1 Solvency Score
Solvency Due Diligence

Megaport Ltd's solvency score is 82/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Negative Net Debt
Low D/E
Long-Term Solvency
82/100
Solvency
Score

Megaport Ltd's solvency score is 82/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

MP1 Price Targets Summary
Megaport Ltd

Wall Street analysts forecast MP1 stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for MP1 is 12.23 AUD with a low forecast of 8.08 AUD and a high forecast of 16.85 AUD.

Lowest
Price Target
8.08 AUD
7% Upside
Average
Price Target
12.23 AUD
62% Upside
Highest
Price Target
16.85 AUD
123% Upside
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Dividends

Megaport Ltd
does not pay dividends
Shareholder Yield

Current shareholder yield for MP1 is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Ownership

MP1 Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

Megaport Ltd Logo
Megaport Ltd

Country

Australia

Industry

Technology

Market Cap

1.2B AUD

Dividend Yield

0%

Description

Megaport Ltd. engages in the provision of software-defined networking based elastic interconnection services. The company is headquartered in Fortitude Valley, Queensland. The company went IPO on 2015-12-17. The company’s global Software Defined Network (SDN) helps businesses connect their network to services via an easy-to-use portal or its open application programming interface (API). The company operates through three segments: Asia-Pacific, North America and Europe. Asia-Pacific segment, including Australia, New Zealand, Hong Kong, Singapore and Japan. There are approximately 105 installed data centers operate across Asia-Pacific. North America segment includes approximately 198 installed data centers across the United States of America and Canada. Europe segment includes Megaport (Bulgaria) EAD (formerly OMNIX Group AD) and Megaport (Deutschland) GmbH (formerly Peering GmbH) respectively. There are approximately 102 installed data centers across Europe. The Company’s services include Megaport Virtual Edge, Megaport Cloud Router, Data Centre Interconnect, IX Peering and Megaport Marketplace.

Contact

QUEENSLAND
Fortitude Valley
L 4 825 Ann St
+61730887400.0
www.megaport.com

IPO

2015-12-17

Employees

-

Officers

CEO & Executive Director
Mr. Michael Reid
Chief Financial Officer
Ms. Leticia Dorman
Chief Operating Officer
Mr. Darren Wilson
Chief Technology Officer
Mr. Cameron Daniel
Chief Legal Officer
Ms. Jemima Harris
Chief Marketing Officer
Mr. Henry Wagner
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Executive Vice President of Terraforming Americas
Ms. Brynn Maddux
Principal Engineer
Mr. Brent Van Dussen
Executive VP, BD & Global Channel
Mr. Matt Simpson
Interim Chief Commercial Officer
Mr. Joshua Munro
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See Also

Discover More
What is the Intrinsic Value of one MP1 stock?

The intrinsic value of one MP1 stock under the Base Case scenario is 8.02 AUD.

Is MP1 stock undervalued or overvalued?

Compared to the current market price of 7.57 AUD, Megaport Ltd is Undervalued by 6%.

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