MCS Services Limited (MSG) AI Stock Analysis

• Market Cap: AU$1.19M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): 1.1
• Beta (1Y): 0.61
• Revenue Growth: N/A
• EPS Growth: 51.22%
• Country: AU
• Employees: 642
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): <0.01
• Shares Outstanding: 198,099,660
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

MCS Services Limited's overall stock score is low, largely due to its severe financial distress, evidenced by declining revenues and negative cash flows. The lack of technical analysis data adds uncertainty, and while the P/E ratio suggests undervaluation, it is overshadowed by the company's operational challenges. The stock requires strategic realignment to improve its financial and operational performance.

MCS Services Limited Business Overview & Revenue Model

Company Description

MCS Services Limited (MSG) is a professional security services provider operating primarily in the Australian market. The company specializes in delivering a comprehensive range of security services, including security personnel, mobile patrols, alarm monitoring, and electronic security solutions. MCS Services Limited is dedicated to providing tailored security solutions to a diverse clientele, ranging from retail and commercial enterprises to government and industrial sectors.

How the Company Makes Money

MCS Services Limited makes money through the provision of security services and solutions. The primary revenue streams include the deployment of security personnel, which involves staffing client locations with trained security guards for access control, surveillance, and safety management. Additional income is generated from mobile patrol services, providing regular security checks and responses to alarms. The company also earns revenue from alarm monitoring services, where it offers 24/7 monitoring of security systems for clients. Furthermore, MCS Services Limited installs and maintains electronic security systems, such as CCTV and alarm systems, which contribute to its revenue. Significant partnerships with corporate and government clients enhance its revenue opportunities, leveraging long-term contracts and repeat business.

MCS Services Limited Financial Statement Overview

Summary

MCS Services Limited is facing severe financial difficulties, characterized by declining revenues, persistent losses, and negative cash flows. While the company has reduced its debt, its overall financial health remains precarious, with significant challenges in profitability and cash generation. The current trajectory suggests the need for strategic realignment to stabilize operations and improve financial performance.

Income Statement

The company has faced significant challenges in recent years, with a marked decline in total revenue from AUD 43.8M in 2022 to AUD 0.538M in 2024, indicating a sharp downturn in business operations. The net profit margin is negative, with net income also deeply in the red at AUD -812K for 2024, suggesting operational inefficiencies and a struggle to maintain profitability. Additionally, the company has consistently reported negative EBIT and EBITDA margins, pointing to ongoing operational and financial challenges.

Balance Sheet

The balance sheet shows a weakening position, with stockholders' equity declining from AUD 3.78M in 2022 to AUD 1.53M in 2024. The company has managed to reduce its total debt to zero, which is a positive aspect, but the equity ratio has decreased, indicating a lower proportion of assets financed by equity. Return on equity is significantly negative due to the negative net income, further highlighting the company's financial distress.

Cash Flow

Free cash flow has been consistently negative, with a substantial decrease in operating cash flow from AUD -177K in 2022 to AUD -247K in 2024. This trend highlights liquidity issues and poor cash generation from core business activities. The operating cash flow to net income ratio is unfavorable, indicating the company's inability to translate earnings into cash flow effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.00K	38.65M	43.80M	38.08M	25.11M
Gross Profit	-538.00K	5.46M	6.82M	6.99M	4.63M
EBITDA	1.31M	-1.95M	1.49M	2.12M	551.00K
Net Income	-812.00K	-1.88M	1.07M	1.55M	316.00K
Balance Sheet
Total Assets	4.93M	11.27M	8.89M	8.14M	5.30M
Cash, Cash Equivalents and Short-Term Investments	712.00K	1.85M	3.89M	4.61M	2.08M
Total Debt	0.00	3.00M	224.00K	230.00K	366.00K
Total Liabilities	3.41M	8.92M	5.11M	5.45M	4.26M
Stockholders Equity	1.53M	2.35M	3.78M	2.69M	1.04M
Cash Flow
Free Cash Flow	-694.00K	-1.59M	-432.00K	2.73M	124.00K
Operating Cash Flow	-247.00K	-1.25M	-177.00K	2.87M	278.00K
Investing Cash Flow	1.26M	-3.50M	-491.00K	-189.00K	-154.00K
Financing Cash Flow	-2.14M	2.71M	-53.00K	-146.00K	-141.00K

MCS Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HVN	66 Neutral	9.13B	17.63	10.79%	3.27%	5.09%	46.94%
GNC	61 Neutral	1.97B	28.03	4.11%	5.23%	2.00%	-28.15%
QAN	60 Neutral	16.61B	10.51	206.30%	4.68%	8.29%	38.28%
JHX	59 Neutral	16.72B	24.50	14.68%	―	-3.58%	-33.40%
SGR	41 Neutral	286.62M	-0.61	0.00%	―	-31.07%	71.98%
MSG	39 Underperform	AU$1.19M	1.08	-61.13%	―	―	51.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

MCS Services Limited Corporate Events

MCS Services Limited Resumes Trading on ASX

MCS Services Limited, a company listed on the Australian Securities Exchange, will have its trading suspension lifted. This follows the submission of its Quarterly Activities and Appendix 4C Cash Flow Report, allowing trading to resume on 2 May 2025, which may positively impact the company’s market presence and stakeholder confidence.

MCS Services Limited Reports Stable Cash Position in Q1 2025

MCS Services Limited reported a cash and net receivables total of $1.3 million for the quarter ending March 31, 2025, with cash increasing to $1.23 million. The company’s cash flow from operating activities showed a positive movement, while investing and financing activities reflected outflows. This financial update indicates a stable cash position and operational efficiency, potentially strengthening MCS Services’ market position and providing reassurance to stakeholders.

MCS Services Limited Considers Sale of Traffic Business

MCS Services Limited has announced preliminary discussions regarding the potential sale of its subsidiary, Highways Traffic Pty Ltd. The company has received interest from potential buyers but has not yet reached any formal agreements. If the sale progresses, it would require shareholder approval as it involves the disposal of the company’s main undertaking. The outcome of these discussions could significantly impact MCS Services’ operations and market positioning.