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ME Group International
(LSE:MEGP)
Select Model
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Rating:75Outperform
Price Target:
136.00 p
▲(8.11% Upside)
Action:Reiterated
Date:08/24/26
The score is driven primarily by solid financial performance (profitability improvement and de-risked balance sheet) and very attractive valuation (low P/E and high dividend yield). These positives are tempered by weaker free-cash-flow conversion, mixed long-term technical trend (still below 100/200-day averages), and a negative corporate update that reduced FY2026 profit expectations.
Positive Factors
Revenue and profit expansion
Strong recovery since 2020 has materially expanded both revenue and net income, demonstrating that the installed base and unattended-service model can generate substantial earnings. This larger operating platform supports continued reinvestment and provides a stronger foundation for growth over the coming quarters.
Negative Factors
Weakening free cash flow
The decline and volatility in free cash flow indicate that accounting profits are not consistently translating into surplus cash after investment. This can constrain the pace of machine deployment, shareholder distributions, and internally funded expansion, making cash conversion an important ongoing limitation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profit expansion
Strong recovery since 2020 has materially expanded both revenue and net income, demonstrating that the installed base and unattended-service model can generate substantial earnings. This larger operating platform supports continued reinvestment and provides a stronger foundation for growth over the coming quarters.
Read all positive factors
ME Group International (MEGP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£463.81M
Dividend Yield7.14%
Average Volume (3M)1.03M
Price to Earnings (P/E)8.2
Beta (1Y)0.82
Revenue Growth1.48%
EPS Growth-2.90%
CountryUK
Employees1,133
SectorIndustrials
Sector Strength72
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)0.15
Shares Outstanding374,642,670
10 Day Avg. Volume901,061
30 Day Avg. Volume1,033,904
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)3.34
Price to Sales (P/S)2.25
P/FCF Ratio24.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£230.00Price Target Upside82.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.14
Revenue Forecast (FY)£319.65M
ME Group International Business Overview & Revenue Model
Company Description
Established in 1962 and based in Epsom, United Kingdom, ME Group International plc specializes in the operation, sale, and upkeep of various instant-service machines. The company, formerly known as Photo-Me International plc until its rebranding i...
How the Company Makes Money
ME Group International makes money primarily by operating unattended machines installed in third-party locations and collecting consumer payments for each use. Key revenue streams include: (1) Photo services: revenue from photo booths and related ...
ME Group International Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 315.92M | 315.39M | 307.89M | 297.66M | 259.78M | 214.40M |
| Gross Profit | 110.76M | 112.48M | 109.49M | 102.64M | 81.56M | 35.87M |
| EBITDA | 124.14M | 120.05M | 115.87M | 107.94M | 94.34M | 63.17M |
| Net Income | 55.52M | 56.57M | 54.09M | 50.67M | 38.79M | 21.71M |
Balance Sheet | ||||||
| Total Assets | 339.00M | 334.39M | 312.64M | 332.52M | 326.37M | 272.94M |
| Cash, Cash Equivalents and Short-Term Investments | 52.85M | 56.54M | 86.15M | 111.09M | 136.19M | 99.36M |
| Total Debt | 55.34M | 43.04M | 59.76M | 90.51M | 118.09M | 80.94M |
| Total Liabilities | 140.07M | 121.39M | 132.77M | 173.53M | 193.72M | 143.25M |
| Stockholders Equity | 198.92M | 213.00M | 179.87M | 158.99M | 132.65M | 127.97M |
Cash Flow | ||||||
| Free Cash Flow | 21.07M | 28.68M | 32.55M | 33.69M | 42.23M | 27.49M |
| Operating Cash Flow | 87.80M | 90.76M | 87.17M | 83.33M | 74.90M | 53.87M |
| Investing Cash Flow | -69.78M | -60.50M | -47.57M | -52.68M | -31.13M | -33.91M |
| Financing Cash Flow | -32.58M | -54.47M | -60.67M | -56.95M | -7.50M | -21.85M |
ME Group International Technical Analysis
Positive
125.80
Price Trends
115.08
Positive
121.81
Positive
130.90
Negative
Market Momentum
2.63
Positive
54.73
Neutral
42.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MEGP, the sentiment is Positive. The current price of 125.8 is above the 20-day moving average (MA) of 122.02, above the 50-day MA of 115.08, and below the 200-day MA of 130.90, indicating a neutral trend. The MACD of 2.63 indicates Positive momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MEGP.
ME Group International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £463.81M | 8.23 | 26.96% | 7.14% | 1.48% | -2.90% | |
74 Outperform | £587.96M | 16.28 | 30.23% | 3.41% | 0.53% | -8.91% | |
68 Neutral | £551.38M | 14.30 | 20.94% | 6.87% | -3.52% | -10.90% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £519.13M | 14.40 | 13.04% | 3.60% | 1.73% | 9.66% | |
61 Neutral | £684.13M | 36.94 | 5.79% | 5.02% | -5.58% | -32.73% | |
60 Neutral | £556.04M | 40.86 | 10.50% | 1.01% | 4.62% | 170.53% |
* Industrials Sector Average
GB:MEGP
ME Group International
121.00
-58.71
-32.67%
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GB:JSG
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GB:MGAM
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22.68%
ME Group International Corporate Events
Business Operations and Strategy
ME Group International expands share capital after executive option exercises
Neutral
Aug 4, 2026
ME Group International has increased its issued ordinary share capital through the admission of 527,098 additional shares to trading on the London Stock Exchange’s Main Market. The move, which takes the total number of securities in issue to...
Business Operations and StrategyExecutive/Board Changes
ME Group grants performance-linked phantom options to deputy CEO
Positive
Jul 30, 2026
ME Group International has granted Deputy Chief Executive Officer Vladimir Crasneanscki a phantom option over 300,000 notional shares under its 2024 Executive Share Option Scheme. The award is structured as a cash-settled instrument with no rights...
Business Operations and StrategyDividendsFinancial Disclosures
ME Group grows laundry business as photobooth demand softens
Neutral
Jul 13, 2026
ME Group International reported modest top-line growth for the six months to 30 April 2026, with revenue edging up 0.3% to £154.3 million but profit before tax slipping 3.8% to £32.7 million, while EBITDA rose 7.1% and margins held stead...
Business Operations and StrategyFinancial Disclosures
ME Group plans live interim results briefing to bolster investor engagement
Positive
Jul 9, 2026
ME Group International, a London-listed provider of instant-service vending equipment such as photobooths, biometric ID solutions and unattended laundry services, operates a network of over 49,000 machines across key markets in Europe, the UK, Ire...
Business Operations and StrategyFinancial Disclosures
ME Group Sets Date to Reveal Interim Results for First Half 2026
Neutral
Jul 8, 2026
ME Group International will publish its interim results for the six months to 30 April 2026 on 13 July, signaling an upcoming update on trading and operational performance for the instant-service equipment group. With long-term partnerships in hig...
Regulatory Filings and Compliance
ME Group clarifies share capital and voting rights structure
Neutral
Jul 1, 2026
ME Group International reported that its issued share capital stood at 374,642,681 ordinary shares as of 30 June 2026, giving the company an equal number of voting rights. The company confirmed it holds no shares in treasury, providing investors w...
Business Operations and StrategyStock Buyback
ME Group shrinks share base with latest buyback tranche
Positive
Jun 22, 2026
ME Group International has continued executing its share buyback programme by repurchasing 253,000 ordinary shares on 15 June 2026 at a volume-weighted average price of 109.96 pence, with trades conducted on the London Stock Exchange through Peel ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
ME Group Cancels 443,909 Shares After Latest Buyback Tranche
Positive
Jun 15, 2026
ME Group International has bought back 443,909 of its ordinary shares on the London Stock Exchange between 8 and 12 June 2026 at prices ranging from 105p to 108.86p, with a volume-weighted average of 106.76p. The shares, repurchased via Peel Hunt ...
Stock BuybackRegulatory Filings and Compliance
ME Group cancels 963,000 shares after latest buyback tranche
Positive
Jun 8, 2026
ME Group International has repurchased 963,000 ordinary shares between 1 and 5 June 2026 via Peel Hunt as part of its ongoing buyback programme, paying a volume-weighted average price of 104.88 pence within a trading range of 99.75 to 110.20 pence...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.