Megaworld (MGAWY) AI Stock Analysis

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Megaworld

(OTC:MGAWY)

82Outperform

Megaworld's strong financial performance is a key driver of its stock score, supported by robust revenue growth and profitability. Its solid valuation, with a low P/E ratio and reasonable dividend yield, further enhances its attractiveness. Technical indicators suggest upward momentum, although caution is advised due to potential overbought conditions. Overall, the stock presents a compelling investment opportunity given its solid fundamentals and valuation.

Megaworld (MGAWY) vs. S&P 500 (SPY)

Market Cap

$1.05B

Dividend Yield2.45%

Average Volume (3M)124.00

Price to Earnings (P/E)3.1

Beta (1Y)0.14

Revenue Growth12.01%

EPS Growth2.06%

CountryUS

Employees5,859

SectorReal Estate

Sector Strength67

IndustryReal Estate - Development

Share Statistics

EPS (TTM)0.54

Shares Outstanding155,916,260

10 Day Avg. Volume0

30 Day Avg. Volume124

Financial Highlights & Ratios

PEG Ratio-6.79

Price to Book (P/B)15.80

Price to Sales (P/S)0.00

P/FCF Ratio28.77

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Megaworld Business Overview & Revenue Model

Company DescriptionMegaworld Corporation (MGAWY) is a leading real estate developer in the Philippines, recognized for pioneering the 'live-work-play-learn' concept in its township developments. The company operates in various sectors, including residential, commercial, and office real estate. Megaworld is renowned for creating large-scale, mixed-use communities that integrate residential, retail, hospitality, and office spaces, enhancing the lifestyle and convenience of its residents and tenants.

How the Company Makes MoneyMegaworld Corporation generates revenue primarily through the sale and lease of residential, commercial, and office properties. The company develops and sells residential condominium units and townships, catering to a wide range of market segments from affordable to luxury. Additionally, Megaworld earns recurring income from leasing retail and office spaces within its townships, benefiting from its strategic locations and integrated community concept. The company also operates in the hospitality sector, generating revenue from hotel operations. Partnerships with local and international brands for retail and dining establishments within its developments further enhance its revenue streams. The company's earnings are significantly influenced by the robust demand for real estate in the Philippines, driven by urbanization and economic growth.

Megaworld Financial Statement Overview

Summary

Megaworld shows strong financial health with consistent revenue growth, high profitability margins, and manageable leverage. However, cash flow efficiency needs improvement, and sustaining revenue momentum is essential.

Income Statement

Very Positive

Megaworld has shown consistent revenue growth with a notable 19% increase from 2023 to TTM. The company maintains strong profitability, evidenced by a gross profit margin of 61.6% and a net profit margin of 24.9% for the TTM. The EBIT margin is also impressive at 39%, indicating efficient cost management. However, there's a slight drop in the revenue growth rate compared to the previous year, which could be a future concern.

Balance Sheet

Positive

The company's balance sheet is robust, with a debt-to-equity ratio of 0.41, reflecting manageable leverage compared to industry norms. The equity ratio of 53.1% indicates a strong equity base. Return on Equity (ROE) stands at 7.8%, which is moderate. Overall, the balance sheet demonstrates financial stability with room for improved returns.

Cash Flow

Positive

Megaworld's cash flow is stable, albeit with a decline in operating cash flow. The free cash flow to net income ratio is positive, indicating efficient cash conversion. However, the free cash flow growth rate is negative, suggesting a potential issue with cash generation sustainability. The operating cash flow to net income ratio of 0.15 for the TTM suggests a need for improvement in cash flow efficiency.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
76.63B	64.38B	55.11B	46.38B	39.27B	61.96B
	Gross Profit
47.25B	40.59B	35.09B	28.42B	24.52B	37.20B
	EBIT
29.89B	25.87B	22.18B	18.55B	16.24B	27.49B
	EBITDA
34.46B	29.97B	24.68B	20.35B	18.68B	30.21B
	Net Income Common Stockholders
19.05B	17.35B	13.46B	13.43B	9.89B	17.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.28B	25.12B	27.75B	43.79B	40.17B	23.10B
	Total Assets
87.52B	440.57B	409.21B	397.98B	375.69B	349.63B
	Total Debt
8.22B	103.39B	95.51B	94.22B	86.45B	76.53B
	Net Debt
-12.00B	78.27B	67.75B	50.43B	46.28B	53.43B
	Total Liabilities
35.76B	179.90B	168.19B	168.27B	163.16B	144.77B
	Stockholders Equity
51.03B	227.82B	209.23B	198.84B	185.46B	178.46B
Cash Flow		Free Cash Flow
2.08B	3.47B	7.00B	2.69B	18.67B	23.03B
	Operating Cash Flow
2.81B	4.20B	7.74B	2.81B	19.10B	23.38B
	Investing Cash Flow
-14.61B	-9.21B	-12.43B	11.42B	-6.33B	-11.32B
	Financing Cash Flow
78.49M	2.37B	-11.35B	-13.23B	4.30B	-6.50B

Megaworld Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price6.47

Price Trends

50DMA

6.35

Positive

100DMA

6.35

Positive

200DMA

6.72

Negative

Market Momentum

MACD

0.07

Negative

RSI

51.69

Neutral

STOCH

37.00

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGAWY, the sentiment is Neutral. The current price of 6.47 is above the 20-day moving average (MA) of 6.45, above the 50-day MA of 6.35, and below the 200-day MA of 6.72, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 37.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGAWY.

Megaworld Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGAWY	82 Outperform	$1.05B	3.13	7.91%	2.45%	12.01%	2.06%
FPH	74 Outperform	$596.95M	4.45	12.27%	―	11.66%	78.44%
FOR	70 Outperform	$1.03B	6.13	10.81%	―	-5.60%	-17.86%
LSEA	70 Outperform	$409.24M	42.03	1.50%	―	24.15%	-60.70%
Sector *	60 Neutral	$2.82B	10.29	0.39%	8508.26%	5.90%	-17.41%
ARL	54 Neutral	$212.24M	―	-2.20%	―	-6.48%	-592.10%

* Real Estate Sector Average

Performance Comparison

MGAWY

Megaworld

6.47

0.05

0.78%

ARL

American Realty Investors

13.14

-0.68

-4.92%

FOR

Forestar Group

20.22

-14.46

-41.70%

FPH

Five Point Holdings

5.54

2.43

78.14%

LSEA

Landsea Homes

11.24

0.80

7.66%

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.