Mega Fortune Co Ltd (NASDAQ: MGRT)

Sector: Technology Industry: Information Technology Services CIK: 0002033377
Market Cap 74.38 Mn
P/B 4.78
P/E 41.59
P/S 6.71
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 699,872.00
Debt/Equity (Qtr) 0.04
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About

Investment thesis

Bull case

  • Healthy cash reserves of 764761 provide 2.38x coverage of short-term debt 321778, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 18.46M provides 26.38x coverage of total debt 699872, indicating robust asset backing and low credit risk.
  • Tangible assets of 18.46M provide exceptional 829.61x coverage of deferred revenue 22255, showing strong service capability backing.
  • Operating cash flow of (12M) fully covers other non-current liabilities (22255) by 539.26x, showing strong long-term stability.
  • Retained earnings of 3.14M provide full 8.29x coverage of long-term debt 378094, indicating strong internal capital position.

Bear case

  • Operating cash flow of (12M) provides insufficient coverage of deferred revenue obligations of 22255, which is -539.26x, raising concerns about future service delivery capabilities.
  • Operating cash flow of (12M) provides minimal -22.57x coverage of tax expenses of 531802, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Tax assets of 72762 provide limited offset against tax liabilities of 552008, which is 0.13x, indicating potential future cash flow pressure from tax obligations.
  • High financing cash flow of 12.31M relative to working capital of 9.76M, which is 1.26x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (12M) is outpaced by equity issuance of 13.36M (-0.90 ratio), indicating concerning reliance on equity markets for funding operations.

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 229.77 Bn 29.79 2.98 66.57 Bn
2 ACN Accenture plc 136.96 Bn 17.99 1.94 8.20 Bn
3 INFY Infosys Ltd 61.29 Bn 19.41 3.18 0.68 Bn
4 CTSH Cognizant Technology Solutions Corp 31.81 Bn 14.26 1.51 1.15 Bn
5 FIS Fidelity National Information Services, Inc. 28.54 Bn -1.17 2.90 13.00 Bn
6 WIT Wipro Ltd 23.98 Bn 16.25 2.37 2.35 Bn
7 LDOS Leidos Holdings, Inc. 20.68 Bn 14.28 1.20 5.24 Bn
8 BR Broadridge Financial Solutions, Inc. 20.38 Bn 19.09 2.84 3.17 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.04 1.23
EV to Cash from Ops. EV/CFO -6.21 3.12
EV to Debt EV to Debt 106.48 3.45
EV to EBIT EV/EBIT 31.84 -4.05
EV to EBITDA EV/EBITDA 32.57 3.57
EV to Free Cash Flow [EV/FCF] EV/FCF -6.21 -2.69
EV to Market Cap EV to Market Cap 1.00 1.54
EV to Revenue EV/Rev 6.72 47.25
Price to Book Value [P/B] P/B 4.78 3.04
Price to Earnings [P/E] P/E 41.59 4.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.59
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 14.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 4.61
Interest Coverage Interest Coverage 116.04 -318.37
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -256.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 105.63 128.67
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.73
EBIAT Growth (1y) % EBIAT Growth (1y) % 334.45 -36.77
EBITDA Growth (1y) % EBITDA Growth (1y) % 289.91 -22.62
EBIT Growth (1y) % EBIT Growth (1y) % 293.19 -87.06
EBT Growth (1y) % EBT Growth (1y) % 303.09 75.53
EPS Growth (1y) % EPS Growth (1y) % 325.00 122.99
FCF Growth (1y) % FCF Growth (1y) % -11,099.91 -8,761.26
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 213.33 -4.36
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.60 0.79
Cash Payout Ratio Cash Payout Ratio 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.30 0.73
Current Ratio Curr Ratio (Qtr) 4.88 2.20
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.98
Interest Cover Ratio Interest Cover Ratio 116.04 -318.37
Times Interest Earned Times Interest Earned 116.04 -318.37
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 21.50 -369.53
EBIT Margin % EBIT Margin % 21.11 -585.52
EBT Margin % EBT Margin % 20.93 -637.04
Gross Margin % Gross Margin % 50.70 24.60
Net Profit Margin % Net Profit Margin % 16.10 -639.67