MultiChoice Group Limited
MultiChoice Group Limited Fundamental Analysis
MultiChoice Group Limited (MCHOY) shows weak financial fundamentals with a PE ratio of 37.01, profit margin of 2.35%, and ROE of 25.00%. The company generates $50.6B in annual revenue with weak year-over-year growth of -5.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MCHOY's fundamental strength across five key dimensions:
Efficiency Score
WeakMCHOY struggles to generate sufficient returns from assets.
Valuation Score
ModerateMCHOY shows balanced valuation metrics.
Growth Score
WeakMCHOY faces weak or negative growth trends.
Financial Health Score
WeakMCHOY carries high financial risk with limited liquidity.
Profitability Score
ModerateMCHOY maintains healthy but balanced margins.
Key Financial Metrics
Is MCHOY Expensive or Cheap?
P/E Ratio
MCHOY trades at 37.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MCHOY's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values MultiChoice Group Limited at 6.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.21 times EBITDA. This is generally considered low.
How Well Does MCHOY Make Money?
Net Profit Margin
For every $100 in sales, MultiChoice Group Limited keeps $2.35 as profit after all expenses.
Operating Margin
Core operations generate 9.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.00 in profit for every $100 of shareholder equity.
ROA
MultiChoice Group Limited generates $3.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MultiChoice Group Limited generates limited operating cash flow of $2.10B, signaling weaker underlying cash strength.
Free Cash Flow
MultiChoice Group Limited produces free cash flow of $1.58B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.70 in free cash annually.
FCF Yield
MCHOY converts 3.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.005
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How MCHOY Stacks Against Its Sector Peers
| Metric | MCHOY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.01 | 22.05 | Worse (Expensive) |
| ROE | 25.00% | 1173.00% | Weak |
| Net Margin | 2.35% | -64583.00% (disorted) | Weak |
| Debt/Equity | 3.08 | 1.36 | Weak (High Leverage) |
| Current Ratio | 0.99 | 1.58 | Weak Liquidity |
| ROA | 3.04% | -200331.00% (disorted) | Weak |
MCHOY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MultiChoice Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.40%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-149.69%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-38.91%
Industry Style: Growth, Technology, Streaming
Declining