# Megacable Holdings S. A. B. de C. V (MEGACPO.MX)

Canonical: https://gigainvestors.com/s/MEGACPO.MX

Analysis as of: 2026-10-16T07:39:57.783Z. Financial observations: FY2006–FY2025.

Listing currency: MXN. Reporting currency: MXN.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: MXN 57.64 per share; close as of 2026-10-15.

Estimated value: low MXN 29.52 per share, central MXN 33.64 per share, high MXN 36.64 per share. Buy at or below the central value MXN 33.64 per share. Valuation as of 2026-10-16T07:39:57.783Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 13.3%). required return 13.3% a year (MX 10-year bond 9.3% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.29×

- FY2017: 0.31×

- FY2018: 0.32×

- FY2019: 0.29×

- FY2020: 0.29×

- FY2021: 0.28×

- FY2022: 0.24×

- FY2023: 0.21×

- FY2024: 0.19×

- FY2025: 0.19×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.4%

- ROIC, second-lowest year: 8.7%

- Typical minus recent gross margin: 6.0 pp

- Typical gross margin (annual median): 54.6%

- Recent gross margin (lower of latest and 3-year median): 48.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 29.0%

- ROIC including acquisitions, ten-year median: 4.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.3%

- FY2017: 19.1%

- FY2018: 21.0%

- FY2019: 16.5%

- FY2020: 16.3%

- FY2021: 16.5%

- FY2022: 10.7%

- FY2023: 8.7%

- FY2024: 8.6%

- FY2025: 8.9%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.45×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: MXN 6.8B

- Net income, five-year total: MXN 15B

- Return on incremental invested capital: 4.4%

- Working capital / revenue, annual change: -1.1 pp

- Working capital / revenue, change between three-year averages: -6.5 pp

- Working capital / revenue, final three-year average: -5.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.53×

- FY2022: -0.15×

- FY2023: 0.21×

- FY2024: 0.97×

- FY2025: 0.95×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 21.0% vs 8.7%

- Per-share earnings: 3.55 to 1.62 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 14.9%

- Market cap gain: MXN 13B

- Cumulative retained earnings: MXN 12B

- Diluted shares, 5-year annual growth: 14.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -10.6%

- Per-share value change: MXN -1.93

- Per-share value, starting three-year median: MXN 3.55

- Per-share value, ending three-year median: MXN 1.62

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 0.1%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: MXN 2.0B

- Cumulative net income, 10 years: MXN 36B

- ROIC, first three-year median: 21.0%

- ROIC, last three-year median: 8.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: MXN 3.55

- FY2017: MXN 6.46

- FY2018: MXN 2.76

- FY2019: MXN 5.27

- FY2020: MXN 5.07

- FY2021: MXN 4.05

- FY2022: MXN 2.08

- FY2023: MXN 1.65

- FY2024: MXN 1.33

- FY2025: MXN 1.62

### accounting: pass

- Sloan accruals: -17.6%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.70×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.5%

- FY2017: -10.6%

- FY2018: -9.2%

- FY2019: -6.6%

- FY2020: -18.2%

- FY2021: -14.9%

- FY2022: -11.0%

- FY2023: -15.4%

- FY2024: -15.6%

- FY2025: -17.6%

## Holders

## Price story

Price needs cash profits to grow 11.2% a year for ten years · sales +7.6%

Story as of 2026-10-16T10:00:11.074Z; price observation 2026-10-15.

Price needs cash profits to grow 11.2% a year for ten years

### Sales · FY2024–2025

sales +7.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: MXN 17B 

- FY2017: MXN 17B 

- FY2018: MXN 20B 

- FY2019: MXN 22B 

- FY2020: MXN 22B 

- FY2021: MXN 25B 

- FY2022: MXN 27B 

- FY2023: MXN 30B 

- FY2024: MXN 33B 

- FY2025: MXN 36B 

### Gross margin · FY2025

gross margin 48.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 56.5% 

- FY2017: 59.7% 

- FY2018: 60.0% 

- FY2019: 55.3% 

- FY2020: 54.8% 

- FY2021: 54.3% 

- FY2022: 52.0% 

- FY2023: 49.4% 

- FY2024: 48.9% 

- FY2025: 48.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in media & publishing; annual sales are MXN 35.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2025: revenue 35532660000; grossProfit 17279547000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MEGACPO.MX: Megacable Holdings, S. A. B. de C. V., together with its subsidiaries, engages in the installation, operation, and maintenance of cable television, internet, and telephone signal distribution systems. It operates through Cable, Internet, Telephone services, Corporate, and Other segments. The company operates cable television systems in various states of Mexico; and offers high-speed internet services to residential and commercial customers, as well as digital fixed telephony services to residential and commercial customers. It also produces and broadcasts TV programs, as well as offers point-of-sale, virtual private network, and other network services. The company provides video services to 3,539,822 subscribers; Internet services to 3,833,893 subscribers; and telephony services to 3,031,119 subscribers. It is also involved in the leasing of equipment and infrastructure for providing cable, internet, and telephone services; provision of technical, sales, and administrative staff services, as well as connectivity solutions; and operation of "Video rola' channel. The company was founded in 1978 and is headquartered in Guadalajara, Mexico. Megacable Holdings, S. A. B. de C. V. operates as a subsidiary of Nacional Financiera, S.N.C., Institución de Banca de Desarrollo.

### Why customers stay

Margins ranged from 48.6% to 49.4% during 2023–25; it earns 16.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2023: grossProfit / revenue = 49.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2024: grossProfit / revenue = 48.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2025: grossProfit / revenue = 48.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); 10-year return on capital observations [[2016,0.2125952217947245],[2017,0.19086544581537784],[2018,0.21041004529012192],[2019,0.164750755264551],[2020,0.16279225919052978],[2021,0.16451584506702693],[2022,0.10674496810362553],[2023,0.08665382346813855],[2024,0.08604154157853253],[2025,0.0885167379188865]]; median 0.16365405212877837. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 17.5% of cash earnings on expansion; earns 4.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2017: growth capex 0; upkeep 4271016000; owner earnings 3332832000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2018: growth capex 0; upkeep 5348933000; owner earnings 2846665000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2019: growth capex 3001411540.387718; upkeep 4807908459.612282; owner earnings 3539084540.387718. Growth capex / owner earnings = 0.8480756834531293.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2020: growth capex 632949000; upkeep 4689486000; owner earnings 4048817000. Growth capex / owner earnings = 0.15632936731889832.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2021: growth capex 3527052852.563883; upkeep 6534068147.436117; owner earnings 1837422652.5638828. Growth capex / owner earnings = 1.9195653474949501.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2023: growth capex 4754982358.778812; upkeep 9278268641.221188; owner earnings 587351558.7788124. Growth capex / owner earnings = 8.095632484001742.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2024: growth capex 0; upkeep 8328975000; owner earnings 2228688600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2025: growth capex 464963000; upkeep 9532050000; owner earnings 2650530400. Growth capex / owner earnings = 0.1754226248452008.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); Incremental return on capital 0.044316950674145934, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); Dividend observations: [[2016,1169177000],[2017,1390958000],[2018,1592037000],[2019,1918448000],[2020,1619548000],[2021,2295602000],[2022,2559241000],[2023,2538547000],[2024,2644181000],[2025,2867057000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); FY2025: cash repurchases 3465000 MXN.

### Are managers owners

Insiders own 0% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MEGACPO.MX SharesStats.PercentInsiders = 0 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:57.783Z); Ten-year compound average after fade. Initial solved rate 0.14813527724068576. Price 57.64; FX 1; discount 0.13252; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (MXN per share)

- 2016-10: MXN 68.72 per share

- 2016-11: MXN 63.86 per share

- 2016-12: MXN 69.41 per share

- 2017-01: MXN 66.23 per share

- 2017-02: MXN 72.32 per share

- 2017-03: MXN 72.56 per share

- 2017-04: MXN 71.44 per share

- 2017-05: MXN 71.78 per share

- 2017-06: MXN 73.34 per share

- 2017-07: MXN 73.55 per share

- 2017-08: MXN 77.41 per share

- 2017-09: MXN 75.75 per share

- 2017-10: MXN 75.84 per share

- 2017-11: MXN 78.73 per share

- 2017-12: MXN 80.01 per share

- 2018-01: MXN 85.16 per share

- 2018-02: MXN 83.44 per share

- 2018-03: MXN 83.97 per share

- 2018-04: MXN 86.00 per share

- 2018-05: MXN 85.00 per share

- 2018-06: MXN 81.83 per share

- 2018-07: MXN 89.69 per share

- 2018-08: MXN 89.87 per share

- 2018-09: MXN 96.28 per share

- 2018-10: MXN 90.07 per share

- 2018-11: MXN 93.17 per share

- 2018-12: MXN 88.14 per share

- 2019-01: MXN 85.98 per share

- 2019-02: MXN 88.05 per share

- 2019-03: MXN 90.07 per share

- 2019-04: MXN 83.51 per share

- 2019-05: MXN 80.91 per share

- 2019-06: MXN 81.54 per share

- 2019-07: MXN 81.63 per share

- 2019-08: MXN 81.82 per share

- 2019-09: MXN 79.47 per share

- 2019-10: MXN 79.03 per share

- 2019-11: MXN 69.24 per share

- 2019-12: MXN 77.44 per share

- 2020-01: MXN 70.31 per share

- 2020-02: MXN 65.90 per share

- 2020-03: MXN 64.88 per share

- 2020-04: MXN 60.07 per share

- 2020-05: MXN 67.07 per share

- 2020-06: MXN 67.27 per share

- 2020-07: MXN 66.10 per share

- 2020-08: MXN 62.99 per share

- 2020-09: MXN 63.63 per share

- 2020-10: MXN 67.29 per share

- 2020-11: MXN 73.56 per share

- 2020-12: MXN 72.68 per share

- 2021-01: MXN 74.12 per share

- 2021-02: MXN 72.24 per share

- 2021-03: MXN 73.24 per share

- 2021-04: MXN 74.11 per share

- 2021-05: MXN 75.91 per share

- 2021-06: MXN 70.54 per share

- 2021-07: MXN 69.80 per share

- 2021-08: MXN 69.93 per share

- 2021-09: MXN 63.10 per share

- 2021-10: MXN 60.66 per share

- 2021-11: MXN 59.44 per share

- 2021-12: MXN 69.76 per share

- 2022-01: MXN 66.44 per share

- 2022-02: MXN 60.32 per share

- 2022-03: MXN 59.93 per share

- 2022-04: MXN 58.13 per share

- 2022-05: MXN 55.83 per share

- 2022-06: MXN 48.87 per share

- 2022-07: MXN 47.41 per share

- 2022-08: MXN 42.25 per share

- 2022-09: MXN 40.58 per share

- 2022-10: MXN 41.61 per share

- 2022-11: MXN 49.15 per share

- 2022-12: MXN 51.78 per share

- 2023-01: MXN 58.81 per share

- 2023-02: MXN 47.02 per share

- 2023-03: MXN 45.91 per share

- 2023-04: MXN 48.63 per share

- 2023-05: MXN 41.00 per share

- 2023-06: MXN 39.48 per share

- 2023-07: MXN 42.49 per share

- 2023-08: MXN 41.37 per share

- 2023-09: MXN 38.36 per share

- 2023-10: MXN 35.26 per share

- 2023-11: MXN 40.99 per share

- 2023-12: MXN 37.92 per share

- 2024-01: MXN 44.28 per share

- 2024-02: MXN 43.92 per share

- 2024-03: MXN 46.22 per share

- 2024-04: MXN 49.87 per share

- 2024-05: MXN 53.54 per share

- 2024-06: MXN 45.98 per share

- 2024-07: MXN 43.79 per share

- 2024-08: MXN 42.19 per share

- 2024-09: MXN 40.82 per share

- 2024-10: MXN 43.90 per share

- 2024-11: MXN 38.88 per share

- 2024-12: MXN 33.91 per share

- 2025-01: MXN 40.86 per share

- 2025-02: MXN 44.35 per share

- 2025-03: MXN 42.95 per share

- 2025-04: MXN 47.99 per share

- 2025-05: MXN 51.52 per share

- 2025-06: MXN 52.59 per share

- 2025-07: MXN 52.43 per share

- 2025-08: MXN 54.09 per share

- 2025-09: MXN 59.02 per share

- 2025-10: MXN 53.16 per share

- 2025-11: MXN 51.96 per share

- 2025-12: MXN 51.72 per share

- 2026-01: MXN 61.16 per share

- 2026-02: MXN 66.75 per share

- 2026-03: MXN 62.27 per share

- 2026-04: MXN 61.15 per share

- 2026-05: MXN 59.12 per share

- 2026-06: MXN 62.43 per share

- 2026-07: MXN 58.47 per share

- 2026-08: MXN 51.96 per share

- 2026-09: MXN 51.74 per share

- 2026-10: MXN 53.34 per share

## Annual estimated value (MXN per share)

- FY2016: low MXN 12.72 per share, central MXN 13.84 per share, high MXN 15.20 per share

- FY2017: low MXN 27.33 per share, central MXN 29.43 per share, high MXN 31.99 per share

- FY2018: low MXN 10.90 per share, central MXN 11.75 per share, high MXN 12.79 per share

- FY2019: low MXN 32.63 per share, central MXN 35.48 per share, high MXN 38.94 per share

- FY2020: low MXN 38.01 per share, central MXN 41.15 per share, high MXN 44.96 per share

- FY2021: low MXN 40.76 per share, central MXN 44.22 per share, high MXN 48.42 per share

- FY2022: low MXN 21.79 per share, central MXN 28.13 per share, high MXN 31.25 per share

- FY2023: low MXN 12.28 per share, central MXN 15.36 per share, high MXN 17.01 per share

- FY2024: low MXN 13.38 per share, central MXN 15.87 per share, high MXN 17.38 per share

- FY2025: low MXN 14.19 per share, central MXN 16.23 per share, high MXN 17.71 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations