# Megaport (MP1.AU)

Canonical: https://gigainvestors.com/s/MP1.AU

Analysis as of: 2026-10-16T07:39:46.141Z. Financial observations: FY2016–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

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

Share price: AUD 15.64 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

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

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 9

- Operating margin variation: 1.12×

Chart: Operating margin; fiscal year observations.

- FY2017: -2.74×

- FY2018: -1.42×

- FY2019: -1.10×

- FY2020: -0.78×

- FY2021: -0.60×

- FY2022: -0.42×

- FY2023: -0.13×

- FY2024: 0.02×

- FY2025: -0.00×

- FY2026: -0.10×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: -55.4%

- ROIC, second-lowest year: -100.0%

- Typical minus recent gross margin: 0.5 pp

- Typical gross margin (annual median): 3.5%

- Recent gross margin (lower of latest and 3-year median): 3.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 38.3%

- ROIC including acquisitions, ten-year median: -67.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -311.5%

- FY2018: -100.0%

- FY2019: -84.0%

- FY2020: -56.1%

- FY2021: -63.7%

- FY2022: -54.7%

- FY2023: -19.9%

- FY2024: 6.1%

- FY2025: -0.5%

- FY2026: -8.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -281M

- Net income, five-year total: AUD -88M

- Return on incremental invested capital: -3.4%

- Working capital / revenue, annual change: 1.6 pp

- Working capital / revenue, change between three-year averages: 10.7 pp

- Working capital / revenue, final three-year average: 10.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: AUD -51M

- FY2023: AUD -8.2M

- FY2024: AUD 26M

- FY2025: AUD 5.7M

- FY2026: AUD -253M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -100.0% vs -0.5%

- Per-share earnings: -0.25 to -0.00 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 7.7%

- Ordinary dilution, 5-year annual growth: 2.7%

- Market cap gain: AUD 3.7B

- Cumulative retained earnings: AUD -247M

- Diluted shares, 10-year annual growth: 7.7%

- Diluted shares, 5-year annual growth: 2.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD 0.25

- Per-share value, starting three-year median: AUD -0.25

- Per-share value, ending three-year median: AUD -0.00

- Buybacks concentrated in cheaper years (correlation): -0.29

- Average buyback yield: 0.3%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 498M

- Cumulative net income, 10 years: AUD -280M

- ROIC, first three-year median: -100.0%

- ROIC, last three-year median: -0.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD -0.29

- FY2018: AUD -0.21

- FY2019: AUD -0.25

- FY2020: AUD -0.32

- FY2021: AUD -0.35

- FY2022: AUD -0.31

- FY2023: AUD -0.06

- FY2024: AUD 0.06

- FY2025: AUD -0.00

- FY2026: AUD -0.22

### accounting: pass

- Sloan accruals: -7.8%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.47×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -13.1%

- FY2018: -0.8%

- FY2019: -4.3%

- FY2020: -10.9%

- FY2021: -21.2%

- FY2022: -17.5%

- FY2023: -9.9%

- FY2024: -18.9%

- FY2025: -26.3%

- FY2026: -7.8%

## Holders

## Price story

Down 28% since Jun 2026 · sales +37.5%

Story as of 2026-10-16T10:00:11.014Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +37.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 11M 

- FY2018: AUD 20M 

- FY2019: AUD 35M 

- FY2020: AUD 58M 

- FY2021: AUD 78M 

- FY2022: AUD 110M 

- FY2023: AUD 153M 

- FY2024: AUD 195M 

- FY2025: AUD 227M 

- FY2026: AUD 312M 

### Gross margin · FY2026

gross margin 3.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 22.7% 

- FY2019: 34.1% 

- FY2023: 4.0% 

- FY2024: 81.4% 

- FY2025: 83.0% 

- FY2026: 3.1% 

## Owner memo

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

### How it makes money

Operates in software infrastructure; annual sales are AUD 312.2 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); FY2026: revenue 312187000; grossProfit 9592000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MP1.AU: Megaport Limited provides on-demand data and network interconnection services in Australia, New Zealand, Hong Kong, India, Singapore, Japan, the United States of America, Canada, Mexico, and Brazil, and Europe. It operates a Software Defined Network platform that enables customers to connect their network to other services, as well as agile networking. The company also provides network solation such as data center interconnect, data center to cloud, cloud to cloud, Megaport Cloud Router and virtual edge, NAT Gateway, Virtual Cross Connect and connectivity hub, global WAN, internet exchange, and megaport port and internet; Standard Object Storage; and High-Performance block storage, object storage, and file storage, as well as internet exchanges, megaport internet, and firewall as a service hosting services. The company was founded in 2013 and is headquartered in Fortitude Valley, Australia.

### Why customers stay

Margins ranged from 3.1% to 83% during 2024–26; it lost 55.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); FY2024: grossProfit / revenue = 81.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); FY2025: grossProfit / revenue = 83%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); FY2026: grossProfit / revenue = 3.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); 10-year return on capital observations [[2017,-3.1146207672247734],[2018,-1.0002029989849148],[2019,-0.839682670399956],[2020,-0.5605632632585555],[2021,-0.6366919421523048],[2022,-0.5471667262862935],[2023,-0.19907004955606028],[2024,0.061089504458025766],[2025,-0.004795129634116792],[2026,-0.08152151182804693]]; median -0.5538649947724246. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 10 years; bought back AUD 16.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); FY2024: growth capex 0; upkeep 19859000; owner earnings 25597400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); FY2025: growth capex 0; upkeep 34298000; owner earnings 5720400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); Dividend observations: [[2017,40296368],[2018,71606816],[2019,59521000],[2020,9243000],[2021,0],[2022,23000],[2023,2246000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); FY2026: cash repurchases 16380000 AUD.

### Are managers owners

Insiders own 2.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MP1.AU SharesStats.PercentInsiders = 2.924 percentage points; cache date 2026-10-16.

### What the price says

The price is 9 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:46.141Z); Closing price 15.64 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 1.7293791203951703; price multiple 9.043708123656653. FY2026 cash earnings/share -1.4012252694620655. Closing-price date 2026-10-15.

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

- 2016-10: AUD 2.60 per share

- 2016-11: AUD 2.55 per share

- 2016-12: AUD 2.42 per share

- 2017-01: AUD 2.40 per share

- 2017-02: AUD 2.25 per share

- 2017-03: AUD 2.05 per share

- 2017-04: AUD 1.98 per share

- 2017-05: AUD 2.00 per share

- 2017-06: AUD 2.28 per share

- 2017-07: AUD 2.22 per share

- 2017-08: AUD 2.26 per share

- 2017-09: AUD 1.93 per share

- 2017-10: AUD 2.43 per share

- 2017-11: AUD 2.83 per share

- 2017-12: AUD 3.40 per share

- 2018-01: AUD 3.84 per share

- 2018-02: AUD 3.95 per share

- 2018-03: AUD 3.70 per share

- 2018-04: AUD 3.71 per share

- 2018-05: AUD 3.99 per share

- 2018-06: AUD 3.95 per share

- 2018-07: AUD 4.16 per share

- 2018-08: AUD 4.10 per share

- 2018-09: AUD 3.77 per share

- 2018-10: AUD 3.28 per share

- 2018-11: AUD 3.95 per share

- 2018-12: AUD 3.66 per share

- 2019-01: AUD 3.83 per share

- 2019-02: AUD 4.26 per share

- 2019-03: AUD 4.09 per share

- 2019-04: AUD 5.72 per share

- 2019-05: AUD 6.00 per share

- 2019-06: AUD 6.53 per share

- 2019-07: AUD 7.27 per share

- 2019-08: AUD 8.50 per share

- 2019-09: AUD 9.09 per share

- 2019-10: AUD 9.28 per share

- 2019-11: AUD 9.66 per share

- 2019-12: AUD 10.74 per share

- 2020-01: AUD 11.13 per share

- 2020-02: AUD 10.12 per share

- 2020-03: AUD 9.84 per share

- 2020-04: AUD 12.00 per share

- 2020-05: AUD 13.75 per share

- 2020-06: AUD 12.08 per share

- 2020-07: AUD 13.15 per share

- 2020-08: AUD 17.04 per share

- 2020-09: AUD 16.09 per share

- 2020-10: AUD 13.47 per share

- 2020-11: AUD 12.78 per share

- 2020-12: AUD 14.25 per share

- 2021-01: AUD 13.48 per share

- 2021-02: AUD 12.51 per share

- 2021-03: AUD 11.09 per share

- 2021-04: AUD 14.38 per share

- 2021-05: AUD 14.99 per share

- 2021-06: AUD 18.43 per share

- 2021-07: AUD 16.63 per share

- 2021-08: AUD 17.11 per share

- 2021-09: AUD 16.80 per share

- 2021-10: AUD 17.91 per share

- 2021-11: AUD 21.34 per share

- 2021-12: AUD 18.56 per share

- 2022-01: AUD 13.40 per share

- 2022-02: AUD 13.51 per share

- 2022-03: AUD 13.91 per share

- 2022-04: AUD 8.68 per share

- 2022-05: AUD 7.31 per share

- 2022-06: AUD 5.45 per share

- 2022-07: AUD 9.69 per share

- 2022-08: AUD 7.26 per share

- 2022-09: AUD 7.79 per share

- 2022-10: AUD 6.09 per share

- 2022-11: AUD 6.59 per share

- 2022-12: AUD 6.31 per share

- 2023-01: AUD 5.78 per share

- 2023-02: AUD 5.66 per share

- 2023-03: AUD 4.12 per share

- 2023-04: AUD 5.63 per share

- 2023-05: AUD 6.82 per share

- 2023-06: AUD 7.22 per share

- 2023-07: AUD 10.20 per share

- 2023-08: AUD 12.04 per share

- 2023-09: AUD 11.77 per share

- 2023-10: AUD 9.51 per share

- 2023-11: AUD 9.73 per share

- 2023-12: AUD 9.20 per share

- 2024-01: AUD 12.71 per share

- 2024-02: AUD 14.47 per share

- 2024-03: AUD 14.99 per share

- 2024-04: AUD 13.50 per share

- 2024-05: AUD 13.56 per share

- 2024-06: AUD 11.22 per share

- 2024-07: AUD 10.97 per share

- 2024-08: AUD 8.54 per share

- 2024-09: AUD 7.32 per share

- 2024-10: AUD 7.00 per share

- 2024-11: AUD 7.89 per share

- 2024-12: AUD 7.37 per share

- 2025-01: AUD 8.52 per share

- 2025-02: AUD 11.12 per share

- 2025-03: AUD 9.63 per share

- 2025-04: AUD 11.42 per share

- 2025-05: AUD 13.52 per share

- 2025-06: AUD 14.44 per share

- 2025-07: AUD 15.06 per share

- 2025-08: AUD 16.44 per share

- 2025-09: AUD 15.77 per share

- 2025-10: AUD 16.46 per share

- 2025-11: AUD 14.30 per share

- 2025-12: AUD 12.17 per share

- 2026-01: AUD 11.59 per share

- 2026-02: AUD 8.79 per share

- 2026-03: AUD 7.25 per share

- 2026-04: AUD 9.16 per share

- 2026-05: AUD 15.52 per share

- 2026-06: AUD 21.58 per share

- 2026-07: AUD 18.10 per share

- 2026-08: AUD 16.54 per share

- 2026-09: AUD 20.65 per share

- 2026-10: AUD 17.73 per share

## Annual estimated value (AUD 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.