Magic Empire Global Ltd (MEGL) Stock Analysis
Verdict: AVOID
Severe operational losses and lack of scale offset an attractive P/B valuation; MEGL is a speculative bet on Hong Kong IPO recovery.
Investment score: 38/100
Analysis as of
Is Magic Empire Global Ltd stock worth reviewing? The TradeMates thesis
The model sees an entity with a solid balance sheet (38.8x current ratio) but an inability to generate profit from its core advisory business, making it a high-risk micro-cap play.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 15/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 20/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Magic Empire Global Ltd opportunities and risks
What speaks for MEGL
- Deep Asset Discount
What speaks against MEGL
- Structural Revenue Decay
Peers and competitors
- PLUT
- 8226.HK
- GSIW
- GRAN
- 1788.HK
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MEGL | n/a | 7.3x | 3.2x | 0.0% | -71.9% | 0.0% |
| PLUT | n/a | 67.7x | n/a | 100.0% | -134.3% | -0.5% |
| GSIW | n/a | 4.5x | n/a | 21.8% | -86.5% | -9.6% |
| GRAN | 29.2x | 14.7x | 31.0x | 78.5% | 37.7% | 0.9% |
| Peer median | n/a | 14.7x | n/a | 78.5% | -86.5% | -0.5% |
Frequently asked questions about Magic Empire Global Ltd (MEGL)
Is MEGL stock a good investment?
The TradeMates model rates Magic Empire Global Ltd as AVOID with an investment score of 38/100. The model sees an entity with a solid balance sheet (38.8x current ratio) but an inability to generate profit from its core advisory business, making it a high-risk micro-cap play. This is algorithmic model output, not personal investment advice.
Is MEGL stock a buy?
The TradeMates model verdict for MEGL is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.