Magic Empire Global Limited (MEGL) AI Stock Analysis

NASDAQ: MEGLAI research summary: business, growth, valuation, analysts, bull and bear case.

MEGL AI stock analysis summary

AI Research

Magic Empire Global Limited (MEGL) is a Hong Kong-based capital markets firm providing IPO sponsorship, financial advisory, and underwriting services. The company generated $11.5M in revenue for FY2025 alongside a net loss of -$8.3M and an operating margin of -104.2%. Despite ongoing operational losses, MEGL maintains $120.7M in cash and short-term investments against $3.1M in total debt as of March 31, 2026.

Market cap
$52.3M
Revenue (TTM)
$11.5M
P/E
—
1Y return
-49.5%
S&P 500 16.8%
Avg. target
—

Bull case

  • Magic Empire Global Limited holds $120.7M in cash and short-term investments against total debt of $3.1M, resulting in a net cash position of $117.7M as of March 31, 2026.
  • The company's stock trades at a price-to-book multiple of 0.4x relative to shareholders' equity of $121.2M.
  • Quarterly revenue grew 26.7% year-over-year in the latest quarter ended March 31, 2026.

Bear case

  • Annual revenue contracted 9.8% in FY2025 to $11.5M, marking a 5-year revenue CAGR of -10.8%.
  • Operating losses expanded to an operating margin of -104.2% and a net loss of -$8.3M in FY2025.
  • The business burned -$6.8M in free cash flow during FY2025, continuing three consecutive years of negative cash flow.

What Magic Empire Global does

Magic Empire Global Limited is a financial services firm based in Central, Hong Kong, specializing in corporate financial solutions. Incorporated in 2016, the company operates with 7 employees and focuses on initial public offering (IPO) sponsorship, helping corporate clients navigate documentation, regulatory compliance, and market entry. In addition to IPO sponsorship, the firm provides general and independent financial advisory services, as well as post-listing compliance advisory to help newly public companies adhere to ongoing regulatory obligations. Magic Empire Global Limited also offers underwriting services to assist corporate clients in raising capital efficiently.

Growth and profitability

Over the past five fiscal years, MEGL posted a 5-year revenue compound annual growth rate of -10.8%. Annual revenue decreased from $16.9M in FY2021 to $11.2M in FY2022, rebounded to $13.8M in FY2023, and then declined to $12.8M in FY2024 and $11.5M in FY2025. Profitability worsened significantly over this timeframe, shifting from net income of $1.6M in FY2021 to a net loss of -$8.3M in FY2025, which reflected a net margin of -72.1% and an operating margin of -104.2%. For the trailing twelve months ended March 31, 2026, revenue stood at $11.5M with an operating margin of -87.0%. In the latest quarter ended March 31, 2026, quarterly revenue grew 26.7% year-over-year, while quarterly earnings declined 13.6%.

MEGL income statement →

Balance sheet and cash flow

As of March 31, 2026, Magic Empire Global Limited held $120.7M in cash and short-term investments alongside total debt of $3.1M, yielding a net cash position of $117.7M. Total assets stood at $125.8M and shareholders' equity was $121.2M. The company exhibits a current ratio of 38.87 and a debt-to-equity ratio of 0.03. Cash generation remained negative in FY2025, with both operating cash flow and free cash flow at -$6.8M, while its 5-year share count change was -66.2%.

MEGL balance sheet →

Valuation and performance

At its last close of $0.74 on October 16, 2026, Magic Empire Global Limited had a market capitalization of $52.3M and an enterprise value of -$9.1M. The stock traded at a price-to-sales multiple of 4.5x, compared to 3.2x for the median of its US-listed Financial Services peers. Its price-to-book ratio stood at 0.4x, and its EV-to-EBITDA ratio was 3.1x versus the peer median of 11.7x. Over the trailing 1-year period, MEGL shares fell 49.5%, significantly underperforming the S&P 500 (SPY), which gained 16.8%.

MEGL key metrics →

What analysts expect

There are no Wall Street analyst rating counts, earnings per share estimates, revenue forecasts, or consensus price targets available for Magic Empire Global Limited. The company has not provided a scheduled next earnings date. Over the trailing twelve months ended March 31, 2026, MEGL reported diluted earnings per share of -$0.21, and its stock closed at $0.74 on October 16, 2026, trading 34.0% below its 200-day moving average.

Key risks and what to watch

  • Stock price volatility is elevated, as reflected by a beta of 2.39 and a 1-year return of -49.5%.
  • Negative margins persist with a TTM profit margin of -72.1% and a TTM operating margin of -87.0%.
  • The company has a highly concentrated operational scale, conducting its capital markets business with only 7 employees.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this MEGL AI stock analysis

This page is an AI-written research summary of Magic Empire Global Limited (MEGL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MEGL income statement, MEGL balance sheet, MEGL key metrics, MEGL chart. See the MEGL stock overview for the latest quote and news.

MEGL AI stock analysis FAQ

What services does Magic Empire Global Limited provide?

Magic Empire Global Limited is a Hong Kong financial services firm that provides corporate services including initial public offering (IPO) sponsorship, general and independent financial advisory, post-listing compliance advisory, and securities underwriting.

What is MEGL's cash and debt position?

As of March 31, 2026, MEGL held $120.7M in cash and short-term investments and $3.1M in total debt, giving it net cash of $117.7M and a current ratio of 38.87.

Does Magic Empire Global Limited pay a dividend?

Magic Empire Global Limited does not report any dividend payments.

How has MEGL performed relative to the broader market?

Over the past year leading to October 16, 2026, MEGL fell 49.5%, while the S&P 500 (SPY) returned 16.8%.

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