Long-established in the Business Services industry, Mega Matrix Corp (MPU, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a decline of 13.67%, juxtaposed with a three-month change of -27.88%. Fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Mega Matrix Corp.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- 1. Financial strength rank: 10/10
- 2. Profitability rank: 5/10
- 3. Growth rank: 1/10
- 4. GF Value rank: 0/10
- 5. Momentum rank: 10/10
Based on the above method, GuruFocus assigned Mega Matrix Corp the GF Score of 52 out of 100, which signals poor future outperformance potential.
Understanding Mega Matrix Corp Business
Mega Matrix Corp is a holding company with a market cap of $38.07 million. It operates through its two subsidiaries Mega Metaverse Corp (Mega) and JetFleet Management Corp (JMC). The Company has three business segments which are comprised of 1) ETH staking business, 2) the GameFi business, and 3) the leasing of regional aircraft to foreign and domestic regional airlines. The majority of the company's revenue is earned through the Leasing business segment. Despite its diverse operations, the company's sales stand at a mere $0.02 million, with an operating margin of -25422.73%, indicating significant challenges in profitability.
Profitability Breakdown
Mega Matrix Corp's low Profitability rank can also raise warning signals. The company's Operating Margin has declined over the past five years ((-3,770.26%)), as shown by the following data: 2018: 30.64; 2019: 54.99; 2020: 5.43; 2021: -83.29; 2022: -1,124.72. Additionally, Mega Matrix Corp's Gross Margin has also declined over the past five years, as evidenced by the data: 2018: 0; 2019: 0; 2020: 0; 2021: 0; 2022: -74.39. This trend underscores the company's struggles to convert its revenue into profits.
Growth Prospects
A lack of significant growth is another area where Mega Matrix Corp seems to falter, as evidenced by the company's low Growth rank. The company's revenue has declined by -84.7 per year over the past three years, which underperforms worse than 99.9% of 977 companies in the Business Services industry. Stagnating revenues may pose concerns in a fast-evolving market. Lastly, Mega Matrix Corp predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Next Steps
Given the company's weak financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. As value investors, it's crucial to consider these factors when making investment decisions. Will Mega Matrix Corp be able to overcome these challenges and return to its former glory? Only time will tell.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
