Mega Fortune Company Limited Ordinary Shares (MGRT)

FairStock Score: 37/100 — MIXED

Key Financials

Strengths

• High return on equity of 21.1% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.04, providing financial flexibility
• Altman Z-Score of 397.5 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($2) with negative 6586% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Mega Fortune Company Limited Ordinary Shares is a micro-cap technology company valued at $1.9 billion. Revenue stands at $11 million. From a quality standpoint, Mega shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 397.5 confirms fortress-level solvency. On valuation, the stock is commanding a steep 823.5x multiple, with trades far above its Graham Number ($2) with no margin of safety. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 824x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer