The firm exhibits a concerning decoupling of financial performance, reporting zero operating cash flow for several consecutive quarters despite maintaining a massive $127.5 million cash balance.
| Cash from Operations | -4.65M | 94.49K | -910.36K | 678.65K | -3.99M | 8M |
| Operating CF Margin % | -36.37% | 0.69% | -8.13% | 4.04% | -19.53% | 28.62% |
| Operating CF Growth % | -5021.16% | 110.38% | -234.14% | 117.02% | -149.83% | - |
| Net Income | -4.73M | -483.81K | -3.84M | 1.54M | 4.2M | 10.01M |
| Depreciation & Amortization | 2.1M | 2.11M | 1.96M | 3.05M | 3.34M | 3.25M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 391.82K | -391.82K | 0 | 0 |
| Other Non-Cash Items | -1.04M | 800.1K | -794.8K | 1.62M | 195.19K | -501.94K |
| Working Capital Changes | -975K | -2.33M | 1.38M | -5.13M | -11.72M | -4.76M |
| Change in Receivables | 508.16K | 339.54K | 3.19M | -2.41M | -683.37K | 309.01K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 39.75M | -27.92M | -14.6M | 0 | 0 | -1.37M |
| Capital Expenditures | 0 | -1.9M | 0 | 0 | 0 | -1.37M |
| CapEx % of Revenue | - | 13.81% | - | - | - | 4.89% |
| Acquisitions | - | - | - | - | - | - |
| Investments | 0 | 38.65M | 14.5M | 0 | 0 | 0 |
| Other Investing | 0 | 96.7K | -96.7K | 0 | 0 | 0 |
| Cash from Financing | 0 | -1.58M | 125.63M | 3.13M | -3.8M | -7M |
| Debt Issued (Net) | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 140.54M | 0 | 0 | 0 |
| Dividends Paid | 0 | -1.58M | -4M | 0 | -3.75M | -6.99M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -10.9M | 3.13M | -50K | -10K |
| Net Change in Cash | 35.1M | -29.41M | 110.13M | 3.81M | -7.79M | 15.67M |
| Free Cash Flow | -4.65M | -1.81M | -910.36K | 678.65K | -3.99M | 6.63M |
| FCF Margin % | -36.37% | -13.13% | -8.13% | 4.04% | -19.53% | 23.73% |
| FCF Growth % | -156.84% | -98.87% | -234.14% | 117.02% | -160.1% | - |
| FCF per Share | -0.92 | -0.36 | -0.05 | 0.05 | -0.20 | 0.44 |
| FCF Conversion (FCF/Net Income) | 0.98x | -0.20x | 0.24x | 0.43x | -0.95x | 0.80x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 820.23K | 0 | 6.94M | 0 |
Cyclical Deal Flow Dependence
As reported in recent financial filings, MEGL has recorded zero operating cash flow for several consecutive quarters, suggesting a complete decoupling between reported net income and actual cash generation that warrants significant caution regarding the firm's ability to convert its advisory services into tangible liquidity.
The absence of reported operating cash flow in recent periods, despite fluctuating net income, implies that the company's accrual-based earnings may not be supported by actual cash inflows. Investors should monitor whether this reflects a fundamental inability to collect on advisory mandates or a strategic shift in how the firm manages its working capital cycle.
Based on the company's historical financial statements, the FCF trajectory has effectively stalled at zero, indicating that the firm is currently unable to generate self-sustaining cash flow from its core operations to support its ongoing professional headcount and regulatory compliance requirements.
The lack of positive free cash flow suggests that the business model is currently reliant on its existing cash reserves rather than operational success. This trajectory appears to confirm that the firm is struggling to scale its revenue base sufficiently to cover its fixed cost structure in the current market environment.
According to historical data, MEGL has experienced significant volatility in working capital changes, with recent periods showing a complete lack of reported movement, which may indicate a cessation of active deal-related billing or a fundamental shift in how the firm manages its client receivables.
The historical pattern of negative working capital changes suggests that the company previously struggled with the timing of cash collections relative to service delivery. The current stagnation in these metrics warrants further investigation into whether the firm has effectively paused its active project pipeline or if it is simply failing to report meaningful operational activity.
As evidenced by the company's financial disclosures, MEGL maintains a massive cash position of $127.5 million while reporting zero capital deployment toward acquisitions or growth initiatives, suggesting that the firm is currently functioning as a capital-heavy entity rather than an active investment banking participant.
The lack of capital deployment into accretive growth or share repurchases implies that management may be prioritizing liquidity preservation over operational expansion. This strategy appears to leave the firm vulnerable to long-term value erosion if the core business remains unable to generate a positive return on its substantial cash holdings.
Quick answers to the most common questions about buying MEGL stock.
Magic Empire Global Limited (MEGL) generated $-4.7M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Magic Empire Global Limited (MEGL) reported negative free cash flow of $4.7M in 2024, indicating capital requirements exceeded cash from operations.
Magic Empire Global Limited (MEGL) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.