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ME Group (MEGP) Fair Value & Analysis

Industrials · GB · Market cap 432M GBX

MG ME Group MEGP · LSE
Price£1.15
Fair Value£2.14
Upside+85.4%
Quality67/100
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Expensive Growth
Solidly profitable · 17.6% net margin
Low debt · generates free cash flow
7.25% dividend yield
Ranks above peers (9/14)
Wide moat 80/100
Evidence: High Range £1.39 – £3.37 Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 22 days ago

Fair value updated Jul 18, 2026, revised from £2.13 to £2.14 (+0.5%) since Jun 25, 2026. Share price +21.5% over the past month.

A solid business, screening 85% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£1.39). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£1.39 to £3.37) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£2.06 £0.3965 Fair Value £2.14 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £0.3965 – £2.06 · fair‑value band £1.39 – £3.37 · the £1.15 price screens below the £2.14 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

ME Group (MEGP) currently trades at £1.15, while our model-based Fair Value estimate is £2.14, implying the stock looks roughly 85.4% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, ME Group generated revenue of £315M at a net margin of 17.9%. Revenue grew 2.6% year over year. It earns a return on equity of 28.8%. The balance sheet holds a net cash position of £13.5M. Fundamentals as of Jul 18, 2026

Our scenario range runs from £1.39 (bear case) to £3.37 (bull case); at £1.15, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Industrials peers we cover trades at -32% fair-value upside, at 85%, MEGP screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF £0.7900 £0.9900 £1.22 80
Residual Income £0.8200 £1.05 £3.54 76
Rev-Margin DCF £0.7800 £1.09 £1.42 74
All 24 models by family
DCF Models
FCF DCF £0.7800 £0.9900 £1.24 38
Owner Earnings £0.9700 £1.23 £1.56 31
5Y Revenue Exit £0.7800 £1.08 £1.45 39
5Y EBITDA Exit £1.85 £2.94 £4.17 41
5Y P/E Exit £1.65 £2.60 £3.54 38
10Y Revenue Exit £0.7600 £1.01 £1.31 36
10Y EBITDA Exit £1.38 £2.15 £3.08 37
10Y P/E Exit £1.27 £1.94 £2.67 35
Earnings-Based
Graham-Dodd £1.03 £2.12 £2.68 54
EPV £1.32 £1.48 £1.62 59
Dividend Discount
Gordon GGM £0.6200 £0.8500 £1.07 70
DDM Multi-Stage £0.6200 £0.8300 £1.04 61
Multiples
P/E Multiple £2.49 £3.32 £4.15 63
P/S Multiple £0.7600 £1.01 £1.26 58
P/B Multiple £1.71 £2.27 £2.84 55
EV/EBIT £2.92 £3.85 £4.79 53
EV/EBITDA £3.00 £3.96 £4.92 54
EV/Revenue £0.8200 £1.13 £1.43 43
Asset-Based
NCAV (Graham) £0.2800 £0.3800 £0.5700 50
Growth DCF
Growth DCF £0.7900 £0.9900 £1.22 80
Rev-Margin DCF £0.7800 £1.09 £1.42 74
Economic Profit
Residual Income £0.8200 £1.05 £3.54 76
ROIC Compounder £1.34 £1.55 £1.74 72
Growth Earnings
Growth-Adj P/E £1.82 £2.59 £3.37 68

Widest divergence: Growth Earnings (£2.59) versus Asset-Based (£0.3800). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 316M GBX
Revenue growth (YoY) +0.3%
Net margin 17.6%
Return on equity 28.2%
Free cash flow 28.7M GBX FY2025
P/E ratio 7.2
More key figures
Operating margin 21.7%
EPS (TTM) £0.1500
Dividend yield 8.0%
EPS growth (YoY) -3.9%
Net cash 13.5M GBX FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 66 · Market factors (momentum, volatility) 29

Profitability 78
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 37
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ME Group International plc provides automated instant-service equipment in the United Kingdom. It operates, sells, and services a range of instant service vending equipment for the consumer markets, such as WASH.ME, a laundry business; PHOTO.ME for instant photo ID, portraits, and photographs; PRINT.ME, a digital printing kiosk; Feed.ME vending equipment …

Full company description

ME Group International plc provides automated instant-service equipment in the United Kingdom. It operates, sells, and services a range of instant service vending equipment for the consumer markets, such as WASH.ME, a laundry business; PHOTO.ME for instant photo ID, portraits, and photographs; PRINT.ME, a digital printing kiosk; Feed.ME vending equipment for food and fruit juice service market; Amuse.ME, a self-service traditional amusement and interactive children's rides; and Copy.ME photocopier, which enable consumers to reproduce physical documents. The company also designs tailor-made projects for third-party businesses. It operates in Australia, Austria, Belgium, China, Finland, France, Germany, Ireland, Japan, Luxembourg, the Netherlands, Portugal, Singapore, Spain, Switzerland, and the United Kingdom. The company was formerly known as Photo-Me International plc and changed its name to ME Group International plc in August 2022. ME Group International plc was incorporated in 1962 and is based in Epsom, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ME Group reported revenue of £315M in FY2025 versus £214M in FY2021, a compound +10.1%/yr. Reported net income was £56.6M in FY2025, compounding +27.0%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
£315M
Latest YoY
+2.4%
Avg. growth/yr (3Y)
+6.7%
Avg. growth/yr (5Y)
+7.9%
Avg. growth/yr (39Y)
+4.5%
Revenue +10.1%/yr
FY21 £214M
FY22 £260M
FY23 £298M
FY24 £308M
FY25 £315M
Net income +27.0%/yr
FY21 £21.7M
FY22 £38.8M
FY23 £50.7M
FY24 £54.1M
FY25 £56.6M

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Cite: Fair Value Calculator (2026). "ME Group Fair Value". https://www.fairvalue-calculator.com/stock/MEGP

Peer Group

Business Equipment & Supplies · 73 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +85% · Top 25%
Return on equity (TTM) 28% · Top 25%
Return on assets 15% · Top 25%
Net margin (TTM) 18% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 7.3% · Top 25%
Debt / equity 0.06× · Higher than median

Valuation Multiples vs Business Equipment & Supplies median · lower = cheaper

P/E (TTM) 7.7× · Cheaper than 75% of peers
P/B 2.74× · Pricier than 75% of peers
P/S (TTM) 1.85× · Pricier than median
P/FCF 20.3× · Pricier than 75% of peers
EV/EBITDA 4.7× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 33
FUTURE 2 · sector 18
PAST 100 · sector 20
HEALTH 97 · sector 98
DIVIDEND 100 · sector 52

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Business Equipment & Supplies stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Ricoh Company RICO ¥15.33 ¥17.99 +17%
GRG Banking Equipment Co 002152 ¥10.08 ¥6.90 -32%
Shanghai M&G Stationery Inc 603899 ¥21.45 ¥30.05 +40%
XGD Inc 300130 ¥19.90 ¥15.67 -21%
DOMS Industries Limited DOMS ₹2,260 ₹782.96 -65%
Hengbao Co 002104 ¥9.20 ¥1.66 -82%
Shaanxi Fenghuo Electronics Co 000561 ¥6.99 ¥1.75 -75%
Shenzhen Comix Group 002301 ¥7.30 ¥3.11 -57%
Shandong New Beiyang Information Technology Co 002376 ¥6.00 ¥1.73 -71%
Qingdao Hiron Commercial Cold Chain Co 603187 ¥11.92 ¥21.12 +77%

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Frequently asked questions

Is ME Group (MEGP) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £2.14 versus a price of £1.15, about +85% (undervalued).
What is the fair value of MEGP?
Our model-based fair value for ME Group is £2.14 (as of Jul 18, 2026), built from audited fundamentals. The current price is £1.15.
What is the quality score of MEGP?
ME Group has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of ME Group (MEGP)?
ME Group reported trailing-twelve-month revenue of about £315M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of MEGP?
The net profit margin of ME Group is about 17.9%, meaning it keeps roughly 17.9% of revenue as net income. Based on the latest reported figures.
Does ME Group pay a dividend?
ME Group currently shows a dividend yield of about 7.98% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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