One-glance verdict
Overvalued
$1.20 our estimate vs market $7.75
Wall Street consensus: $14.00 (1,067.0% higher than our fair-value estimate)
546% above our estimate, beyond the bull case
Fundamentals snapshot
mF International Limited
MFI · NCM · Technology · Software - Application
Current price
$7.75
52-week range
$5.55 - $29.69
Market cap
$388.87M
Balance sheet
Healthy
-118.77x Concerning
Net cash $48.77M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 29.4% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Operating margin compressed from 23.7% to -217.0% over 3 years.
- Risk Return on equity was -213.7% last year — the company lost money on shareholders' equity.
What this company does
mF International Limited
mF International Limited sells trading software and services to financial companies, with most of its money coming from Hong Kong, mainland China, and Southeast Asia. This matters because it means the company is focused on helping brokers and banks in these busy financial regions make their trading operations smoother and more efficient.
How the company got here
mF International Limited, founded in 2002 and based in Hong Kong, has grown into a provider of financial trading solutions. The company initially focused on developing software for financial institutions. Over the years, it expanded its offerings to include a wider range of services catering to the evolving needs of the financial trading world, particularly in the Asian markets. This evolution has positioned mF International as a key player in providing the technological backbone for various financial services.
What it actually does
mF International Limited provides technology and software solutions that help financial companies, like forex and bullion brokers, manage their operations and offer trading services to their clients. Think of them as the company that builds the digital tools and platforms that allow traders to buy and sell currencies, precious metals, and other financial products online. They offer everything from the core trading software to systems that help manage customer relationships and even social trading features where users can copy successful traders.
m-FINANCE Trading Platform
This is the core product, a software solution that allows financial institutions to offer trading services to their clients. It's the engine that powers the buying and selling of financial instruments. Clients, such as brokerage firms, pay to use this platform to provide their own customers with the ability to trade on markets like forex (foreign exchange) and bullion (precious metals). This segment represents a significant portion of the company's business, as it's the foundational offering.
Customer Relationship Management (CRM) and mCRM
mF International offers systems designed to help brokerage companies manage their interactions with clients and introducing brokers (individuals or firms that refer clients to a brokerage). This includes tracking client information, managing communications, and facilitating business development. The mobile version, mCRM, extends these capabilities to smartphones, allowing for on-the-go client management. This service is crucial for financial firms looking to build and maintain strong client relationships, contributing a steady revenue stream.
Liquidity Solutions and Broker+
This business line provides services that help brokers connect to larger financial markets to execute trades efficiently. Liquidity solutions ensure that there are always buyers and sellers available, making it easier for trades to happen. Broker+ is a cross-platform solution that allows brokers to act as liquidity providers themselves, meaning they can facilitate trades for other market participants. These offerings are vital for brokers needing to manage risk and ensure smooth trade execution, forming a key part of mF International's revenue.
Social and Copy Trading (CopyMaster, MarketMaster)
mF International has developed mobile applications like CopyMaster and MarketMaster that enable social and copy trading. This allows users to follow and automatically replicate the trades of experienced traders, making sophisticated trading strategies accessible to a wider audience. These platforms generate revenue through user subscriptions or transaction fees, tapping into the growing trend of social investing and representing a modern, user-focused segment of their business.
Other Financial Value-Added Services
Beyond the core platforms, mF International provides a suite of additional services that enhance the trading experience. These include real-time market data, interactive charts, professional trading analysis, economic news, and online payment gateways. They also offer website development and electronic identity verification solutions. These supplementary services create multiple revenue streams and make mF International a comprehensive solution provider for financial institutions.
What management is betting on now
Management is focused on expanding its reach in Southeast Asia and Mainland China, leveraging its existing technology platforms. They are also investing in research and development for algorithm trading, aiming to create more sophisticated automated trading solutions. Furthermore, the company is exploring opportunities in digital assets, including investments in Bitcoin Cash, indicating a strategic move to adapt to the evolving financial landscape. These initiatives are designed to drive future growth and maintain competitiveness in the fast-paced fintech industry.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-2.88M
FY2025 Q4
$-2.06M
Revenue
$4.35M
Net income
$10.12M
Diluted EPS
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Operating cash flow
$-2.04M
Free cash flow
$-2.06M
Fetching…
Sources
Revenue
$3.36M
Net income
$-2.60M
Diluted EPS
-0.20
Operating cash flow
$-2.82M
Free cash flow
$-2.88M
Fetching…
Sources
Is it cheap or expensive?
Fair value $1.20 vs current price $7.75
Wall Street consensus is the average analyst price target: $14.00 (1,067.0% higher than our fair-value estimate).
Our most-likely fair value is $1.20 a share — about 84.5% below today's price of $7.75, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $48.8M - more cash than debt. Interest coverage -118.8x.
Net debt
$-48.77M
Interest coverage
-118.77x
mF International Limited is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
MFI
BASELINE
mF International Limited
Total debt $424.12K Interest coverage -118.77x This is the baseline the peer rows are being compared against.
What you should know
The case for and against MFI
2 Rewards
3 Risks
Rewards
-
Revenue grew 29.4% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Operating margin compressed from 23.7% to -217.0% over 3 years.
-
Return on equity was -213.7% last year — the company lost money on shareholders' equity.
-
Stock trades 167.5% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
3.69x
Forward P/E
-32.02x
P/B
1.62x
P/S
12.64x
EV/EBITDA
-0.14x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
43.9%
Operating margin
-217.0%
Net margin
0.0%
ROE
-213.7%
ROA
-3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.00x
Current ratio
254.01x
Quick ratio
51.93x
Total debt
$424.12K
Total cash
$49.19M
Growth
How the business has been compounding
Revenue TTM
$4.35M
Revenue 5Y CAGR
3.1%
EPS TTM
2.10
EPS 5Y CAGR
48.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$-2.04M
Free CF TTM
$-2.34M
FCF margin
-53.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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