Micro Focus International plc (MFGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MFGP - US5948374039 - ADR
6.48 USD
-0.03 (-0.46%)
6.29 USD
-0.19 (-2.93%)
We assign a fundamental rating of 2 out of 10 to MFGP. MFGP was compared to 277 industry peers in the Software industry. MFGP has a bad profitability rating. Also its financial health evaluation is rather negative. MFGP is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year MFGP was profitable.
- In the past year MFGP had a positive cash flow from operations.
1.2 Ratios
- MFGP has negative profitability rations, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Gross Margin, with a value of 73.32%, MFGP is in the better half of the industry, outperforming 68.23% of the companies in the same industry.
- In the last couple of years the Gross Margin of MFGP has declined.
- The Profit Margin and Operating Margin are not available for MFGP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 73.32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.3%
GM growth 5Y-3.87%
2. Health
2.1 Basic Checks
- MFGP does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for MFGP has been increased compared to 1 year ago.
- Compared to 1 year ago, MFGP has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.93, we must say that MFGP is in the distress zone and has some risk of bankruptcy.
- MFGP has a Altman-Z score of 0.93. This is in the lower half of the industry: MFGP underperforms 61.20% of its industry peers.
- MFGP has a debt to FCF ratio of 23.67. This is a negative value and a sign of low solvency as MFGP would need 23.67 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 23.67, MFGP is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- MFGP has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of MFGP (1.57) is worse than 80.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 23.67 | ||
| Altman-Z | 0.93 |
ROIC/WACCN/A
WACC7.83%
2.3 Liquidity
- MFGP has a Current Ratio of 0.85. This is a bad value and indicates that MFGP is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.85, MFGP is not doing good in the industry: 83.28% of the companies in the same industry are doing better.
- MFGP has a Quick Ratio of 0.85. This is a bad value and indicates that MFGP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of MFGP (0.85) is worse than 81.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- MFGP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.84%.
- The earnings per share for MFGP have been decreasing by -13.83% on average. This is quite bad
- The Revenue has decreased by -3.37% in the past year.
- Measured over the past years, MFGP shows a quite strong growth in Revenue. The Revenue has been growing by 18.42% on average per year.
EPS 1Y (TTM)-5.84%
EPS 3Y-13.83%
EPS 5YN/A
EPS Q2Q%-13.64%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y-15.19%
Revenue growth 5Y18.42%
Sales Q2Q%-10.95%
3.2 Future
- Based on estimates for the next years, MFGP will show a decrease in Earnings Per Share. The EPS will decrease by -8.54% on average per year.
- MFGP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.58% yearly.
EPS Next Y-15.19%
EPS Next 2Y-13.56%
EPS Next 3Y-8.54%
EPS Next 5YN/A
Revenue Next Year-10.91%
Revenue Next 2Y-7.63%
Revenue Next 3Y-5.58%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 4.63, the valuation of MFGP can be described as very cheap.
- MFGP's Price/Earnings ratio is rather cheap when compared to the industry. MFGP is cheaper than 96.99% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, MFGP is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.21, the valuation of MFGP can be described as very cheap.
- MFGP's Price/Forward Earnings ratio is rather cheap when compared to the industry. MFGP is cheaper than 98.33% of the companies in the same industry.
- MFGP is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.63 | ||
| Fwd PE | 6.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MFGP is valued cheaper than 96.32% of the companies in the same industry.
- MFGP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MFGP is cheaper than 95.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
- A cheap valuation may be justified as MFGP's earnings are expected to decrease with -8.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.56%
EPS Next 3Y-8.54%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.09%, MFGP is a good candidate for dividend investing.
- MFGP's Dividend Yield is rather good when compared to the industry average which is at 0.52. MFGP pays more dividend than 99.00% of the companies in the same industry.
- MFGP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
- MFGP has been paying a dividend for over 5 years, so it has already some track record.
- MFGP has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- MFGP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-22.27%
EPS Next 2Y-13.56%
EPS Next 3Y-8.54%
6.48
-0.03 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-06 2023-02-06/amc
Earnings (Next)06-20 2023-06-20/amc
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.20B
Revenue(TTM)2.90B
Net Income(TTM)-424.40M
Analysts75
Price Target6.01 (-7.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP-22.27%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)258.97%
Min EPS beat(2)258.97%
Max EPS beat(2)258.97%
EPS beat(4)2
Avg EPS beat(4)134.57%
Min EPS beat(4)10.17%
Max EPS beat(4)258.97%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.47%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-4.47%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)-0.26%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.49%
PT rev (3m)0.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.63 | ||
| Fwd PE | 6.21 | ||
| P/S | 0.76 | ||
| P/FCF | 12.25 | ||
| P/OCF | 8.77 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.99 |
EPS(TTM)1.4
EY21.6%
EPS(NY)1.04
Fwd EY16.11%
FCF(TTM)0.53
FCFY8.16%
OCF(TTM)0.74
OCFY11.4%
SpS8.55
BVpS7.82
TBVpS-14.34
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 73.32% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.3%
GM growth 5Y-3.87%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 23.67 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 7.2% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 0.93 |
F-Score5
WACC7.83%
ROIC/WACCN/A
Cap/Depr(3y)9.34%
Cap/Depr(5y)11.63%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.84%
EPS 3Y-13.83%
EPS 5YN/A
EPS Q2Q%-13.64%
EPS Next Y-15.19%
EPS Next 2Y-13.56%
EPS Next 3Y-8.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y-15.19%
Revenue growth 5Y18.42%
Sales Q2Q%-10.95%
Revenue Next Year-10.91%
Revenue Next 2Y-7.63%
Revenue Next 3Y-5.58%
Revenue Next 5YN/A
EBIT growth 1Y-103.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2.09%
EBIT Next 3Y0.45%
EBIT Next 5YN/A
FCF growth 1Y-63.54%
FCF growth 3Y-44.44%
FCF growth 5Y-10.81%
OCF growth 1Y-57.09%
OCF growth 3Y-39.85%
OCF growth 5Y-6.76%
Micro Focus International plc / MFGP FAQ
Can you provide the ChartMill fundamental rating for Micro Focus International plc?
ChartMill assigns a fundamental rating of 3 / 10 to MFGP.
Can you provide the valuation status for Micro Focus International plc?
ChartMill assigns a valuation rating of 8 / 10 to Micro Focus International plc (MFGP). This can be considered as Undervalued.
What is the profitability of MFGP stock?
Micro Focus International plc (MFGP) has a profitability rating of 1 / 10.
Can you provide the PE and PB ratios for MFGP stock?
The Price/Earnings (PE) ratio for Micro Focus International plc (MFGP) is 4.63 and the Price/Book (PB) ratio is 0.83.
What is the expected EPS growth for Micro Focus International plc (MFGP) stock?
The Earnings per Share (EPS) of Micro Focus International plc (MFGP) is expected to decline by -15.19% in the next year.