Micro Focus International plc (MFGP) Stock Fundamental Analysis
USA - NYSE:MFGP - US5948374039 - ADR
6.48 USD
-0.03 (-0.46%)
6.29 USD
-0.19 (-2.93%)
Overall MFGP gets a fundamental rating of 2 out of 10. We evaluated MFGP against 284 industry peers in the Software industry. MFGP has a bad profitability rating. Also its financial health evaluation is rather negative. MFGP has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year MFGP was profitable.
MFGP had a positive operating cash flow in the past year.
1.2 Ratios
The profitability ratios for MFGP are negative, so there is not much use analyzing them.
| 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
MFGP has a better Gross Margin (73.32%) than 68.23% of its industry peers.
MFGP's Gross Margin has declined in the last couple of years.
MFGP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
MFGP has more shares outstanding than it did 1 year ago.
MFGP has a worse debt/assets ratio than last year.
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's Altman-Z score of 0.93 is on the low side compared to the rest of the industry. MFGP is outperformed by 61.20% of its industry peers.
The Debt to FCF ratio of MFGP is 23.67, which is on the high side as it means it would take MFGP, 23.67 years of fcf income to pay off all of its debts.
MFGP's Debt to FCF ratio of 23.67 is fine compared to the rest of the industry. MFGP outperforms 61.54% of its industry peers.
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.
The Current ratio of MFGP (0.85) is worse than 83.28% of its industry peers.
A Quick Ratio of 0.85 indicates that MFGP may have some problems paying its short term obligations.
MFGP has a Quick ratio of 0.85. This is amonst the worse of the industry: MFGP underperforms 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
The Earnings Per Share is expected to decrease by -8.54% on average over the next years.
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
A Price/Earnings ratio of 4.63 indicates a rather cheap valuation of MFGP.
Based on the Price/Earnings ratio, MFGP is valued cheaper than 96.99% of the companies in the same industry.
MFGP is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.21, which indicates a rather cheap valuation of MFGP.
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.
When comparing the Price/Forward Earnings ratio of MFGP to the average of the S&P500 Index (22.27), we can say MFGP is valued rather cheaply.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MFGP indicates a rather cheap valuation: MFGP is cheaper than 95.32% of the companies listed 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
MFGP has a Yearly Dividend Yield of 4.09%, which is a nice return.
MFGP's Dividend Yield is rather good when compared to the industry average which is at 36.32. MFGP pays more dividend than 99.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, MFGP pays a better dividend.
| 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.
The dividend of MFGP decreased 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)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.20B
Revenue(TTM)2.90B
Net Income(TTM)-424400000
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.
What is the valuation status of Micro Focus International plc (MFGP) stock?
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.
What is the valuation of Micro Focus International plc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Micro Focus International plc (MFGP) is 4.63 and the Price/Book (PB) ratio is 0.83.
Can you provide the expected EPS growth for MFGP stock?
The Earnings per Share (EPS) of Micro Focus International plc (MFGP) is expected to decline by -15.19% in the next year.