Micro Focus International plc (MFGP) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:MFGP • US5948374039

6.48 USD
-0.03 (-0.46%)
At close: Jan 30, 2023
6.29 USD
-0.19 (-2.93%)
After Hours: 1/30/2023, 8:08:28 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

2

MFGP gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. MFGP may be in some trouble as it scores bad on both profitability and health. MFGP is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • MFGP had positive earnings in the past year.
  • In the past year MFGP had a positive cash flow from operations.
MFGP Yearly Net Income VS EBIT VS OCF VS FCFMFGP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 1B -1B -2B

1.2 Ratios

  • MFGP has negative profitability rations, so we won't be analyzing them here.
Industry RankSector 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
MFGP Yearly ROA, ROE, ROICMFGP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 20 -20 -40 -60 -80

1.3 Margins

  • MFGP has a Gross Margin of 73.32%. This is in the better half of the industry: MFGP outperforms 68.23% of its industry peers.
  • MFGP's Gross Margin has declined in the last couple of years.
  • The Profit Margin and Operating Margin are not available for MFGP so they could not be analyzed.
Industry RankSector 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%
MFGP Yearly Profit, Operating, Gross MarginsMFGP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

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.
  • The debt/assets ratio for MFGP is higher compared to a year ago.
MFGP Yearly Shares OutstandingMFGP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 100M 200M 300M
MFGP Yearly Total Debt VS Total AssetsMFGP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 5B 10B 15B

2.2 Solvency

  • MFGP has an Altman-Z score of 0.93. This is a bad value and indicates that MFGP is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.93, MFGP is doing worse than 61.20% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of MFGP (23.67) is better than 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.
  • MFGP has a worse Debt to Equity ratio (1.57) than 80.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 23.67
Altman-Z 0.93
ROIC/WACCN/A
WACC7.83%
MFGP Yearly LT Debt VS Equity VS FCFMFGP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2B 4B 6B

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.
  • The Quick ratio of MFGP (0.85) is worse than 81.94% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.85
MFGP Yearly Current Assets VS Current LiabilitesMFGP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

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
  • MFGP shows a decrease in Revenue. In the last year, the revenue decreased by -3.37%.
  • 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.
  • Based on estimates for the next years, MFGP will show a decrease in Revenue. The Revenue will decrease by -5.58% on average per year.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
MFGP Yearly Revenue VS EstimatesMFGP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
MFGP Yearly EPS VS EstimatesMFGP Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • MFGP is valuated cheaply with a Price/Earnings ratio of 4.63.
  • Compared to the rest of the industry, the Price/Earnings ratio of MFGP indicates a rather cheap valuation: MFGP is cheaper than 96.99% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.93. MFGP is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 6.21, which indicates a rather cheap valuation of MFGP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MFGP indicates a rather cheap valuation: MFGP is cheaper than 98.33% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MFGP to the average of the S&P500 Index (27.77), we can say MFGP is valued rather cheaply.
Industry RankSector Rank
PE 4.63
Fwd PE 6.21
MFGP Price Earnings VS Forward Price EarningsMFGP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MFGP is valued cheaply inside the industry as 96.32% of the companies are valued more expensively.
  • 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 RankSector Rank
P/FCF 12.25
EV/EBITDA 5.99
MFGP Per share dataMFGP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 -10

4.3 Compensation for Growth

  • MFGP's earnings are expected to decrease with -8.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.56%
EPS Next 3Y-8.54%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.09%, MFGP is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.62, MFGP pays a better dividend. On top of this MFGP pays more dividend than 99.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, MFGP pays a better dividend.
Industry RankSector 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
MFGP Yearly Dividends per shareMFGP Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • The earnings of MFGP are negative and hence is the payout ratio. MFGP will probably not be able to sustain this dividend level.
DP-22.27%
EPS Next 2Y-13.56%
EPS Next 3Y-8.54%
MFGP Yearly Income VS Free CF VS DividendMFGP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 1B -1B -2B

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Find the best dividend stocksShow peers with best dividend

Micro Focus International plc

NYSE:MFGP (1/30/2023, 8:08:28 PM)

After market: 6.29 -0.19 (-2.93%)

6.48

-0.03 (-0.46%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-06
Earnings (Next)06-20
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.