MARKETWISE INC (MKTW)
US57064P1075 - Common Stock
We assign a fundamental rating of 5 out of 10 to MKTW. MKTW was compared to 212 industry peers in the Capital Markets industry. MKTW has only an average score on both its financial health and profitability. MKTW may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MKTW had positive earnings in the past year.
MKTW had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MKTW reported negative net income in multiple years.
Each year in the past 5 years MKTW had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.44%, MKTW is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
The Return On Invested Capital of MKTW (189.41%) is better than 99.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | N/A | ||
| ROIC | 189.41% |
ROA(3y)-78.61%
ROA(5y)-82.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.39%, MKTW is doing worse than 74.16% of the companies in the same industry.
In the last couple of years the Profit Margin of MKTW has declined.
The Operating Margin of MKTW (12.12%) is worse than 74.64% of its industry peers.
In the last couple of years the Operating Margin of MKTW has grown nicely.
MKTW has a Gross Margin of 87.31%. This is amongst the best in the industry. MKTW outperforms 89.00% of its industry peers.
MKTW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.12% | ||
| PM (TTM) | 0.39% | ||
| GM | 87.31% |
OM growth 3YN/A
OM growth 5Y9.59%
PM growth 3YN/A
PM growth 5Y-44.86%
GM growth 3Y14.91%
GM growth 5Y2.86%
2. Health
2.1 Basic Checks
The number of shares outstanding for MKTW has been increased compared to 1 year ago.
MKTW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MKTW has an Altman-Z score of 1.60. This is a bad value and indicates that MKTW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.60, MKTW is in the better half of the industry, outperforming 66.03% of the companies in the same industry.
There is no outstanding debt for MKTW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.6 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.72 indicates that MKTW may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.72, MKTW is doing worse than 66.51% of the companies in the same industry.
MKTW has a Quick Ratio of 0.72. This is a bad value and indicates that MKTW is not financially healthy enough and could expect problems in meeting its short term obligations.
MKTW has a worse Quick ratio (0.72) than 66.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
MKTW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 348.15%, which is quite impressive.
The earnings per share for MKTW have been decreasing by -40.87% on average. This is quite bad
The Revenue for MKTW has decreased by -12.54% in the past year. This is quite bad
The Revenue has been growing by 13.46% on average over the past years. This is quite good.
EPS 1Y (TTM)348.15%
EPS 3YN/A
EPS 5Y-40.87%
EPS growth Q2Q-64.29%
Revenue 1Y (TTM)-12.54%
Revenue growth 3Y7.16%
Revenue growth 5Y13.46%
Revenue growth Q2Q-12.17%
3.2 Future
MKTW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 76.61% yearly.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y119.17%
EPS Next 2Y76.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.78%
Revenue Next 2Y11.16%
Revenue Next 3YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.42 indicates a correct valuation of MKTW.
The rest of the industry has a similar Price/Earnings ratio as MKTW.
MKTW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 6.07, the valuation of MKTW can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKTW indicates a rather cheap valuation: MKTW is cheaper than 93.78% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.41. MKTW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKTW is valued cheaper than 89.00% of the companies in the same industry.
77.51% of the companies in the same industry are more expensive than MKTW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.54 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
MKTW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MKTW's earnings are expected to grow with 76.61% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y76.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MKTW has a Yearly Dividend Yield of 2.48%.
In the last 3 months the price of MKTW has falen by -29.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.28, MKTW is paying slightly less dividend.
MKTW's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
MKTW is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MKTW pays out 330.30% of its income as dividend. This is not a sustainable payout ratio.
DP330.3%
EPS Next 2Y76.61%
EPS Next 3YN/A
MARKETWISE INC
NASDAQ:MKTW (5/3/2024, 7:06:11 PM)
After market: 1.67 +0.06 (+3.73%)1.61
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap532.54M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 6.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.44% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.12% | ||
| PM (TTM) | 0.39% | ||
| GM | 87.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)348.15%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y119.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.54%
Revenue growth 3Y7.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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