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MERIDIANLINK INC (MLNK) Stock Fundamental Analysis

NYSE:MLNK - New York Stock Exchange, Inc. - US58985J1051 - Common Stock - Currency: USD

15.57  -0.41 (-2.57%)

After market: 15.57 0 (0%)

Fundamental Rating

4

MLNK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. MLNK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MLNK has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year MLNK was profitable.
MLNK had a positive operating cash flow in the past year.
In the past 5 years MLNK reported 4 times negative net income.
Each year in the past 5 years MLNK had a positive operating cash flow.
MLNK Yearly Net Income VS EBIT VS OCF VS FCFMLNK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M 80M

1.2 Ratios

The Return On Assets of MLNK (-2.95%) is comparable to the rest of the industry.
MLNK has a Return On Equity (-6.75%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.50%, MLNK is in the better half of the industry, outperforming 63.48% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MLNK is significantly below the industry average of 12.11%.
Industry RankSector Rank
ROA -2.95%
ROE -6.75%
ROIC 0.5%
ROA(3y)-2.41%
ROA(5y)-2.58%
ROE(3y)-5.04%
ROE(5y)-5.86%
ROIC(3y)1.67%
ROIC(5y)2.77%
MLNK Yearly ROA, ROE, ROICMLNK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15

1.3 Margins

With a decent Operating Margin value of 1.78%, MLNK is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of MLNK has declined.
MLNK has a Gross Margin (65.57%) which is comparable to the rest of the industry.
MLNK's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 1.78%
PM (TTM) N/A
GM 65.57%
OM growth 3Y-42.83%
OM growth 5Y-27.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.42%
GM growth 5Y-0.99%
MLNK Yearly Profit, Operating, Gross MarginsMLNK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLNK is destroying value.
Compared to 1 year ago, MLNK has less shares outstanding
Compared to 5 years ago, MLNK has less shares outstanding
The debt/assets ratio for MLNK is higher compared to a year ago.
MLNK Yearly Shares OutstandingMLNK Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
MLNK Yearly Total Debt VS Total AssetsMLNK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

MLNK has an Altman-Z score of 1.35. This is a bad value and indicates that MLNK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MLNK (1.35) is comparable to the rest of the industry.
MLNK has a debt to FCF ratio of 5.57. This is a neutral value as MLNK would need 5.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.57, MLNK is in line with its industry, outperforming 57.45% of the companies in the same industry.
MLNK has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.07, MLNK is not doing good in the industry: 74.11% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 5.57
Altman-Z 1.35
ROIC/WACC0.05
WACC10.66%
MLNK Yearly LT Debt VS Equity VS FCFMLNK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.3 Liquidity

MLNK has a Current Ratio of 2.22. This indicates that MLNK is financially healthy and has no problem in meeting its short term obligations.
MLNK has a Current ratio of 2.22. This is in the better half of the industry: MLNK outperforms 65.96% of its industry peers.
A Quick Ratio of 2.22 indicates that MLNK has no problem at all paying its short term obligations.
MLNK's Quick ratio of 2.22 is fine compared to the rest of the industry. MLNK outperforms 66.31% of its industry peers.
Industry RankSector Rank
Current Ratio 2.22
Quick Ratio 2.22
MLNK Yearly Current Assets VS Current LiabilitesMLNK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 50M 100M 150M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 370.00% over the past year.
Looking at the last year, MLNK shows a small growth in Revenue. The Revenue has grown by 5.15% in the last year.
MLNK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.68% yearly.
EPS 1Y (TTM)370%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y5.72%
Revenue growth 5Y15.68%
Sales Q2Q%4.72%

3.2 Future

MLNK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.30% yearly.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y61.42%
EPS Next 2Y40.28%
EPS Next 3Y37.3%
EPS Next 5YN/A
Revenue Next Year4.54%
Revenue Next 2Y5.1%
Revenue Next 3Y6.01%
Revenue Next 5YN/A

3.3 Evolution

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.
MLNK Yearly Revenue VS EstimatesMLNK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M
MLNK Yearly EPS VS EstimatesMLNK Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 57.67 indicates a quite expensive valuation of MLNK.
MLNK's Price/Earnings ratio is in line with the industry average.
MLNK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.82.
The Price/Forward Earnings ratio is 32.97, which means the current valuation is very expensive for MLNK.
MLNK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MLNK is cheaper than 61.35% of the companies in the same industry.
MLNK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.21.
Industry RankSector Rank
PE 57.67
Fwd PE 32.97
MLNK Price Earnings VS Forward Price EarningsMLNK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MLNK is valued a bit cheaper than 76.95% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLNK indicates a rather cheap valuation: MLNK is cheaper than 89.36% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.32
EV/EBITDA 24.21
MLNK Per share dataMLNK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4

4.3 Compensation for Growth

MLNK'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 MLNK's earnings are expected to grow with 37.30% in the coming years.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y40.28%
EPS Next 3Y37.3%

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0

5. Dividend

5.1 Amount

No dividends for MLNK!.
Industry RankSector Rank
Dividend Yield N/A

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MERIDIANLINK INC

NYSE:MLNK (8/1/2025, 8:04:01 PM)

After market: 15.57 0 (0%)

15.57

-0.41 (-2.57%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-12 2025-05-12/amc
Earnings (Next)08-11 2025-08-11/amc
Inst Owners39.17%
Inst Owner Change-0.12%
Ins Owners4.24%
Ins Owner Change5.92%
Market Cap1.20B
Analysts53.85
Price Target19.47 (25.05%)
Short Float %4.6%
Short Ratio4.05
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.1%
Min EPS beat(2)-23.27%
Max EPS beat(2)1.07%
EPS beat(4)1
Avg EPS beat(4)-26.13%
Min EPS beat(4)-52.18%
Max EPS beat(4)1.07%
EPS beat(8)2
Avg EPS beat(8)-46.11%
EPS beat(12)3
Avg EPS beat(12)-2.4%
EPS beat(16)6
Avg EPS beat(16)14.78%
Revenue beat(2)0
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-1.72%
Revenue beat(12)2
Avg Revenue beat(12)-1.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)-2.97%
EPS NQ rev (1m)2.46%
EPS NQ rev (3m)-17.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.16%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.13%
Valuation
Industry RankSector Rank
PE 57.67
Fwd PE 32.97
P/S 3.76
P/FCF 14.32
P/OCF 13.19
P/B 2.78
P/tB N/A
EV/EBITDA 24.21
EPS(TTM)0.27
EY1.73%
EPS(NY)0.47
Fwd EY3.03%
FCF(TTM)1.09
FCFY6.98%
OCF(TTM)1.18
OCFY7.58%
SpS4.15
BVpS5.6
TBVpS-4.75
PEG (NY)0.94
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.95%
ROE -6.75%
ROCE 0.63%
ROIC 0.5%
ROICexc 0.58%
ROICexgc N/A
OM 1.78%
PM (TTM) N/A
GM 65.57%
FCFM 26.22%
ROA(3y)-2.41%
ROA(5y)-2.58%
ROE(3y)-5.04%
ROE(5y)-5.86%
ROIC(3y)1.67%
ROIC(5y)2.77%
ROICexc(3y)1.8%
ROICexc(5y)2.98%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.11%
ROCE(5y)3.5%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-38.18%
ROICexc growth 5Y-18.44%
OM growth 3Y-42.83%
OM growth 5Y-27.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.42%
GM growth 5Y-0.99%
F-Score7
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 5.57
Debt/EBITDA 7.29
Cap/Depr 12.5%
Cap/Sales 2.26%
Interest Coverage 0.15
Cash Conversion 143.24%
Profit Quality N/A
Current Ratio 2.22
Quick Ratio 2.22
Altman-Z 1.35
F-Score7
WACC10.66%
ROIC/WACC0.05
Cap/Depr(3y)15.92%
Cap/Depr(5y)15.49%
Cap/Sales(3y)2.99%
Cap/Sales(5y)2.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)370%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y61.42%
EPS Next 2Y40.28%
EPS Next 3Y37.3%
EPS Next 5YN/A
Revenue 1Y (TTM)5.15%
Revenue growth 3Y5.72%
Revenue growth 5Y15.68%
Sales Q2Q%4.72%
Revenue Next Year4.54%
Revenue Next 2Y5.1%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y-72.99%
EBIT growth 3Y-39.56%
EBIT growth 5Y-16.36%
EBIT Next Year70.69%
EBIT Next 3Y26.16%
EBIT Next 5YN/A
FCF growth 1Y43.85%
FCF growth 3Y-5.78%
FCF growth 5Y34.88%
OCF growth 1Y34.42%
OCF growth 3Y-4.68%
OCF growth 5Y28.98%