MERIDIANLINK INC (MLNK) Stock Fundamental Analysis
USA - NYSE:MLNK - US58985J1051 - Common Stock
20.025 USD
+0.01 (+0.07%)
We assign a fundamental rating of 4 out of 10 to MLNK. MLNK was compared to 285 industry peers in the Software industry. While MLNK seems to be doing ok healthwise, there are quite some concerns on its profitability. MLNK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MLNK had positive earnings in the past year.
In the past year MLNK had a positive cash flow from operations.
MLNK had negative earnings in 4 of the past 5 years.
In the past 5 years MLNK always reported a positive cash flow from operatings.
1.2 Ratios
MLNK has a Return On Assets (-2.40%) which is in line with its industry peers.
With a Return On Equity value of -5.73%, MLNK perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
MLNK's Return On Invested Capital of 1.00% is fine compared to the rest of the industry. MLNK outperforms 63.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MLNK is significantly below the industry average of 11.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.4% | ||
| ROE | -5.73% | ||
| ROIC | 1% |
ROA(3y)-2.41%
ROA(5y)-2.58%
ROE(3y)-5.04%
ROE(5y)-5.86%
ROIC(3y)1.67%
ROIC(5y)2.77%
1.3 Margins
The Operating Margin of MLNK (3.38%) is better than 66.32% of its industry peers.
MLNK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 66.39%, MLNK perfoms like the industry average, outperforming 45.61% of the companies in the same industry.
MLNK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.38% | ||
| PM (TTM) | N/A | ||
| GM | 66.39% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MLNK is destroying value.
MLNK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MLNK has less shares outstanding
MLNK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that MLNK is in the distress zone and has some risk of bankruptcy.
MLNK has a Altman-Z score (1.60) which is comparable to the rest of the industry.
The Debt to FCF ratio of MLNK is 5.25, which is a neutral value as it means it would take MLNK, 5.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.25, MLNK is in line with its industry, outperforming 59.30% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that MLNK has dependencies on debt financing.
MLNK has a worse Debt to Equity ratio (1.18) than 76.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.09
WACC11.29%
2.3 Liquidity
A Current Ratio of 2.01 indicates that MLNK has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.01, MLNK is doing good in the industry, outperforming 60.70% of the companies in the same industry.
MLNK has a Quick Ratio of 2.01. This indicates that MLNK is financially healthy and has no problem in meeting its short term obligations.
MLNK has a better Quick ratio (2.01) than 61.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 500.00% over the past year.
The Revenue has been growing slightly by 5.96% in the past year.
Measured over the past years, MLNK shows a quite strong growth in Revenue. The Revenue has been growing by 15.68% on average per year.
EPS 1Y (TTM)500%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%225%
Revenue 1Y (TTM)5.96%
Revenue growth 3Y5.72%
Revenue growth 5Y15.68%
Sales Q2Q%7.53%
3.2 Future
MLNK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.86% yearly.
MLNK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.56% yearly.
EPS Next Y61.5%
EPS Next 2Y40.96%
EPS Next 3Y35.86%
EPS Next 5YN/A
Revenue Next Year5.02%
Revenue Next 2Y5.23%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 55.63 indicates a quite expensive valuation of MLNK.
Compared to the rest of the industry, the Price/Earnings ratio of MLNK is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.57. MLNK is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 41.99, MLNK can be considered very expensive at the moment.
MLNK's Price/Forward Earnings ratio is in line with the industry average.
MLNK is valuated expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.63 | ||
| Fwd PE | 41.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLNK is valued a bit cheaper than 76.84% of the companies in the same industry.
MLNK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLNK is cheaper than 84.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.66 | ||
| EV/EBITDA | 26.86 |
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.
MLNK's earnings are expected to grow with 35.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y40.96%
EPS Next 3Y35.86%
5. Dividend
5.1 Amount
No dividends for MLNK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:MLNK (10/23/2025, 2:45:39 PM)
20.025
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners39.22%
Inst Owner Change0%
Ins Owners4.35%
Ins Owner Change0.1%
Market Cap1.48B
Revenue(TTM)325.89M
Net Income(TTM)-22494000
Analysts53.85
Price Target20.36 (1.67%)
Short Float %4.08%
Short Ratio1.49
Dividend
| Industry Rank | Sector 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)2.09%
Min EPS beat(2)-23.27%
Max EPS beat(2)27.45%
EPS beat(4)2
Avg EPS beat(4)-6.22%
Min EPS beat(4)-30.14%
Max EPS beat(4)27.45%
EPS beat(8)3
Avg EPS beat(8)-36.84%
EPS beat(12)4
Avg EPS beat(12)0.28%
EPS beat(16)6
Avg EPS beat(16)11.07%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)1.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.58%
Revenue beat(8)1
Avg Revenue beat(8)-0.94%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)6
Avg Revenue beat(16)-0.02%
PT rev (1m)0%
PT rev (3m)4.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.61%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.63 | ||
| Fwd PE | 41.99 | ||
| P/S | 4.55 | ||
| P/FCF | 16.66 | ||
| P/OCF | 15.38 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.86 |
EPS(TTM)0.36
EY1.8%
EPS(NY)0.48
Fwd EY2.38%
FCF(TTM)1.2
FCFY6%
OCF(TTM)1.3
OCFY6.5%
SpS4.4
BVpS5.31
TBVpS-5.33
PEG (NY)0.9
PEG (5Y)N/A
Graham Number6.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.4% | ||
| ROE | -5.73% | ||
| ROCE | 1.27% | ||
| ROIC | 1% | ||
| ROICexc | 1.12% | ||
| ROICexgc | N/A | ||
| OM | 3.38% | ||
| PM (TTM) | N/A | ||
| GM | 66.39% | ||
| FCFM | 27.28% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.25 | ||
| Debt/EBITDA | 6.7 | ||
| Cap/Depr | 12.8% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 139.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 1.6 |
F-Score6
WACC11.29%
ROIC/WACC0.09
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)500%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%225%
EPS Next Y61.5%
EPS Next 2Y40.96%
EPS Next 3Y35.86%
EPS Next 5YN/A
Revenue 1Y (TTM)5.96%
Revenue growth 3Y5.72%
Revenue growth 5Y15.68%
Sales Q2Q%7.53%
Revenue Next Year5.02%
Revenue Next 2Y5.23%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
EBIT growth 1Y-41.37%
EBIT growth 3Y-39.56%
EBIT growth 5Y-16.36%
EBIT Next Year74.11%
EBIT Next 3Y25.17%
EBIT Next 5YN/A
FCF growth 1Y72.85%
FCF growth 3Y-5.78%
FCF growth 5Y34.88%
OCF growth 1Y57.66%
OCF growth 3Y-4.68%
OCF growth 5Y28.98%