MeridianLink Inc (MLNK) Stock Fundamental Analysis
USA - NYSE:MLNK - US58985J1051 - Common Stock
20.01 USD
0 (0%)
20.01 USD
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Overall MLNK gets a fundamental rating of 4 out of 10. We evaluated MLNK against 285 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 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.
Each year in the past 5 years MLNK had a positive operating cash flow.
1.2 Ratios
MLNK has a Return On Assets (-2.40%) which is in line with its industry peers.
MLNK has a Return On Equity of -5.73%. This is comparable to the rest of the industry: MLNK outperforms 52.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.00%, MLNK is in the better half of the industry, outperforming 63.16% 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 11.88%.
| 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
Looking at the Operating Margin, with a value of 3.38%, MLNK is in the better half of the industry, outperforming 66.32% 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 (66.39%) which is comparable to the rest of the 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
MLNK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MLNK has been reduced compared to 1 year ago.
Compared to 5 years ago, MLNK has less shares outstanding
Compared to 1 year ago, MLNK has a worse debt to assets ratio.
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's Altman-Z score of 1.60 is in line compared to the rest of the industry. MLNK outperforms 41.40% of its industry peers.
MLNK has a debt to FCF ratio of 5.25. This is a neutral value as MLNK would need 5.25 years to pay back of 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.
MLNK has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
MLNK has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: MLNK underperforms 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
WACC11.28%
2.3 Liquidity
MLNK has a Current Ratio of 2.01. This indicates that MLNK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.01, MLNK is in the better half of the industry, outperforming 60.70% of the companies in the same industry.
A Quick Ratio of 2.01 indicates that MLNK has no problem at all paying its short term obligations.
MLNK's Quick ratio of 2.01 is fine compared to the rest of the industry. MLNK outperforms 61.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
MLNK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 500.00%, which is quite impressive.
Looking at the last year, MLNK shows a small growth in Revenue. The Revenue has grown by 5.96% 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)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.
The Revenue is expected to grow by 5.56% on average over the next years.
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
MLNK is valuated quite expensively with a Price/Earnings ratio of 55.58.
MLNK's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MLNK to the average of the S&P500 Index (26.83), we can say MLNK is valued expensively.
With a Price/Forward Earnings ratio of 41.96, MLNK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLNK is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.88. MLNK is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.58 | ||
| Fwd PE | 41.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLNK indicates a somewhat cheap valuation: MLNK is cheaper than 77.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MLNK is valued cheaply inside the industry as 85.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.65 | ||
| 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
MLNK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.01
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners39.22%
Inst Owner Change-0.11%
Ins Owners4.35%
Ins Owner Change-32.92%
Market Cap1.48B
Revenue(TTM)325.89M
Net Income(TTM)-22494000
Analysts53.85
Price Target20.36 (1.75%)
Short Float %4.54%
Short Ratio1.62
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)0%
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 | 55.58 | ||
| Fwd PE | 41.96 | ||
| P/S | 4.54 | ||
| P/FCF | 16.65 | ||
| P/OCF | 15.37 | ||
| 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
FCFY6.01%
OCF(TTM)1.3
OCFY6.51%
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
WACC11.28%
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%
MeridianLink Inc / MLNK FAQ
Can you provide the ChartMill fundamental rating for MeridianLink Inc?
ChartMill assigns a fundamental rating of 4 / 10 to MLNK.
What is the valuation status of MeridianLink Inc (MLNK) stock?
ChartMill assigns a valuation rating of 4 / 10 to MeridianLink Inc (MLNK). This can be considered as Fairly Valued.
What is the profitability of MLNK stock?
MeridianLink Inc (MLNK) has a profitability rating of 3 / 10.
What is the valuation of MeridianLink Inc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MeridianLink Inc (MLNK) is 55.58 and the Price/Book (PB) ratio is 3.77.
What is the earnings growth outlook for MeridianLink Inc?
The Earnings per Share (EPS) of MeridianLink Inc (MLNK) is expected to grow by 61.5% in the next year.