MERIDIANLINK INC (MLNK) Stock Fundamental Analysis
NYSE:MLNK - New York Stock Exchange, Inc. - US58985J1051 - Common Stock - Currency: USD
MLNK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 283 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MLNK had positive earnings in the past year.
MLNK had a positive operating cash flow in the past year.
MLNK had negative earnings in 4 of the past 5 years.
MLNK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MLNK (-2.95%) is comparable to the rest of the industry.
The Return On Equity of MLNK (-6.75%) is comparable to the rest of the industry.
MLNK has a Return On Invested Capital of 0.50%. This is in the better half of the industry: MLNK outperforms 64.66% of its industry peers.
MLNK had an Average Return On Invested Capital over the past 3 years of 1.68%. This is significantly below the industry average of 12.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.95% | ||
| ROE | -6.75% | ||
| ROIC | 0.5% |
ROA(3y)-2.44%
ROA(5y)-2.59%
ROE(3y)-5.09%
ROE(5y)-5.89%
ROIC(3y)1.68%
ROIC(5y)2.78%
1.3 Margins
MLNK has a better Operating Margin (1.78%) than 67.49% of its industry peers.
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.
In the last couple of years the Gross Margin of MLNK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.78% | ||
| PM (TTM) | N/A | ||
| GM | 65.57% |
OM growth 3Y-42.82%
OM growth 5Y-27.69%
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
The debt/assets ratio for MLNK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that MLNK is in the distress zone and has some risk of bankruptcy.
MLNK has a Altman-Z score (1.40) which is comparable to the rest of the industry.
The Debt to FCF ratio of MLNK is 5.59, which is a neutral value as it means it would take MLNK, 5.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MLNK (5.59) is comparable to the rest of the industry.
MLNK has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
MLNK has a worse Debt to Equity ratio (1.07) than 72.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.04
WACC11.46%
2.3 Liquidity
MLNK has a Current Ratio of 2.23. 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 2.23, MLNK is in the better half of the industry, outperforming 65.72% of the companies in the same industry.
MLNK has a Quick Ratio of 2.23. This indicates that MLNK is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.23, MLNK is doing good in the industry, outperforming 66.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
MLNK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 370.00%, which is quite impressive.
The Revenue has been growing slightly by 5.15% 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)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
The Earnings Per Share is expected to grow by 37.30% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y59.72%
EPS Next 2Y60.9%
EPS Next 3Y37.3%
EPS Next 5YN/A
Revenue Next Year4.56%
Revenue Next 2Y5.21%
Revenue Next 3Y6.01%
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
The Price/Earnings ratio is 61.48, which means the current valuation is very expensive for MLNK.
The rest of the industry has a similar Price/Earnings ratio as MLNK.
MLNK is valuated expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
MLNK is valuated quite expensively with a Price/Forward Earnings ratio of 26.72.
MLNK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MLNK is cheaper than 66.08% 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 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.48 | ||
| Fwd PE | 26.72 |
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 77.03% of the companies listed in the same industry.
MLNK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLNK is cheaper than 89.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 24.96 |
4.3 Compensation for Growth
MLNK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.03
PEG (5Y)N/A
EPS Next 2Y60.9%
EPS Next 3Y37.3%
5. Dividend
5.1 Amount
No dividends for MLNK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.6
+0.49 (+3.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners38.75%
Inst Owner Change1.59%
Ins Owners20.8%
Ins Owner Change4.89%
Market Cap1.28B
Analysts53.85
Price Target20.06 (20.84%)
Short Float %5.17%
Short Ratio6.79
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)-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)-12.91%
EPS NQ rev (1m)-15.71%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)-20.01%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.48 | ||
| Fwd PE | 26.72 | ||
| P/S | 4 | ||
| P/FCF | 15.3 | ||
| P/OCF | 14.08 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.96 |
EPS(TTM)0.27
EY1.63%
EPS(NY)0.62
Fwd EY3.74%
FCF(TTM)1.08
FCFY6.54%
OCF(TTM)1.18
OCFY7.1%
SpS4.15
BVpS5.6
TBVpS-4.75
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 | 26.17% |
ROA(3y)-2.44%
ROA(5y)-2.59%
ROE(3y)-5.09%
ROE(5y)-5.89%
ROIC(3y)1.68%
ROIC(5y)2.78%
ROICexc(3y)1.81%
ROICexc(5y)2.99%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.13%
ROCE(5y)3.51%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-38.16%
ROICexc growth 5Y-18.43%
OM growth 3Y-42.82%
OM growth 5Y-27.69%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 7.32 | ||
| Cap/Depr | 12.57% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 0.15 | ||
| Cash Conversion | 143.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 1.4 |
F-Score7
WACC11.46%
ROIC/WACC0.04
Cap/Depr(3y)15.8%
Cap/Depr(5y)15.41%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.95%
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 Y59.72%
EPS Next 2Y60.9%
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 Year4.56%
Revenue Next 2Y5.21%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y-72.98%
EBIT growth 3Y-39.55%
EBIT growth 5Y-16.36%
EBIT Next Year70.69%
EBIT Next 3Y26.16%
EBIT Next 5YN/A
FCF growth 1Y43.58%
FCF growth 3Y-5.69%
FCF growth 5Y34.95%
OCF growth 1Y34.2%
OCF growth 3Y-4.6%
OCF growth 5Y29.04%