MERIDIANLINK INC (MLNK) Stock Fundamental Analysis
NYSE:MLNK - US58985J1051 - Common Stock
19.89 USD
+0.05 (+0.25%)
19.89 USD
0 (0%)
Taking everything into account, MLNK scores 4 out of 10 in our fundamental rating. MLNK was compared to 282 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.40%, MLNK is in line with its industry, outperforming 53.19% of the companies in the same industry.
With a Return On Equity value of -5.73%, MLNK perfoms like the industry average, outperforming 53.55% 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 64.54% of its industry peers.
MLNK had an Average Return On Invested Capital over the past 3 years of 1.67%. This is significantly below the industry average of 11.98%.
| 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
MLNK has a better Operating Margin (3.38%) than 67.73% of its industry peers.
In the last couple of years the Operating Margin of MLNK has declined.
MLNK has a Gross Margin of 66.39%. This is comparable to the rest of the industry: MLNK outperforms 45.74% of its industry peers.
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
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
The number of shares outstanding for MLNK has been reduced compared to 5 years ago.
The debt/assets ratio for MLNK is higher compared to a year ago.
2.2 Solvency
MLNK has an Altman-Z score of 1.58. This is a bad value and indicates that MLNK is not financially healthy and even has some risk of bankruptcy.
MLNK has a Altman-Z score (1.58) which is in line with its industry peers.
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 58.87% 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.
Looking at the Debt to Equity ratio, with a value of 1.18, MLNK is doing worse than 76.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.09
WACC11.46%
2.3 Liquidity
A Current Ratio of 2.01 indicates that MLNK has no problem at all paying its short term obligations.
MLNK has a better Current ratio (2.01) than 61.70% of its industry peers.
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 62.41% 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.
Looking at the last year, MLNK shows a small growth in Revenue. The Revenue has grown by 5.96% in the last year.
The Revenue has been growing by 15.68% on average over the past years. This is quite good.
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 37.30% yearly.
MLNK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y63.62%
EPS Next 2Y39.82%
EPS Next 3Y37.3%
EPS Next 5YN/A
Revenue Next Year4.8%
Revenue Next 2Y5.17%
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
With a Price/Earnings ratio of 55.25, MLNK can be considered very expensive at the moment.
MLNK's Price/Earnings is on the same level as the industry average.
MLNK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.08.
MLNK is valuated quite expensively with a Price/Forward Earnings ratio of 42.39.
MLNK's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, MLNK is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.25 | ||
| Fwd PE | 42.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLNK is valued a bit cheaper than 75.18% 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 86.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.55 | ||
| EV/EBITDA | 26.68 |
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)0.87
PEG (5Y)N/A
EPS Next 2Y39.82%
EPS Next 3Y37.3%
5. Dividend
5.1 Amount
No dividends for MLNK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.89
+0.05 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners39.05%
Inst Owner Change-2.19%
Ins Owners4.21%
Ins Owner Change5.92%
Market Cap1.47B
Analysts53.85
Price Target20.36 (2.36%)
Short Float %5.4%
Short Ratio2.04
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)4.62%
PT rev (3m)1.52%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-13.04%
EPS NY rev (1m)1.37%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.25 | ||
| Fwd PE | 42.39 | ||
| P/S | 4.52 | ||
| P/FCF | 16.55 | ||
| P/OCF | 15.27 | ||
| P/B | 3.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.68 |
EPS(TTM)0.36
EY1.81%
EPS(NY)0.47
Fwd EY2.36%
FCF(TTM)1.2
FCFY6.04%
OCF(TTM)1.3
OCFY6.55%
SpS4.4
BVpS5.31
TBVpS-5.33
PEG (NY)0.87
PEG (5Y)N/A
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%
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-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 | 1.58 |
F-Score6
WACC11.46%
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 Y63.62%
EPS Next 2Y39.82%
EPS Next 3Y37.3%
EPS Next 5YN/A
Revenue 1Y (TTM)5.96%
Revenue growth 3Y5.72%
Revenue growth 5Y15.68%
Sales Q2Q%7.53%
Revenue Next Year4.8%
Revenue Next 2Y5.17%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y-41.37%
EBIT growth 3Y-39.56%
EBIT growth 5Y-16.36%
EBIT Next Year70.28%
EBIT Next 3Y26.16%
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%