MODEL N INC (MODN)
US6075251024 - Common Stock
MODN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. The financial health of MODN is average, but there are quite some concerns on its profitability. MODN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year MODN was profitable.
In the past year MODN had a positive cash flow from operations.
In the past 5 years MODN always reported negative net income.
In the past 5 years MODN always reported a positive cash flow from operatings.
1.2 Ratios
MODN has a Return On Assets (-6.15%) which is comparable to the rest of the industry.
MODN has a Return On Equity of -25.47%. This is comparable to the rest of the industry: MODN outperforms 47.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.15% | ||
| ROE | -25.47% | ||
| ROIC | N/A |
ROA(3y)-7.41%
ROA(5y)-7.58%
ROE(3y)-24.88%
ROE(5y)-24.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MODN has a Gross Margin of 56.73%. This is in the lower half of the industry: MODN underperforms 61.96% of its industry peers.
In the last couple of years the Gross Margin of MODN has remained more or less at the same level.
MODN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.73% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.57%
GM growth 5Y-0.41%
2. Health
2.1 Basic Checks
MODN does not have a ROIC to compare to the WACC, probably because it is not profitable.
MODN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MODN has been increased compared to 5 years ago.
Compared to 1 year ago, MODN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.16 indicates that MODN is not a great score, but indicates only limited risk for bankruptcy at the moment.
MODN has a Altman-Z score (2.16) which is comparable to the rest of the industry.
The Debt to FCF ratio of MODN is 6.46, which is on the high side as it means it would take MODN, 6.46 years of fcf income to pay off all of its debts.
MODN's Debt to FCF ratio of 6.46 is in line compared to the rest of the industry. MODN outperforms 59.06% of its industry peers.
A Debt/Equity ratio of 2.26 is on the high side and indicates that MODN has dependencies on debt financing.
MODN has a Debt to Equity ratio of 2.26. This is amonst the worse of the industry: MODN underperforms 80.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 2.16 |
ROIC/WACCN/A
WACC9.35%
2.3 Liquidity
A Current Ratio of 4.00 indicates that MODN has no problem at all paying its short term obligations.
MODN's Current ratio of 4.00 is amongst the best of the industry. MODN outperforms 81.52% of its industry peers.
A Quick Ratio of 4.00 indicates that MODN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.00, MODN belongs to the top of the industry, outperforming 82.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.00% over the past year.
The Earnings Per Share has been growing by 94.38% on average over the past years. This is a very strong growth
The Revenue has grown by 11.92% in the past year. This is quite good.
The Revenue has been growing by 10.05% on average over the past years. This is quite good.
EPS 1Y (TTM)45%
EPS 3Y32.24%
EPS 5Y94.38%
EPS growth Q2Q21.74%
Revenue 1Y (TTM)11.92%
Revenue growth 3Y15.7%
Revenue growth 5Y10.05%
Revenue growth Q2Q7.34%
3.2 Future
MODN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.25% yearly.
MODN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.38% yearly.
EPS Next Y17.74%
EPS Next 2Y14.48%
EPS Next 3Y14.25%
EPS Next 5YN/A
Revenue Next Year5.81%
Revenue Next 2Y7.38%
Revenue Next 3Y8.38%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.67, which means the current valuation is very expensive for MODN.
79.35% of the companies in the same industry are more expensive than MODN, based on the Price/Earnings ratio.
MODN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.83.
Based on the Price/Forward Earnings ratio of 20.47, the valuation of MODN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MODN is valued cheaper than 81.88% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MODN to the average of the S&P500 Index (20.47), we can say MODN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
MODN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MODN is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27 | ||
| EV/EBITDA | 246.38 |
4.3 Compensation for Growth
MODN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MODN's earnings are expected to grow with 14.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)0.27
EPS Next 2Y14.48%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
MODN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MODEL N INC
NYSE:MODN (5/16/2024, 7:05:07 PM)
After market: 29.78 0 (0%)29.78
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 20.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.45
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.15% | ||
| ROE | -25.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4 | ||
| Quick Ratio | 4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)45%
EPS 3Y32.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.92%
Revenue growth 3Y15.7%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y