Datto Holding Corp (MSP) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:MSP • US23821D1000

35.18
+0.19 (+0.54%)
At close: Jun 22, 2022
35.36
+0.18 (+0.51%)
Pre-Market: 6/23/2022, 7:24:19 AM
Fundamental Rating

3

MSP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. The financial health of MSP is average, but there are quite some concerns on its profitability. While showing a medium growth rate, MSP is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year MSP was profitable.
MSP Yearly Net Income VS EBIT VS OCF VS FCFMSP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 0 50M 100M

1.2 Ratios

Industry RankSector Rank
ROA 2.22%
ROE 2.4%
ROIC 2.3%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MSP Yearly ROA, ROE, ROICMSP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 0 2 -2

1.3 Margins

Industry RankSector Rank
OM 8.6%
PM (TTM) 6.84%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
MSP Yearly Profit, Operating, Gross MarginsMSP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 0 20 40 60

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6

2. Health

2.1 Basic Checks

  • MSP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, MSP has more shares outstanding
  • There is no outstanding debt for MSP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
MSP Yearly Shares OutstandingMSP Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 50M 100M 150M
MSP Yearly Total Debt VS Total AssetsMSP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 500M 1B 1.5B

2.2 Solvency

  • MSP has an Altman-Z score of 23.90. This indicates that MSP is financially healthy and has little risk of bankruptcy at the moment.
  • There is no outstanding debt for MSP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 23.9
ROIC/WACC0.33
WACC7.02%
MSP Yearly LT Debt VS Equity VS FCFMSP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 3.22 indicates that MSP has no problem at all paying its short term obligations.
  • A Quick Ratio of 2.74 indicates that MSP has no problem at all paying its short term obligations.
Industry RankSector Rank
Current Ratio 3.22
Quick Ratio 2.74
MSP Yearly Current Assets VS Current LiabilitesMSP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 100M 200M 300M

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6

3. Growth

3.1 Past

  • MSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.42%, which is quite impressive.
  • Looking at the last year, MSP shows a quite strong growth in Revenue. The Revenue has grown by 19.55% in the last year.
  • MSP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.89% yearly.
EPS 1Y (TTM)38.42%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.22%
Revenue 1Y (TTM)19.55%
Revenue growth 3Y16.89%
Revenue growth 5YN/A
Sales Q2Q%17.86%

3.2 Future

  • MSP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.48% yearly.
  • The Revenue is expected to grow by 18.49% on average over the next years. This is quite good.
EPS Next Y-9.81%
EPS Next 2Y5.6%
EPS Next 3Y12.6%
EPS Next 5Y17.48%
Revenue Next Year17.5%
Revenue Next 2Y17.71%
Revenue Next 3Y18.52%
Revenue Next 5Y18.49%

3.3 Evolution

  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
MSP Yearly Revenue VS EstimatesMSP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B
MSP Yearly EPS VS EstimatesMSP Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 0.5 1

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0

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 57.67, the valuation of MSP can be described as expensive.
  • MSP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
  • Based on the Price/Forward Earnings ratio of 48.53, the valuation of MSP can be described as expensive.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. MSP is valued rather expensively when compared to this.
Industry RankSector Rank
PE 57.67
Fwd PE 48.53
MSP Price Earnings VS Forward Price EarningsMSP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 47.6
MSP Per share dataMSP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • A more expensive valuation may be justified as MSP's earnings are expected to grow with 12.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y12.6%

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0

5. Dividend

5.1 Amount

  • No dividends for MSP!.
Industry RankSector Rank
Dividend Yield N/A

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Datto Holding Corp / MSP FAQ

What is the fundamental rating for MSP stock?

ChartMill assigns a fundamental rating of 5 / 10 to MSP.


What is the valuation status for MSP stock?

ChartMill assigns a valuation rating of 1 / 10 to Datto Holding Corp (MSP). This can be considered as Overvalued.


How profitable is Datto Holding Corp (MSP) stock?

Datto Holding Corp (MSP) has a profitability rating of 5 / 10.


What is the earnings growth outlook for Datto Holding Corp?

The Earnings per Share (EPS) of Datto Holding Corp (MSP) is expected to decline by -9.81% in the next year.