MATCH GROUP INC (MTCH) Stock Fundamental Analysis
NASDAQ:MTCH - US57667L1070 - Common Stock
37.34 USD
+0.3 (+0.81%)
37.67 USD
+0.33 (+0.88%)
Taking everything into account, MTCH scores 5 out of 10 in our fundamental rating. MTCH was compared to 69 industry peers in the Interactive Media & Services industry. While MTCH has a great profitability rating, there are quite some concerns on its financial health. MTCH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MTCH had positive earnings in the past year.
MTCH had a positive operating cash flow in the past year.
Each year in the past 5 years MTCH has been profitable.
In the past 5 years MTCH always reported a positive cash flow from operatings.
1.2 Ratios
MTCH's Return On Assets of 13.90% is amongst the best of the industry. MTCH outperforms 85.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.95%, MTCH belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTCH is above the industry average of 12.98%.
The last Return On Invested Capital (24.95%) for MTCH is above the 3 year average (15.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.9% | ||
| ROE | N/A | ||
| ROIC | 24.95% |
ROA(3y)11.82%
ROA(5y)9.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.96%
ROIC(5y)17.9%
1.3 Margins
Looking at the Profit Margin, with a value of 15.59%, MTCH belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
In the last couple of years the Profit Margin of MTCH has declined.
MTCH has a better Operating Margin (24.64%) than 91.30% of its industry peers.
In the last couple of years the Operating Margin of MTCH has declined.
MTCH has a better Gross Margin (71.94%) than 63.77% of its industry peers.
MTCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.64% | ||
| PM (TTM) | 15.59% | ||
| GM | 71.94% |
OM growth 3Y-4.92%
OM growth 5Y-5.04%
PM growth 3Y19.4%
PM growth 5Y-6.46%
GM growth 3Y-0.17%
GM growth 5Y-0.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MTCH is creating value.
Compared to 1 year ago, MTCH has less shares outstanding
MTCH has less shares outstanding than it did 5 years ago.
MTCH has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.54, we must say that MTCH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MTCH (0.54) is worse than 60.87% of its industry peers.
The Debt to FCF ratio of MTCH is 3.78, which is a good value as it means it would take MTCH, 3.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MTCH (3.78) is better than 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 0.54 |
ROIC/WACC2.83
WACC8.83%
2.3 Liquidity
MTCH has a Current Ratio of 0.70. This is a bad value and indicates that MTCH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, MTCH is doing worse than 82.61% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that MTCH may have some problems paying its short term obligations.
The Quick ratio of MTCH (0.70) is worse than 81.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
MTCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.74%.
Measured over the past 5 years, MTCH shows a small growth in Earnings Per Share. The EPS has been growing by 2.22% on average per year.
MTCH shows a decrease in Revenue. In the last year, the revenue decreased by -0.60%.
The Revenue has been growing by 11.15% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.74%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%2.08%
Revenue 1Y (TTM)-0.6%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-0.04%
3.2 Future
The Earnings Per Share is expected to grow by 20.30% on average over the next years. This is a very strong growth
Based on estimates for the next years, MTCH will show a small growth in Revenue. The Revenue will grow by 4.95% on average per year.
EPS Next Y11.38%
EPS Next 2Y20.74%
EPS Next 3Y20.08%
EPS Next 5Y20.3%
Revenue Next Year0.45%
Revenue Next 2Y2.45%
Revenue Next 3Y3.55%
Revenue Next 5Y4.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.39, which indicates a rather expensive current valuation of MTCH.
MTCH's Price/Earnings ratio is a bit cheaper when compared to the industry. MTCH is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, MTCH is valued a bit cheaper.
MTCH is valuated correctly with a Price/Forward Earnings ratio of 12.68.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTCH indicates a somewhat cheap valuation: MTCH is cheaper than 72.46% of the companies listed in the same industry.
MTCH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTCH is valued a bit cheaper than the industry average as 72.46% of the companies are valued more expensively.
MTCH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTCH is cheaper than 84.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
MTCH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTCH has a very decent profitability rating, which may justify a higher PE ratio.
MTCH's earnings are expected to grow with 20.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)8.29
EPS Next 2Y20.74%
EPS Next 3Y20.08%
5. Dividend
5.1 Amount
MTCH has a Yearly Dividend Yield of 2.05%.
MTCH's Dividend Yield is rather good when compared to the industry average which is at 2.93. MTCH pays more dividend than 94.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MTCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
MTCH is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y20.74%
EPS Next 3Y20.08%
37.34
+0.3 (+0.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.86%
Inst Owner Change-4.72%
Ins Owners0.28%
Ins Owner Change-0.75%
Market Cap8.98B
Analysts71.72
Price Target39.5 (5.78%)
Short Float %5.71%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.44%
Min EPS beat(2)-1.2%
Max EPS beat(2)14.08%
EPS beat(4)3
Avg EPS beat(4)5.83%
Min EPS beat(4)-1.2%
Max EPS beat(4)14.08%
EPS beat(8)6
Avg EPS beat(8)11.65%
EPS beat(12)8
Avg EPS beat(12)5.18%
EPS beat(16)11
Avg EPS beat(16)5.96%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-0.79%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)-0.79%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)2
Avg Revenue beat(12)-1.42%
Revenue beat(16)2
Avg Revenue beat(16)-1.69%
PT rev (1m)12.06%
PT rev (3m)7.19%
EPS NQ rev (1m)3.49%
EPS NQ rev (3m)4.97%
EPS NY rev (1m)3.08%
EPS NY rev (3m)4.5%
Revenue NQ rev (1m)2.79%
Revenue NQ rev (3m)2.84%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 12.68 | ||
| P/S | 2.6 | ||
| P/FCF | 9.9 | ||
| P/OCF | 9.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.95 |
EPS(TTM)2.03
EY5.44%
EPS(NY)2.94
Fwd EY7.89%
FCF(TTM)3.77
FCFY10.1%
OCF(TTM)3.98
OCFY10.65%
SpS14.34
BVpS-0.96
TBVpS-11.58
PEG (NY)1.62
PEG (5Y)8.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.9% | ||
| ROE | N/A | ||
| ROCE | 30.77% | ||
| ROIC | 24.95% | ||
| ROICexc | 28.46% | ||
| ROICexgc | N/A | ||
| OM | 24.64% | ||
| PM (TTM) | 15.59% | ||
| GM | 71.94% | ||
| FCFM | 26.3% |
ROA(3y)11.82%
ROA(5y)9.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.96%
ROIC(5y)17.9%
ROICexc(3y)20.38%
ROICexc(5y)23.46%
ROICexgc(3y)150.05%
ROICexgc(5y)N/A
ROCE(3y)19.69%
ROCE(5y)22.08%
ROICexcg growth 3YN/A
ROICexcg growth 5Y76.08%
ROICexc growth 3Y1.45%
ROICexc growth 5Y25.09%
OM growth 3Y-4.92%
OM growth 5Y-5.04%
PM growth 3Y19.4%
PM growth 5Y-6.46%
GM growth 3Y-0.17%
GM growth 5Y-0.74%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.78 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 30.7% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.74% | ||
| Profit Quality | 168.77% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.54 |
F-Score6
WACC8.83%
ROIC/WACC2.83
Cap/Depr(3y)34.93%
Cap/Depr(5y)61.2%
Cap/Sales(3y)1.67%
Cap/Sales(5y)1.89%
Profit Quality(3y)139.67%
Profit Quality(5y)237.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.74%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%2.08%
EPS Next Y11.38%
EPS Next 2Y20.74%
EPS Next 3Y20.08%
EPS Next 5Y20.3%
Revenue 1Y (TTM)-0.6%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-0.04%
Revenue Next Year0.45%
Revenue Next 2Y2.45%
Revenue Next 3Y3.55%
Revenue Next 5Y4.95%
EBIT growth 1Y-4.81%
EBIT growth 3Y0.09%
EBIT growth 5Y5.54%
EBIT Next Year46.74%
EBIT Next 3Y20.08%
EBIT Next 5Y16.1%
FCF growth 1Y16.92%
FCF growth 3Y1.95%
FCF growth 5Y-0.38%
OCF growth 1Y14.48%
OCF growth 3Y0.73%
OCF growth 5Y-0.11%