MATCH GROUP INC (MTCH) Stock Fundamental Analysis
NASDAQ:MTCH - Nasdaq - US57667L1070 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MTCH. MTCH was compared to 71 industry peers in the Interactive Media & Services industry. MTCH scores excellent on profitability, but there are concerns on its financial health. MTCH is not valued too expensively and it also shows a decent growth rate.
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.
MTCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTCH has a Return On Assets of 14.03%. This is amongst the best in the industry. MTCH outperforms 90.14% of its industry peers.
MTCH's Return On Invested Capital of 20.21% is amongst the best of the industry. MTCH outperforms 92.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTCH is above the industry average of 11.33%.
The 3 year average ROIC (15.96%) for MTCH is below the current ROIC(20.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.03% | ||
| ROE | N/A | ||
| ROIC | 20.21% |
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 15.81%, MTCH belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
MTCH's Profit Margin has declined in the last couple of years.
MTCH has a better Operating Margin (24.39%) than 91.55% of its industry peers.
In the last couple of years the Operating Margin of MTCH has declined.
MTCH's Gross Margin of 71.85% is in line compared to the rest of the industry. MTCH outperforms 59.15% of its industry peers.
In the last couple of years the Gross Margin of MTCH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.39% | ||
| PM (TTM) | 15.81% | ||
| GM | 71.85% |
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.
MTCH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MTCH has been reduced compared to 5 years ago.
Compared to 1 year ago, MTCH has a worse debt to assets ratio.
2.2 Solvency
MTCH has an Altman-Z score of 0.44. This is a bad value and indicates that MTCH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MTCH (0.44) is worse than 64.79% of its industry peers.
MTCH has a debt to FCF ratio of 4.32. This is a neutral value as MTCH would need 4.32 years to pay back of all of its debts.
MTCH has a Debt to FCF ratio of 4.32. This is comparable to the rest of the industry: MTCH outperforms 54.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 0.44 |
ROIC/WACC2.41
WACC8.37%
2.3 Liquidity
MTCH has a Current Ratio of 1.62. This is a normal value and indicates that MTCH is financially healthy and should not expect problems in meeting its short term obligations.
MTCH has a Current ratio of 1.62. This is in the lower half of the industry: MTCH underperforms 60.56% of its industry peers.
A Quick Ratio of 1.62 indicates that MTCH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.62, MTCH is doing worse than 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
MTCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.17%.
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.
The Revenue has been growing slightly by 0.40% in the past year.
Measured over the past years, MTCH shows a quite strong growth in Revenue. The Revenue has been growing by 11.15% on average per year.
EPS 1Y (TTM)-12.17%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%0%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-3.31%
3.2 Future
Based on estimates for the next years, MTCH will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.95% on average per year.
Based on estimates for the next years, MTCH will show a small growth in Revenue. The Revenue will grow by 4.91% on average per year.
EPS Next Y6.58%
EPS Next 2Y17.34%
EPS Next 3Y18.61%
EPS Next 5Y15.95%
Revenue Next Year-0.76%
Revenue Next 2Y1.66%
Revenue Next 3Y3.06%
Revenue Next 5Y4.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.56, MTCH is valued correctly.
76.06% of the companies in the same industry are more expensive than MTCH, based on the Price/Earnings ratio.
MTCH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.58, the valuation of MTCH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MTCH is valued a bit cheaper than the industry average as 76.06% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MTCH to the average of the S&P500 Index (22.43), we can say MTCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTCH is valued a bit cheaper than 73.24% of the companies in the same industry.
81.69% of the companies in the same industry are more expensive than MTCH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.1 | ||
| EV/EBITDA | 10.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTCH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MTCH may justify a higher PE ratio.
MTCH's earnings are expected to grow with 18.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.21
PEG (5Y)6.56
EPS Next 2Y17.34%
EPS Next 3Y18.61%
5. Dividend
5.1 Amount
MTCH has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
MTCH's Dividend Yield is rather good when compared to the industry average which is at 3.09. MTCH pays more dividend than 95.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MTCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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 2Y17.34%
EPS Next 3Y18.61%
29.42
-0.51 (-1.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners113.12%
Inst Owner Change-2.49%
Ins Owners0.43%
Ins Owner Change-0.79%
Market Cap7.21B
Analysts72
Price Target36.85 (25.25%)
Short Float %4.35%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.2%
Min EPS beat(2)6.32%
Max EPS beat(2)14.08%
EPS beat(4)3
Avg EPS beat(4)5.84%
Min EPS beat(4)-1.15%
Max EPS beat(4)14.08%
EPS beat(8)7
Avg EPS beat(8)12.39%
EPS beat(12)9
Avg EPS beat(12)7.64%
EPS beat(16)11
Avg EPS beat(16)5.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-1.79%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)-1.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.43%
Revenue beat(12)2
Avg Revenue beat(12)-1.61%
Revenue beat(16)3
Avg Revenue beat(16)-1.61%
PT rev (1m)-1.2%
PT rev (3m)-0.04%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)2.52%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 10.58 | ||
| P/S | 2.09 | ||
| P/FCF | 9.1 | ||
| P/OCF | 8.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.17 |
EPS(TTM)2.02
EY6.87%
EPS(NY)2.78
Fwd EY9.45%
FCF(TTM)3.23
FCFY10.99%
OCF(TTM)3.43
OCFY11.67%
SpS14.07
BVpS-0.75
TBVpS-11.02
PEG (NY)2.21
PEG (5Y)6.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.03% | ||
| ROE | N/A | ||
| ROCE | 24.92% | ||
| ROIC | 20.21% | ||
| ROICexc | 23.03% | ||
| ROICexgc | 153.92% | ||
| OM | 24.39% | ||
| PM (TTM) | 15.81% | ||
| GM | 71.85% | ||
| FCFM | 22.98% |
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 | 4.32 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 29.92% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.77% | ||
| Profit Quality | 145.32% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 0.44 |
F-Score6
WACC8.37%
ROIC/WACC2.41
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)-12.17%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%0%
EPS Next Y6.58%
EPS Next 2Y17.34%
EPS Next 3Y18.61%
EPS Next 5Y15.95%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-3.31%
Revenue Next Year-0.76%
Revenue Next 2Y1.66%
Revenue Next 3Y3.06%
Revenue Next 5Y4.91%
EBIT growth 1Y-6.82%
EBIT growth 3Y0.09%
EBIT growth 5Y5.54%
EBIT Next Year46.28%
EBIT Next 3Y19.92%
EBIT Next 5Y15.67%
FCF growth 1Y118.81%
FCF growth 3Y1.95%
FCF growth 5Y-0.38%
OCF growth 1Y103.51%
OCF growth 3Y0.73%
OCF growth 5Y-0.11%