MATCH GROUP INC (MTCH) Stock Fundamental Analysis
NASDAQ:MTCH - Nasdaq - US57667L1070 - Common Stock - Currency: USD
MTCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. While MTCH belongs to the best of the industry regarding profitability, there are concerns on its financial health. MTCH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MTCH was profitable.
In the past year MTCH had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 14.03%, MTCH belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
MTCH has a Return On Invested Capital of 20.21%. This is amongst the best in the industry. MTCH outperforms 91.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTCH is above the industry average of 12.03%.
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
MTCH has a Profit Margin of 15.81%. This is amongst the best in the industry. MTCH outperforms 84.29% of its industry peers.
In the last couple of years the Profit Margin of MTCH has declined.
With an excellent Operating Margin value of 24.39%, MTCH belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
MTCH's Operating Margin has declined in the last couple of years.
MTCH has a Gross Margin of 71.85%. This is comparable to the rest of the industry: MTCH outperforms 58.57% of its industry peers.
MTCH's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MTCH is creating value.
The number of shares outstanding for MTCH has been reduced compared to 1 year ago.
Compared to 5 years ago, MTCH has less shares outstanding
Compared to 1 year ago, MTCH has a worse debt to assets ratio.
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 comparable to the rest of the industry.
The Debt to FCF ratio of MTCH is 4.32, which is a neutral value as it means it would take MTCH, 4.32 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.32, MTCH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 0.54 |
ROIC/WACC2.33
WACC8.66%
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 worse Current ratio (1.62) than 64.29% of its industry peers.
MTCH has a Quick 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 Quick ratio of 1.62. This is in the lower half of the industry: MTCH underperforms 64.29% of its industry peers.
| 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.
The Revenue has been growing by 11.15% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 19.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y8.05%
EPS Next 2Y13.05%
EPS Next 3Y15.97%
EPS Next 5Y19.02%
Revenue Next Year-0.73%
Revenue Next 2Y1.69%
Revenue Next 3Y3.08%
Revenue Next 5Y4.66%
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.
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
A Price/Earnings ratio of 16.06 indicates a correct valuation of MTCH.
74.29% of the companies in the same industry are more expensive than MTCH, based on the Price/Earnings ratio.
MTCH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
MTCH is valuated correctly with a Price/Forward Earnings ratio of 12.57.
MTCH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTCH is cheaper than 78.57% of the companies in the same industry.
MTCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTCH is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MTCH is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 15.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)7.24
EPS Next 2Y13.05%
EPS Next 3Y15.97%
5. Dividend
5.1 Amount
MTCH has a Yearly Dividend Yield of 2.26%.
MTCH's Dividend Yield is rather good when compared to the industry average which is at 2.91. MTCH pays more dividend than 94.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, MTCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 2Y13.05%
EPS Next 3Y15.97%
32.45
+0.1 (+0.31%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.57%
Inst Owner Change0.01%
Ins Owners0.27%
Ins Owner Change0.17%
Market Cap7.96B
Analysts71.72
Price Target35.08 (8.1%)
Short Float %5.5%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)0%
PT rev (3m)-5.94%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)1.38%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 12.57 | ||
| P/S | 2.31 | ||
| P/FCF | 10.04 | ||
| P/OCF | 9.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.89 |
EPS(TTM)2.02
EY6.22%
EPS(NY)2.58
Fwd EY7.96%
FCF(TTM)3.23
FCFY9.96%
OCF(TTM)3.43
OCFY10.58%
SpS14.07
BVpS-0.75
TBVpS-11.02
PEG (NY)2
PEG (5Y)7.24
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 | 0.54 |
F-Score6
WACC8.66%
ROIC/WACC2.33
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 Y8.05%
EPS Next 2Y13.05%
EPS Next 3Y15.97%
EPS Next 5Y19.02%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-3.31%
Revenue Next Year-0.73%
Revenue Next 2Y1.69%
Revenue Next 3Y3.08%
Revenue Next 5Y4.66%
EBIT growth 1Y-6.82%
EBIT growth 3Y0.09%
EBIT growth 5Y5.54%
EBIT Next Year46.63%
EBIT Next 3Y20.11%
EBIT Next 5Y15.38%
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%