MATCH GROUP INC (MTCH) Stock Fundamental Analysis
NASDAQ:MTCH - Nasdaq - US57667L1070 - Common Stock - Currency: USD
Overall MTCH gets a fundamental rating of 5 out of 10. We evaluated MTCH against 71 industry peers in the Interactive Media & Services industry. While MTCH has a great profitability rating, there are some minor 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.
In the past 5 years MTCH has always been profitable.
Each year in the past 5 years MTCH had a positive operating cash flow.
1.2 Ratios
MTCH has a better Return On Assets (14.03%) than 88.73% of its industry peers.
MTCH has a Return On Invested Capital of 20.21%. This is amongst the best in the industry. MTCH outperforms 91.55% of its industry peers.
MTCH had an Average Return On Invested Capital over the past 3 years of 15.96%. This 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
Looking at the Profit Margin, with a value of 15.81%, MTCH belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
In the last couple of years the Profit Margin of MTCH has declined.
MTCH's Operating Margin of 24.39% is amongst the best of the industry. MTCH outperforms 91.55% of its industry peers.
In the last couple of years the Operating Margin of MTCH has declined.
MTCH has a Gross Margin (71.85%) which is comparable to the rest of the industry.
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
MTCH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MTCH has been reduced compared to 1 year ago.
The number of shares outstanding for MTCH has been reduced compared to 5 years ago.
The debt/assets ratio for MTCH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that MTCH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MTCH (0.48) 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.
MTCH has a better Debt to FCF ratio (4.32) than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 0.48 |
ROIC/WACC2.55
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.62 indicates that MTCH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, MTCH is doing worse than 63.38% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that MTCH should not have too much problems paying its short term obligations.
MTCH's Quick ratio of 1.62 is on the low side compared to the rest of the industry. MTCH is outperformed by 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for MTCH have decreased strongly by -12.17% in the last year.
MTCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.22% yearly.
MTCH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.40%.
MTCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.15% yearly.
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.
Based on estimates for the next years, MTCH will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y8.58%
EPS Next 2Y13.36%
EPS Next 3Y16.2%
EPS Next 5Y19.02%
Revenue Next Year-0.7%
Revenue Next 2Y1.7%
Revenue Next 3Y3.08%
Revenue Next 5Y4.66%
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
The Price/Earnings ratio is 15.14, which indicates a correct valuation of MTCH.
74.65% of the companies in the same industry are more expensive than MTCH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.35. MTCH is valued slightly cheaper when compared to this.
MTCH is valuated reasonably with a Price/Forward Earnings ratio of 11.78.
80.28% of the companies in the same industry are more expensive than MTCH, based on the Price/Forward Earnings ratio.
MTCH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTCH indicates a somewhat cheap valuation: MTCH is cheaper than 74.65% of the companies listed in the same industry.
83.10% 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 | 9.46 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MTCH may justify a higher PE ratio.
A more expensive valuation may be justified as MTCH's earnings are expected to grow with 16.20% in the coming years.
PEG (NY)1.76
PEG (5Y)6.82
EPS Next 2Y13.36%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
MTCH has a Yearly Dividend Yield of 2.51%.
MTCH's Dividend Yield is rather good when compared to the industry average which is at 2.88. MTCH pays more dividend than 95.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, MTCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
MTCH does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y13.36%
EPS Next 3Y16.2%
30.59
+0.29 (+0.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.57%
Inst Owner Change-2.75%
Ins Owners0.27%
Ins Owner Change-0.72%
Market Cap7.50B
Analysts71.72
Price Target35.08 (14.68%)
Short Float %5.22%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)-4.8%
PT rev (3m)-6.36%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-1.44%
EPS NY rev (1m)1.88%
EPS NY rev (3m)4.25%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 11.78 | ||
| P/S | 2.17 | ||
| P/FCF | 9.46 | ||
| P/OCF | 8.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.46 |
EPS(TTM)2.02
EY6.6%
EPS(NY)2.6
Fwd EY8.49%
FCF(TTM)3.23
FCFY10.57%
OCF(TTM)3.43
OCFY11.22%
SpS14.07
BVpS-0.75
TBVpS-11.02
PEG (NY)1.76
PEG (5Y)6.82
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 | 0.48 |
F-Score6
WACC7.93%
ROIC/WACC2.55
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 Y8.58%
EPS Next 2Y13.36%
EPS Next 3Y16.2%
EPS Next 5Y19.02%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-3.31%
Revenue Next Year-0.7%
Revenue Next 2Y1.7%
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%