MENSCH UND MASCHINE SOFTWARE (MUM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MUM - DE0006580806 - Common Stock
44.75 EUR
+0.35 (+0.79%)
We assign a fundamental rating of 5 out of 10 to MUM. MUM was compared to 114 industry peers in the Software industry. MUM has an excellent profitability rating, but there are some minor concerns on its financial health. MUM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year MUM was profitable.
- In the past year MUM had a positive cash flow from operations.
- Each year in the past 5 years MUM has been profitable.
- In the past 5 years MUM always reported a positive cash flow from operatings.
1.2 Ratios
- MUM has a better Return On Assets (15.44%) than 86.84% of its industry peers.
- With an excellent Return On Equity value of 39.27%, MUM belongs to the best of the industry, outperforming 87.72% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 27.82%, MUM belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MUM is significantly above the industry average of 13.49%.
- The 3 year average ROIC (27.01%) for MUM is below the current ROIC(27.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.44% | ||
| ROE | 39.27% | ||
| ROIC | 27.82% |
ROA(3y)14.56%
ROA(5y)13.81%
ROE(3y)31.7%
ROE(5y)29.03%
ROIC(3y)27.01%
ROIC(5y)24.63%
1.3 Margins
- MUM has a Profit Margin of 12.93%. This is in the better half of the industry: MUM outperforms 60.53% of its industry peers.
- MUM's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 19.57%, MUM is doing good in the industry, outperforming 70.18% of the companies in the same industry.
- MUM's Operating Margin has improved in the last couple of years.
- The Gross Margin of MUM (75.25%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of MUM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.57% | ||
| PM (TTM) | 12.93% | ||
| GM | 75.25% |
OM growth 3Y2.7%
OM growth 5Y4.99%
PM growth 3Y5.34%
PM growth 5Y6.66%
GM growth 3Y1%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MUM is creating value.
- Compared to 1 year ago, MUM has more shares outstanding
- Compared to 5 years ago, MUM has more shares outstanding
- MUM has a better debt/assets ratio than last year.
2.2 Solvency
- MUM has an Altman-Z score of 6.08. This indicates that MUM is financially healthy and has little risk of bankruptcy at the moment.
- MUM has a better Altman-Z score (6.08) than 77.19% of its industry peers.
- MUM has a debt to FCF ratio of 2.64. This is a good value and a sign of high solvency as MUM would need 2.64 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.64, MUM is in line with its industry, outperforming 57.89% of the companies in the same industry.
- A Debt/Equity ratio of 0.31 indicates that MUM is not too dependend on debt financing.
- MUM has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 6.08 |
ROIC/WACC3.57
WACC7.79%
2.3 Liquidity
- MUM has a Current Ratio of 0.99. This is a bad value and indicates that MUM is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of MUM (0.99) is worse than 71.05% of its industry peers.
- MUM has a Quick Ratio of 0.99. This is a bad value and indicates that MUM is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.89, MUM is doing worse than 77.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The earnings per share for MUM have decreased by -6.05% in the last year.
- Measured over the past years, MUM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.72% on average per year.
- The Revenue for MUM has decreased by -33.50% in the past year. This is quite bad
- The Revenue has been growing slightly by 5.79% on average over the past years.
EPS 1Y (TTM)-6.05%
EPS 3Y12.66%
EPS 5Y12.72%
EPS Q2Q%3.17%
Revenue 1Y (TTM)-33.5%
Revenue growth 3Y6.98%
Revenue growth 5Y5.79%
Sales Q2Q%-40.24%
3.2 Future
- The Earnings Per Share is expected to grow by 13.88% on average over the next years. This is quite good.
- MUM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y10.66%
EPS Next 2Y15.43%
EPS Next 3Y15.39%
EPS Next 5Y13.88%
Revenue Next Year-18.96%
Revenue Next 2Y-6.21%
Revenue Next 3Y-0.82%
Revenue Next 5Y3.33%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- MUM is valuated rather expensively with a Price/Earnings ratio of 24.86.
- Compared to the rest of the industry, the Price/Earnings ratio of MUM indicates a somewhat cheap valuation: MUM is cheaper than 73.68% of the companies listed in the same industry.
- MUM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 18.68 indicates a rather expensive valuation of MUM.
- 75.44% of the companies in the same industry are more expensive than MUM, based on the Price/Forward Earnings ratio.
- MUM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
- 69.30% of the companies in the same industry are more expensive than MUM, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MUM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.44 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MUM does not grow enough to justify the current Price/Earnings ratio.
- MUM has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as MUM's earnings are expected to grow with 15.39% in the coming years.
PEG (NY)2.33
PEG (5Y)1.95
EPS Next 2Y15.43%
EPS Next 3Y15.39%
5. Dividend
5.1 Amount
- MUM has a Yearly Dividend Yield of 4.20%, which is a nice return.
- Compared to an average industry Dividend Yield of 0.68, MUM pays a better dividend. On top of this MUM pays more dividend than 96.49% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MUM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
- On average, the dividend of MUM grows each year by 20.74%, which is quite nice.
Dividend Growth(5Y)20.74%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- MUM pays out 101.85% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of MUM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP101.85%
EPS Next 2Y15.43%
EPS Next 3Y15.39%
MENSCH UND MASCHINE SOFTWARE / MUM.DE FAQ
What is the fundamental rating for MUM stock?
ChartMill assigns a fundamental rating of 5 / 10 to MUM.DE.
Can you provide the valuation status for MENSCH UND MASCHINE SOFTWARE?
ChartMill assigns a valuation rating of 4 / 10 to MENSCH UND MASCHINE SOFTWARE (MUM.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for MENSCH UND MASCHINE SOFTWARE?
MENSCH UND MASCHINE SOFTWARE (MUM.DE) has a profitability rating of 8 / 10.
What is the valuation of MENSCH UND MASCHINE SOFTWARE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MENSCH UND MASCHINE SOFTWARE (MUM.DE) is 24.86 and the Price/Book (PB) ratio is 10.01.
What is the financial health of MENSCH UND MASCHINE SOFTWARE (MUM.DE) stock?
The financial health rating of MENSCH UND MASCHINE SOFTWARE (MUM.DE) is 4 / 10.