NERDWALLET INC-CL A (NRDS) Stock Fundamental Analysis
NASDAQ:NRDS - Nasdaq - US64082B1026 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NRDS. NRDS was compared to 52 industry peers in the Consumer Finance industry. NRDS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NRDS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year NRDS was profitable.
In the past year NRDS had a positive cash flow from operations.
In multiple years NRDS reported negative net income over the last 5 years.
Each year in the past 5 years NRDS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.21%, NRDS belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
With a Return On Equity value of 7.94%, NRDS perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
NRDS's Return On Invested Capital of 1.31% is in line compared to the rest of the industry. NRDS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 7.94% | ||
| ROIC | 1.31% |
ROA(3y)0.58%
ROA(5y)-1.57%
ROE(3y)0.72%
ROE(5y)-2.17%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NRDS has a worse Profit Margin (4.01%) than 71.15% of its industry peers.
NRDS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 0.87%, NRDS is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NRDS has declined.
With an excellent Gross Margin value of 90.82%, NRDS belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
NRDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.87% | ||
| PM (TTM) | 4.01% | ||
| GM | 90.82% |
OM growth 3YN/A
OM growth 5Y-35.7%
PM growth 3YN/A
PM growth 5Y-16.05%
GM growth 3Y-0.63%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NRDS is destroying value.
NRDS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NRDS has been increased compared to 5 years ago.
Compared to 1 year ago, NRDS has a worse debt to assets ratio.
2.2 Solvency
NRDS has an Altman-Z score of 6.02. This indicates that NRDS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NRDS (6.02) is better than 96.15% of its industry peers.
There is no outstanding debt for NRDS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.02 |
ROIC/WACC0.14
WACC9.24%
2.3 Liquidity
NRDS has a Current Ratio of 2.68. This indicates that NRDS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.68, NRDS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
NRDS has a Quick Ratio of 2.68. This indicates that NRDS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.68, NRDS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
NRDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 420.00%, which is quite impressive.
NRDS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.81% yearly.
The Revenue has grown by 24.20% in the past year. This is a very strong growth!
NRDS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.67% yearly.
EPS 1Y (TTM)420%
EPS 3YN/A
EPS 5Y0.81%
EPS Q2Q%-100%
Revenue 1Y (TTM)24.2%
Revenue growth 3Y21.9%
Revenue growth 5Y24.67%
Sales Q2Q%29.22%
3.2 Future
NRDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.03% yearly.
NRDS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y-34.57%
EPS Next 2Y24.76%
EPS Next 3Y27.03%
EPS Next 5YN/A
Revenue Next Year18.35%
Revenue Next 2Y13.17%
Revenue Next 3Y10.16%
Revenue Next 5Y6.39%
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
A Price/Earnings ratio of 22.31 indicates a rather expensive valuation of NRDS.
71.15% of the companies in the same industry are cheaper than NRDS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, NRDS is valued at the same level.
The Price/Forward Earnings ratio is 14.04, which indicates a correct valuation of NRDS.
63.46% of the companies in the same industry are cheaper than NRDS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, NRDS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
67.31% of the companies in the same industry are more expensive than NRDS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as NRDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
A more expensive valuation may be justified as NRDS's earnings are expected to grow with 27.03% in the coming years.
PEG (NY)N/A
PEG (5Y)27.42
EPS Next 2Y24.76%
EPS Next 3Y27.03%
5. Dividend
5.1 Amount
NRDS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.71
+0.22 (+2.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners83.22%
Inst Owner Change-2.01%
Ins Owners6.28%
Ins Owner Change1.42%
Market Cap797.79M
Analysts81.54
Price Target15.64 (46.03%)
Short Float %6.4%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2308.4%
Min EPS beat(2)100%
Max EPS beat(2)4516.81%
EPS beat(4)3
Avg EPS beat(4)1165.02%
Min EPS beat(4)-125.51%
Max EPS beat(4)4516.81%
EPS beat(8)5
Avg EPS beat(8)542.18%
EPS beat(12)8
Avg EPS beat(12)383.83%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)7.35%
Min Revenue beat(2)6.9%
Max Revenue beat(2)7.8%
Revenue beat(4)3
Avg Revenue beat(4)5.91%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)10.57%
Revenue beat(8)6
Avg Revenue beat(8)3.19%
Revenue beat(12)8
Avg Revenue beat(12)2.58%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7.07%
PT rev (3m)-9.8%
EPS NQ rev (1m)52.63%
EPS NQ rev (3m)19.18%
EPS NY rev (1m)2.16%
EPS NY rev (3m)-28.56%
Revenue NQ rev (1m)10.78%
Revenue NQ rev (3m)11.25%
Revenue NY rev (1m)4.81%
Revenue NY rev (3m)4.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 14.04 | ||
| P/S | 1.09 | ||
| P/FCF | 14.43 | ||
| P/OCF | 10.52 | ||
| P/B | 2.15 | ||
| P/tB | 3.48 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)0.48
EY4.48%
EPS(NY)0.76
Fwd EY7.12%
FCF(TTM)0.74
FCFY6.93%
OCF(TTM)1.02
OCFY9.5%
SpS9.87
BVpS4.99
TBVpS3.08
PEG (NY)N/A
PEG (5Y)27.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 7.94% | ||
| ROCE | 1.66% | ||
| ROIC | 1.31% | ||
| ROICexc | 1.73% | ||
| ROICexgc | 3.37% | ||
| OM | 0.87% | ||
| PM (TTM) | 4.01% | ||
| GM | 90.82% | ||
| FCFM | 7.52% |
ROA(3y)0.58%
ROA(5y)-1.57%
ROE(3y)0.72%
ROE(5y)-2.17%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-36.98%
ROICexc growth 3YN/A
ROICexc growth 5Y-44.38%
OM growth 3YN/A
OM growth 5Y-35.7%
PM growth 3YN/A
PM growth 5Y-16.05%
GM growth 3Y-0.63%
GM growth 5Y-0.47%
F-Score8
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 41.75% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 21.33 | ||
| Cash Conversion | 136.58% | ||
| Profit Quality | 187.46% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z | 6.02 |
F-Score8
WACC9.24%
ROIC/WACC0.14
Cap/Depr(3y)64.08%
Cap/Depr(5y)80.19%
Cap/Sales(3y)4.66%
Cap/Sales(5y)5.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)420%
EPS 3YN/A
EPS 5Y0.81%
EPS Q2Q%-100%
EPS Next Y-34.57%
EPS Next 2Y24.76%
EPS Next 3Y27.03%
EPS Next 5YN/A
Revenue 1Y (TTM)24.2%
Revenue growth 3Y21.9%
Revenue growth 5Y24.67%
Sales Q2Q%29.22%
Revenue Next Year18.35%
Revenue Next 2Y13.17%
Revenue Next 3Y10.16%
Revenue Next 5Y6.39%
EBIT growth 1Y-32.63%
EBIT growth 3YN/A
EBIT growth 5Y-19.84%
EBIT Next Year3573.72%
EBIT Next 3Y287.17%
EBIT Next 5Y132.81%
FCF growth 1Y550.59%
FCF growth 3YN/A
FCF growth 5Y24.92%
OCF growth 1Y90.45%
OCF growth 3Y115.24%
OCF growth 5Y17.99%