MONEYGRAM INTERNATIONAL INC (MGI) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:MGI • US60935Y2081

10.99 USD
0 (0%)
At close: May 31, 2023
10.99 USD
0 (0%)
After Hours: 5/31/2023, 8:00:02 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to MGI. MGI was compared to 97 industry peers in the Financial Services industry. MGI has a bad profitability rating. Also its financial health evaluation is rather negative. MGI has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year MGI was profitable.
  • MGI had a positive operating cash flow in the past year.
MGI Yearly Net Income VS EBIT VS OCF VS FCFMGI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50M -50M 100M

1.2 Ratios

  • With a Return On Assets value of 0.82%, MGI perfoms like the industry average, outperforming 51.55% of the companies in the same industry.
  • With a Return On Invested Capital value of 2.21%, MGI perfoms like the industry average, outperforming 59.79% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MGI is significantly below the industry average of 8.51%.
  • The 3 year average ROIC (1.97%) for MGI is below the current ROIC(2.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.82%
ROE N/A
ROIC 2.21%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)1.97%
ROIC(5y)1.49%
MGI Yearly ROA, ROE, ROICMGI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 -20

1.3 Margins

  • With a Profit Margin value of 2.54%, MGI perfoms like the industry average, outperforming 46.39% of the companies in the same industry.
  • The Operating Margin of MGI (7.57%) is comparable to the rest of the industry.
  • MGI's Operating Margin has improved in the last couple of years.
  • MGI's Gross Margin of 47.26% is fine compared to the rest of the industry. MGI outperforms 72.16% of its industry peers.
  • MGI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.57%
PM (TTM) 2.54%
GM 47.26%
OM growth 3Y21.93%
OM growth 5Y51.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.8%
GM growth 5Y-1.27%
MGI Yearly Profit, Operating, Gross MarginsMGI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40 50

More info and screens

1

2. Health

2.1 Basic Checks

  • MGI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for MGI has been increased compared to 1 year ago.
  • The debt/assets ratio for MGI has been reduced compared to a year ago.
MGI Yearly Shares OutstandingMGI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M
MGI Yearly Total Debt VS Total AssetsMGI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

2.2 Solvency

  • Based on the Altman-Z score of 0.04, we must say that MGI is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.04, MGI is doing worse than 65.98% of the companies in the same industry.
  • The Debt to FCF ratio of MGI is 17.33, which is on the high side as it means it would take MGI, 17.33 years of fcf income to pay off all of its debts.
  • MGI's Debt to FCF ratio of 17.33 is in line compared to the rest of the industry. MGI outperforms 49.48% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 17.33
Altman-Z 0.04
ROIC/WACC0.27
WACC8.11%
MGI Yearly LT Debt VS Equity VS FCFMGI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 0.72 indicates that MGI may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.72, MGI is doing worse than 63.92% of the companies in the same industry.
  • A Quick Ratio of 0.72 indicates that MGI may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.72, MGI is doing worse than 62.89% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.72
Quick Ratio 0.72
MGI Yearly Current Assets VS Current LiabilitesMGI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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1

3. Growth

3.1 Past

  • MGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.00%, which is quite impressive.
  • MGI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.78% yearly.
  • Looking at the last year, MGI shows a small growth in Revenue. The Revenue has grown by 4.60% in the last year.
  • MGI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.94% yearly.
EPS 1Y (TTM)20%
EPS 3Y135.13%
EPS 5Y-12.78%
EPS Q2Q%22.22%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y0.64%
Revenue growth 5Y-3.94%
Sales Q2Q%9.72%

3.2 Future

  • No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y35.96%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.52%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
MGI Yearly Revenue VS EstimatesMGI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
MGI Yearly EPS VS EstimatesMGI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.35, the valuation of MGI can be described as rather expensive.
  • MGI's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 28.32. MGI is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 15.54, the valuation of MGI can be described as correct.
  • MGI's Price/Forward Earnings ratio is in line with the industry average.
  • MGI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.35
Fwd PE 15.54
MGI Price Earnings VS Forward Price EarningsMGI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • MGI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGI is cheaper than 75.26% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as MGI.
Industry RankSector Rank
P/FCF 23.71
EV/EBITDA 11.23
MGI Per share dataMGI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

More info and screens

0

5. Dividend

5.1 Amount

  • MGI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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MONEYGRAM INTERNATIONAL INC / MGI FAQ

What is the ChartMill fundamental rating of MONEYGRAM INTERNATIONAL INC (MGI) stock?

ChartMill assigns a fundamental rating of 2 / 10 to MGI.


Can you provide the valuation status for MONEYGRAM INTERNATIONAL INC?

ChartMill assigns a valuation rating of 4 / 10 to MONEYGRAM INTERNATIONAL INC (MGI). This can be considered as Fairly Valued.


How profitable is MONEYGRAM INTERNATIONAL INC (MGI) stock?

MONEYGRAM INTERNATIONAL INC (MGI) has a profitability rating of 2 / 10.


How financially healthy is MONEYGRAM INTERNATIONAL INC?

The financial health rating of MONEYGRAM INTERNATIONAL INC (MGI) is 1 / 10.


What is the expected EPS growth for MONEYGRAM INTERNATIONAL INC (MGI) stock?

The Earnings per Share (EPS) of MONEYGRAM INTERNATIONAL INC (MGI) is expected to grow by 35.96% in the next year.