MARKETWISE INC (MKTW)
US57064P1075 - Common Stock
We assign a fundamental rating of 3 out of 10 to MKTW. MKTW was compared to 218 industry peers in the Capital Markets industry. MKTW may be in some trouble as it scores bad on both profitability and health. MKTW has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MKTW was profitable.
In the past year MKTW has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: MKTW reported negative net income in multiple years.
Each year in the past 5 years MKTW had a positive operating cash flow.
1.2 Ratios
MKTW has a Return On Assets (1.82%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-78.61%
ROA(5y)-82.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MKTW's Profit Margin of 1.20% is on the low side compared to the rest of the industry. MKTW is outperformed by 75.35% of its industry peers.
In the last couple of years the Profit Margin of MKTW has declined.
The Operating Margin of MKTW (16.37%) is worse than 64.19% of its industry peers.
In the last couple of years the Operating Margin of MKTW has grown nicely.
The Gross Margin of MKTW (87.55%) is better than 89.77% of its industry peers.
In the last couple of years the Gross Margin of MKTW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.37% | ||
| PM (TTM) | 1.2% | ||
| GM | 87.55% |
OM growth 3YN/A
OM growth 5Y9.59%
PM growth 3YN/A
PM growth 5Y-44.86%
GM growth 3Y14.91%
GM growth 5Y2.86%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MKTW has more shares outstanding
There is no outstanding debt for MKTW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MKTW has an Altman-Z score of 1.62. This is a bad value and indicates that MKTW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MKTW (1.62) is better than 65.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MKTW has a Current Ratio of 0.61. This is a bad value and indicates that MKTW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MKTW (0.61) is worse than 70.23% of its industry peers.
A Quick Ratio of 0.61 indicates that MKTW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, MKTW is doing worse than 70.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
MKTW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.43%.
MKTW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.87% yearly.
Looking at the last year, MKTW shows a decrease in Revenue. The Revenue has decreased by -8.70% in the last year.
Measured over the past years, MKTW shows a quite strong growth in Revenue. The Revenue has been growing by 13.46% on average per year.
EPS 1Y (TTM)-19.43%
EPS 3YN/A
EPS 5Y-40.87%
EPS Q2Q%90.48%
Revenue 1Y (TTM)-8.7%
Revenue growth 3Y7.16%
Revenue growth 5Y13.46%
Sales Q2Q%-8.44%
3.2 Future
The Earnings Per Share is expected to grow by 37.74% on average over the next years. This is a very strong growth
Based on estimates for the next years, MKTW will show a decrease in Revenue. The Revenue will decrease by -4.34% on average per year.
EPS Next Y-40.99%
EPS Next 2Y29.84%
EPS Next 3Y37.74%
EPS Next 5YN/A
Revenue Next Year-13.95%
Revenue Next 2Y-12.5%
Revenue Next 3Y-4.34%
Revenue Next 5YN/A
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
MKTW is valuated cheaply with a Price/Earnings ratio of 3.12.
Based on the Price/Earnings ratio, MKTW is valued cheaply inside the industry as 95.81% of the companies are valued more expensively.
MKTW is valuated cheaply when we compare the Price/Earnings ratio to 29.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 2.60, the valuation of MKTW can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKTW indicates a rather cheap valuation: MKTW is cheaper than 97.21% of the companies listed in the same industry.
MKTW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.12 | ||
| Fwd PE | 2.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKTW indicates a rather cheap valuation: MKTW is cheaper than 97.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.2 |
4.3 Compensation for Growth
MKTW's earnings are expected to grow with 37.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.84%
EPS Next 3Y37.74%
5. Dividend
5.1 Amount
MKTW has a Yearly Dividend Yield of 7.75%, which is a nice return.
The stock price of MKTW dropped by -36.17% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MKTW's Dividend Yield is a higher than the industry average which is at 9.01.
Compared to an average S&P500 Dividend Yield of 2.23, MKTW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
5.2 History
MKTW 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
MKTW pays out 129.58% of its income as dividend. This is not a sustainable payout ratio.
DP129.58%
EPS Next 2Y29.84%
EPS Next 3Y37.74%
MARKETWISE INC
NASDAQ:MKTW (11/22/2024, 8:00:00 PM)
After market: 0.5609 +0.03 (+5.75%)0.5304
-0.03 (-4.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap172.02M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.12 | ||
| Fwd PE | 2.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.37% | ||
| PM (TTM) | 1.2% | ||
| GM | 87.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-19.43%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-40.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.7%
Revenue growth 3Y7.16%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y