MARKETWISE INC (MKTW) Stock Fundamental Analysis
NASDAQ:MKTW - Nasdaq - US57064P1075 - Common Stock - Currency: USD
MKTW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 225 industry peers in the Capital Markets industry. MKTW may be in some trouble as it scores bad on both profitability and health. MKTW is valued correctly, but it does not seem to be growing.
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.
MKTW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.82%, MKTW is in line with its industry, outperforming 43.38% of the companies in the same 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 has a Profit Margin of 1.20%. This is in the lower half of the industry: MKTW underperforms 73.52% of its industry peers.
In the last couple of years the Profit Margin of MKTW has declined.
With a Operating Margin value of 16.37%, MKTW is not doing good in the industry: 63.47% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MKTW has grown nicely.
Looking at the Gross Margin, with a value of 87.55%, MKTW belongs to the top of the industry, outperforming 89.95% of the companies in the same industry.
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
MKTW has more shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 1.65, we must say that MKTW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, MKTW is in the better half of the industry, outperforming 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
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.
MKTW has a Current ratio of 0.61. This is in the lower half of the industry: MKTW underperforms 70.78% of its industry peers.
A Quick Ratio of 0.61 indicates that MKTW may have some problems paying its short term obligations.
MKTW has a Quick ratio of 0.61. This is in the lower half of the industry: MKTW underperforms 70.78% of its industry peers.
| 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.
MKTW shows a decrease in Revenue. In the last year, the revenue decreased by -8.70%.
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
MKTW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.90% yearly.
Based on estimates for the next years, MKTW will show a decrease in Revenue. The Revenue will decrease by -7.19% on average per year.
EPS Next Y-15.7%
EPS Next 2Y12.45%
EPS Next 3Y29.9%
EPS Next 5YN/A
Revenue Next Year-12.67%
Revenue Next 2Y-16.89%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 4.44, the valuation of MKTW can be described as very cheap.
Based on the Price/Earnings ratio, MKTW is valued cheaply inside the industry as 95.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MKTW to the average of the S&P500 Index (29.75), we can say MKTW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.93, 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 96.35% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MKTW to the average of the S&P500 Index (22.44), we can say MKTW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.44 | ||
| Fwd PE | 4.93 |
4.2 Price Multiples
98.17% of the companies in the same industry are more expensive than MKTW, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.43 |
4.3 Compensation for Growth
MKTW's earnings are expected to grow with 29.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.45%
EPS Next 3Y29.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.83%, MKTW is a good candidate for dividend investing.
MKTW's Dividend Yield is comparable with the industry average which is at 8.69.
MKTW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
5.2 History
MKTW has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
129.58% of the earnings are spent on dividend by MKTW. This is not a sustainable payout ratio.
DP129.58%
EPS Next 2Y12.45%
EPS Next 3Y29.9%
0.755
+0.15 (+23.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.25%
Inst Owner Change-18.05%
Ins Owners12.29%
Ins Owner Change0%
Market Cap244.86M
Analysts43.33
Price Target0.61 (-19.21%)
Short Float %4.6%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP129.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.3%
Min EPS beat(2)-67.32%
Max EPS beat(2)30.72%
EPS beat(4)1
Avg EPS beat(4)-10.13%
Min EPS beat(4)-67.32%
Max EPS beat(4)30.72%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.79%
Min Revenue beat(2)-10.47%
Max Revenue beat(2)16.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-10.47%
Max Revenue beat(4)16.05%
Revenue beat(8)3
Avg Revenue beat(8)1.64%
Revenue beat(12)5
Avg Revenue beat(12)1.07%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-40%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)42.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.44 | ||
| Fwd PE | 4.93 | ||
| P/S | 0.58 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.43 |
EPS(TTM)0.17
EY22.52%
EPS(NY)0.15
Fwd EY20.26%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)-0.03
OCFYN/A
SpS1.31
BVpS-0.06
TBVpS-0.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | N/A | ||
| ROCE | -1233.34% | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 16.37% | ||
| PM (TTM) | 1.2% | ||
| GM | 87.55% | ||
| FCFM | 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
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 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 0.6% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 93.56 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.65 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)14.06%
Cap/Depr(5y)13.82%
Cap/Sales(3y)0.07%
Cap/Sales(5y)0.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.43%
EPS 3YN/A
EPS 5Y-40.87%
EPS Q2Q%90.48%
EPS Next Y-15.7%
EPS Next 2Y12.45%
EPS Next 3Y29.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.7%
Revenue growth 3Y7.16%
Revenue growth 5Y13.46%
Sales Q2Q%-8.44%
Revenue Next Year-12.67%
Revenue Next 2Y-16.89%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-8.66%
EBIT growth 3YN/A
EBIT growth 5Y24.34%
EBIT Next Year-41.58%
EBIT Next 3Y-10.46%
EBIT Next 5YN/A
FCF growth 1Y-124.82%
FCF growth 3Y4.03%
FCF growth 5Y-3.83%
OCF growth 1Y-124.78%
OCF growth 3Y3.76%
OCF growth 5Y-3.98%