MERIDIANLINK INC (MLNK)

US58985J1051 - Common Stock

21.04  -0.05 (-0.24%)

After market: 21.04 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to MLNK. MLNK was compared to 278 industry peers in the Software industry. Both the profitability and financial health of MLNK have multiple concerns. MLNK is not valued too expensively and it also shows a decent growth rate.



3

1. Profitability

1.1 Basic Checks

MLNK had negative earnings in the past year.
In the past year MLNK had a positive cash flow from operations.
MLNK had negative earnings in 4 of the past 5 years.
MLNK had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a Return On Assets value of -5.33%, MLNK perfoms like the industry average, outperforming 47.84% of the companies in the same industry.
MLNK has a Return On Equity (-12.34%) which is comparable to the rest of the industry.
MLNK has a better Return On Invested Capital (1.39%) than 66.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MLNK is significantly below the industry average of 12.23%.
Industry RankSector Rank
ROA -5.33%
ROE -12.34%
ROIC 1.39%
ROA(3y)-2.39%
ROA(5y)-2.97%
ROE(3y)-4.57%
ROE(5y)-7.56%
ROIC(3y)2.47%
ROIC(5y)3.03%

1.3 Margins

With a decent Operating Margin value of 5.07%, MLNK is doing good in the industry, outperforming 71.22% of the companies in the same industry.
In the last couple of years the Operating Margin of MLNK has declined.
Looking at the Gross Margin, with a value of 65.67%, MLNK is in line with its industry, outperforming 46.76% of the companies in the same industry.
MLNK's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.07%
PM (TTM) N/A
GM 65.67%
OM growth 3Y-40.03%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.15%
GM growth 5YN/A

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MLNK is destroying value.
The number of shares outstanding for MLNK has been reduced compared to 1 year ago.
MLNK has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.79, we must say that MLNK is in the distress zone and has some risk of bankruptcy.
MLNK has a Altman-Z score (1.79) which is in line with its industry peers.
The Debt to FCF ratio of MLNK is 6.92, which is on the high side as it means it would take MLNK, 6.92 years of fcf income to pay off all of its debts.
MLNK has a Debt to FCF ratio (6.92) which is comparable to the rest of the industry.
MLNK has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.11, MLNK is doing worse than 77.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF 6.92
Altman-Z 1.79
ROIC/WACC0.12
WACC11.95%

2.3 Liquidity

MLNK has a Current Ratio of 1.86. This is a normal value and indicates that MLNK is financially healthy and should not expect problems in meeting its short term obligations.
MLNK's Current ratio of 1.86 is in line compared to the rest of the industry. MLNK outperforms 56.83% of its industry peers.
MLNK has a Quick Ratio of 1.86. This is a normal value and indicates that MLNK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MLNK (1.86) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.86
Quick Ratio 1.86

4

3. Growth

3.1 Past

The earnings per share for MLNK have decreased strongly by -176.47% in the last year.
MLNK shows a small growth in Revenue. In the last year, the Revenue has grown by 3.95%.
Measured over the past years, MLNK shows a quite strong growth in Revenue. The Revenue has been growing by 15.06% on average per year.
EPS 1Y (TTM)-176.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y15.06%
Revenue growth 5YN/A
Sales Q2Q%5.07%

3.2 Future

MLNK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 85.91% yearly.
Based on estimates for the next years, MLNK will show a small growth in Revenue. The Revenue will grow by 6.94% on average per year.
EPS Next Y264.05%
EPS Next 2Y132.67%
EPS Next 3Y85.91%
EPS Next 5YN/A
Revenue Next Year3.92%
Revenue Next 2Y5.64%
Revenue Next 3Y6.94%
Revenue Next 5YN/A

3.3 Evolution

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.

5

4. Valuation

4.1 Price/Earnings Ratio

MLNK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 41.09, MLNK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLNK indicates a somewhat cheap valuation: MLNK is cheaper than 60.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, MLNK is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 41.09

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MLNK is valued a bit cheaper than the industry average as 76.26% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLNK indicates a rather cheap valuation: MLNK is cheaper than 82.73% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.4
EV/EBITDA 26.8

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.
MLNK's earnings are expected to grow with 85.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y132.67%
EPS Next 3Y85.91%

0

5. Dividend

5.1 Amount

No dividends for MLNK!.
Industry RankSector Rank
Dividend Yield N/A

MERIDIANLINK INC

NYSE:MLNK (12/20/2024, 8:24:48 PM)

After market: 21.04 0 (0%)

21.04

-0.05 (-0.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)N/A N/A
Inst Owners79.49%
Inst Owner Change0.93%
Ins Owners16.74%
Ins Owner Change1.76%
Market Cap1.59B
Analysts75.71
Price Target25.42 (20.82%)
Short Float %3.63%
Short Ratio3.1
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.16%
Min EPS beat(2)-52.18%
Max EPS beat(2)-30.14%
EPS beat(4)0
Avg EPS beat(4)-106.34%
Min EPS beat(4)-325.43%
Max EPS beat(4)-17.61%
EPS beat(8)2
Avg EPS beat(8)3.18%
EPS beat(12)3
Avg EPS beat(12)6.64%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)-1.07%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)-0.84%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)4
Avg Revenue beat(12)-0.42%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)12.41%
PT rev (3m)14.12%
EPS NQ rev (1m)-7.14%
EPS NQ rev (3m)-34.56%
EPS NY rev (1m)-2.03%
EPS NY rev (3m)-8.1%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.12%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 41.09
P/S 5.1
P/FCF 23.4
P/OCF 20.78
P/B 3.8
P/tB N/A
EV/EBITDA 26.8
EPS(TTM)-0.13
EYN/A
EPS(NY)0.51
Fwd EY2.43%
FCF(TTM)0.9
FCFY4.27%
OCF(TTM)1.01
OCFY4.81%
SpS4.12
BVpS5.54
TBVpS-5.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.33%
ROE -12.34%
ROCE 1.76%
ROIC 1.39%
ROICexc 1.53%
ROICexgc N/A
OM 5.07%
PM (TTM) N/A
GM 65.67%
FCFM 21.81%
ROA(3y)-2.39%
ROA(5y)-2.97%
ROE(3y)-4.57%
ROE(5y)-7.56%
ROIC(3y)2.47%
ROIC(5y)3.03%
ROICexc(3y)2.71%
ROICexc(5y)3.28%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.12%
ROCE(5y)3.83%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-33.4%
ROICexc growth 5YN/A
OM growth 3Y-40.03%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.15%
GM growth 5YN/A
F-Score5
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF 6.92
Debt/EBITDA 6.31
Cap/Depr 14.69%
Cap/Sales 2.74%
Interest Coverage 0.41
Cash Conversion 103.46%
Profit Quality N/A
Current Ratio 1.86
Quick Ratio 1.86
Altman-Z 1.79
F-Score5
WACC11.95%
ROIC/WACC0.12
Cap/Depr(3y)15.45%
Cap/Depr(5y)16.05%
Cap/Sales(3y)2.92%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-176.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y264.05%
EPS Next 2Y132.67%
EPS Next 3Y85.91%
EPS Next 5YN/A
Revenue 1Y (TTM)3.95%
Revenue growth 3Y15.06%
Revenue growth 5YN/A
Sales Q2Q%5.07%
Revenue Next Year3.92%
Revenue Next 2Y5.64%
Revenue Next 3Y6.94%
Revenue Next 5YN/A
EBIT growth 1Y3.67%
EBIT growth 3Y-31%
EBIT growth 5YN/A
EBIT Next Year161.44%
EBIT Next 3Y46.74%
EBIT Next 5YN/A
FCF growth 1Y-14.44%
FCF growth 3Y-1.33%
FCF growth 5YN/A
OCF growth 1Y-13.18%
OCF growth 3Y0.24%
OCF growth 5YN/A