Overall MODN gets a fundamental rating of 4 out of 10. We evaluated MODN against 278 industry peers in the Software industry. The financial health of MODN is average, but there are quite some concerns on its profitability. MODN is not priced too expensively while it is growing strongly. Keep and eye on this one!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MODN was profitable.
In the past year MODN had a positive cash flow from operations.
MODN had negative earnings in each of the past 5 years.
In the past 5 years MODN always reported a positive cash flow from operatings.

1.2 Ratios

MODN's Return On Assets of 0.05% is fine compared to the rest of the industry. MODN outperforms 64.86% of its industry peers.
Looking at the Return On Equity, with a value of 0.19%, MODN is in the better half of the industry, outperforming 67.03% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.05%
ROE	0.19%
ROIC	N/A

ROA(3y)-7.41%

ROA(5y)-7.58%

ROE(3y)-24.88%

ROE(5y)-24.45%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With a decent Profit Margin value of 0.10%, MODN is doing good in the industry, outperforming 65.58% of the companies in the same industry.
Looking at the Gross Margin, with a value of 57.06%, MODN is doing worse than 64.13% of the companies in the same industry.
In the last couple of years the Gross Margin of MODN has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	0.1%
GM	57.06%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.57%

GM growth 5Y-0.41%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MODN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for MODN has been increased compared to 1 year ago.
Compared to 1 year ago, MODN has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.15 indicates that MODN is not a great score, but indicates only limited risk for bankruptcy at the moment.
MODN has a Altman-Z score of 2.15. This is comparable to the rest of the industry: MODN outperforms 48.91% of its industry peers.
The Debt to FCF ratio of MODN is 4.68, which is a neutral value as it means it would take MODN, 4.68 years of fcf income to pay off all of its debts.
MODN's Debt to FCF ratio of 4.68 is in line compared to the rest of the industry. MODN outperforms 59.42% of its industry peers.
MODN has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MODN (2.05) is worse than 83.33% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.05
Debt/FCF	4.68
Altman-Z	2.15

ROIC/WACCN/A

WACC9.78%

2.3 Liquidity

MODN has a Current Ratio of 3.86. This indicates that MODN is financially healthy and has no problem in meeting its short term obligations.
MODN has a better Current ratio (3.86) than 81.16% of its industry peers.
A Quick Ratio of 3.86 indicates that MODN has no problem at all paying its short term obligations.
MODN has a Quick ratio of 3.86. This is amongst the best in the industry. MODN outperforms 81.16% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.86
Quick Ratio	3.86

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

MODN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.09%, which is quite impressive.
MODN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 94.38% yearly.
Looking at the last year, MODN shows a quite strong growth in Revenue. The Revenue has grown by 8.57% in the last year.
Measured over the past years, MODN shows a quite strong growth in Revenue. The Revenue has been growing by 10.05% on average per year.

EPS 1Y (TTM)34.09%

EPS 3Y32.24%

EPS 5Y94.38%

EPS Q2Q%9.09%

Revenue 1Y (TTM)8.57%

Revenue growth 3Y15.7%

Revenue growth 5Y10.05%

Sales Q2Q%4%

3.2 Future

The Earnings Per Share is expected to grow by 19.28% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.98% on average over the next years. This is quite good.

EPS Next Y17.87%

EPS Next 2Y17.26%

EPS Next 3Y19.28%

EPS Next 5YN/A

Revenue Next Year6.15%

Revenue Next 2Y7.69%

Revenue Next 3Y8.98%

Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.42, the valuation of MODN can be described as expensive.
Based on the Price/Earnings ratio, MODN is valued a bit cheaper than 77.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, MODN is valued at the same level.
MODN is valuated rather expensively with a Price/Forward Earnings ratio of 19.66.
79.35% of the companies in the same industry are more expensive than MODN, based on the Price/Forward Earnings ratio.
MODN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	25.42
Fwd PE	19.66

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as MODN.
MODN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MODN is cheaper than 85.14% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.69
EV/EBITDA	223.88

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MODN's earnings are expected to grow with 19.28% in the coming years. This may justify a more expensive valuation.