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 growing strongly while it is still valued neutral. This is a good combination!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MODN had positive earnings in the past year.
MODN had a positive operating cash flow in the past year.
In the past 5 years MODN always reported negative net income.
Each year in the past 5 years MODN had a positive operating cash flow.

1.2 Ratios

The Return On Assets of MODN (0.05%) is better than 64.86% of its industry peers.
MODN's Return On Equity of 0.19% is fine compared to the rest of the industry. MODN outperforms 67.03% of its industry peers.

		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

The Profit Margin of MODN (0.10%) is better than 65.58% of its industry peers.
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.
Compared to 1 year ago, MODN has more shares outstanding
The debt/assets ratio for MODN is higher compared to a year ago.

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 (2.15) which is comparable to the rest of the industry.
MODN has a debt to FCF ratio of 4.68. This is a neutral value as MODN would need 4.68 years to pay back of all of its debts.
MODN has a Debt to FCF ratio of 4.68. This is comparable to the rest of the industry: MODN outperforms 59.42% of its industry peers.
A Debt/Equity ratio of 2.05 is on the high side and indicates that MODN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.05, MODN is doing worse than 83.33% of the companies in the same industry.

		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 Current ratio of 3.86. This is amongst the best in the industry. MODN outperforms 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.
The Quick ratio of MODN (3.86) is better than 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

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Altman-Z score

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3. Growth

3.1 Past

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

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

MODN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.28% yearly.
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

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.42, MODN can be considered very expensive at the moment.
77.54% of the companies in the same industry are more expensive than MODN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, MODN is valued at the same level.
MODN is valuated rather expensively with a Price/Forward Earnings ratio of 19.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MODN indicates a somewhat cheap valuation: MODN is cheaper than 79.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, MODN is valued a bit cheaper.

		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.
Based on the Price/Free Cash Flow ratio, MODN is valued 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

MODN's 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.