Model N Inc (MODN) Stock Fundamental Analysis
USA - NYSE:MODN - US6075251024 - Common Stock
30 USD
+0.03 (+0.1%)
30.002 USD
+0 (+0.01%)
Taking everything into account, MODN scores 4 out of 10 in our fundamental rating. MODN was compared to 281 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 overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years MODN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 0.05%, MODN is doing good in the industry, outperforming 64.86% of the companies in the same industry.
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
Looking at the Profit Margin, with a value of 0.10%, MODN is in the better half of the industry, outperforming 65.58% of the companies in the same industry.
MODN has a Gross Margin of 57.06%. This is in the lower half of the industry: MODN underperforms 64.13% of its industry peers.
MODN's Gross Margin has been stable in the last couple of years.
| 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%
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.
The number of shares outstanding for MODN has been increased compared to 5 years ago.
Compared to 1 year ago, MODN has a worse debt to assets ratio.
2.2 Solvency
MODN has an Altman-Z score of 2.15. This is not the best score and indicates that MODN is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MODN (2.15) is comparable to the rest of the industry.
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.
A Debt/Equity ratio of 2.05 is on the high side and indicates that MODN has dependencies on debt financing.
MODN has a worse Debt to Equity ratio (2.05) 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.
With an excellent Current ratio value of 3.86, MODN belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
MODN has a Quick Ratio of 3.86. This indicates that MODN is financially healthy and has no problem in meeting 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 |
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.
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.
The Revenue has been growing by 10.05% on average over the past years. This is quite good.
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
Based on estimates for the next years, MODN will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.28% on average per year.
Based on estimates for the next years, MODN will show a quite strong growth in Revenue. The Revenue will grow by 8.98% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.42, which means the current valuation is very expensive for MODN.
Based on the Price/Earnings ratio, MODN is valued a bit cheaper than 77.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of MODN to the average of the S&P500 Index (25.07), we can say MODN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.66, the valuation of MODN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MODN is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MODN to the average of the S&P500 Index (34.08), we can say MODN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
MODN's Enterprise Value to EBITDA is on the same level as the industry average.
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.
A more expensive valuation may be justified as MODN's earnings are expected to grow with 19.28% in the coming years.
PEG (NY)1.42
PEG (5Y)0.27
EPS Next 2Y17.26%
EPS Next 3Y19.28%
5. Dividend
5.1 Amount
MODN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30
+0.03 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners10.07%
Inst Owner Change0%
Ins Owners11.38%
Ins Owner Change0%
Market Cap1.18B
Revenue(TTM)256.31M
Net Income(TTM)265.00K
Analysts50
Price Target30.6 (2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)-11.08%
Min EPS beat(2)-15.94%
Max EPS beat(2)-6.22%
EPS beat(4)2
Avg EPS beat(4)5.42%
Min EPS beat(4)-15.94%
Max EPS beat(4)40.97%
EPS beat(8)6
Avg EPS beat(8)12.91%
EPS beat(12)10
Avg EPS beat(12)91.22%
EPS beat(16)14
Avg EPS beat(16)99.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.94%
Max Revenue beat(2)0.12%
Revenue beat(4)3
Avg Revenue beat(4)0.06%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)0.64%
Revenue beat(8)7
Avg Revenue beat(8)0.65%
Revenue beat(12)10
Avg Revenue beat(12)0.8%
Revenue beat(16)14
Avg Revenue beat(16)1.12%
PT rev (1m)0%
PT rev (3m)-5.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 19.66 | ||
| P/S | 4.61 | ||
| P/FCF | 19.69 | ||
| P/OCF | 19.47 | ||
| P/B | 8.63 | ||
| P/tB | 26.54 | ||
| EV/EBITDA | 223.88 |
EPS(TTM)1.18
EY3.93%
EPS(NY)1.53
Fwd EY5.09%
FCF(TTM)1.52
FCFY5.08%
OCF(TTM)1.54
OCFY5.14%
SpS6.5
BVpS3.48
TBVpS1.13
PEG (NY)1.42
PEG (5Y)0.27
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.05% | ||
| ROE | 0.19% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 0.1% | ||
| GM | 57.06% | ||
| FCFM | 23.43% |
ROA(3y)-7.41%
ROA(5y)-7.58%
ROE(3y)-24.88%
ROE(5y)-24.45%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 4.68 | ||
| Debt/EBITDA | 55.75 | ||
| Cap/Depr | 8.72% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 1204.2% | ||
| Profit Quality | 22664.5% | ||
| Current Ratio | 3.86 | ||
| Quick Ratio | 3.86 | ||
| Altman-Z | 2.15 |
F-Score7
WACC9.78%
ROIC/WACCN/A
Cap/Depr(3y)9.93%
Cap/Depr(5y)8.89%
Cap/Sales(3y)0.39%
Cap/Sales(5y)0.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.09%
EPS 3Y32.24%
EPS 5Y94.38%
EPS Q2Q%9.09%
EPS Next Y17.87%
EPS Next 2Y17.26%
EPS Next 3Y19.28%
EPS Next 5YN/A
Revenue 1Y (TTM)8.57%
Revenue growth 3Y15.7%
Revenue growth 5Y10.05%
Sales Q2Q%4%
Revenue Next Year6.15%
Revenue Next 2Y7.69%
Revenue Next 3Y8.98%
Revenue Next 5YN/A
EBIT growth 1Y79.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.6%
EBIT Next 3Y26.48%
EBIT Next 5YN/A
FCF growth 1Y220.67%
FCF growth 3Y18.73%
FCF growth 5Y59.11%
OCF growth 1Y213.25%
OCF growth 3Y17.87%
OCF growth 5Y56.42%
Model N Inc / MODN FAQ
Can you provide the ChartMill fundamental rating for Model N Inc?
ChartMill assigns a fundamental rating of 4 / 10 to MODN.
What is the valuation status for MODN stock?
ChartMill assigns a valuation rating of 4 / 10 to Model N Inc (MODN). This can be considered as Fairly Valued.
How profitable is Model N Inc (MODN) stock?
Model N Inc (MODN) has a profitability rating of 3 / 10.
What is the earnings growth outlook for Model N Inc?
The Earnings per Share (EPS) of Model N Inc (MODN) is expected to grow by 17.87% in the next year.