31.23 USD
-0.13 (-0.41%)
We assign a fundamental rating of 5 out of 10 to MTCH. MTCH was compared to 70 industry peers in the Interactive Media & Services industry. While MTCH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on MTCH.
1. Profitability
1.1 Basic Checks
- In the past year MTCH was profitable.
- MTCH had a positive operating cash flow in the past year.
- MTCH had positive earnings in each of the past 5 years.
- Each year in the past 5 years MTCH had a positive operating cash flow.
1.2 Ratios
- MTCH's Return On Assets of 12.37% is amongst the best of the industry. MTCH outperforms 84.29% of its industry peers.
- With an excellent Return On Invested Capital value of 20.85%, MTCH belongs to the best of the industry, outperforming 87.14% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MTCH is above the industry average of 13.70%.
- The last Return On Invested Capital (20.85%) for MTCH is above the 3 year average (15.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.37% | ||
| ROE | N/A | ||
| ROIC | 20.85% |
ROA(3y)11.82%
ROA(5y)9.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.97%
ROIC(5y)17.9%
1.3 Margins
- Looking at the Profit Margin, with a value of 16.20%, MTCH belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
- MTCH's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 25.64%, MTCH belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- MTCH's Operating Margin has declined in the last couple of years.
- MTCH has a Gross Margin of 72.26%. This is in the better half of the industry: MTCH outperforms 67.14% of its industry peers.
- MTCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.64% | ||
| PM (TTM) | 16.2% | ||
| GM | 72.26% |
OM growth 3Y-4.91%
OM growth 5Y-5.04%
PM growth 3Y19.38%
PM growth 5Y-6.47%
GM growth 3Y-0.17%
GM growth 5Y-0.74%
2. Health
2.1 Basic Checks
- MTCH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, MTCH has less shares outstanding
- The number of shares outstanding for MTCH has been reduced compared to 5 years ago.
- MTCH has a worse debt/assets ratio than last year.
2.2 Solvency
- MTCH has an Altman-Z score of 0.56. This is a bad value and indicates that MTCH is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.56, MTCH is doing worse than 61.43% of the companies in the same industry.
- The Debt to FCF ratio of MTCH is 4.20, which is a neutral value as it means it would take MTCH, 4.20 years of fcf income to pay off all of its debts.
- MTCH has a better Debt to FCF ratio (4.20) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 0.56 |
ROIC/WACC3
WACC6.95%
2.3 Liquidity
- MTCH has a Current Ratio of 1.41. This is a normal value and indicates that MTCH is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of MTCH (1.41) is worse than 64.29% of its industry peers.
- A Quick Ratio of 1.41 indicates that MTCH should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.41, MTCH is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- The earnings per share for MTCH have decreased by -4.46% in the last year.
- The Earnings Per Share has been growing slightly by 2.22% on average over the past years.
- MTCH shows a decrease in Revenue. In the last year, the revenue decreased by -0.46%.
- MTCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.15% yearly.
EPS 1Y (TTM)-4.46%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%21.57%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%2.1%
3.2 Future
- The Earnings Per Share is expected to grow by 18.00% on average over the next years. This is quite good.
- Based on estimates for the next years, MTCH will show a small growth in Revenue. The Revenue will grow by 4.97% on average per year.
EPS Next Y12.25%
EPS Next 2Y19.14%
EPS Next 3Y18.85%
EPS Next 5Y18%
Revenue Next Year0.06%
Revenue Next 2Y1.68%
Revenue Next 3Y2.99%
Revenue Next 5Y4.97%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- MTCH is valuated correctly with a Price/Earnings ratio of 14.59.
- 74.29% of the companies in the same industry are more expensive than MTCH, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. MTCH is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 10.89 indicates a reasonable valuation of MTCH.
- Based on the Price/Forward Earnings ratio, MTCH is valued a bit cheaper than 77.14% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MTCH to the average of the S&P500 Index (25.83), we can say MTCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MTCH is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- 87.14% of the companies in the same industry are more expensive than MTCH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.66 | ||
| EV/EBITDA | 10.34 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- MTCH has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as MTCH's earnings are expected to grow with 18.85% in the coming years.
PEG (NY)1.19
PEG (5Y)6.57
EPS Next 2Y19.14%
EPS Next 3Y18.85%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.41%, MTCH has a reasonable but not impressive dividend return.
- MTCH's Dividend Yield is rather good when compared to the industry average which is at 0.77. MTCH pays more dividend than 92.86% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MTCH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
- MTCH has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y19.14%
EPS Next 3Y18.85%
MATCH GROUP INC / MTCH FAQ
Can you provide the ChartMill fundamental rating for MATCH GROUP INC?
ChartMill assigns a fundamental rating of 5 / 10 to MTCH.
What is the valuation status of MATCH GROUP INC (MTCH) stock?
ChartMill assigns a valuation rating of 7 / 10 to MATCH GROUP INC (MTCH). This can be considered as Undervalued.
What is the profitability of MTCH stock?
MATCH GROUP INC (MTCH) has a profitability rating of 7 / 10.
What are the PE and PB ratios of MATCH GROUP INC (MTCH) stock?
The Price/Earnings (PE) ratio for MATCH GROUP INC (MTCH) is 14.59 and the Price/Book (PB) ratio is -32.91.
What is the financial health of MATCH GROUP INC (MTCH) stock?
The financial health rating of MATCH GROUP INC (MTCH) is 4 / 10.