MATCH GROUP INC (MTCH) Stock Fundamental Analysis
NASDAQ:MTCH - Nasdaq - US57667L1070 - Common Stock - Currency: USD
MTCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Interactive Media & Services industry. While MTCH has a great profitability rating, there are some minor concerns on its financial health. MTCH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MTCH was profitable.
In the past year MTCH had a positive cash flow from operations.
Each year in the past 5 years MTCH has been profitable.
Each year in the past 5 years MTCH had a positive operating cash flow.
1.2 Ratios
MTCH's Return On Assets of 12.34% is amongst the best of the industry. MTCH outperforms 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.78%, MTCH belongs to the top of the industry, outperforming 89.39% 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 12.57%.
The last Return On Invested Capital (17.78%) for MTCH is above the 3 year average (15.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.34% | ||
| ROE | N/A | ||
| ROIC | 17.78% |
ROA(3y)11.82%
ROA(5y)9.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.75%
ROIC(5y)17.78%
1.3 Margins
MTCH has a Profit Margin of 15.84%. This is amongst the best in the industry. MTCH outperforms 83.33% of its industry peers.
MTCH's Profit Margin has declined in the last couple of years.
MTCH has a better Operating Margin (24.67%) than 92.42% of its industry peers.
MTCH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 71.51%, MTCH is in line with its industry, outperforming 59.09% of the companies in the same industry.
MTCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.67% | ||
| PM (TTM) | 15.84% | ||
| GM | 71.51% |
OM growth 3Y-6.07%
OM growth 5Y-5.73%
PM growth 3Y19.4%
PM growth 5Y-6.46%
GM growth 3Y-0.2%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MTCH is creating value.
The number of shares outstanding for MTCH has been reduced compared to 1 year ago.
The number of shares outstanding for MTCH has been reduced compared to 5 years ago.
The debt/assets ratio for MTCH is higher compared to a year ago.
2.2 Solvency
MTCH has an Altman-Z score of 0.71. 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 0.71, MTCH is in line with its industry, outperforming 40.91% of the companies in the same industry.
MTCH has a debt to FCF ratio of 4.36. This is a neutral value as MTCH would need 4.36 years to pay back of all of its debts.
MTCH has a Debt to FCF ratio of 4.36. This is in the better half of the industry: MTCH outperforms 62.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.36 | ||
| Altman-Z | 0.71 |
ROIC/WACC2.08
WACC8.56%
2.3 Liquidity
A Current Ratio of 2.54 indicates that MTCH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.54, MTCH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Quick Ratio of 2.54 indicates that MTCH has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.54, MTCH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 2.54 |
3. Growth
3.1 Past
The earnings per share for MTCH have decreased strongly by -11.40% in the last year.
MTCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.22% yearly.
The Revenue has been growing slightly by 3.41% in the past year.
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)-11.4%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%-27.16%
Revenue 1Y (TTM)3.41%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-0.7%
3.2 Future
The Earnings Per Share is expected to grow by 16.56% 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 5.35% on average per year.
EPS Next Y4.16%
EPS Next 2Y12.17%
EPS Next 3Y15.93%
EPS Next 5Y16.56%
Revenue Next Year0.7%
Revenue Next 2Y2.89%
Revenue Next 3Y5.73%
Revenue Next 5Y5.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 16.22 indicates a correct valuation of MTCH.
77.27% of the companies in the same industry are more expensive than MTCH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MTCH to the average of the S&P500 Index (29.63), we can say MTCH is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.58, MTCH is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTCH indicates a somewhat cheap valuation: MTCH is cheaper than 69.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MTCH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
77.27% of the companies in the same industry are more expensive than MTCH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MTCH is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.33 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MTCH has a very decent profitability rating, which may justify a higher PE ratio.
MTCH's earnings are expected to grow with 15.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.9
PEG (5Y)7.31
EPS Next 2Y12.17%
EPS Next 3Y15.93%
5. Dividend
5.1 Amount
MTCH has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.76, MTCH pays a better dividend. On top of this MTCH pays more dividend than 95.45% of the companies listed in the same industry.
MTCH's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
MTCH does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y12.17%
EPS Next 3Y15.93%
32.77
-1.1 (-3.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners110.41%
Inst Owner Change5.86%
Ins Owners0.4%
Ins Owner Change0.87%
Market Cap8.23B
Analysts72.5
Price Target36.87 (12.51%)
Short Float %5.35%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.21%
Min EPS beat(2)4.1%
Max EPS beat(2)6.32%
EPS beat(4)3
Avg EPS beat(4)3.99%
Min EPS beat(4)-1.15%
Max EPS beat(4)6.68%
EPS beat(8)7
Avg EPS beat(8)10.81%
EPS beat(12)9
Avg EPS beat(12)7.39%
EPS beat(16)11
Avg EPS beat(16)6.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.79%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)-1.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)2
Avg Revenue beat(12)-1.61%
Revenue beat(16)4
Avg Revenue beat(16)-1.48%
PT rev (1m)-1.78%
PT rev (3m)-14.67%
EPS NQ rev (1m)-19.37%
EPS NQ rev (3m)-23.09%
EPS NY rev (1m)-7.89%
EPS NY rev (3m)-17.69%
Revenue NQ rev (1m)-5.63%
Revenue NQ rev (3m)-10.48%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-5.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 15.58 | ||
| P/S | 2.36 | ||
| P/FCF | 9.33 | ||
| P/OCF | 8.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)2.02
EY6.16%
EPS(NY)2.1
Fwd EY6.42%
FCF(TTM)3.51
FCFY10.72%
OCF(TTM)3.71
OCFY11.34%
SpS13.86
BVpS-0.25
TBVpS-10.31
PEG (NY)3.9
PEG (5Y)7.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.34% | ||
| ROE | N/A | ||
| ROCE | 21.92% | ||
| ROIC | 17.78% | ||
| ROICexc | 23.63% | ||
| ROICexgc | 165.98% | ||
| OM | 24.67% | ||
| PM (TTM) | 15.84% | ||
| GM | 71.51% | ||
| FCFM | 25.35% |
ROA(3y)11.82%
ROA(5y)9.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.75%
ROIC(5y)17.78%
ROICexc(3y)20.1%
ROICexc(5y)23.3%
ROICexgc(3y)148.07%
ROICexgc(5y)N/A
ROCE(3y)19.43%
ROCE(5y)21.92%
ROICexcg growth 3YN/A
ROICexcg growth 5Y74.8%
ROICexc growth 3Y0.23%
ROICexc growth 5Y24.18%
OM growth 3Y-6.07%
OM growth 5Y-5.73%
PM growth 3Y19.4%
PM growth 5Y-6.46%
GM growth 3Y-0.2%
GM growth 5Y-0.76%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.36 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 31.28% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.43% | ||
| Profit Quality | 160.02% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 2.54 | ||
| Altman-Z | 0.71 |
F-Score6
WACC8.56%
ROIC/WACC2.08
Cap/Depr(3y)34.93%
Cap/Depr(5y)61.2%
Cap/Sales(3y)1.67%
Cap/Sales(5y)1.89%
Profit Quality(3y)139.67%
Profit Quality(5y)237.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.4%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%-27.16%
EPS Next Y4.16%
EPS Next 2Y12.17%
EPS Next 3Y15.93%
EPS Next 5Y16.56%
Revenue 1Y (TTM)3.41%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-0.7%
Revenue Next Year0.7%
Revenue Next 2Y2.89%
Revenue Next 3Y5.73%
Revenue Next 5Y5.35%
EBIT growth 1Y-6.37%
EBIT growth 3Y-1.12%
EBIT growth 5Y4.77%
EBIT Next Year50.2%
EBIT Next 3Y21.4%
EBIT Next 5Y16.24%
FCF growth 1Y6.36%
FCF growth 3Y1.95%
FCF growth 5Y-0.38%
OCF growth 1Y4.01%
OCF growth 3Y0.73%
OCF growth 5Y-0.11%