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 70 industry peers in the Interactive Media & Services industry. MTCH has an excellent profitability rating, but there are concerns on its financial health. MTCH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MTCH had positive earnings in the past year.
In the past year MTCH had a positive cash flow from operations.
In the past 5 years MTCH has always been profitable.
Each year in the past 5 years MTCH had a positive operating cash flow.
1.2 Ratios
MTCH has a Return On Assets of 14.03%. This is amongst the best in the industry. MTCH outperforms 88.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.21%, MTCH belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MTCH is above the industry average of 12.03%.
The last Return On Invested Capital (20.21%) for MTCH is above the 3 year average (15.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.03% | ||
| ROE | N/A | ||
| ROIC | 20.21% |
ROA(3y)11.82%
ROA(5y)9.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.96%
ROIC(5y)17.9%
1.3 Margins
MTCH's Profit Margin of 15.81% is amongst the best of the industry. MTCH outperforms 84.29% of its industry peers.
MTCH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.39%, MTCH belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
MTCH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 71.85%, MTCH perfoms like the industry average, outperforming 58.57% of the companies in the same industry.
In the last couple of years the Gross Margin of MTCH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.39% | ||
| PM (TTM) | 15.81% | ||
| GM | 71.85% |
OM growth 3Y-4.92%
OM growth 5Y-5.04%
PM growth 3Y19.4%
PM growth 5Y-6.46%
GM growth 3Y-0.17%
GM growth 5Y-0.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MTCH is creating value.
MTCH has less shares outstanding than it did 1 year ago.
MTCH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MTCH has a worse debt to assets ratio.
2.2 Solvency
MTCH has an Altman-Z score of 0.59. This is a bad value and indicates that MTCH is not financially healthy and even has some risk of bankruptcy.
MTCH has a Altman-Z score (0.59) which is comparable to the rest of the industry.
The Debt to FCF ratio of MTCH is 4.32, which is a neutral value as it means it would take MTCH, 4.32 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.32, MTCH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 0.59 |
ROIC/WACC2.33
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.62 indicates that MTCH should not have too much problems paying its short term obligations.
MTCH has a Current ratio of 1.62. This is in the lower half of the industry: MTCH underperforms 64.29% of its industry peers.
A Quick Ratio of 1.62 indicates that MTCH should not have too much problems paying its short term obligations.
The Quick ratio of MTCH (1.62) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for MTCH have decreased strongly by -12.17% in the last year.
Measured over the past 5 years, MTCH shows a small growth in Earnings Per Share. The EPS has been growing by 2.22% on average per year.
Looking at the last year, MTCH shows a small growth in Revenue. The Revenue has grown by 0.40% in the last year.
Measured over the past years, MTCH shows a quite strong growth in Revenue. The Revenue has been growing by 11.15% on average per year.
EPS 1Y (TTM)-12.17%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%0%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-3.31%
3.2 Future
The Earnings Per Share is expected to grow by 19.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y8.58%
EPS Next 2Y13.36%
EPS Next 3Y16.2%
EPS Next 5Y19.02%
Revenue Next Year-0.7%
Revenue Next 2Y1.7%
Revenue Next 3Y3.08%
Revenue Next 5Y4.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MTCH is valuated correctly with a Price/Earnings ratio of 16.08.
Compared to the rest of the industry, the Price/Earnings ratio of MTCH indicates a somewhat cheap valuation: MTCH is cheaper than 72.86% of the companies listed in the same industry.
MTCH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
MTCH is valuated correctly with a Price/Forward Earnings ratio of 12.52.
MTCH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTCH is cheaper than 78.57% of the companies in the same industry.
MTCH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTCH indicates a somewhat cheap valuation: MTCH is cheaper than 77.14% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MTCH is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MTCH does not grow enough to justify the current Price/Earnings ratio.
MTCH has a very decent profitability rating, which may justify a higher PE ratio.
MTCH's earnings are expected to grow with 16.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)7.25
EPS Next 2Y13.36%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
MTCH has a Yearly Dividend Yield of 2.34%.
Compared to an average industry Dividend Yield of 3.00, MTCH pays a better dividend. On top of this MTCH pays more dividend than 94.29% of the companies listed in the same industry.
MTCH's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
DPN/A
EPS Next 2Y13.36%
EPS Next 3Y16.2%
32.49
-1.12 (-3.33%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.57%
Inst Owner Change0.01%
Ins Owners0.27%
Ins Owner Change0.17%
Market Cap7.97B
Analysts71.72
Price Target35.08 (7.97%)
Short Float %5.73%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.2%
Min EPS beat(2)6.32%
Max EPS beat(2)14.08%
EPS beat(4)3
Avg EPS beat(4)5.84%
Min EPS beat(4)-1.15%
Max EPS beat(4)14.08%
EPS beat(8)7
Avg EPS beat(8)12.39%
EPS beat(12)9
Avg EPS beat(12)7.64%
EPS beat(16)11
Avg EPS beat(16)5.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-1.79%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)-1.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.43%
Revenue beat(12)2
Avg Revenue beat(12)-1.61%
Revenue beat(16)3
Avg Revenue beat(16)-1.61%
PT rev (1m)-4.8%
PT rev (3m)-5.94%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)1.88%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 12.52 | ||
| P/S | 2.31 | ||
| P/FCF | 10.05 | ||
| P/OCF | 9.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.2 |
EPS(TTM)2.02
EY6.22%
EPS(NY)2.6
Fwd EY7.99%
FCF(TTM)3.23
FCFY9.95%
OCF(TTM)3.43
OCFY10.56%
SpS14.07
BVpS-0.75
TBVpS-11.02
PEG (NY)1.87
PEG (5Y)7.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.03% | ||
| ROE | N/A | ||
| ROCE | 24.92% | ||
| ROIC | 20.21% | ||
| ROICexc | 23.03% | ||
| ROICexgc | 153.92% | ||
| OM | 24.39% | ||
| PM (TTM) | 15.81% | ||
| GM | 71.85% | ||
| FCFM | 22.98% |
ROA(3y)11.82%
ROA(5y)9.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.96%
ROIC(5y)17.9%
ROICexc(3y)20.38%
ROICexc(5y)23.46%
ROICexgc(3y)150.05%
ROICexgc(5y)N/A
ROCE(3y)19.69%
ROCE(5y)22.08%
ROICexcg growth 3YN/A
ROICexcg growth 5Y76.08%
ROICexc growth 3Y1.45%
ROICexc growth 5Y25.09%
OM growth 3Y-4.92%
OM growth 5Y-5.04%
PM growth 3Y19.4%
PM growth 5Y-6.46%
GM growth 3Y-0.17%
GM growth 5Y-0.74%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.32 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 29.92% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.77% | ||
| Profit Quality | 145.32% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 0.59 |
F-Score6
WACC8.68%
ROIC/WACC2.33
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)-12.17%
EPS 3Y-1.13%
EPS 5Y2.22%
EPS Q2Q%0%
EPS Next Y8.58%
EPS Next 2Y13.36%
EPS Next 3Y16.2%
EPS Next 5Y19.02%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y5.26%
Revenue growth 5Y11.15%
Sales Q2Q%-3.31%
Revenue Next Year-0.7%
Revenue Next 2Y1.7%
Revenue Next 3Y3.08%
Revenue Next 5Y4.66%
EBIT growth 1Y-6.82%
EBIT growth 3Y0.09%
EBIT growth 5Y5.54%
EBIT Next Year46.63%
EBIT Next 3Y20.11%
EBIT Next 5Y15.38%
FCF growth 1Y118.81%
FCF growth 3Y1.95%
FCF growth 5Y-0.38%
OCF growth 1Y103.51%
OCF growth 3Y0.73%
OCF growth 5Y-0.11%