DB:53M

Stock Analysis Report

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Executive Summary

Mimecast Limited provides cloud security and risk management services for corporate information and email.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Mimecast's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 53M has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

53M

3.0%

DE Software

1.5%

DE Market


1 Year Return

-7.5%

53M

0.8%

DE Software

-1.8%

DE Market

Return vs Industry: 53M underperformed the German Software industry which returned 1.8% over the past year.

Return vs Market: 53M underperformed the German Market which returned -0.7% over the past year.


Shareholder returns

53MIndustryMarket
7 Day-0.5%3.0%1.5%
30 Day1.1%7.6%4.3%
90 Day29.1%27.7%25.1%
1 Year-7.5%-7.5%2.2%0.8%0.2%-1.8%
3 Year67.0%67.0%45.2%39.3%1.3%-6.9%
5 Yearn/a120.4%105.2%15.0%-0.2%

Price Volatility Vs. Market

How volatile is Mimecast's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mimecast undervalued compared to its fair value and its price relative to the market?

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 53M (€37) is trading below our estimate of fair value (€43.29)

Significantly Below Fair Value: 53M is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 53M is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 53M is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 53M's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 53M is overvalued based on its PB Ratio (11.7x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is Mimecast forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

50.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 53M is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: 53M is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 53M's is expected to become profitable in the next 3 years.

Revenue vs Market: 53M's revenue (13.3% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: 53M's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 53M's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Mimecast performed over the past 5 years?

-35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 53M is currently unprofitable.

Growing Profit Margin: 53M is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 53M is unprofitable, and losses have increased over the past 5 years at a rate of -35.5% per year.

Accelerating Growth: Unable to compare 53M's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 53M is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (30.6%).


Return on Equity

High ROE: 53M has a negative Return on Equity (-0.95%), as it is currently unprofitable.


Next Steps

Financial Health

How is Mimecast's financial position?


Financial Position Analysis

Short Term Liabilities: 53M's short term assets ($298.9M) exceed its short term liabilities ($288.7M).

Long Term Liabilities: 53M's short term assets ($298.9M) exceed its long term liabilities ($209.1M).


Debt to Equity History and Analysis

Debt Level: 53M's debt to equity ratio (40%) is considered high.

Reducing Debt: 53M's debt to equity ratio has reduced from 224% to 40% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 53M has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 53M is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 33.9% per year.


Next Steps

Dividend

What is Mimecast current dividend yield, its reliability and sustainability?

0.46%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 53M's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 53M's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 53M's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 53M's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 53M's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Peter Bauer (46yo)

17.5yrs

Tenure

US$1,715,468

Compensation

Mr. Peter C. Bauer co-founded Mimecast Limited in 2003 and has been its Chairman and Chief Executive Officer since 2003. Mr. Bauer is a technology marketer and business leader with a successful track recor ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.72M) is about average for companies of similar size in the German market ($USD2.41M).

Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Bauer
Co-Founder17.5yrsUS$1.72m5.96% $144.4m
Rafeal Brown
Chief Financial Officer1.33yrsUS$424.17k0.014% $340.6k
Karen Anderson
Chief Human Resources Officer1.5yrsUS$3.61m0.0069% $168.0k
Christina Van Houten
Chief Strategy Officer2.25yrsUS$3.63m0.020% $488.0k
Nathaniel Borenstein
Chief Scientist10.08yrsno datano data
Grant Hodgkinson
Chief Information Officer & VP of Digital Operationsno datano datano data
Robert Sanders
Director of Investor Relationsno datano datano data
Robert Nault
Senior VP3.83yrsUS$489.83k0.0059% $142.5k
Julian Martin
Vice President of Business Development9.17yrsno datano data
Alex Bender
Senior Vice President of Global Marketing4.42yrsno data0.0034% $81.4k

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: 53M's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Bauer
Co-Founder17.5yrsUS$1.72m5.96% $144.4m
Aron Ain
Independent Director3.25yrsUS$199.97k0.017% $400.2k
Robert Schechter
Independent Director1.5yrsUS$212.49kno data
Hagi Schwartz
Independent Non-Executive Director5yrsUS$224.97k0.048% $1.2m
Christopher FitzGerald
Lead Independent Director5.5yrsUS$219.97k0.14% $3.5m
Neil Murray
Director17.5yrsno data1.99% $48.2m
Stephen Ward
Independent Director2.5yrsUS$199.97k0.010% $253.3k
Alpna Doshi
Director0.58yrno datano data

4.1yrs

Average Tenure

58yo

Average Age

Experienced Board: 53M's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

Mimecast Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mimecast Limited
  • Ticker: 53M
  • Exchange: DB
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$2.725b
  • Listing Market Cap: US$2.424b
  • Shares outstanding: 62.97m
  • Website: https://www.mimecast.com

Number of Employees


Location

  • Mimecast Limited
  • 1 Finsbury Avenue
  • London
  • Greater London
  • EC2M 2PF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MIMENasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDNov 2015
53MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015

Biography

Mimecast Limited provides cloud security and risk management services for corporate information and email. The company offers Mimecast Email Security solution, which protects against the delivery of malware, malicious URLs and attachments, spam, viruses, impersonation attacks, phishing, and spear-phishing attacks, including business email compromise, identity theft, extortion, fraud, and other attacks, while also preventing data leaks and other internal threats, as well as provides awareness training services. It also provides Cyber Resilience Extensions, including Mimecast Enterprise Information Archiving that unifies email data to support e-discovery, forensic analysis, and compliance initiatives; Mimecast Mailbox Continuity, which protects email and data against the threat of downtime as a result of system failure, natural disasters, planned maintenance, system upgrades, and migrations; and Mimecast Web Security service that protects against malicious web activity initiated by user action or malware and blocks access to inappropriate websites based on acceptable use policies. In addition, the company’s Cyber Resilience Extensions also comprise Mimecast Secure Messaging, a secure and private channel to share sensitive information; Mimecast Privacy Pack, which prevents breaches and protects against data exfiltration transmissions; and Large File Send that enables employees to create security and compliance risks when they turn to file sharing services. Further, it provides Threat Intelligence Dashboard, which displays cyber threat data specific to an organization by identifying users who pose the greatest cyber risk; and Mimecast Mobile and Desktop Apps for mobile, PC, and Mac users. The company sells its services through direct sales and channel partners. Mimecast Limited was founded in 2003 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 22:07
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.