DB:9LG

Stock Analysis Report

Executive Summary

LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 9LG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

9LG

2.6%

DE Software

0.8%

DE Market


1 Year Return

-15.6%

9LG

33.1%

DE Software

9.0%

DE Market

Return vs Industry: 9LG underperformed the German Software industry which returned 33.1% over the past year.

Return vs Market: 9LG underperformed the German Market which returned 9% over the past year.


Shareholder returns

9LGIndustryMarket
7 Day2.5%2.6%0.8%
30 Day0%7.2%6.3%
90 Day-2.9%16.8%14.4%
1 Year-14.1%-15.6%34.9%33.1%12.4%9.0%
3 Year-29.7%-32.5%72.2%65.3%25.6%14.5%
5 Year56.8%48.8%149.3%131.5%41.0%21.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 9LG (€62) is trading below our estimate of fair value (€126.59)

Significantly Below Fair Value: 9LG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 9LG is poor value based on its PE Ratio (231.9x) compared to the Software industry average (39x).

PE vs Market: 9LG is poor value based on its PE Ratio (231.9x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: 9LG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 9LG is good value based on its PB Ratio (1.2x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is LogMeIn forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-46.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9LG's earnings are forecast to decline over the next 3 years (-46.4% per year).

Earnings vs Market: 9LG's earnings are forecast to decline over the next 3 years (-46.4% per year).

High Growth Earnings: 9LG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 9LG's revenue (5.2% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 9LG's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9LG's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has LogMeIn performed over the past 5 years?

43.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9LG has large one-off items impacting its financial results.

Growing Profit Margin: 9LG's current net profit margins (1.2%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: 9LG's earnings have grown significantly by 43.1% per year over the past 5 years.

Accelerating Growth: 9LG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 9LG had negative earnings growth (-89.5%) over the past year, making it difficult to compare to the Software industry average (14.8%).


Return on Equity

High ROE: 9LG's Return on Equity (0.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LogMeIn's financial position?


Financial Position Analysis

Short Term Liabilities: 9LG's short term assets ($281.2M) do not cover its short term liabilities ($600.5M)

Long Term Liabilities: 9LG's short term assets (281.2M) do not cover its long term liabilities (483.1M)


Debt to Equity History and Analysis

Debt Level: 9LG's debt to equity ratio (7.2%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 9LG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 9LG's debt is well covered by operating cash flow (179.8%).

Interest Coverage: 9LG's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: 9LG has a low level of unsold assets or inventory.

Debt Coverage by Assets: 9LG's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is LogMeIn's current dividend yield, its reliability and sustainability?

1.88%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.6%industryaverage1.2%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: 9LG's dividend (1.88%) is higher than the bottom 25% of dividend payers in the German market (1.39%).

High Dividend: 9LG's dividend (1.88%) is low compared to the top 25% of dividend payers in the German market (3.64%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 9LG has been paying a dividend for less than 10 years.

Growing Dividend: 9LG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (428.2%), 9LG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 9LG's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).


Next Steps

Management

What is the CEO of LogMeIn's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Bill Wagner (52yo)

3.9yrs

Tenure

US$7,224,220

Compensation

Mr. William R. Wagner, also known as Bill, has been the President of LogMeIn, Inc. since January 21, 2015 and as its Chief Executive Officer since December 16, 2015. Mr. Wagner served as the Chief Operatin ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD7.22M) is above average for companies of similar size in the German market ($USD2.62M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: 9LG's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 9LG's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: 9LG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$451,35511 Sep 19
Peter Sacripanti
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,124
Max PriceUS$63.36
SellUS$60,53930 Aug 19
Steven Benson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$60.54
SellUS$1,526,41422 May 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$68.32
SellUS$1,653,48908 May 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$74.04
SellUS$1,626,25313 Mar 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$72.66
SellUS$1,614,17405 Mar 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$72.48
SellUS$1,626,96006 Dec 18
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares20,000
Max PriceUS$81.65

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Simon (54yo)

    Co-Founder & Special Advisor to CEO

    • Tenure: 0yrs
    • Compensation: US$312.78k
  • Marc van Zadelhoff (46yo)

    Senior VP & COO

    • Tenure: 1yrs
    • Compensation: US$6.19m
  • Bill Wagner (52yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$7.22m
  • Chris Manton-Jones

    Senior Vice President of Worldwide Sales

    • Tenure: 0.8yrs
  • Michael Donahue (45yo)

    Senior VP

    • Tenure: 12.4yrs
    • Compensation: US$1.39m
  • Ed Herdiech (52yo)

    CFO & Treasurer

    • Tenure: 4.8yrs
    • Compensation: US$2.57m
  • Rob Bradley

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Sandor Palfy

    Chief Technology Officer

    • Tenure: 5.8yrs
  • Mark Strassman (50yo)

    Senior VP & GM of Unified Communications and Collaboration

    • Tenure: 1.1yrs
    • Compensation: US$4.46m
  • Jo Deal

    Chief Human Resources Officer

    • Tenure: 2.2yrs

Board Members

  • Ed Gillis (70yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$337.78k
  • Woody Benson (60yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$309.86k
  • Bob Calderoni (59yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$299.86k
  • Bill Wagner (52yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$7.22m
  • David Henshall (51yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$319.86k
  • Mike Christenson (60yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$304.86k
  • Peter Sacripanti (63yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$304.86k
  • Sid Jatia

    Member of IOT Advisory Board

    • Tenure: 4.2yrs
  • Tim O'Keeffe

    Member of IOT Advisory Board

    • Tenure: 4.2yrs
  • Sara Andrews (55yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$574.32k

Company Information

LogMeIn, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LogMeIn, Inc.
  • Ticker: 9LG
  • Exchange: DB
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.371b
  • Listing Market Cap: US$3.061b
  • Shares outstanding: 48.81m
  • Website: https://www.logmeininc.com

Number of Employees


Location

  • LogMeIn, Inc.
  • 320 Summer Street
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOGMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2009
9LGDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2009

Biography

LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions. It enables people to connect with each other worldwide ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:21
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.