How does MCROL's PS Ratio compare to its peers?

MCROL is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (3.8x).

How does MCROL's PS Ratio compare vs other companies in the GB Software Industry?

MCROL is good value based on its Price-To-Sales Ratio (0.8x) compared to the UK Software industry average (2.5x).

What is MCROL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCROL is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).

What is the Fair Price of MCROL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MCROL (£5.32) is trading below our estimate of [[fair value]] (£6.24)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Target price is lower than the current share price.

MCROL Stock Overview

Micro Focus International plc operates in the enterprise software business in the United Kingdom, the United States, Germany, Canada, France, Japan, and internationally. More details

MCROL fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	1/6

Rewards

Trading at 14.8% below our estimate of its fair value

Trading at good value compared to peers and industry

Risk Analysis

Earnings are forecast to decline by an average of 25.8% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Unstable dividend track record

My Notes

Capture your thoughts, links and company narrative

Micro Focus International plc Competitors

Bytes Technology Group

LSE:BYIT

UK£1.0b

GB Group

AIM:GBG

UK£870.3m

FD Technologies

AIM:FDP

UK£540.4m

Alfa Financial Software Holdings

LSE:ALFA

UK£636.0m

Price History & Performance

Summary of share price highs, lows and changes for Micro Focus International
Historical stock prices
Current Share Price	UK£5.32
52 Week High	UK£5.32
52 Week Low	UK£2.56
Beta	1.74
1 Month Change	0.51%
3 Month Change	2.13%
1 Year Change	14.39%
3 Year Change	-31.14%
5 Year Change	-78.49%
Change since IPO	-25.11%

Recent updates

Shareholder Returns

	MCROL	GB Software	GB Market
7D	0.1%	-1.7%	-2.6%
1Y	14.4%	4.7%	2.4%

Return vs Industry: MCROL matched the UK Software industry which returned 15.3% over the past year.

Return vs Market: MCROL exceeded the UK Market which returned -2.4% over the past year.

Price Volatility

Is MCROL's price volatile compared to industry and market?
MCROL volatility
MCROL Average Weekly Movement	0.6%
Software Industry Average Movement	5.5%
Market Average Movement	4.8%
10% most volatile stocks in GB Market	10.6%
10% least volatile stocks in GB Market	2.6%

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

Volatility Over Time: MCROL's weekly volatility has decreased from 14% to 1% over the past year.

About the Company

Founded	Employees	CEO	Website
1976	11,019	Stephen Murdoch	www.microfocus.com

Micro Focus International plc operates in the enterprise software business in the United Kingdom, the United States, Germany, Canada, France, Japan, and internationally. It offers infrastructure software products that are managed on a portfolio. The company’s product portfolio includes sector-agnostic products, such as application modernization and connectivity solutions that help customers to unlock the value from core business applications for modernization, which enable a transformational journey to deliver ongoing value and flexibility from IT investments, on or off the mainframe; application delivery management solutions that helps customers to increase velocity, remove bottlenecks, and deliver high-performing applications to support their digital business; and IT operations management solutions for service assurance, automate the service fulfilment life cycle, and strengthen IT service governance.

Micro Focus International plc Fundamentals Summary

How do Micro Focus International's earnings and revenue compare to its market cap?
MCROL fundamental statistics
Market cap	UK£1.72b
Earnings (TTM)	-UK£198.00m
Revenue (TTM)	UK£2.23b

0.8x

P/S Ratio

-8.7x

P/E Ratio

Is MCROL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
MCROL income statement (TTM)
Revenue	US$2.74b
Cost of Revenue	US$753.70m
Gross Profit	US$1.99b
Other Expenses	US$2.23b
Earnings	-US$244.10m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.76
Gross Margin	72.53%
Net Profit Margin	-8.90%
Debt/Equity Ratio	1.2%

How did MCROL perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

-38%

Payout Ratio

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2023/02/01 16:25
End of Day Share Price	2023/01/30 00:00
Earnings	2022/04/30
Annual Earnings	2021/10/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Micro Focus International plc is covered by 22 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Raimo Lenschow	Barclays
Josep Bori	BNP Paribas Exane
John King	BofA Global Research

MCROL Stock Overview

Rewards

Risk Analysis

Micro Focus International plc Competitors

LSE:BYIT

UK£1.0b

AIM:GBG

UK£870.3m

AIM:FDP

UK£540.4m

LSE:ALFA

UK£636.0m

Price History & Performance

Recent News & Updates

Rocket Software, Inc. completed the acquisition of Application Modernization and Connectivity business of Micro Focus International Limited.

Open Text Corporation (NasdaqGS:OTEX) completed the acquisition of Micro Focus International plc (LSE : MCRO) from Dodge & Cox & Others.

Micro Focus International Provides Delisting Update

Micro Focus International to Delist Its Shares from LSE

Micro Focus Introduces HCMX FinOps Express to Optimize Cloud Spend

High number of new directors

Recent updates

Rocket Software, Inc. completed the acquisition of Application Modernization and Connectivity business of Micro Focus International Limited.

Open Text Corporation (NasdaqGS:OTEX) completed the acquisition of Micro Focus International plc (LSE : MCRO) from Dodge & Cox & Others.

Micro Focus International Provides Delisting Update

Micro Focus International to Delist Its Shares from LSE

Micro Focus Introduces HCMX FinOps Express to Optimize Cloud Spend

High number of new directors

Micro Focus Introduces Two New Products for Operations Bridge: Cloud Observability – SaaS and Operations Bridge Reporting – SaaS

Micro Focus International plc, Annual General Meeting, Oct 18, 2022

Micro Focus Extends Its Application Modernization Cloud Solutions to Google Cloud Marketplace

Micro Focus's CyberRes Announces New Version of Voltage File Analysis Suite

Open Text Corporation (NasdaqGS:OTEX) entered into an agreement to acquire Micro Focus International plc (LSE:MCRO) for £1.8 billion

Open Text Corporation (NasdaqGS:OTEX) entered into an agreement to acquire Micro Focus International plc (LSE:MCRO) for £1.8 billion

High number of new directors

Micro Focus International plc Announces Interim Dividend for the Half Year Ended 30 April 2022, Payable on 5 August 2022

Micro Focus International plc Accelerates Cloud and Modernization Strategies with Visual COBOL 8.0 and Enterprise Suite 8.0

Upcoming dividend of US$0.08 per share

Micro Focus International plc Announces Appointment of Non-Executive Directors

First half 2022 earnings released: US$0.085 loss per share (vs US$0.65 loss in 1H 2021)

Micro Focus International plc Proposes Interim Dividend, Payable on August 5, 2022

Micro Focus Announces New SaaS Capabilities for Network Operations Management (NOM)

Micro Focus International plc to Report First Half, 2022 Results on Jun 22, 2022

Robbins Geller Rudman & Dowd LLP, Scott+Scott Attorneys at Law LLP, and Cotchett, Pitre & McCarthy LLP Announce Pendency of Class Action Involving Purchasers of Micro Focus American Depositary Shares

Micro Focus International plc Proposes Final Dividend for the Year Ended 31 October 2021, Payable on 21 April 2022

Micro Focus International plc Elects Matt Ashley as A Director

Micro Focus International plc Announces Executive Changes

Micro Focus Introduces AI-Powered Value Stream Management End-To-End Platform

Amanda Brow to Stepp Down from Micro Focus International plc as Non-Executive Director and Chair of the Remuneration Committee

Upcoming dividend of US$0.20 per share

No longer forecast to breakeven

Micro Focus International plc to Report Fiscal Year 2021 Results on Feb 25, 2022

Forecast to breakeven in 2024

Micro Focus International plc Proposes Final Dividend, Payable on April 21, 2022

Smarsh, Inc. completed the acquisition of Archiving and Risk Management portfolio from Micro Focus International plc (LSE:MCRO).

CyberRes Unveils Galaxy

Non-Executive Chairman recently bought UK£1.0m worth of stock

Micro Focus Announces Software-as-a-Service (SaaS) Support for its Full-Stack AIOps Solution

High number of new directors

Micro Focus International plc Announces Settlement of Patent Litigation Case

Upcoming dividend of US$0.088 per share

CFO & Director Brian McArthur-Muscroft has left the company

First half 2021 earnings released: US$0.65 loss per share (vs US$3.08 loss in 1H 2020)

Micro Focus International plc Provides Revenue Guidance for the Six Months Ended 30 April 2021

Micro Focus International plc Update on Patent Litigation Case

Micro Focus International plc Announces the Signing of A Commercial Agreement with Amazon Web Services

Full year 2020 earnings released: US$8.86 loss per share (vs US$0.049 loss in FY 2019)

Revenue beats expectations

Micro Focus International plc, Annual General Meeting, Mar 25, 2021

Full year 2020 earnings released

Revenue beats expectations

New 90-day high: UK£4.92

Brian McArthur-Muscroft to Leave Micro Focus International plc as Chief Financial Officer

Micro Focus International plc to Report Q4, 2020 Results on Feb 09, 2021

New 90-day high: UK£4.04

Micro Focus International plc Announces CISO Resource to Accelerate Enterprise Resilience During Unprecedented Global Challenges

VerifyMeand Micro Focus Renew Global Product Software Authentication Service Agreement for 3 Years

Shareholder Returns

Price Volatility

About the Company

Micro Focus International plc Fundamentals Summary