Micro Focus International plc engages in the enterprise software business in the United Kingdom, the United States, Germany, Canada, France, Japan, and internationally. More Details
Fair value with moderate growth potential.
Share Price & News
How has Micro Focus International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCRO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: MCRO's weekly volatility (7%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MCRO exceeded the UK Software industry which returned 2.7% over the past year.
Return vs Market: MCRO underperformed the UK Market which returned 22.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Micro Focus International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StIs Micro Focus International plc (LON:MCRO) A Strong Dividend Stock?
1 month ago | Simply Wall StAn Intrinsic Calculation For Micro Focus International plc (LON:MCRO) Suggests It's 28% Undervalued
Is Micro Focus International undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCRO (£4.71) is trading below our estimate of fair value (£10.04)
Significantly Below Fair Value: MCRO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MCRO is unprofitable, so we can't compare its PE Ratio to the UK Software industry average.
PE vs Market: MCRO is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MCRO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MCRO is good value based on its PB Ratio (0.7x) compared to the GB Software industry average (4.1x).
How is Micro Focus International forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCRO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).
Earnings vs Market: MCRO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MCRO's is expected to become profitable in the next 3 years.
Revenue vs Market: MCRO's revenue is expected to decline over the next 3 years (-4% per year).
High Growth Revenue: MCRO's revenue is forecast to decline over the next 3 years (-4% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCRO's Return on Equity is forecast to be low in 3 years time (18.2%).
How has Micro Focus International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCRO is currently unprofitable.
Growing Profit Margin: MCRO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MCRO is unprofitable, and losses have increased over the past 5 years at a rate of 71.1% per year.
Accelerating Growth: Unable to compare MCRO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MCRO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (3.3%).
Return on Equity
High ROE: MCRO has a negative Return on Equity (-92.52%), as it is currently unprofitable.
How is Micro Focus International's financial position?
Financial Position Analysis
Short Term Liabilities: MCRO's short term assets ($1.5B) do not cover its short term liabilities ($1.8B).
Long Term Liabilities: MCRO's short term assets ($1.5B) do not cover its long term liabilities ($6.1B).
Debt to Equity History and Analysis
Debt Level: MCRO's debt to equity ratio (146.8%) is considered high.
Reducing Debt: MCRO's debt to equity ratio has increased from 117.6% to 146.8% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable MCRO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: MCRO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.2% per year.
What is Micro Focus International current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCRO's dividend (2.33%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: MCRO's dividend (2.33%) is low compared to the top 25% of dividend payers in the UK market (4.12%).
Stability and Growth of Payments
Stable Dividend: MCRO's dividend payments have been volatile in the past 10 years.
Growing Dividend: MCRO's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: MCRO is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: MCRO's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Stephen Murdoch (53 yo)
Mr. Stephen Murdoch has been the Chief Executive Officer and Director of Micro Focus International plc since March 19, 2018 and served as its Chief Operating Officer from September 2017 to March 19, 2018....
CEO Compensation Analysis
Compensation vs Market: Stephen's total compensation ($USD1.66M) is about average for companies of similar size in the UK market ($USD1.37M).
Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.
Experienced Management: MCRO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: MCRO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Micro Focus International plc's company bio, employee growth, exchange listings and data sources
- Name: Micro Focus International plc
- Ticker: MCRO
- Exchange: LSE
- Founded: 1976
- Industry: Application Software
- Sector: Software
- Market Cap: UK£1.689b
- Shares outstanding: 335.53m
- Website: https://www.microfocus.com
Number of Employees
- Micro Focus International plc
- The Lawn
- 22-30 Old Bath Road
- RG14 1QN
- United Kingdom
Micro Focus International plc engages in the enterprise software business in the United Kingdom, the United States, Germany, Canada, France, Japan, and internationally. The company offers infrastructure so...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/18 19:15|
|End of Day Share Price||2021/05/18 00:00|
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.