Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to small and medium size enterprises.
Established dividend payer and fair value.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MCRO underperformed the UK Software industry which returned 15.7% over the past year.
Return vs Market: MCRO underperformed the UK Market which returned 6.6% over the past year.
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 StInsider Buying: The Micro Focus International plc (LON:MCRO) Just Bought US$1.5m Worth Of Shares
1 week ago | Simply Wall StIs Micro Focus International (LON:MCRO) A Risky Investment?
1 month ago | Simply Wall StIs Micro Focus International plc (LON:MCRO) A Good Fit For Your Dividend Portfolio?
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 (£7.86) is trading below our estimate of fair value (£13.79)
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 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 (0.5x) compared to the GB Software industry average (3.4x).
How is Micro Focus International forecast to perform in the next 1 to 3 years based on estimates from 11 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 (0.5%).
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 (-4.4% per year).
High Growth Revenue: MCRO's revenue is forecast to decline over the next 3 years (-4.4% 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 (12.6%).
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, but has reduced losses over the past 5 years at a rate of 6.9% 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 (8%).
Return on Equity
High ROE: MCRO has a negative Return on Equity (-0.29%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is Micro Focus International's financial position?
Financial Position Analysis
Short Term Liabilities: MCRO's short term assets ($1.4B) do not cover its short term liabilities ($1.8B).
Long Term Liabilities: MCRO's short term assets ($1.4B) do not cover its long term liabilities ($6.2B).
Debt to Equity History and Analysis
Debt Level: MCRO's debt to equity ratio (74.4%) is considered high.
Reducing Debt: MCRO's debt to equity ratio has reduced from 2728.8% to 74.4% over the past 5 years.
Inventory Level: MCRO has a low level of unsold assets or inventory.
Debt Coverage by Assets: MCRO's debt is not covered by short term assets (assets are 0.3x debt).
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: MCRO has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: MCRO has been profitable on average in the past, therefore cash runway is not a concern.
What is Micro Focus International's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase Micro Focus International before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MCRO's dividend (11.39%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).
High Dividend: MCRO's dividend (11.39%) is in the top 25% of dividend payers in the UK market (5.1%)
Stability and Growth of Payments
Stable Dividend: MCRO's dividends per share have been stable in the past 10 years.
Growing Dividend: MCRO's dividend payments have increased 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 covered by earnings (51.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Stephen Murdoch (52yo)
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 ($USD10.04M) is above average for companies of similar size in the UK market ($USD2.22M).
Compensation vs Earnings: Stephen's compensation has increased whilst the company is unprofitable.
|CEO & Director||1.9yrs||US$7.71m||0.10% $2.6m|
|Director of Mergers & Acquisition||2.1yrs||US$19.32m||no data|
|CFO & Director||1yrs||no data||no data|
|Chief Operating Officer||4yrs||no data||no data|
|Chief Technology Officer||0yrs||no data||no data|
|Interim Head of Investor Relations||0yrs||no data||no data|
|Group General Counsel||13.8yrs||no data||no data|
|Head of Corporate Communication & Investor Relations||0yrs||no data||no data|
|Chief Marketing Officer||0.3yrs||no data||no data|
|Chief Human Resources Officer||2.1yrs||no data||no data|
Experienced Management: MCRO's management team is considered experienced (2.1 years average tenure).
|CEO & Director||1.9yrs||US$7.71m||0.10% $2.6m|
|CFO & Director||1yrs||no data||no data|
|Independent Non-Executive Director||2.3yrs||US$83.00k||no data|
|Senior Independent Non-Executive Director||0yrs||US$180.00k||0.0053% $139.2k|
|Non-Executive Chairman||0yrs||no data||0.060% $1.6m|
|Independent Non-Executive Director||5.8yrs||US$135.00k||0.0050% $131.3k|
|Independent Non-Executive Director||3.6yrs||US$135.00k||0.0014% $36.4k|
Experienced Board: MCRO's board of directors are not considered experienced ( 2.3 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: MCRO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.3%.
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£2.621b
- Shares outstanding: 333.38m
- Website: https://www.microfocus.com
Number of Employees
- Micro Focus International plc
- The Lawn
- 22-30 Old Bath Road
- RG14 1QN
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MCRO||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||GBP||May 2005|
|MCFU.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||May 2005|
|M7Q7||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||May 2005|
|M7Q3||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||GBP||May 2005|
|M7Q5||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||May 2005|
|MFGP||NYSE (New York Stock Exchange)||SPON ADR EACH REP 1 ORD SHS||US||USD||Sep 2017|
|MFGP N||BMV (Bolsa Mexicana de Valores)||SPON ADR EACH REP 1 ORD SHS||MX||MXN||Sep 2017|
|M7Q8||DB (Deutsche Boerse AG)||SPON ADR EACH REP 1 ORD SHS||DE||EUR||Sep 2017|
Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to small and medium size enterprises. The company offers infrastructure software products that are managed on an investment portfolio. Its product portfolio includes application modernization and connectivity, application delivery management, and IT operations management, as well as security, information management, and Governance. Micro Focus International plc was founded in 1976 and is headquartered in Newbury, the United Kingdom.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/18 21:06|
|End of Day Share Price||2020/02/18 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.