Micro Focus International
Market Cap
UK£1.4b
Last Updated
2021/01/20 02:14 UTC
Data Sources
Company Financials +
Executive Summary
Micro Focus International plc develops, sells, and supports software products and solutions to small and medium size enterprises. More Details
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
Similar Companies
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 more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: MCRO's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of UK stocks.
Market Performance
7 Day Return
3.5%
MCRO
2.4%
GB Software
-0.3%
GB Market
1 Year Return
-62.5%
MCRO
-16.6%
GB Software
-7.9%
GB Market
Return vs Industry: MCRO underperformed the UK Software industry which returned -16.6% over the past year.
Return vs Market: MCRO underperformed the UK Market which returned -7.9% over the past year.
Shareholder returns
| MCRO | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.5% | 2.4% | -0.3% |
| 30 Day | -3.1% | 7.3% | 5.4% |
| 90 Day | 64.6% | -3.9% | 15.7% |
| 1 Year | -62.5%-62.5% | -8.5%-16.6% | -4.1%-7.9% |
| 3 Year | -78.9%-84.3% | -26.9%-36.0% | 4.2%-8.5% |
| 5 Year | -65.5%-77.7% | 18.6%-3.6% | 45.0%12.1% |
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 St
Micro Focus International (LON:MCRO) Share Prices Have Dropped 85% In The Last Three Years1 month ago | Simply Wall St
An Intrinsic Calculation For Micro Focus International plc (LON:MCRO) Suggests It's 46% Undervalued2 months ago | Simply Wall St
How Much Are Micro Focus International plc (LON:MCRO) Insiders Spending On Buying Shares?Valuation
Is Micro Focus International 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: MCRO (£4.11) is trading below our estimate of fair value (£10.75)
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 GB 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 (0.4x) compared to the GB Software industry average (4.1x).
Next Steps
Future Growth
How is Micro Focus International forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
98.0%
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 (1%).
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 (-4.3% per year).
High Growth Revenue: MCRO's revenue is forecast to decline over the next 3 years (-4.3% 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 (9.7%).
Next Steps
Past Performance
How has Micro Focus International performed over the past 5 years?
-37.4%
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 37.4% 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 (-3.2%).
Return on Equity
High ROE: MCRO has a negative Return on Equity (-19.37%), as it is currently unprofitable.
Next Steps
Financial Health
How is Micro Focus International's financial position?
Financial Position Analysis
Short Term Liabilities: MCRO's short term assets ($1.6B) do not cover its short term liabilities ($1.9B).
Long Term Liabilities: MCRO's short term assets ($1.6B) do not cover its long term liabilities ($6.3B).
Debt to Equity History and Analysis
Debt Level: MCRO's debt to equity ratio (98.9%) is considered high.
Reducing Debt: MCRO's debt to equity ratio has reduced from 128.5% to 98.9% over the past 5 years.
Debt Coverage: MCRO's debt is not well covered by operating cash flow (11.8%).
Interest Coverage: MCRO is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Micro Focus International current dividend yield, its reliability and sustainability?
7.58%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MCRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MCRO'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 MCRO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MCRO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MCRO is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MCRO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Stephen Murdoch (53 yo)
2.83yrs
Tenure
US$2,021,234
Compensation
Mr. Stephen Murdoch has been the Chief Executive Officer and Director of Micro Focus International plc since March 19, 2018 and served as its Chief Operating Officer from September 2017 to March 19, 2018....
CEO Compensation Analysis
Compensation vs Market: Stephen's total compensation ($USD2.02M) is about average for companies of similar size in the UK market ($USD1.74M).
Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.83yrs | US$2.02m | 0.084% $ 1.2m | |
| CFO & Director | 1.92yrs | US$931.35k | no data | |
| Chief Operating Officer | 4.92yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Chief Legal Officer & Group General Counsel | 14.67yrs | no data | no data | |
| Head of Corporate Communication & Investor Relations | no data | no data | no data | |
| Worldwide President of Sales | 1yr | no data | no data | |
| Chief Human Resources Officer & Senior VP Business Operations | 0.67yr | no data | no data | |
| Senior VP & GM of AMC Product Group | 0.75yr | no data | no data | |
| Director of Mergers & Acquisition | 3yrs | US$24.64m | no data | |
| Senior Vice President of Revenue Growth & Strategy | no data | no data | no data | |
| Senior Vice President of Federal Business Unit | 6.75yrs | no data | no data |
2.8yrs
Average Tenure
56yo
Average Age
Experienced Management: MCRO's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.83yrs | US$2.02m | 0.084% $ 1.2m | |
| CFO & Director | 1.92yrs | US$931.35k | no data | |
| Independent Non-Executive Director | 3.25yrs | US$103.45k | no data | |
| Senior Independent Non-Executive Director | no data | US$155.18k | 0.0044% $ 60.5k | |
| Independent Non-Executive Director | 0.75yr | no data | no data | |
| Non-Executive Chairman | 0.92yr | no data | 0.16% $ 2.2m | |
| Independent Non-Executive Director | 6.75yrs | US$116.39k | 0.0041% $ 57.0k | |
| Independent Non-Executive Director | 4.5yrs | US$116.39k | 0.0011% $ 15.8k | |
| Independent Non-Executive Director | 0.58yr | no data | 0.013% $ 185.1k |
2.4yrs
Average Tenure
65yo
Average Age
Experienced Board: MCRO's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Micro Focus International plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Micro Focus International plc
- Ticker: MCRO
- Exchange: LSE
- Founded: 1976
- Industry: Application Software
- Sector: Software
- Market Cap: UK£1.378b
- Shares outstanding: 334.92m
- Website: https://www.microfocus.com
Number of Employees
Location
- Micro Focus International plc
- The Lawn
- 22-30 Old Bath Road
- Newbury
- Berkshire
- RG14 1QN
- United Kingdom
Listings
| 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 |
| MCROL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | May 2005 |
| MFGP | NYSE (New York Stock Exchange) | SPON ADR NEW | US | USD | Sep 2017 | |
| MFGP N | BMV (Bolsa Mexicana de Valores) | SPON ADR NEW | MX | MXN | Sep 2017 | |
| M7Q8 | DB (Deutsche Boerse AG) | SPON ADR NEW | DE | EUR | Sep 2017 |
Biography
Micro Focus International plc 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 02:14 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/04/30 |
| Annual Earnings | 2019/10/31 |
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.