OB:MRCEL

Stock Analysis Report

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Market Cap

kr4.6b

Last Updated

2021/07/31 05:02 UTC

Data Sources

Company Financials +

Executive Summary

Mercell Holding AS provides eTendering, tender notification, and bid manager solutions through online marketplace in Nordic region. More Details


Snowflake Analysis

High growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MRCEL is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MRCEL's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

4.6%

MRCEL

3.7%

NO Software

0.2%

NO Market


1 Year Return

18.0%

MRCEL

33.6%

NO Software

31.8%

NO Market

Return vs Industry: MRCEL underperformed the Norwegian Software industry which returned 33.6% over the past year.

Return vs Market: MRCEL underperformed the Norwegian Market which returned 31.8% over the past year.


Shareholder returns

MRCELIndustryMarket
7 Day4.6%3.7%0.2%
30 Day8.8%5.9%0.2%
90 Day-13.3%-6.5%2.0%
1 Year18.0%18.0%33.6%33.6%36.6%31.8%
3 Yearn/a48.0%40.6%18.2%4.8%
5 Yearn/a101.8%85.1%76.9%44.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mercell Holding 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: MRCEL (NOK9.19) is trading below our estimate of fair value (NOK21.86)

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


Price To Earnings Ratio

PE vs Industry: MRCEL is unprofitable, so we can't compare its PE Ratio to the European Software industry average.

PE vs Market: MRCEL is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRCEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRCEL is good value based on its PB Ratio (2.2x) compared to the NO Software industry average (3.6x).


Future Growth

How is Mercell Holding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

54.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRCEL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: MRCEL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MRCEL's is expected to become profitable in the next 3 years.

Revenue vs Market: MRCEL's revenue (20.8% per year) is forecast to grow faster than the Norwegian market (5.5% per year).

High Growth Revenue: MRCEL's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRCEL's Return on Equity is forecast to be low in 3 years time (2.5%).


Past Performance

How has Mercell Holding performed over the past 5 years?

-39.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRCEL is currently unprofitable.

Growing Profit Margin: MRCEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRCEL is unprofitable, and losses have increased over the past 5 years at a rate of 39.9% per year.

Accelerating Growth: Unable to compare MRCEL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRCEL is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.6%).


Return on Equity

High ROE: MRCEL has a negative Return on Equity (-3.89%), as it is currently unprofitable.


Financial Health

How is Mercell Holding's financial position?


Financial Position Analysis

Short Term Liabilities: MRCEL's short term assets (NOK453.9M) do not cover its short term liabilities (NOK471.3M).

Long Term Liabilities: MRCEL's short term assets (NOK453.9M) do not cover its long term liabilities (NOK1.2B).


Debt to Equity History and Analysis

Debt Level: MRCEL's debt to equity ratio (53.8%) is considered high.

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


Balance Sheet


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 MRCEL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MRCEL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.4% per year.


Dividend

What is Mercell Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MRCEL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MRCEL'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 MRCEL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MRCEL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MRCEL's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Terje Wibe

7.5yrs

Tenure

Mr. Terje Wibe is the Chief Executive Officer of Mercell Holding AS since 2014. Mr. Wibe serves as a Board Member at Orn Software Holding As. Mr. Wibe has industry background from various management (incl....


Leadership Team

Experienced Management: MRCEL's management team is considered experienced (2.5 years average tenure).


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 been substantially diluted in the past year, with total shares outstanding growing by 73.3%.


Top Shareholders

Company Information

Mercell Holding ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mercell Holding ASA
  • Ticker: MRCEL
  • Exchange: OB
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: kr4.615b
  • Shares outstanding: 502.12m
  • Website: https://www.mercell.com

Number of Employees


Location

  • Mercell Holding ASA
  • Askekroken 11
  • Oslo
  • Oslo
  • 277
  • Norway

Listings


Biography

Mercell Holding AS provides eTendering, tender notification, and bid manager solutions through online marketplace in Nordic region. The company’s Software as a Service system allows public buyers to manage...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 05:02
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.