NYSE:MFAC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Megalith Financial Acquisition Corp. does not have significant operations.


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

How has Megalith Financial Acquisition's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.2%

MFAC

7.1%

US Capital Markets

3.8%

US Market


1 Year Return

3.3%

MFAC

9.8%

US Capital Markets

9.7%

US Market

Return vs Industry: MFAC underperformed the US Capital Markets industry which returned 9% over the past year.

Return vs Market: MFAC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

MFACIndustryMarket
7 Day-4.2%7.1%3.8%
30 Day0.2%16.4%11.4%
90 Day1.0%10.7%6.8%
1 Year3.3%3.3%12.0%9.8%12.1%9.7%
3 Yearn/a32.4%24.7%36.2%27.2%
5 Yearn/a59.9%44.8%63.7%45.4%

Price Volatility Vs. Market

How volatile is Megalith Financial Acquisition's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Megalith Financial Acquisition undervalued compared to its fair value and its price relative to the market?

81.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MFAC ($10.48) is trading above our estimate of fair value ($1.42)

Significantly Below Fair Value: MFAC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MFAC is poor value based on its PE Ratio (81.9x) compared to the Capital Markets industry average (32.8x).

PE vs Market: MFAC is poor value based on its PE Ratio (81.9x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MFAC is overvalued based on its PB Ratio (44.4x) compared to the US Capital Markets industry average (9.1x).


Next Steps

Future Growth

How is Megalith Financial Acquisition forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.0%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Megalith Financial Acquisition has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Megalith Financial Acquisition performed over the past 5 years?

209.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MFAC has a high level of non-cash earnings.

Growing Profit Margin: Insufficient data to determine if MFAC's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MFAC's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare MFAC's past year earnings growth to its 5-year average.

Earnings vs Industry: MFAC earnings growth over the past year (209.5%) exceeded the Capital Markets industry 16.6%.


Return on Equity

High ROE: MFAC's Return on Equity (54.2%) is considered outstanding.


Next Steps

Financial Health

How is Megalith Financial Acquisition's financial position?


Financial Position Analysis

Short Term Liabilities: MFAC's short term assets ($338.2K) do not cover its short term liabilities ($1.0M).

Long Term Liabilities: MFAC's short term assets ($338.2K) do not cover its long term liabilities ($171.1M).


Debt to Equity History and Analysis

Debt Level: MFAC is debt free.

Reducing Debt: MFAC had no debt 5 years ago.

Debt Coverage: MFAC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MFAC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Megalith Financial Acquisition's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if MFAC'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 MFAC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

A. Dunklau (36yo)

0.083

Tenure

Mr. A.J. Dunklau has been President of Megalith Financial Acquisition Corp. since November 13, 2017 and serves as its Chief Executive Officer since May 5, 2020. From 2011 to 2017, Mr. Dunklau was an execut ...


Board Members

NamePositionTenureCompensationOwnership
Jay Sidhu
Executive Chairman1.83yrsno datano data
Kuldeep Malkani
Independent Director1.83yrsno datano data
Chad Hurley
Independent Director1.83yrsno datano data
Samvir Sidhu
Director2.58yrsno datano data
Eric Frank
Independent Director1.83yrsno datano data
Rajeev Date
Independent Director1.83yrsno datano data
Bhanu Choudhrie
Director1.83yrsno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Board: MFAC's board of directors are not considered experienced ( 1.8 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

Megalith Financial Acquisition Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Megalith Financial Acquisition Corp.
  • Ticker: MFAC
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$219.652m
  • Shares outstanding: 21.16m
  • Website: https://www.megalithfinancial.com

Number of Employees


Location

  • Megalith Financial Acquisition Corp.
  • 535 5th Avenue
  • 29th Floor
  • New York
  • New York
  • 10017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFAC.UNYSE (New York Stock Exchange)UnitsUSUSDAug 2018
MFACNYSE (New York Stock Exchange)YesClass A Common StockUSUSDSep 2018
MFACNEXL (NEX Exchange Main Board (Equity))YesClass A Common StockGBUSDSep 2018

Biography

Megalith Financial Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company focuses on companies in the financial services industry or businesses providing technological services to the financial industry. Megalith Financial Acquisition Corp. was founded in 2017 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 06:21
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.