NasdaqGS:MCHX

Stock Analysis Report

Executive Summary

Marchex, Inc. operates as a call analytics company that helps businesses connect, drive, measure, and convert callers into customers.

Rewards

Trading at 0.3% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -27.3% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and overvalued.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: MCHX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-19.0%

MCHX

2.2%

US Media

1.5%

US Market


1 Year Return

-22.4%

MCHX

20.0%

US Media

20.1%

US Market

Return vs Industry: MCHX underperformed the US Media industry which returned 20% over the past year.

Return vs Market: MCHX underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

MCHXIndustryMarket
7 Day-19.0%2.2%1.5%
30 Day-11.0%-0.4%1.4%
90 Day-20.8%5.1%8.7%
1 Year-22.4%-22.4%21.6%20.0%22.7%20.1%
3 Year32.3%12.9%17.9%13.0%50.1%40.5%
5 Year-10.3%-23.9%36.4%25.6%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Marchex undervalued compared to its fair value and its price relative to the market?

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCHX ($3.16) is trading below our estimate of fair value ($3.17)

Significantly Below Fair Value: MCHX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MCHX is overvalued based on its PB Ratio (1.4x) compared to the US Media industry average (1.4x).


Next Steps

Future Growth

How is Marchex forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCHX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MCHX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MCHX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MCHX's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: MCHX's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCHX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Marchex performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCHX is currently unprofitable.

Growing Profit Margin: MCHX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCHX is unprofitable, but has reduced losses over the past 5 years at a rate of 29.5% per year.

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

Earnings vs Industry: MCHX is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (1%).


Return on Equity

High ROE: MCHX has a negative Return on Equity (-4.01%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Marchex's financial position?


Financial Position Analysis

Short Term Liabilities: MCHX's short term assets ($62.4M) exceed its short term liabilities ($17.0M).

Long Term Liabilities: MCHX's short term assets ($62.4M) exceed its long term liabilities ($6.6M).


Debt to Equity History and Analysis

Debt Level: MCHX is debt free.

Reducing Debt: MCHX has not had any debt for past 5 years.


Balance Sheet

Inventory Level: MCHX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MCHX's debt is covered by short term assets.


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

Forecast Cash Runway: MCHX is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -39% per year.


Next Steps

Dividend

What is Marchex's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MCHX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCHX's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: MCHX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCHX'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?

2.7yrs

Average management tenure


CEO

Marchex has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Russell Horowitz
Executive Chairman & Member of the Office of the CEO0.8yrsUS$590.13k3.19% $4.3m
Michael Arends
CFO & Member of the Office of the CEO16.8yrsUS$778.65k1.95% $2.6m
Todd Wilson
Vice President of Strategy & Operations5.4yrsno datano data
Trevor Caldwell
Vice President of Investor Relations & Strategic Initiatives0yrsno datano data
Michelle Paterniti
General Counsel & Secretary1.6yrsno datano data
Matt Muilenburg
SVP & Head of Automotive0yrsno datano data
John Busby
Senior Vice President of Consumer Insights & Marketing4.3yrsno datano data
Travis Fairchild
Executive Vice President of Business Development & Solution Consulting0yrsno datano data
Andy Smith
Senior Vice President2.7yrsno datano data
Mark Corley
Senior Vice President of Analytics2.7yrsno datano data

2.7yrs

Average Tenure

Experienced Management: MCHX's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Russell Horowitz
Executive Chairman & Member of the Office of the CEO0.8yrsUS$590.13k3.19% $4.3m
Dennis Cline
Independent Director16.8yrsUS$77.25k0.30% $400.6k
M. Wisehart
Independent Director11.3yrsUS$76.25k0.62% $825.2k
Donald Cogsville
Independent Director0.8yrsno data0.072% $96.8k

6.0yrs

Average Tenure

56yo

Average Age

Experienced Board: MCHX's board of directors are considered experienced (6 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 diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

Company Information

Marchex, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marchex, Inc.
  • Ticker: MCHX
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$133.679m
  • Shares outstanding: 42.30m
  • Website: https://www.marchex.com

Number of Employees


Location

  • Marchex, Inc.
  • 520 Pike Street
  • Suite 2000
  • Seattle
  • Washington
  • 98101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCHXNasdaqGS (Nasdaq Global Select)YesClass B Common StockUSUSDMar 2004
NHMDB (Deutsche Boerse AG)YesClass B Common StockDEEURMar 2004

Biography

Marchex, Inc. operates as a call analytics company that helps businesses connect, drive, measure, and convert callers into customers. Its products include Marchex Call Analytics, an analytics platform for enterprises that depend on inbound phone calls to drive sales, appointments, and reservations; Marchex Speech Analytics that enable actionable insights for enterprise, mid-sized, and small businesses; Text Analytics and Communications, which enable businesses to send and receive text/SMS messages with customers; Call Monitoring; Marchex Omnichannel Analytics Cloud products, such as Marchex Search Analytics, a product for search marketers that drive phone calls from search campaigns, as well as Marchex Display and Video Analytics, a product for marketers that buy digital display advertising; Marchex Site Analytics, a product for marketers that can drive phone calls from Websites; and Marchex Social Analytics, a product for marketers that buy social media advertising. The company also offers Marchex Audience Targeting that leverages call data to automatically build audience segments for display and social media platforms; and Marchex Call Marketplace, a mobile advertising network for businesses that depend on inbound phone calls to drive sales, as well as provides advertisers ad placements across various mobile and online media sources to deliver qualified calls to their businesses. In addition, it provides Local Leads platform, a service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. Marchex, Inc. was founded in 2003 and is headquartered in Seattle, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:18
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.