NasdaqGS:MDCA

Stock Analysis Report

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Executive Summary

MDC Partners Inc. provides marketing, advertising, activation, communications, and strategic consulting solutions worldwide. More Details


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MDCA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MDCA's weekly volatility has decreased from 19% to 8% over the past year.


Market Performance


7 Day Return

-2.3%

MDCA

-1.8%

US Media

-1.0%

US Market


1 Year Return

-1.9%

MDCA

6.8%

US Media

19.6%

US Market

Return vs Industry: MDCA underperformed the US Media industry which returned 6.8% over the past year.

Return vs Market: MDCA underperformed the US Market which returned 19.6% over the past year.


Shareholder returns

MDCAIndustryMarket
7 Day-2.3%-1.8%-1.0%
30 Day10.5%-1.1%2.2%
90 Day23.4%11.6%11.5%
1 Year-1.9%-1.9%8.4%6.8%22.3%19.6%
3 Year-72.4%-72.4%26.3%20.9%45.3%35.7%
5 Year-86.4%-86.9%84.8%71.3%124.8%99.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MDC Partners 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: MDCA ($2.53) is trading below our estimate of fair value ($20.31)

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


Price To Earnings Ratio

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

PE vs Market: MDCA 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 MDCA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MDCA has negative assets, so we can't compare its PB Ratio to the US Media industry average.


Next Steps

Future Growth

How is MDC Partners forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.2%

Forecasted Media 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 MDC Partners 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 MDC Partners performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDCA is currently unprofitable.

Growing Profit Margin: MDCA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MDCA is unprofitable, and losses have increased over the past 5 years at a rate of 2.6% per year.

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

Earnings vs Industry: MDCA is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-12.2%).


Return on Equity

High ROE: MDCA's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is MDC Partners's financial position?


Financial Position Analysis

Short Term Liabilities: MDCA has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MDCA has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MDCA has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MDCA's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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

Forecast Cash Runway: MDCA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 4.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.4yrs

Average management tenure


CEO

Mark Penn (66 yo)

1.83yrs

Tenure

US$4,913,405

Compensation

Mr. Mark J. Penn has been the Chairman of the Board at MDC Partners Inc. since April 18, 2019 and has been its Chief Executive Officer and Director since March 18, 2019. Mr. Penn founded The Stagwell Group...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD4.91M) is above average for companies of similar size in the US market ($USD1.01M).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Penn
Chairman & CEO1.83yrsUS$4.91m0.82%
$ 1.5m
Frank Lanuto
Chief Financial Officer1.58yrsUS$1.58m0.27%
$ 503.5k
David Ross
Executive VP of Strategy & Corporate Development0.33yrUS$2.43m0.60%
$ 1.1m
Jason Cammorata
Senior Vice President of Global Operationsno datano datano data
Vincenzo DiMaggio
Senior VP & Chief Accounting Officer2.58yrsno data0.11%
$ 198.2k
Kerry Robinson
Senior Vice President of Internal Auditno datano datano data
Alexandra Delanghe Ewing
Chief Communications Officer4.58yrsno datano data
Ryan Linder
Executive VP & Global Chief Marketing Officer2.25yrsno datano data
Randy Duax
Senior Vice President of Executive Talent4.25yrsno datano data
Frank Luntz
Chief Language Strategist7yrsno datano data
Ned Russell
Managing Partner of Healthcare2.67yrsno datano data
Robyn Freye
Senior Vice President of Business Development2.25yrsno datano data

2.4yrs

Average Tenure

44yo

Average Age

Experienced Management: MDCA's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Penn
Chairman & CEO1.83yrsUS$4.91m0.82%
$ 1.5m
Wade Oosterman
Independent Director1yrno data0.048%
$ 88.5k
Desirée Rogers
Independent Director2.75yrsUS$233.50k0.099%
$ 182.7k
Irwin Simon
Lead Independent Director5.5yrsUS$352.00k0.12%
$ 223.2k
Charlene Barshefsky
Independent Director1.75yrsUS$134.50k0.10%
$ 185.3k
Asha Daniere
Independent Director0.58yrno datano data
Bradley Gross
Independent Director3.83yrsno datano data
Steven Farella
Chairman of Assembly6.83yrsno datano data

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: MDCA's board of directors are not considered experienced ( 2.3 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

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


Key Information

  • Name: MDC Partners Inc.
  • Ticker: MDCA
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$185.482m
  • Shares outstanding: 73.31m
  • Website: https://www.mdc-partners.com

Number of Employees


Location

  • MDC Partners Inc.
  • 330 Hudson Street
  • 10th Floor
  • New York
  • New York
  • 10013
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDCANasdaqGS (Nasdaq Global Select)YesClass A SharesUSUSDOct 1987
MD7ADB (Deutsche Boerse AG)YesClass A SharesDEEUROct 1987

Biography

MDC Partners Inc. provides marketing, advertising, activation, communications, and strategic consulting solutions worldwide. It offers a range of client services, including global advertising and marketing...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 23:23
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.