MTCH

Match GroupNasdaqGS:MTCH Stock Report

Market Cap

US$43.5b

7D

-4.4%

1Y

45.0%

Updated

18 Sep, 2021

Data

Company Financials +
MTCH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance4/6
Financial Health2/6
Dividends0/6

MTCH Overview

Match Group, Inc. provides dating products worldwide.

Match Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Match Group
Historical stock prices
Current Share PriceUS$157.14
52 Week HighUS$100.61
52 Week LowUS$174.68
Beta0
1 Month Change17.66%
3 Month Change2.09%
1 Year Change44.95%
3 Year Changen/a
5 Year Changen/a
Change since IPO48.71%

Recent News & Updates

Aug 09

Low-Interest Rates Could Help Match Group Fly

Match Group, Inc. offers dating products all over the globe. The numbers delivered by MTCH are quite impressive. The company shows double-digit sales growth, an Adjusted EBITDA margin of 37%-41%, and an EBITDA margin growth of 15%. Like most market analysts, I expect sales growth from 2021 to 2025 and FCF generation. From 2021 to 2023, I used market expectations, which included sales of $3.03-$3.3 billion. If we use a 7% discount and an EV/ 2026 FCF of 55x, the implied price is equal to $214. MTCH currently trades at $130-$150, so the upside potential under this case scenario is quite significant. Match also distributes its apps through the Apple App Store and Google Play Store. It means that the company may suffer significantly if these big tech companies decide to change the amount of information that Match receives.

Jul 23

Match: A Pandemic Recovery Play In The 'Summer Of Love'

The pandemic initially affected online dating and Match Group in a very negative fashion, as the dating scene was interrupted when bars, restaurants, and movie theaters closed. Exiting the first quarter, Match Group's management has seen well-vaccinated areas of the world like the U.S., Israel, U.K. begin to normalize. Within the USA and some other select countries in Europe, Match believes this will be the "Summer of Love" with the easing of lockdown restrictions. Match Group made a recent acquisition of Korean-based Hyperconnect that should help increase Match's TAM, increase video & AI capabilities, as well as increasing the company's presence in Asia. Match Group is a buy at current prices for both short-term and long-term reasons.

Shareholder Returns

MTCHUS Interactive Media and ServicesUS Market
7D-4.4%-1.2%-0.6%
1Y45.0%70.7%33.8%

Return vs Industry: MTCH underperformed the US Interactive Media and Services industry which returned 70.7% over the past year.

Return vs Market: MTCH exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is MTCH's price volatile compared to industry and market?
MTCH volatility
MTCH Beta0
Industry Beta1.12
Market Beta1

Stable Share Price: MTCH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MTCH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19861,890Shar Dubeyhttps://www.mtch.com

Match Group, Inc. provides dating products worldwide. The company’s portfolio of brands includes Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, and OurTime, as well as a various other brands. The company was incorporated in 1986 and is based in Dallas, Texas.

Match Group Fundamentals Summary

How do Match Group's earnings and revenue compare to its market cap?
MTCH fundamental statistics
Market CapUS$43.50b
Earnings (TTM)US$570.60m
Revenue (TTM)US$2.67b

76.2x

P/E Ratio

16.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTCH income statement (TTM)
RevenueUS$2.67b
Cost of RevenueUS$712.11m
Gross ProfitUS$1.95b
ExpensesUS$1.38b
EarningsUS$570.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.14
Gross Margin73.29%
Net Profit Margin21.40%
Debt/Equity Ratio-2,873.1%

How did MTCH perform over the long term?

See historical performance and comparison

Valuation

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

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTCH ($157.14) is trading below our estimate of fair value ($165.2)

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


Price To Earnings Ratio

PE vs Industry: MTCH is poor value based on its PE Ratio (76.2x) compared to the US Interactive Media and Services industry average (50.7x).

PE vs Market: MTCH is poor value based on its PE Ratio (76.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MTCH is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

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


Future Growth

How is Match Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTCH's forecast earnings growth (25.9% per year) is above the savings rate (2%).

Earnings vs Market: MTCH's earnings (25.9% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MTCH's revenue (18.1% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: MTCH's revenue (18.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTCH's Return on Equity is forecast to be very high in 3 years time (79.9%).


Past Performance

How has Match Group performed over the past 5 years?

32.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTCH has high quality earnings.

Growing Profit Margin: MTCH's current net profit margins (21.4%) are higher than last year (20.2%).


Past Earnings Growth Analysis

Earnings Trend: MTCH has become profitable over the past 5 years, growing earnings by 32.7% per year.

Accelerating Growth: MTCH's earnings growth over the past year (29.3%) is below its 5-year average (32.7% per year).

Earnings vs Industry: MTCH earnings growth over the past year (29.3%) exceeded the Interactive Media and Services industry 9.1%.


Return on Equity

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


Financial Health

How is Match Group's financial position?


Financial Position Analysis

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

Long Term Liabilities: MTCH 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: MTCH has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: MTCH's debt is well covered by operating cash flow (22.3%).

Interest Coverage: MTCH's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Dividend

What is Match Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if MTCH'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 MTCH'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?

4.5yrs

Average management tenure


CEO

Shar Dubey (50 yo)

1.5yrs

Tenure

Ms. Sharmistha Dubey, also known as Shar, has been Chief Executive Officer of Match Group Holdings II, LLC since March 1, 2020. Ms. Dubey serves as Director of Match Group Holdings II, LLC since September...


Leadership Team

Experienced Management: MTCH's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: MTCH's board of directors are not considered experienced ( 2 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 been diluted in the past year, with total shares outstanding growing by 6.5%.


Top Shareholders

Company Information

Match Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Match Group, Inc.
  • Ticker: MTCH
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$43.498b
  • Shares outstanding: 276.81m
  • Website: https://www.mtch.com

Number of Employees


Location

  • Match Group, Inc.
  • 8750 North Central Expressway
  • Suite 1400
  • Dallas
  • Texas
  • 75231
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:17
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.