NasdaqGS:LOGM

Stock Analysis Report

Executive Summary

LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions.

Rewards

Trading at 39.5% below its fair value

Earnings are forecast to grow 95.18% per year

Risk Analysis

No risks detected for LOGM from our risk checks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.5%

LOGM

3.3%

US Software

7.2%

US Market


1 Year Return

2.3%

LOGM

11.0%

US Software

-10.4%

US Market

Return vs Industry: LOGM underperformed the US Software industry which returned 6.4% over the past year.

Return vs Market: LOGM exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

LOGMIndustryMarket
7 Day4.5%3.3%7.2%
30 Day-0.8%-7.4%-12.6%
90 Day-1.4%-2.8%-19.4%
1 Year3.7%2.3%12.2%11.0%-8.5%-10.4%
3 Year-10.4%-13.5%109.9%100.6%15.8%8.3%
5 Year60.0%51.9%177.4%157.9%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOGM ($83.59) is trading below our estimate of fair value ($138.22)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LOGM is good value based on its PB Ratio (1.5x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is LogMeIn forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

95.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOGM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: LOGM's revenue (5.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LOGM's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LOGM's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has LogMeIn performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOGM is currently unprofitable.

Growing Profit Margin: LOGM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LOGM is unprofitable, but has reduced losses over the past 5 years at a rate of 30.9% per year.

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

Earnings vs Industry: LOGM is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.7%).


Return on Equity

High ROE: LOGM has a negative Return on Equity (-0.53%), as it is currently unprofitable.


Next Steps

Financial Health

How is LogMeIn's financial position?


Financial Position Analysis

Short Term Liabilities: LOGM's short term assets ($325.0M) do not cover its short term liabilities ($622.7M).

Long Term Liabilities: LOGM's short term assets ($325.0M) do not cover its long term liabilities ($492.6M).


Debt to Equity History and Analysis

Debt Level: LOGM's debt to equity ratio (7.3%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: LOGM's debt is covered by short term assets (assets are 1.6x debt).


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: LOGM has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: LOGM has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LOGM's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: LOGM's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LOGM has been paying a dividend for less than 10 years.

Growing Dividend: LOGM's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: LOGM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: LOGM's dividends in 3 years are forecast to be well covered by earnings (26.4% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Bill Wagner (52yo)

4.25s

Tenure

US$7,224,220

Compensation

Mr. William R. Wagner, also known as Bill, has been the President of LogMeIn, Inc. since January 21, 2015 and as its Chief Executive Officer since December 16, 2015. Mr. Wagner served as the Chief Operatin ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD7.22M) is above average for companies of similar size in the US market ($USD5.55M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Wagner
President4.25yrsUS$7.22m0.36% $14.6m
Michael Simon
Co-Founder & Special Advisor to CEOno dataUS$312.78k1.11% $45.5m
Edward Herdiech
CFO & Treasurer5.17yrsUS$2.57m0.034% $1.4m
Marc van Zadelhoff
Senior VP & COO1.25yrsUS$6.19m0.022% $909.2k
Mark Strassman
Senior VP and GM of Unified Communications & Collaboration1.42yrsUS$4.46m0.016% $667.7k
Sandor Palfy
Chief Technology Officer6.17yrsno datano data
Rob Bradley
Vice President of Investor Relationsno datano datano data
Michael Donahue
Senior VP12.67yrsUS$1.39m0.010% $422.8k
Christopher Manton-Jones
Senior Vice President of Worldwide Sales1.17yrsno datano data
Jo Deal
Chief Human Resources Officer2.42yrsno datano data

3.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: LOGM's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Wagner
President4.25yrsUS$7.22m0.36% $14.6m
Edwin Gillis
Independent Director12.25yrsUS$337.78k0.047% $1.9m
Steven Benson
Independent Director15.42yrsUS$309.86k0.0046% $187.8k
Robert Calderoni
Independent Chairman1yrUS$299.86k0.023% $949.9k
David Henshall
Independent Director3.17yrsUS$319.86k0.046% $1.9m
Michael Christenson
Independent Director9.58yrsUS$304.86k0.22% $9.1m
Peter Sacripanti
Independent Director3.17yrsUS$304.86kno data
Sid Jatia
Member of IOT Advisory Board4.42yrsno datano data
Tim O'Keeffe
Member of IOT Advisory Board4.42yrsno datano data
Sara Andrews
Independent Director1.83yrsUS$574.32k0.0051% $210.4k

4.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: LOGM's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LOGM insiders have only sold shares 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

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


Key Information

  • Name: LogMeIn, Inc.
  • Ticker: LOGM
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$4.109b
  • Shares outstanding: 48.59m
  • Website: https://www.logmeininc.com

Number of Employees


Location

  • LogMeIn, Inc.
  • 320 Summer Street
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOGMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2009
9LGDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2009

Biography

LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions. It enables people to connect with each other worldwide to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. The company offers GoToConnect, a video and audio conferencing solution; GoToMeeting, an online meeting and collaboration solution; GoToRoom for configuration of video and audio conferencing solution in their physical conference or huddle rooms; GoToTraining, an online training product for interactive training sessions; GoToWebinar, a do-it-yourself Webinar product for organizations; Grasshopper telephony solution; Jive, a cloud-based phone service; join.me, an online meeting and screen sharing services; and OpenVoice, a reservation-less audio conferencing service. It also provides Bold360, an omni-channel engagement platform solution; Bold360 service, an automated digital engagement solution; RescueAssist, GoToAssist Corporate, and GoToAssist Seeit, which are easy-to-use cloud-based remote support solutions; LogMeIn Rescue, a remote support and customer care service; and LogMeIn Rescue+Mobile and Rescue Lens that are Web-based remote support services. In addition, the company offers LogMeIn Central, a Web-based management console; GoToMyPC that enables mobile workstyles; LogMeIn Pro, a remote access service; and LastPass, a password management and single sign on solution. It serves enterprise customers, small and medium businesses, IT service providers, mobile carriers, customer service centers, OEMs, and consumers. The company was formerly known as 3am Labs, Inc. and changed its name to LogMeIn, Inc. in March 2006. LogMeIn, Inc. was founded in 2003 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:11
End of Day Share Price2020/03/30 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.