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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.9%

LOGM

-4.4%

US Software

0.07%

US Market


1 Year Return

-11.7%

LOGM

19.3%

US Software

8.9%

US Market

Return vs Industry: LOGM underperformed the US Software industry which returned 19.3% over the past year.

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


Shareholder returns

LOGMIndustryMarket
7 Day-2.9%-4.4%0.07%
30 Day-6.3%-4.4%-0.3%
90 Day-6.7%-9.3%-1.6%
1 Year-10.3%-11.7%21.1%19.3%11.3%8.9%
3 Year-20.9%-24.1%108.2%99.8%46.3%36.8%
5 Year54.5%47.3%157.9%139.3%62.1%44.3%

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?

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOGM ($67.47) is trading below our estimate of fair value ($132.34)

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


Price To Earnings Ratio

PE vs Industry: LOGM is poor value based on its PE Ratio (151.9x) compared to the Software industry average (45x).

PE vs Market: LOGM is poor value based on its PE Ratio (151.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LOGM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: LOGM is good value based on its PB Ratio (1.2x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is LogMeIn forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

65.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOGM's forecast earnings growth (65.2% per year) is above the savings rate (2.7%).

Earnings vs Market: LOGM's earnings (65.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: LOGM's revenue (6.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LOGM's revenue (6.1% 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 (10.4%).


Next Steps

Past Performance

How has LogMeIn performed over the past 5 years?

51.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LOGM's earnings have grown significantly by 51.9% per year over the past 5 years.

Accelerating Growth: LOGM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LOGM had negative earnings growth (-83.8%) over the past year, making it difficult to compare to the Software industry average (19.1%).


Return on Equity

High ROE: LOGM's Return on Equity (0.8%) is considered low.


Return on Assets

ROA vs Industry: LOGM's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: LOGM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LogMeIn's financial position?


Financial Position Analysis

Short Term Liabilities: LOGM's short term assets ($281.1M) do not cover its short term liabilities ($607.6M)

Long Term Liabilities: LOGM's short term assets (281.1M) do not cover its long term liabilities (495.6M)


Debt to Equity History and Analysis

Debt Level: LOGM's debt to equity ratio (7.1%) is considered satisfactory

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

Debt Coverage: LOGM's debt is well covered by operating cash flow (175.1%).

Interest Coverage: LOGM's interest payments on its debt are well covered by EBIT (7.7x coverage).


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 1.405640x debt).


Next Steps

Dividend

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

1.93%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LOGM's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LOGM's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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: With its high payout ratio (281.4%), LOGM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LOGM's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


Next Steps

Management

What is the CEO of LogMeIn's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Bill Wagner (52yo)

3.8yrs

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 ($USD7.22M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: LOGM's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: LOGM's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: LOGM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$498,68011 Sep 19
Peter Sacripanti
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,124
Max PriceUS$70.00
SellUS$66,96030 Aug 19
Steven Benson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$66.96
SellUS$1,705,30022 May 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$76.33
SellUS$1,851,61208 May 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$82.91
SellUS$1,826,43013 Mar 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$81.60
SellUS$1,827,43505 Mar 19
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares22,500
Max PriceUS$82.06
SellUS$1,847,34906 Dec 18
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares20,000
Max PriceUS$92.71
SellUS$1,713,97706 Nov 18
Michael Simon
EntityIndividual
Role
Top Key Executive
Co-Founder & Special Advisor to CEO
Shares20,000
Max PriceUS$87.14

Ownership Breakdown


Management Team

  • Mike Simon (54yo)

    Co-Founder & Special Advisor to CEO

    • Tenure: 0yrs
    • Compensation: US$312.78k
  • Marc van Zadelhoff (46yo)

    Senior VP & COO

    • Tenure: 0.9yrs
    • Compensation: US$6.19m
  • Bill Wagner (52yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$7.22m
  • Chris Manton-Jones

    Senior Vice President of Worldwide Sales

    • Tenure: 0.8yrs
  • Michael Donahue (45yo)

    Senior VP

    • Tenure: 12.3yrs
    • Compensation: US$1.39m
  • Ed Herdiech (52yo)

    CFO & Treasurer

    • Tenure: 4.8yrs
    • Compensation: US$2.57m
  • Rob Bradley

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Sandor Palfy

    Chief Technology Officer

    • Tenure: 5.8yrs
  • Mark Strassman (50yo)

    Senior VP & GM of Unified Communications and Collaboration

    • Tenure: 1yrs
    • Compensation: US$4.46m
  • Jo Deal

    Chief Human Resources Officer

    • Tenure: 2.1yrs

Board Members

  • Ed Gillis (70yo)

    Director

    • Tenure: 11.9yrs
    • Compensation: US$337.78k
  • Woody Benson (60yo)

    Director

    • Tenure: 15yrs
    • Compensation: US$309.86k
  • Bob Calderoni (59yo)

    Chairman

    • Tenure: 0.6yrs
    • Compensation: US$299.86k
  • Bill Wagner (52yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$7.22m
  • David Henshall (51yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$319.86k
  • Mike Christenson (60yo)

    Director

    • Tenure: 9.2yrs
    • Compensation: US$304.86k
  • Peter Sacripanti (63yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$304.86k
  • Sid Jatia

    Member of IOT Advisory Board

    • Tenure: 4.1yrs
  • Tim O'Keeffe

    Member of IOT Advisory Board

    • Tenure: 4.1yrs
  • Sara Andrews (55yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$574.32k

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$3.335b
  • Shares outstanding: 49.44m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:13
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.