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MGI

MoneyGram InternationalNasdaqGS:MGI Stock Report

Market Cap

US$600.6m

7D

12.4%

1Y

0.5%

Updated

04 Dec, 2021

Data

Company Financials +
MGI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

MGI Stock Overview

MoneyGram International, Inc., together with its subsidiaries, provides cross-border peer-to-peer payments and money transfer services in the United States and internationally.

MoneyGram International Competitors

Global Payments

NYSE:GPN

US$34.9b

Western Union

NYSE:WU

US$6.9b

Euronet Worldwide

NasdaqGS:EEFT

US$5.7b

WEX

NYSE:WEX

US$5.6b

Price History & Performance

Summary of all time highs, changes and price drops for MoneyGram International
Historical stock prices
Current Share PriceUS$6.55
52 Week HighUS$12.36
52 Week LowUS$4.93
Beta1.54
1 Month Change24.53%
3 Month Change-25.82%
1 Year Change0.46%
3 Year Change246.56%
5 Year Change-43.63%
Change since IPO-95.80%

Recent News & Updates

Nov 04

MoneyGram International: Only A Matter Of Time Before An Activist Gets Involved

In July 2021, both the Financial Times and Bloomberg reported that private equity rockstar, Advent International, was seriously considering bidding for MoneyGram. On the July 30, 2021 Q2 FY 2021 conference call, CEO, Alex Holmes, dashed the market hopes, as he signaled 'we won't go quietly into the night and sellout' speech. Despite resolving the DPA agreement, refinancing its debt at attractive rates, and spitting off strong free cash flow, the market is giving Alex Holmes a 'no confidence vote'. As a contrarian and value investor, it doesn't take an overly active imagination to work out an activist hedge fund could get involved here.

Sep 22
Returns Are Gaining Momentum At MoneyGram International (NASDAQ:MGI)

Returns Are Gaining Momentum At MoneyGram International (NASDAQ:MGI)

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Shareholder Returns

MGIUS ITUS Market
7D12.4%-4.0%-3.5%
1Y0.5%1.7%19.4%

Return vs Industry: MGI underperformed the US IT industry which returned 1.7% over the past year.

Return vs Market: MGI underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is MGI's price volatile compared to industry and market?
MGI volatility
MGI Average Weekly Movement10.1%
IT Industry Average Movement7.1%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: MGI is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: MGI's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
19402,269Alex Holmeshttps://corporate.moneygram.com

MoneyGram International, Inc., together with its subsidiaries, provides cross-border peer-to-peer payments and money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers money transfer services and bill payment services through third-party agents, including retail chains, independent retailers, post offices, banks, and other financial institutions; and digital solutions, such as moneygram.com, mobile solutions, digital partners, wallets, and account deposit services.

MoneyGram International Fundamentals Summary

How do MoneyGram International's earnings and revenue compare to its market cap?
MGI fundamental statistics
Market CapUS$600.56m
Earnings (TTM)-US$34.80m
Revenue (TTM)US$1.28b

0.5x

P/S Ratio

-17.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGI income statement (TTM)
RevenueUS$1.28b
Cost of RevenueUS$684.70m
Gross ProfitUS$597.60m
ExpensesUS$632.40m
Earnings-US$34.80m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.38
Gross Margin46.60%
Net Profit Margin-2.71%
Debt/Equity Ratio-431.4%

How did MGI perform over the long term?

See historical performance and comparison

Valuation

Is MoneyGram International 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: MGI ($6.12) is trading below our estimate of fair value ($16.48)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

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


Future Growth

How is MoneyGram International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

110.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: MGI's revenue (4.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: MGI's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGI's Return on Equity is forecast to be high in 3 years time (20.8%)


Past Performance

How has MoneyGram International performed over the past 5 years?

-28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGI is currently unprofitable.

Growing Profit Margin: MGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MGI is unprofitable, and losses have increased over the past 5 years at a rate of 28% per year.

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

Earnings vs Industry: MGI is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (38.3%).


Return on Equity

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


Financial Health

How is MoneyGram International's financial position?


Financial Position Analysis

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

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

Reducing Debt: MGI'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 MGI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MGI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.1% per year.


Dividend

What is MoneyGram International current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

5.9yrs

Average management tenure


CEO

Alex Holmes (46 yo)

5.92yrs

Tenure

US$5,978,170

Compensation

Mr. W. Alexander Holmes, also known as Alex, has been Chief Executive Officer of Moneygram International Inc. since January 1, 2016 and Chairman of the Board since February 2, 2018. Mr. Holmes served as th...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD5.98M) is above average for companies of similar size in the US market ($USD1.76M).

Compensation vs Earnings: Alex's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: MGI's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: MGI's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MGI 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 23.4%.


Top Shareholders

Company Information

MoneyGram International, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: MoneyGram International, Inc.
  • Ticker: MGI
  • Exchange: NasdaqGS
  • Founded: 1940
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$600.559m
  • Shares outstanding: 91.69m
  • Website: https://corporate.moneygram.com

Number of Employees


Location

  • MoneyGram International, Inc.
  • 2828 N. Harwood Street
  • 15th Floor
  • Dallas
  • Texas
  • 75201
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/04 00:06
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
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.