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
Price History & Performance
|Historical stock prices|
|Current Share Price||US$6.55|
|52 Week High||US$12.36|
|52 Week Low||US$4.93|
|1 Month Change||24.53%|
|3 Month Change||-25.82%|
|1 Year Change||0.46%|
|3 Year Change||246.56%|
|5 Year Change||-43.63%|
|Change since IPO||-95.80%|
Recent News & Updates
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.
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...
|MGI||US IT||US Market|
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.
|MGI Average Weekly Movement||10.1%|
|IT Industry Average Movement||7.1%|
|Market Average Movement||6.1%|
|10% most volatile stocks in US Market||14.9%|
|10% least volatile stocks in US Market||2.4%|
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
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
|MGI fundamental statistics|
Is MGI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MGI income statement (TTM)|
|Cost of Revenue||US$684.70m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.38|
|Net Profit Margin||-2.71%|
How did MGI perform over the long term?See historical performance and comparison
Is MoneyGram International undervalued compared to its fair value and its price relative to the market?
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.
How is MoneyGram International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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%)
How has MoneyGram International performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Alex Holmes (46 yo)
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.
Experienced Management: MGI's management team is seasoned and experienced (5.8 years average tenure).
Experienced Board: MGI's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.4%.
MoneyGram International, Inc.'s employee growth, exchange listings and data sources
- 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
- MoneyGram International, Inc.
- 2828 N. Harwood Street
- 15th Floor
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/04 00:06|
|End of Day Share Price||2021/12/03 00:00|
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.