NasdaqGS:MGI

Stock Analysis Report

MoneyGram International

Executive Summary

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally.

Snowflake

Fundamentals

Slightly overvalued with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-23.6%

MGI

1.9%

US IT

0.2%

US Market


1 Year Return

19.1%

MGI

26.4%

US IT

12.2%

US Market

Return vs Industry: MGI underperformed the US IT industry which returned 26.4% over the past year.

Return vs Market: MGI exceeded the US Market which returned 12.2% over the past year.


Shareholder returns

MGIIndustryMarket
7 Day-23.6%1.9%0.2%
30 Day-35.3%1.5%3.5%
90 Day-23.6%0.9%6.3%
1 Year19.1%19.1%27.7%26.4%14.7%12.2%
3 Year-75.4%-75.4%96.3%88.0%47.8%38.3%
5 Year-69.9%-69.9%133.7%112.9%62.1%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

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 ($2.62) is trading below our estimate of fair value ($10.59)

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 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.


Next Steps

Future Growth

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

64.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MGI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MGI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MGI's revenue (0.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MGI's revenue (0.4% 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 low in 3 years time (6.1%).


Next Steps

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 has large one-off items impacting its financial results.

Growing Profit Margin: MGI's current net profit margins (-4.7%) are lower than last year (-4.2%).


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 (17%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

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

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

Debt Coverage by Assets: MGI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: MGI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MGI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.6%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MGI's dividend yield against the top 25% of dividend payers, as the company has not reported any 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: MGI is not paying a notable dividend for the US market.


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

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

3.8yrs

Average management tenure


CEO

Alex Holmes (44yo)

3.8yrs

Tenure

US$5,201,067

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 ($USD5.20M) is above average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

3.8yrs

Average Tenure

53yo

Average Age

Experienced Management: MGI's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

59yo

Average Age

Experienced Board: MGI's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Management Team

  • Larry Angelilli (63yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$1.48m
  • Grant Lines (54yo)

    Chief Revenue Officer

    • Tenure: 6.8yrs
    • Compensation: US$2.79m
  • Alex Holmes (44yo)

    Chairman & CEO

    • Tenure: 3.8yrs
    • Compensation: US$5.20m
  • Kim Garner

    Senior Vice President of Global Security and Investigations

    • Tenure: 0yrs
  • Yogesh Sangle

    Head of Asia Pacific

    • Tenure: 3.9yrs
  • John Stoneham (41yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 4.1yrs
  • Andres Villareal (54yo)

    Chief Compliance Officer

    • Tenure: 3.7yrs
  • Kamila Chytil (39yo)

    Chief Operating Officer

    • Tenure: 3.5yrs
    • Compensation: US$1.68m
  • Joann Chatfield (53yo)

    Chief Marketing Officer

    • Tenure: 2.5yrs
  • Robert Villasenor

    Interim General Counsel & Corporate Secretary

    • Tenure: 0.08yrs

Board Members

  • William Turner (59yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$235.00k
  • Seth Lawry (54yo)

    Director

    • Tenure: 11.7yrs
  • Victor Dahir (73yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$245.00k
  • Gnaneshwar Rao (42yo)

    Director

    • Tenure: 11yrs
  • J. Clark (73yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$245.00k
  • Antonio O. Garza (59yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$245.00k
  • Alex Holmes (44yo)

    Chairman & CEO

    • Tenure: 3.8yrs
    • Compensation: US$5.20m
  • Peggy Vaughan (65yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$225.00k
  • Mike Rafferty (65yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$225.00k

Company Information

MoneyGram International, Inc.'s company bio, 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$185.949m
  • Shares outstanding: 70.97m
  • Website: https://corporate.moneygram.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2004
9M1NDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2004

Biography

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 23:56
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
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.