NasdaqGS:MIME

Stock Analysis Report

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Executive Summary

Mimecast Limited provides cloud security and risk management services for corporate information and email. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MIME is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MIME's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.8%

MIME

0.6%

US Software

0.9%

US Market


1 Year Return

3.3%

MIME

46.4%

US Software

22.1%

US Market

Return vs Industry: MIME underperformed the US Software industry which returned 45.9% over the past year.

Return vs Market: MIME underperformed the US Market which returned 22.2% over the past year.


Shareholder returns

MIMEIndustryMarket
7 Day5.8%0.6%0.9%
30 Day13.4%8.3%10.2%
90 Day-1.0%5.5%9.7%
1 Year3.3%3.3%47.3%46.4%24.8%22.1%
3 Year59.2%59.2%143.6%135.8%48.6%38.7%
5 Year353.0%353.0%238.9%220.4%99.6%77.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MIME ($45.39) is trading below our estimate of fair value ($46.44)

Significantly Below Fair Value: MIME is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MIME is poor value based on its PE Ratio (179.2x) compared to the US Software industry average (54.9x).

PE vs Market: MIME is poor value based on its PE Ratio (179.2x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: MIME is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: MIME is overvalued based on its PB Ratio (9.8x) compared to the US Software industry average (8x).


Next Steps

Future Growth

How is Mimecast forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

52.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MIME's forecast earnings growth (52% per year) is above the savings rate (2.2%).

Earnings vs Market: MIME's earnings (52% per year) are forecast to grow faster than the US market (21.9% per year).

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

Revenue vs Market: MIME's revenue (16.7% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: MIME's revenue (16.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MIME's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Mimecast performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MIME has high quality earnings.

Growing Profit Margin: MIME became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MIME has become profitable over the past 5 years, growing earnings by 1.1% per year.

Accelerating Growth: MIME has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MIME has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (8%).


Return on Equity

High ROE: MIME's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Mimecast's financial position?


Financial Position Analysis

Short Term Liabilities: MIME's short term assets ($344.6M) exceed its short term liabilities ($290.8M).

Long Term Liabilities: MIME's short term assets ($344.6M) exceed its long term liabilities ($239.7M).


Debt to Equity History and Analysis

Debt Level: MIME's debt to equity ratio (36.5%) is considered satisfactory.

Reducing Debt: MIME's debt to equity ratio has reduced from 84.2% to 36.5% over the past 5 years.

Debt Coverage: MIME's debt is well covered by operating cash flow (97.5%).

Interest Coverage: MIME's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Mimecast current dividend yield, its reliability and sustainability?

0.44%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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

4.2yrs

Average management tenure


CEO

Peter Bauer (46 yo)

17.92yrs

Tenure

US$2,345,089

Compensation

Mr. Peter C. Bauer co-founded Mimecast Limited in 2003 and has been its Chairman and Chief Executive Officer since 2003. Mr. Bauer is a technology marketer and business leader with a successful track recor...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD2.35M) is below average for companies of similar size in the US market ($USD5.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Bauer
Co-Founder17.92yrsUS$2.35m5.57%
$ 161.5m
Rafeal Brown
Chief Financial Officer1.75yrsUS$6.77m0.014%
$ 401.4k
Dino DiMarino
Chief Revenue Officer4.08yrsUS$2.98m0.011%
$ 312.9k
Heather Bentley
Senior Vice President of Customer Success & Support1.08yrsUS$2.84mno data
Christina Van Houten
Chief Strategy Officer2.67yrsUS$1.83m0.021%
$ 601.2k
Nathaniel Borenstein
Chief Scientist10.5yrsno datano data
Grant Hodgkinson
Chief Information Officer & VP of Digital Operationsno datano datano data
Robert Sanders
Director of Investor Relationsno datano datano data
Robert Nault
Senior VP4.25yrsUS$489.83k0.0058%
$ 168.2k
Julian Martin
Vice President of Business Development9.58yrsno datano data
Alex Bender
Senior Vice President of Global Marketing4.83yrsno data0.0062%
$ 181.0k
Karen Anderson
Chief Human Resources Officer1.92yrsUS$3.61m0.0068%
$ 198.1k

4.2yrs

Average Tenure

52yo

Average Age

Experienced Management: MIME's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Bauer
Co-Founder17.92yrsUS$2.35m5.57%
$ 161.5m
Aron Ain
Independent Director3.67yrsUS$199.97k0.027%
$ 790.3k
Robert Schechter
Independent Director1.92yrsUS$201.22k0.0093%
$ 270.0k
Hagi Schwartz
Independent Non-Executive Director5.42yrsUS$224.97k0.052%
$ 1.5m
Christopher FitzGerald
Lead Independent Director5.92yrsUS$219.97k0.15%
$ 4.3m
Neil Murray
Director17.92yrsUS$199.97k1.69%
$ 49.0m
Stephen Ward
Independent Director2.92yrsUS$199.97k0.020%
$ 584.4k
Alpna Doshi
Independent Director1yrUS$216.66kno data

4.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: MIME'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: Insufficient data to determine if 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 3.1%.


Top Shareholders

Company Information

Mimecast Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mimecast Limited
  • Ticker: MIME
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$2.900b
  • Shares outstanding: 63.89m
  • Website: https://www.mimecast.com

Number of Employees


Location

  • Mimecast Limited
  • 1 Finsbury Avenue
  • London
  • Greater London
  • EC2M 2PF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MIMENasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDNov 2015
53MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015

Biography

Mimecast Limited provides cloud security and risk management services for corporate information and email. The company offers Mimecast Email Security solution, which protects against the delivery of malwar...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 23:36
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.