NasdaqGM:MJCO

Stock Analysis Report

Executive Summary

Majesco provides cloud insurance software solutions for the business transformation of the insurance industry in the United States, Canada, Mexico, the United Kingdom, Malaysia, Singapore, Ireland, and India.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.2%

MJCO

-0.7%

US Software

-1.2%

US Market


1 Year Return

-6.3%

MJCO

39.0%

US Software

22.3%

US Market

Return vs Industry: MJCO underperformed the US Software industry which returned 39.8% over the past year.

Return vs Market: MJCO underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MJCOIndustryMarket
7 Day-3.2%-0.7%-1.2%
30 Day-13.3%5.1%1.6%
90 Day-12.8%14.9%8.8%
1 Year-6.3%-6.3%40.2%39.0%25.0%22.3%
3 Year42.8%42.8%136.4%127.0%49.9%40.3%
5 Yearn/a223.1%200.7%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

54.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MJCO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MJCO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MJCO is poor value based on its PE Ratio (55.2x) compared to the Software industry average (47.3x).

PE vs Market: MJCO is poor value based on its PE Ratio (55.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MJCO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MJCO is good value based on its PB Ratio (3.2x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Majesco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.8%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Majesco has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Majesco performed over the past 5 years?

43.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MJCO has high quality earnings.

Growing Profit Margin: MJCO's current net profit margins (3.8%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: MJCO has become profitable over the past 5 years, growing earnings by 43.7% per year.

Accelerating Growth: MJCO's earnings growth over the past year (396.7%) exceeds its 5-year average (43.7% per year).

Earnings vs Industry: MJCO earnings growth over the past year (396.7%) exceeded the Software industry 20.8%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Majesco's financial position?


Financial Position Analysis

Short Term Liabilities: MJCO's short term assets ($86.7M) exceed its short term liabilities ($42.7M).

Long Term Liabilities: MJCO's short term assets ($86.7M) exceed its long term liabilities ($6.7M).


Debt to Equity History and Analysis

Debt Level: MJCO's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: MJCO's debt to equity ratio has increased from 0% to 0.1% over the past 5 years.

Debt Coverage: MJCO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MJCO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: MJCO's debt is covered by short term assets (assets are 722.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if MJCO'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 MJCO'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 Majesco's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Adam Elster (51yo)

1.3yrs

Tenure

US$3,968,043

Compensation

Mr. Adam Elster serves as Chief Executive Officer and Director of Majesco since October 1, 2018. He has been Chief Executive Officer and Director at Majesco Limited since October 1, 2018. He was Executive  ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD3.97M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Insufficient data to compare Adam's compensation with company performance.


Management Age and Tenure

4.7yrs

Average Tenure

53yo

Average Age

Experienced Management: MJCO's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: MJCO's board of directors are considered experienced (3 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.


Recent Insider Transactions

SellUS$8,162,37709 Jan 20
Mastek Limited
EntityCompany
Shares1,026,683
Max PriceUS$7.95
SellUS$15,940,00019 Dec 19
Mastek Limited
EntityCompany
Shares2,000,000
Max PriceUS$7.97
BuyUS$15,940,00016 Dec 19
Majesco Limited
EntityCompany
Shares2,000,000
Max PriceUS$7.97

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Management Team

  • Lori Stanley (53yo)

    General Counsel & Corporate Secretary

    • Tenure: 8.5yrs
  • Ketan Mehta (61yo)

    Co-Founder & Chairman

    • Tenure: 1.3yrs
    • Compensation: US$641.44k
  • Ed Ossie (65yo)

    Chief Operating Officer

    • Tenure: 5yrs
    • Compensation: US$482.60k
  • Manish Shah (48yo)

    President & Chief Product Officer

    • Tenure: 0.8yrs
    • Compensation: US$776.25k
  • Wayne Locke (56yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Adam Elster (51yo)

    CEO & Director

    • Tenure: 1.3yrs
    • Compensation: US$3.97m
  • Denise Garth

    Senior Vice President of Strategic Marketing

    • Tenure: 4.7yrs
  • John Johansen

    Senior Vice President

    • Tenure: 4.9yrs
  • Robert Buhrle

    Senior Vice President of Consulting

    • Jim Miller (53yo)

      Chief Revenue Officer

      • Tenure: 0.8yrs
      • Compensation: US$822.94k

    Board Members

    • Bob Restrepo (68yo)

      Independent Director

      • Tenure: 4.4yrs
      • Compensation: US$44.75k
    • Earl Gallegos (61yo)

      Vice Chairman of the Board

      • Tenure: 5yrs
      • Compensation: US$49.75k
    • Sudhakar Ram (59yo)

      Director

      • Tenure: 5yrs
    • Ketan Mehta (61yo)

      Co-Founder & Chairman

      • Tenure: 1.3yrs
      • Compensation: US$641.44k
    • Rajesh Hukku (61yo)

      Independent Director

      • Tenure: 1.6yrs
      • Compensation: US$166.00k
    • Arun Maheshwari (74yo)

      Independent Director

      • Tenure: 5yrs
      • Compensation: US$47.75k
    • Carolyn Johnson (58yo)

      Director

      • Tenure: 0.3yrs
    • Adam Elster (51yo)

      CEO & Director

      • Tenure: 1.3yrs
      • Compensation: US$3.97m

    Company Information

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


    Key Information

    • Name: Majesco
    • Ticker: MJCO
    • Exchange: NasdaqGM
    • Founded: 1992
    • Industry: Application Software
    • Sector: Software
    • Market Cap: US$311.788m
    • Shares outstanding: 43.06m
    • Website: https://www.majesco.com

    Number of Employees


    Location

    • Majesco
    • 412 Mount Kemble Avenue
    • Suite 110C
    • Morristown
    • New Jersey
    • 7960
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    MJCONasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2015

    Biography

    Majesco provides cloud insurance software solutions for the business transformation of the insurance industry in the United States, Canada, Mexico, the United Kingdom, Malaysia, Singapore, Ireland, and India. It offers CloudInsurer, a cloud-based insurance platform that provides distribution management, data, and analytics solutions. The company also provides Digital1st, which offers cloud-native, digital engagement, and micro services platform-as-a-service for the insurance business; and an ecosystem of partners with apps that provide data sources and capabilities. Its cloud insurance software solutions enable property & casualty/general insurance (P&C); and life, annuities, pensions and group/voluntary benefits (L&A and Group) providers to optimize their businesses across the end-to-end insurance value chain; comply with policies, regulations, and new business models; enter into new markets; and launch new products and services for incumbents, green fields, and startups. The company offers its solutions in the areas of policy, rating, underwriting, billing, claims, distribution management, digital, data, and analytics for insurance carriers, mid-market insurers, managing general agents, startups, and green fields through an integrated sale and marketing platform and client partners. In addition, it provides insurance delivery and consulting services. The company was formerly known as MajescoMastek and changed its name to Majesco in October 2014. Majesco was founded in 1992 and is headquartered in Morristown, New Jersey. Majesco is a subsidiary of Mastek (UK) Ltd.  


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 01:09
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    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.