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Majesco

Nasdaq:MJCO
Snowflake Description

Excellent balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MJCO
Nasdaq
$416M
Market Cap
  1. Home
  2. US
  3. Software
Company description

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. The last earnings update was 51 days ago. More info.


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MJCO Share Price and Events
7 Day Returns
-0.2%
NasdaqGM:MJCO
-0.9%
US Software
-0.3%
US Market
1 Year Returns
31.3%
NasdaqGM:MJCO
25.1%
US Software
3.9%
US Market
MJCO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Majesco (MJCO) -0.2% 17.6% 27.2% 31.3% 77.1% -
US Software -0.9% 3.2% 9.2% 25.1% 120.4% 159.3%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • MJCO outperformed the Software industry which returned 25.1% over the past year.
  • MJCO outperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
MJCO
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Majesco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Majesco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Majesco.

NasdaqGM:MJCO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:MJCO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.119 (1 + (1- 21%) (0.13%))
1.08
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.08 * 5.96%)
9.17%

Discounted Cash Flow Calculation for NasdaqGM:MJCO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Majesco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:MJCO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.17%)
2020 4.54 Est @ -15.84% 4.16
2021 4.08 Est @ -10.27% 3.42
2022 3.82 Est @ -6.37% 2.93
2023 3.68 Est @ -3.64% 2.59
2024 3.61 Est @ -1.73% 2.33
2025 3.60 Est @ -0.39% 2.13
2026 3.62 Est @ 0.55% 1.96
2027 3.66 Est @ 1.2% 1.82
2028 3.72 Est @ 1.66% 1.69
2029 3.80 Est @ 1.98% 1.58
Present value of next 10 years cash flows $24.60
NasdaqGM:MJCO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3.80 × (1 + 2.73%) ÷ (9.17% – 2.73%)
$60.57
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $60.57 ÷ (1 + 9.17%)10
$25.19
NasdaqGM:MJCO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $24.60 + $25.19
$49.79
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $49.79 / 42.92
$1.16
NasdaqGM:MJCO Discount to Share Price
Calculation Result
Value per share (USD) From above. $1.16
Current discount Discount to share price of $9.69
= -1 x ($9.69 - $1.16) / $1.16
-735.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Majesco is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Majesco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Majesco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:MJCO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.19
NasdaqGM:MJCO Share Price ** NasdaqGM (2019-07-19) in USD $9.69
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 52.37x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Majesco.

NasdaqGM:MJCO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:MJCO Share Price ÷ EPS (both in USD)

= 9.69 ÷ 0.19

52.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Majesco is good value based on earnings compared to the US Software industry average.
  • Majesco is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Majesco's expected growth come at a high price?
Raw Data
NasdaqGM:MJCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 52.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Software Industry PEG Ratio Median Figure of 68 Publicly-Listed Software Companies 3.06x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Majesco, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Majesco's assets?
Raw Data
NasdaqGM:MJCO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.29
NasdaqGM:MJCO Share Price * NasdaqGM (2019-07-19) in USD $9.69
United States of America Software Industry PB Ratio Median Figure of 224 Publicly-Listed Software Companies 6.01x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NasdaqGM:MJCO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:MJCO Share Price ÷ Book Value per Share (both in USD)

= 9.69 ÷ 2.29

4.23x

* Primary Listing of Majesco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Majesco is good value based on assets compared to the US Software industry average.
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Value checks
We assess Majesco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Majesco has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18%
Expected Software industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Majesco expected to grow at an attractive rate?
  • Unable to compare Majesco's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Majesco's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Majesco's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:MJCO Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 18%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:MJCO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:MJCO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NasdaqGM:MJCO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 140 8 7
2018-12-31 136 10 6
2018-09-30 132 12 1
2018-06-30 129 7 -2
2018-03-31 123 -3 -5
2017-12-31 118 -3 -6
2017-09-30 116 -1 -3
2017-06-30 117 -2 -2
2017-03-31 122 10 -1
2016-12-31 126 14 -2
2016-09-30 126 8 -3
2016-06-30 123 3 -4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Majesco is high growth as no earnings estimate data is available.
  • Unable to determine if Majesco is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:MJCO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Majesco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:MJCO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NasdaqGM:MJCO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.19
2018-12-31 0.17
2018-09-30 0.03
2018-06-30 -0.06
2018-03-31 -0.14
2017-12-31 -0.17
2017-09-30 -0.08
2017-06-30 -0.06
2017-03-31 -0.03
2016-12-31 -0.05
2016-09-30 -0.08
2016-06-30 -0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Majesco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Majesco's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Majesco's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  3. Majesco's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Majesco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Majesco has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Majesco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Majesco's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Majesco's year on year earnings growth rate has been positive over the past 5 years.
  • Majesco has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Majesco has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
Majesco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Majesco Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:MJCO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 139.86 6.93 39.15 19.29
2018-12-31 135.94 6.13 38.64 18.89
2018-09-30 132.30 1.23 39.22 18.60
2018-06-30 128.61 -2.32 40.20 18.14
2018-03-31 122.99 -5.00 41.02 17.25
2017-12-31 118.19 -6.23 40.46 16.89
2017-09-30 116.44 -2.96 40.74 16.31
2017-06-30 117.14 -2.02 40.96 16.64
2017-03-31 121.77 -0.92 41.31 17.24
2016-12-31 125.92 -1.66 42.39 17.65
2016-09-30 125.53 -3.00 42.44 17.94
2016-06-30 122.69 -4.19 41.28 17.64
2016-03-31 113.30 -3.56 38.20 16.27
2015-12-31 102.71 -2.96 33.11 14.11
2015-09-30 94.70 -0.46 27.60 12.23
2015-06-30 85.56 0.29 22.61 10.70
2015-03-31 79.28 -0.67 21.00 10.34
2014-12-31 76.11 -0.68 21.91 10.73
2014-03-31 82.84 2.90 22.75 10.10
2013-03-31 91.03 0.59 26.01 7.91

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Majesco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Majesco used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Majesco has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Majesco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Majesco has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Majesco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Majesco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Majesco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Majesco's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Majesco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 162.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Majesco Company Filings, last reported 3 months ago.

NasdaqGM:MJCO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 99.28 0.55 39.44
2018-12-31 53.06 13.74 14.48
2018-09-30 48.06 11.59 15.06
2018-06-30 45.67 13.31 11.71
2018-03-31 45.17 13.64 9.15
2017-12-31 43.70 12.95 11.47
2017-09-30 45.20 17.98 10.97
2017-06-30 45.13 17.72 10.27
2017-03-31 45.85 12.56 12.46
2016-12-31 45.82 17.20 19.54
2016-09-30 45.46 17.00 13.34
2016-06-30 45.03 17.70 14.86
2016-03-31 45.56 13.75 6.15
2015-12-31 46.10 12.01 9.73
2015-09-30 46.92 9.75 5.95
2015-06-30 48.81 11.50 9.27
2015-03-31 20.56 4.47 6.53
2014-12-31 20.69 0.00 3.71
2014-03-31 20.54 0.00 10.04
2013-03-31 16.43 0.00 9.47
  • Majesco's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.3% vs 0.6% today).
  • Debt is well covered by operating cash flow (1405.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 29x coverage).
X
Financial health checks
We assess Majesco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Majesco has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Majesco dividends.
If you bought $2,000 of Majesco shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Majesco's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Majesco's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:MJCO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:MJCO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Majesco has not reported any payouts.
  • Unable to verify if Majesco's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Majesco's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Majesco has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Majesco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Majesco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Majesco has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Adam Elster
AGE 51
TENURE AS CEO 0.8 years
CEO Bio

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 Officer of CA, Inc. from May 3, 2018 to August 17, 2018. Mr. Elster was President of Global Field Operations at CA, Inc./CA Technologies since July 26, 2016 until May 3, 2018. He led high-performing teams in all aspects of sales, services, support and operations. He was responsible for revenue across all geographies, business units, channels, digital sales, renewals and services globally. He has a strong background in the technology industry. He served as an Executive Vice President at CA, Inc. since February 2012 until August 2016 and served as Group Executive of Worldwide Sales & Services since January 21, 2014 until August 2016. Mr. Elster served as an Executive Vice President and Group Executive of Mainframe & Customer Success Group at CA, Inc. from February 2012 to January 21, 2014. He was responsible for innovation and growth of CA, Inc. mainframe business and customer success, which includes customer support, portfolio management and integration of acquisitions. In addition, he also leads a business transformation program that focuses on organizational alignment initiatives with CA, Inc. business strategy to meet long-term goals and objectives. Since joining the CA, Inc. in 1999, Mr. Elster held a number of senior management positions, including Executive Vice President of Global Business Organization & Business Transformation from August 2011 to February 2012, General Manager of CA Services, Support & Education from June 2011 to August 2011, Corporate Senior Vice President and General Manager of CA Services from November 2009 to June 2011 and Senior Vice President of Area Sales Manager for the Eastern United States from July 2007 to November 2009. He received a Bachelor of Arts in psychology and his Master of Sciences in management and information systems from New York University.

CEO Compensation
  • Insufficient data for Adam to compare compensation growth.
  • Insufficient data for Adam to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Majesco management team in years:

4.4
Average Tenure
53
Average Age
  • The tenure for the Majesco management team is about average.
Management Team

Ketan Mehta

TITLE
Co-Founder & Chairman
COMPENSATION
$515K
AGE
61
TENURE
37.5 yrs

Manish Shah

TITLE
President & Chief Product Officer
COMPENSATION
$496K
AGE
48
TENURE
0.3 yrs

Ed Ossie

TITLE
Chief Operating Officer
COMPENSATION
$483K
AGE
65
TENURE
4.5 yrs

Adam Elster

TITLE
CEO & Director
AGE
51
TENURE
0.8 yrs

Wayne Locke

TITLE
Chief Financial Officer
AGE
56
TENURE
0.3 yrs

Lori Stanley

TITLE
General Counsel & Corporate Secretary
AGE
53
TENURE
8 yrs

Denise Garth

TITLE
Senior Vice President of Strategic Marketing
TENURE
4.2 yrs

John Johansen

TITLE
Senior Vice President
TENURE
4.4 yrs

Robert Buhrle

TITLE
Senior Vice President of Consulting

Prateek Kumar

TITLE
Executive Vice President and P&C Industry Leader
COMPENSATION
$425K
AGE
43
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the Majesco board of directors in years:

4.1
Average Tenure
61
Average Age
  • The tenure for the Majesco board of directors is about average.
Board of Directors

Ketan Mehta

TITLE
Co-Founder & Chairman
COMPENSATION
$515K
AGE
61
TENURE
0.8 yrs

Adam Elster

TITLE
CEO & Director
AGE
51
TENURE
0.8 yrs

Earl Gallegos

TITLE
Vice Chairman of the Board
COMPENSATION
$62K
AGE
61
TENURE
4.5 yrs

Arun Maheshwari

TITLE
Director
COMPENSATION
$79K
AGE
74
TENURE
4.5 yrs

Atul Kanagat

TITLE
Director
COMPENSATION
$60K
AGE
64
TENURE
6.5 yrs

Sudhakar Ram

TITLE
Director
AGE
59
TENURE
4.5 yrs

Bob Restrepo

TITLE
Director
COMPENSATION
$57K
AGE
68
TENURE
3.9 yrs

Steve Isaac

TITLE
Director
COMPENSATION
$57K
AGE
67
TENURE
4.1 yrs

Rajesh Hukku

TITLE
Director
AGE
61
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Dec 18 Buy Robert Restrepo Individual 11. Dec 18 11. Dec 18 25,000 $6.23 $155,750
X
Management checks
We assess Majesco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Majesco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Majesco's (NASDAQ:MJCO) Share Price Gain of 67% Match Its Business Performance?

But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. … Just take a look at Majesco (NASDAQ:MJCO), which is up 67%, over three years, soundly beating the market return of 42% (not including dividends). … Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Simply Wall St -

Majesco (NASDAQ:MJCO) Is Employing Capital Very Effectively

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Company Info

Description

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 Majesco Limited.

Details
Name: Majesco
MJCO
Exchange: NasdaqGM
Founded: 1992
$415,858,685
42,916,273
Website: http://www.majesco.com
Address: Majesco
412 Mount Kemble Avenue,
Suite 110C,
Morristown,
New Jersey, 07960,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM MJCO Common Stock Nasdaq Global Market US USD 30. Jun 2015
Number of employees
Current staff
Staff numbers
2,682
Majesco employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 01:16
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2017/05/02
Last earnings filing: 2019/05/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.