NasdaqCM:MTSL

Stock Analysis Report

Mer Telemanagement Solutions

Executive Summary

Mer Telemanagement Solutions Ltd. provides solutions for telecommunications expense management (TEM), and CA and enterprise mobility management worldwide.

Rewards

Earnings have grown 15.1% per year over the past 5 years

Risk Analysis

Does not have a meaningful market cap ($4M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Mer Telemanagement Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTSL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

MTSL

1.4%

US Software

0.06%

US Market


1 Year Return

-42.0%

MTSL

43.7%

US Software

19.4%

US Market

Return vs Industry: MTSL underperformed the US Software industry which returned 43.7% over the past year.

Return vs Market: MTSL underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

MTSLIndustryMarket
7 Day-0.2%1.4%0.06%
30 Day-2.7%8.2%1.1%
90 Day2.3%19.0%8.9%
1 Year-42.0%-42.0%45.2%43.7%21.9%19.4%
3 Year-60.9%-60.9%154.0%143.2%48.9%39.3%
5 Year-75.1%-75.1%224.9%201.4%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mer Telemanagement Solutions undervalued compared to its fair value and its price relative to the market?

2x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: MTSL is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: MTSL 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 MTSL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTSL is good value based on its PB Ratio (2x) compared to the US Software industry average (6x).


Next Steps

Future Growth

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

11.3%

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 Mer Telemanagement Solutions 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 Mer Telemanagement Solutions performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTSL is currently unprofitable.

Growing Profit Margin: MTSL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTSL is unprofitable, but has reduced losses over the past 5 years at a rate of 15.1% per year.

Accelerating Growth: Unable to compare MTSL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTSL is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: MTSL has a negative Return on Equity (-6.71%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mer Telemanagement Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: MTSL's short term assets ($3.2M) do not cover its short term liabilities ($3.3M).

Long Term Liabilities: MTSL's short term assets ($3.2M) exceed its long term liabilities ($953.0K).


Debt to Equity History and Analysis

Debt Level: MTSL is debt free.

Reducing Debt: MTSL has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if MTSL's debt is 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: Insufficient data to determine if MTSL has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Mer Telemanagement Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.0yrs

Average management tenure


CEO

Roy Hess (57yo)

2.3yrs

Tenure

US$391,807

Compensation

Mr. Roy Hess serves as Deputy Chief Executive Officer and Chief Operating officer at C. Mer Industries Ltd. since July 2019. He has been the Chief Executive Officer of MER Telemanagement Solutions Ltd. sin ...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD391.81K) is about average for companies of similar size in the US market ($USD519.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roy Hess
Chief Executive Officer2.3yrsUS$391.81kno data
Ofira Bar
Chief Financial Officer1.8yrsUS$101.41kno data
Roei Soudai
Vice President of Marketing & Product Management2.3yrsno datano data
Oren Kaplan
Vice President of Sales1.1yrsno datano data

2.0yrs

Average Tenure

Experienced Management: MTSL's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Haim Mer
Chairman of the Board of Directors24.2yrsUS$87.50k14.99% $587.2k
Varda Trivaks
Outside Director11.5yrsno datano data
Scott Burell
Independent Director1.3yrsno datano data
Isaac Onn
Independent Director1.3yrsno datano data
Ronen Twito
Outside Director1.9yrsno datano data

1.9yrs

Average Tenure

62yo

Average Age

Experienced Board: MTSL's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 48.4%.


Top Shareholders

Company Information

Mer Telemanagement Solutions Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mer Telemanagement Solutions Ltd.
  • Ticker: MTSL
  • Exchange: NasdaqCM
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.918m
  • Shares outstanding: 3.59m
  • Website: https://www.mtsint.com

Number of Employees


Location

  • Mer Telemanagement Solutions Ltd.
  • 14 Hatidhar Street
  • Ra’anana
  • 43665
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTSLNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDMay 1997
MT2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1997

Biography

Mer Telemanagement Solutions Ltd. provides solutions for telecommunications expense management (TEM), and CA and enterprise mobility management worldwide. It offers TEM suite software platform that helps organizations to reduce operational expenses, enhance productivity, and optimize networks and services associated with communications networks and information technology (IT). The company also provides TEM services, such as Map-to-Wins, a strategic consulting approach for TEM solution; and consulting services, including invoice, inventory audit and recovery, contract negotiations and strategic sourcing, discovery and road mapping, process diagnosis and solution design, and wireless optimization services, as well as creation and implementation of IT governance, risk, and compliance policies. In addition, the company offers cloud and managed services; and converged billing solutions, including applications for charging and invoicing customers, and interconnect billing and partner revenue management services, which are implemented by wireless providers, voice over Internet protocol, Internet protocol television, MVNO, and content service providers. Further, it provides implementation and maintenance services. The company sells its solutions through original equipment manufacturers, distribution channels, and direct sales force. Mer Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Ra’anana, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:27
End of Day Share Price2020/02/18 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.