NasdaqGS:TYPE

Stock Analysis Report

Monotype Imaging Holdings

Executive Summary

Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, Europe, the Middle East, Africa, Japan, and internationally.


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Monotype Imaging Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.03%

TYPE

9.6%

US Software

10.5%

US Market


1 Year Return

5.9%

TYPE

8.0%

US Software

-11.5%

US Market

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

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


Shareholder returns

TYPEIndustryMarket
7 Day0.03%9.6%10.5%
30 Day0.3%-7.8%-15.4%
90 Day14.7%-7.1%-21.4%
1 Year8.0%5.9%9.2%8.0%-9.6%-11.5%
3 Year-0.2%-6.5%100.6%92.0%12.6%5.4%
5 Year-20.4%-27.8%170.4%151.5%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Monotype Imaging Holdings undervalued compared to its fair value and its price relative to the market?

32.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TYPE ($19.84) is trading above our estimate of fair value ($18.34)

Significantly Below Fair Value: TYPE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TYPE is good value based on its PE Ratio (32.3x) compared to the Software industry average (47.3x).

PE vs Market: TYPE is poor value based on its PE Ratio (32.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TYPE is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: TYPE is good value based on its PB Ratio (2.4x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Monotype Imaging Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TYPE's forecast earnings growth (17.3% per year) is above the savings rate (2.7%).

Earnings vs Market: TYPE's earnings (17.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: TYPE's earnings are forecast to grow, but not significantly.

Revenue vs Market: TYPE's revenue (3.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: TYPE's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TYPE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Monotype Imaging Holdings performed over the past 5 years?

-24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TYPE has high quality earnings.

Growing Profit Margin: TYPE's current net profit margins (10.1%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: TYPE's earnings have declined by -24% per year over the past 5 years.

Accelerating Growth: TYPE's earnings growth over the past year (110.5%) exceeds its 5-year average (-24% per year).

Earnings vs Industry: TYPE earnings growth over the past year (110.5%) exceeded the Software industry 20.8%.


Return on Equity

High ROE: TYPE's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Monotype Imaging Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TYPE's short term assets ($115.4M) exceed its short term liabilities ($50.3M).

Long Term Liabilities: TYPE's short term assets ($115.4M) do not cover its long term liabilities ($121.6M).


Debt to Equity History and Analysis

Debt Level: TYPE's debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TYPE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TYPE's debt is well covered by operating cash flow (56.3%).

Interest Coverage: TYPE's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: TYPE's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Monotype Imaging Holdings's current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TYPE's dividend (2.34%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: TYPE's dividend (2.34%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TYPE has been paying a dividend for less than 10 years.

Growing Dividend: TYPE's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), TYPE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Scott Landers (48yo)

3.75s

Tenure

US$4,936,753

Compensation

Mr. Scott E. Landers has been the Chief Executive Officer and President of Monotype Imaging Holdings Inc. since January 1, 2016. Mr. Landers served as the Chief Financial Officer and Treasurer of Monotype  ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD4.94M) is above average for companies of similar size in the US market ($USD2.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Landers
CEO, President & Director3.75yrsUS$4.94m0.95% $7.6m
Steven Martin
Executive VP & CTO1.75yrsUS$1.19m0.24% $1.9m
Janet Dunlap
Executive VP1.75yrsUS$1.84m0.40% $3.2m
Benjamin W. Semmes
Executive VP & Chief Revenue Officer1.75yrsUS$2.09m0.41% $3.2m
Robert Givens
Co-Founder & Chairman Emeritus5.42yrsUS$28.33kno data
Christopher Brooks
Interim CFO0.25yrno data0.032% $254.7k
Brett Zucker
Executive VP & Chief Marketing Officer1.75yrsno data0.17% $1.4m
John McCallum
Senior Vice President of EMEA Sales2.75yrsUS$812.22kno data
Christopher Roberts
Senior Vice President of Go to Market Operations2.75yrsno datano data
Lisa Landa
Senior Vice President of Corporate Marketing4.75yrsno datano data

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: TYPE's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Landers
CEO, President & Director3.75yrsUS$4.94m0.95% $7.6m
Robert Givens
Co-Founder & Chairman Emeritus5.42yrsUS$28.33kno data
Pamela Lenehan
Independent Chairman of the Board1.42yrsUS$247.00k0.23% $1.8m
Peter Simone
Independent Director13.58yrsUS$227.00k0.11% $861.6k
Eileen Campbell
Independent Director1.5yrsUS$298.77k0.046% $363.8k
Roger Heinen
Independent Director13.08yrsUS$229.50k0.098% $780.8k
Timothy Yeaton
Independent Director7.25yrsUS$222.67k0.12% $947.7k
Denise Warren
Independent Director1.5yrsUS$303.19k0.046% $363.8k
Gay Gaddis
Independent Director5.67yrsUS$214.50k0.093% $737.9k

5.4yrs

Average Tenure

62yo

Average Age

Experienced Board: TYPE's board of directors are considered experienced (5.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Monotype Imaging Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monotype Imaging Holdings Inc.
  • Ticker: TYPE
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$796.491m
  • Shares outstanding: 40.15m
  • Website: https://www.monotype.com

Number of Employees


Location

  • Monotype Imaging Holdings Inc.
  • 600 Unicorn Park Drive
  • Woburn
  • Massachusetts
  • 1801
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TYPENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2007
MNYDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2007

Biography

Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, Europe, the Middle East, Africa, Japan, and internationally. The company’s solutions include type intellectual property (IP), enterprise software for visual content marketing solutions, custom type design services, and tools and technologies through direct sales channels, e-commerce platforms, and partner platforms. It also provides software technology and type IP solutions that ensure a consistent user experience across digital devices and display applications. The company’s solutions enhances the visual expression of the makers of a range of devices, including laser printers, digital copiers and mobile devices, and others, as well as provide a text experience in various software applications and operating systems. It license its design assets and technologies to creative professionals, marketers, consumer device manufacturers, and ISVs and developers. Monotype Imaging Holdings Inc. is headquartered in Woburn, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 00:22
End of Day Share Price2019/10/10 00:00
Earnings2019/06/30
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.