NYSE:MODN

Stock Analysis Report

Executive Summary

Model N, Inc. provides revenue management cloud solutions for the life sciences and technology companies.

Snowflake

Fundamentals

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.7%

MODN

1.2%

US Software

-0.2%

US Market


1 Year Return

115.3%

MODN

37.4%

US Software

16.1%

US Market

Return vs Industry: MODN exceeded the US Software industry which returned 37.4% over the past year.

Return vs Market: MODN exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

MODNIndustryMarket
7 Day-5.7%1.2%-0.2%
30 Day5.9%11.6%3.7%
90 Day9.0%7.5%8.5%
1 Year115.3%115.3%39.5%37.4%18.7%16.1%
3 Year235.7%235.7%126.6%117.7%46.9%37.4%
5 Year186.8%186.8%173.6%154.0%61.8%44.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MODN ($29.54) is trading above our estimate of fair value ($14.73)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MODN is overvalued based on its PB Ratio (18.5x) compared to the US Software industry average (6x).


Next Steps

Future Growth

How is Model N forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MODN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MODN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MODN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MODN's revenue (9.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MODN's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MODN's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Model N performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MODN has high quality earnings.

Growing Profit Margin: MODN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MODN is unprofitable, and losses have increased over the past 5 years at a rate of -3.8% per year.

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

Earnings vs Industry: MODN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (25.8%).


Return on Equity

High ROE: MODN has a negative Return on Equity (-36.59%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Model N's financial position?


Financial Position Analysis

Short Term Liabilities: MODN's short term assets ($94.5M) exceeds its short term liabilities ($76.3M)

Long Term Liabilities: MODN's short term assets ($94.5M) exceeds its long term liabilities (40.5M)


Debt to Equity History and Analysis

Debt Level: MODN's debt to equity ratio (84%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: MODN's debt is covered by short term assets (assets are 2.1x debt).


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: Whilst unprofitable MODN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MODN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 104.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.4yrs

Average management tenure


CEO

Jason Blessing (47yo)

1.5yrs

Tenure

US$5,934,041

Compensation

Mr. Jason Blessing serves as Chief Executive Officer and Director of Model N, Inc. since effective May 10, 2018. Mr. Blessing served as Senior Vice President of product development at Oracle and oversees t ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD5.93M) is above average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

1.4yrs

Average Tenure

47yo

Average Age

Experienced Management: MODN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

55yo

Average Age

Experienced Board: MODN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MODN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$40,32520 Nov 19
Laura Selig
EntityIndividual
Shares1,250
Max PriceUS$32.26
SellUS$69,05320 Nov 19
Laura Selig
EntityIndividual
Shares2,209
Max PriceUS$31.26
SellUS$52,26720 Nov 19
Mark Anderson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Services
Shares1,672
Max PriceUS$31.26
SellUS$522,13620 Nov 19
Jason Blessing
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares16,703
Max PriceUS$31.26
SellUS$123,94620 Nov 19
David Barter
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares3,965
Max PriceUS$31.26
SellUS$70,87620 Aug 19
Mark Anderson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Services
Shares2,600
Max PriceUS$27.26
SellUS$112,99517 Aug 19
Jason Blessing
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares4,326
Max PriceUS$26.12
SellUS$39,75517 Aug 19
David Barter
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares1,522
Max PriceUS$26.12
SellUS$14,36617 Aug 19
Mark Anderson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Services
Shares550
Max PriceUS$26.12
SellUS$149,82417 Aug 19
Neeraj Gokhale
EntityIndividual
Shares5,736
Max PriceUS$26.12
SellUS$151,70617 May 19
David Barter
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares8,031
Max PriceUS$18.89
SellUS$227,09617 May 19
Jason Blessing
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares12,022
Max PriceUS$18.89
SellUS$41,91717 May 19
Mark Anderson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Services
Shares2,219
Max PriceUS$18.89
SellUS$14,73417 May 19
Neeraj Gokhale
EntityIndividual
Shares780
Max PriceUS$18.89
SellUS$74,36014 May 19
Mark Anderson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Services
Shares4,000
Max PriceUS$18.59
SellUS$206,66523 Feb 19
Mark Anderson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Services
Shares12,114
Max PriceUS$17.06
SellUS$131,78923 Feb 19
Neeraj Gokhale
EntityIndividual
Shares7,725
Max PriceUS$17.06
SellUS$418,27723 Feb 19
Russell Mellott
EntityIndividual
Shares24,518
Max PriceUS$17.06
SellUS$182,04723 Feb 19
David Barter
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares10,671
Max PriceUS$17.06
SellUS$220,57122 Feb 19
Alan Henricks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,914
Max PriceUS$17.08
SellUS$15,59322 Feb 19
Neeraj Gokhale
EntityIndividual
Shares945
Max PriceUS$16.50
SellUS$28,59522 Feb 19
Jason Blessing
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,733
Max PriceUS$16.50
SellUS$43,89022 Feb 19
Mark Anderson
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Services
Shares2,660
Max PriceUS$16.50
SellUS$21,25222 Feb 19
David Barter
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares1,288
Max PriceUS$16.50
SellUS$87,76422 Feb 19
Russell Mellott
EntityIndividual
Shares5,319
Max PriceUS$16.50
BuyUS$236,45410 Dec 18
Joshua Schwartz
EntityIndividual
Shares16,507
Max PriceUS$15.08
BuyUS$010 Dec 18
Nic Liberman
EntityIndividual
Shares532,327
Max PriceUS$16.32

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Management Team

  • Mark Anderson (58yo)

    Senior Vice President of Global Services

    • Tenure: 3.6yrs
    • Compensation: US$841.82k
  • Jason Blessing (47yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$5.93m
  • Chanan Greenberg

    Senior VP & GM of High Tech

    • Tenure: 2.5yrs
  • Suresh Kannan

    Senior VP & Chief Product Officer

    • Tenure: 0.2yrs
  • David Barter (47yo)

    Senior VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$1.10m
  • Chris Lyon

    Chief Revenue Officer

    • Tenure: 0.6yrs
  • Errol Hunter

    Senior VP & General Counsel

    • Tenure: 0yrs
  • Dave Michaud

    Chief Marketing Officer

    • Tenure: 0yrs
  • Rehmann Rayani

    Vice President of Corporate Strategy

    • Tenure: 1.3yrs
  • Laura Selig (47yo)

    Senior VP & Chief People Officer

    • Tenure: 1yrs

Board Members

  • Tim Adams (59yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$161.86k
  • Dave Yarnold (59yo)

    Independent Director

    • Tenure: 0.9yrs
  • Alan Henricks (68yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$160.08k
  • Scott Reese

    Director

    • Tenure: 0.5yrs
  • Bal Dail (51yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$150.81k
  • Jason Blessing (47yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$5.93m
  • Melissa Fisher (46yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$153.50k

Company Information

Model N, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Model N, Inc.
  • Ticker: MODN
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$974.674m
  • Shares outstanding: 33.00m
  • Website: https://www.modeln.com

Number of Employees


Location

  • Model N, Inc.
  • 777 Mariners Island Boulevard
  • Suite 300
  • San Mateo
  • California
  • 94404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MODNNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2013
2MDDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2013
0K24LSE (London Stock Exchange)YesCommon StockGBUSDMar 2013

Biography

Model N, Inc. provides revenue management cloud solutions for the life sciences and technology companies. The company’s cloud-based revenue management solutions include Revenue Cloud for Pharma, Revenue Cl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/23 00:50
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.