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Model N

NYSE:MODN
Snowflake Description

Adequate balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MODN
NYSE
$563M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Model N, Inc. provides revenue management cloud solutions for the life sciences and technology companies. The last earnings update was 70 days ago. More info.


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MODN Share Price and Events
7 Day Returns
4.2%
NYSE:MODN
1.4%
US Software
0.4%
US Market
1 Year Returns
1.4%
NYSE:MODN
28%
US Software
6.8%
US Market
MODN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Model N (MODN) 4.2% 5.7% 21.1% 1.4% 65.7% 87.5%
US Software 1.4% 3.3% 16.5% 28% 108.8% 149.3%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • MODN underperformed the Software industry which returned 28% over the past year.
  • MODN underperformed the Market in United States of America which returned 6.8% over the past year.
Price Volatility
MODN
Industry
5yr Volatility vs Market
Related Companies

MODN Value

 Is Model N 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 Model N 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 Model N.

NYSE:MODN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
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 NYSE:MODN
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 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (9.51%))
1.152
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.152 * 5.96%)
9.59%

Discounted Cash Flow Calculation for NYSE:MODN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Model N 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.

NYSE:MODN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.59%)
2019 9.53 Analyst x4 8.70
2020 14.83 Analyst x4 12.35
2021 18.35 Analyst x2 13.94
2022 21.22 Est @ 15.66% 14.71
2023 23.72 Est @ 11.78% 15.00
2024 25.87 Est @ 9.06% 14.93
2025 27.72 Est @ 7.16% 14.60
2026 29.34 Est @ 5.83% 14.10
2027 30.78 Est @ 4.9% 13.50
2028 32.09 Est @ 4.25% 12.84
Present value of next 10 years cash flows $134.67
NYSE:MODN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $32.09 × (1 + 2.73%) ÷ (9.59% – 2.73%)
$480.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $480.30 ÷ (1 + 9.59%)10
$192.17
NYSE:MODN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $134.67 + $192.17
$326.83
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $326.83 / 31.54
$10.36
NYSE:MODN Discount to Share Price
Calculation Result
Value per share (USD) From above. $10.36
Current discount Discount to share price of $17.85
= -1 x ($17.85 - $10.36) / $10.36
-72.3%

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

  • The current share price of Model N 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 Model N's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Model N's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MODN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.90
NYSE:MODN Share Price ** NYSE (2019-04-16) in USD $17.85
United States of America Software Industry PE Ratio Median Figure of 82 Publicly-Listed Software Companies 55.79x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

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

** Primary Listing of Model N.

NYSE:MODN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MODN Share Price ÷ EPS (both in USD)

= 17.85 ÷ -0.90

-19.92x

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

  • Model N is loss making, we can't compare its value to the US Software industry average.
  • Model N is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Model N's expected growth come at a high price?
Raw Data
NYSE:MODN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -19.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
18.7%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.4x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*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 Model N, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Model N's assets?
Raw Data
NYSE:MODN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $1.59
NYSE:MODN Share Price * NYSE (2019-04-16) in USD $17.85
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.78x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NYSE:MODN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MODN Share Price ÷ Book Value per Share (both in USD)

= 17.85 ÷ 1.59

11.23x

* Primary Listing of Model N.

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

  • Model N is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Model N'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. Model N has a total score of 0/6, 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.

MODN Future Performance

 How is Model N expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

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
18.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Model N expected to grow at an attractive rate?
  • Unable to compare Model N's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Model N's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Model N's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MODN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MODN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 18.7%
NYSE:MODN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 8.6%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*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
NYSE:MODN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MODN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 173 20 -13 3
2020-09-30 156 15 -15 8
2019-09-30 141 10 -17 8
NYSE:MODN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 151 8 -28
2018-09-30 155 3 -28
2018-06-30 154 4 -34
2018-03-31 148 -3 -29
2017-12-31 142 -13 -37
2017-09-30 131 -12 -40
2017-06-30 124 -21 -38
2017-03-31 118 -18 -36
2016-12-31 111 -13 -33
2016-09-30 107 -12 -33
2016-06-30 104 -11 -30
2016-03-31 100 -10 -27

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Model N is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Model N's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
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
NYSE:MODN 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 8 Analyst Estimates (S&P Global) See Below

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

NYSE:MODN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 -0.37 -0.35 -0.39 2.00
2020-09-30 -0.46 -0.29 -0.60 6.00
2019-09-30 -0.53 -0.37 -0.63 7.00
NYSE:MODN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.90
2018-09-30 -0.93
2018-06-30 -1.13
2018-03-31 -0.97
2017-12-31 -1.28
2017-09-30 -1.38
2017-06-30 -1.35
2017-03-31 -1.30
2016-12-31 -1.19
2016-09-30 -1.21
2016-06-30 -1.12
2016-03-31 -1.03

*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 Model N will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Model N'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.
Model N has a total score of 1/6, 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.

MODN Past Performance

  How has Model N 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 Model N'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.
  • Model N does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Model N's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Model N's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
Model N'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 Model N Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MODN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 150.64 -27.68 74.65 30.76
2018-09-30 154.63 -28.21 77.66 32.42
2018-06-30 153.52 -33.61 77.33 32.62
2018-03-31 148.15 -28.61 69.79 33.27
2017-12-31 142.17 -37.20 76.72 34.16
2017-09-30 131.17 -39.55 75.42 31.06
2017-06-30 124.07 -38.28 74.57 29.36
2017-03-31 117.75 -36.49 71.82 27.16
2016-12-31 110.55 -32.91 63.80 24.40
2016-09-30 106.97 -33.11 62.01 23.71
2016-06-30 103.84 -30.31 59.31 22.38
2016-03-31 99.54 -27.45 56.29 20.63
2015-12-31 96.15 -23.14 53.94 18.74
2015-09-30 93.77 -19.64 52.15 17.91
2015-06-30 88.67 -20.61 51.16 17.53
2015-03-31 84.32 -21.62 50.16 17.90
2014-12-31 82.30 -22.06 48.31 18.30
2014-09-30 81.76 -20.88 45.67 18.71
2014-06-30 89.24 -14.21 42.14 18.47
2014-03-31 97.21 -5.87 39.21 17.72
2013-12-31 101.12 -2.74 37.69 17.52
2013-09-30 101.90 -0.93 37.21 16.77
2013-06-30 97.34 -1.30 35.28 16.88
2013-03-31 92.86 -4.07 34.11 17.31
2012-12-31 88.54 -6.33 33.06 17.64
2012-09-30 84.26 -5.69 30.22 17.70

*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.
  • It is difficult to establish if Model N has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Model N has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Model N improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Model N'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.
Model N has a total score of 0/6, 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.

MODN Health

 How is Model N'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 Model N's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Model N is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Model N's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Model N'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 1.6x 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 Model N Company Filings, last reported 3 months ago.

NYSE:MODN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 50.12 53.57 52.18
2018-09-30 40.03 53.70 56.70
2018-06-30 38.62 58.84 57.65
2018-03-31 42.18 57.68 55.23
2017-12-31 40.70 57.44 48.32
2017-09-30 41.26 57.21 57.56
2017-06-30 45.17 57.03 51.83
2017-03-31 52.16 56.77 53.68
2016-12-31 60.40 0.00 52.45
2016-09-30 66.20 0.00 66.15
2016-06-30 68.41 0.00 70.13
2016-03-31 73.03 0.00 70.00
2015-12-31 77.92 0.00 70.35
2015-09-30 83.06 0.00 91.02
2015-06-30 84.03 0.00 93.81
2015-03-31 86.49 0.00 93.16
2014-12-31 87.19 0.00 96.41
2014-09-30 88.96 0.00 101.01
2014-06-30 91.24 0.03 103.17
2014-03-31 95.16 0.10 101.72
2013-12-31 93.94 0.19 102.79
2013-09-30 93.62 0.32 103.35
2013-06-30 91.21 0.46 105.14
2013-03-31 87.56 4.50 109.09
2012-12-31 -10.39 5.28 12.70
2012-09-30 -10.49 6.03 15.77
  • Model N's level of debt (106.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.2% vs 106.9% today).
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.

  • Whilst loss making Model N has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Model N has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -60.9% per year.
X
Financial health checks
We assess Model N'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. Model N has a total score of 4/6, 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.

MODN Dividends

 What is Model N'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 Model N dividends.
If you bought $2,000 of Model N 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 Model N's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Model N'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
NYSE:MODN 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 8 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 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 3.6%

Industry and Market average data is calculated daily.

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

NYSE:MODN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30
2020-09-30
2019-09-30

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

  • Unable to perform a dividend volatility check as Model N has not reported any payouts.
  • Unable to verify if Model N's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Model N's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Model N 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 Model N'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 Model N afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Model N 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.

MODN Management

 What is the CEO of Model N'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
Jason Blessing
COMPENSATION $5,934,041
AGE 46
TENURE AS CEO 0.9 years
CEO Bio

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 the product strategy and development of its cloud-based talent management applications. Mr. Blessing served as the Chief Executive Officer of Plex Systems, Inc. since January 2013 until December 2017. Mr. Blessing served as an Executive Vice President, Products and Technology at Taleo Corp. Mr. Blessing served as Senior Vice President - Products and Technology of Taleo Corp. since July, 2010. Mr. Blessing served as Group Vice President and General Manager for Small and Medium Business (SMB) Business Unit of Taleo Corp. since April 30, 2007. Mr. Blessing held a number of executive positions at Taleo, an HR cloud company, as well as several executive positions at PeopleSoft after starting his career with PricewaterhouseCoopers LLP’s management consulting practice. Mr. Blessing was responsible for strategy, sales, marketing, services, support and product development for all solutions targeted at the SMB market including the Taleo Business Edition(TM) and Taleo Hourly Express(TM) product lines. Prior to Taleo, Mr. Blessing served as a Regional Vice President in the small and medium business unit of Oracle Consulting with management responsibility for a number of US and Canadian regions. In this capacity, he was responsible for managing the direct and indirect sales force as well as client delivery and satisfaction. He served as a Director at Plex Systems, Inc. until October 9, 2017. Mr. Blessing should serve as a Director based on his position as Chief Executive Officer of Model N, Inc. and his understanding of the software industry. He has a deep technical background and understanding of product development and product lifecycles through more than a decade of experience in consulting at both PeopleSoft and Price Waterhouse. His services experience includes participation in a number of large ERP system rollouts and management responsibility for global software implementations. He has been a Member of Advisory Board at Bunchball Inc. since October 2012. Mr. Blessing holds a B.A. from the University of Michigan.

CEO Compensation
  • Insufficient data for Jason to compare compensation growth.
  • Jason's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Model N management team in years:

1.5
Average Tenure
46
Average Age
  • The average tenure for the Model N management team is less than 2 years, this suggests a new team.
Management Team

Jason Blessing

TITLE
CEO & Director
COMPENSATION
$6M
AGE
46
TENURE
0.9 yrs

David Barter

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
46
TENURE
1.9 yrs

Mark Anderson

TITLE
Senior Vice President of Global Services
COMPENSATION
$842K
AGE
57
TENURE
3 yrs

Neeraj Gokhale

TITLE
Senior VP & Chief Product Officer
COMPENSATION
$812K
AGE
50
TENURE
1.7 yrs

Errol Hunter

TITLE
Senior VP & General Counsel

Leah Allen

TITLE
Vice President of Marketing
TENURE
1.4 yrs

Laura Selig

TITLE
Senior VP & Chief People Officer
AGE
46
TENURE
0.4 yrs

Chanan Greenberg

TITLE
Senior VP & GM of High Tech
TENURE
1.9 yrs

Chris Lyon

TITLE
Chief Revenue Officer

Rehmann Rayani

TITLE
Vice President of Corporate Strategy
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Model N board of directors in years:

1.6
Average Tenure
53.5
Average Age
  • The average tenure for the Model N board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bal Dail

TITLE
Chairman
COMPENSATION
$151K
AGE
50
TENURE
0.2 yrs

Jason Blessing

TITLE
CEO & Director
COMPENSATION
$6M
AGE
46
TENURE
0.9 yrs

Alan Henricks

TITLE
Director
COMPENSATION
$160K
AGE
67
TENURE
3.9 yrs

Melissa Fisher

TITLE
Director
COMPENSATION
$154K
AGE
45
TENURE
2.7 yrs

Tim Adams

TITLE
Director
COMPENSATION
$162K
AGE
58
TENURE
2.3 yrs

Dave Yarnold

TITLE
Director
AGE
57
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Model N insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. Feb 19 Sell David Barter Individual 22. Feb 19 22. Feb 19 -10,671 $17.06 $-182,047
23. Feb 19 Sell Mark Anderson Individual 22. Feb 19 22. Feb 19 -12,114 $17.06 $-206,665
23. Feb 19 Sell Neeraj Gokhale Individual 22. Feb 19 22. Feb 19 -7,725 $17.06 $-131,789
23. Feb 19 Sell Russell Mellott Individual 22. Feb 19 22. Feb 19 -24,518 $17.06 $-418,277
22. Feb 19 Sell Neeraj Gokhale Individual 19. Feb 19 19. Feb 19 -945 $16.50 $-15,593
22. Feb 19 Sell Russell Mellott Individual 19. Feb 19 19. Feb 19 -5,319 $16.50 $-87,764
22. Feb 19 Sell Alan Henricks Individual 21. Feb 19 21. Feb 19 -12,914 $17.08 $-220,571
22. Feb 19 Sell Jason Blessing Individual 19. Feb 19 19. Feb 19 -1,733 $16.50 $-28,595
22. Feb 19 Sell Mark Anderson Individual 19. Feb 19 19. Feb 19 -2,660 $16.50 $-43,890
22. Feb 19 Sell David Barter Individual 19. Feb 19 19. Feb 19 -1,288 $16.50 $-21,252
10. Dec 18 Buy Laini Liberman Individual 08. Nov 18 15. Nov 18 143,721 $14.17 $1,999,947
10. Dec 18 Buy Justin Liberman Individual 08. Nov 18 12. Nov 18 71,852 $14.17 $999,812
10. Dec 18 Sell Nic Liberman Individual 03. Oct 18 03. Oct 18 -4,000 $15.75 $-63,000
10. Dec 18 Buy Nic Liberman Individual 10. Jan 18 06. Dec 18 532,327 $16.32 $0
10. Dec 18 Buy Joshua Schwartz Individual 01. Feb 18 07. Dec 18 16,507 $15.08 $236,454
20. Nov 18 Sell Russell Mellott Individual 16. Nov 18 16. Nov 18 -211 $13.88 $-2,929
20. Nov 18 Sell Neeraj Gokhale Individual 16. Nov 18 16. Nov 18 -176 $13.88 $-2,443
20. Nov 18 Sell David Barter Individual 16. Nov 18 16. Nov 18 -308 $13.88 $-4,275
20. Nov 18 Sell Mark Anderson Individual 16. Nov 18 16. Nov 18 -169 $13.88 $-2,346
17. Aug 18 Sell Neeraj Gokhale Individual 16. Aug 18 16. Aug 18 -6,456 $16.08 $-103,812
17. Aug 18 Sell Russell Mellott Individual 16. Aug 18 16. Aug 18 -212 $16.08 $-3,409
17. Aug 18 Sell David Barter Individual 16. Aug 18 16. Aug 18 -309 $16.08 $-4,969
17. Aug 18 Sell Mark Anderson Individual 16. Aug 18 16. Aug 18 -170 $16.08 $-2,734
26. Jun 18 Sell Zack Rinat Individual 22. Jun 18 25. Jun 18 -514,988 $17.00 $-8,754,796
13. Jun 18 Sell Zack Rinat Individual 11. Jun 18 12. Jun 18 -26,125 $18.00 $-470,250
12. Jun 18 Sell Zack Rinat Individual 08. Jun 18 08. Jun 18 -31,488 $18.01 $-567,099
17. May 18 Sell David Barter Individual 16. May 18 16. May 18 -7,249 $17.66 $-128,017
17. May 18 Sell Neeraj Gokhale Individual 16. May 18 16. May 18 -172 $17.66 $-3,038
17. May 18 Sell Russell Mellott Individual 16. May 18 16. May 18 -212 $17.66 $-3,744
17. May 18 Sell Mark Anderson Individual 16. May 18 16. May 18 -1,928 $17.66 $-34,048
X
Management checks
We assess Model N'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. Model N 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.

MODN News

Simply Wall St News

Is Model N, Inc.'s (NYSE:MODN) Balance Sheet A Threat To Its Future?

(NYSE:MODN) with its market cap of US$544m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Is Model N, Inc. (NYSE:MODN) Spending Too Much Money?

I’ve analysed below, the health and outlook of Model N’s cash flow, which will help you understand the stock from a cash standpoint. … What is free cash flow … Free cash flow (FCF) is the amount of cash Model N has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

Model N Inc (NYSE:MODN): Time For A Financial Health Check

While small-cap stocks, such as Model N Inc (NYSE:MODN) with its market cap of US$447m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Can Model N Inc (NYSE:MODN) Compete With Tech Giant Peers?

software … While mobile and cloud computing become ubiquitous, there is a new wave of advancement emerging from innovations such as machine learning, robotics and augmented reality … Tech analysts are forecasting for the entire software tech industry,

Simply Wall St -

Should You Be Concerned About Model N Inc's (NYSE:MODN) Investors?

In this article, I'm going to take a look at Model N Inc’s (NYSE:MODN) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

When Should You Buy Model N Inc (NYSE:MODN)?

saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Model N’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Are Model N Inc's (NYSE:MODN) Interest Costs Too High?

While small-cap stocks, such as Model N Inc (NYSE:MODN) with its market cap of US$529.70m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Model N Inc (NYSE:MODN): Has Recent Earnings Growth Beaten Long-Term Trend?

Today I will assess MODN's recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. … Did MODN beat its long-term earnings growth trend and its industry. … MODN is loss-making, with the most recent trailing twelve-month earnings of -US$28.61m (from 31 March 2018), which compared to last year has become.

Simply Wall St -

Is Model N Inc's (NYSE:MODN) Balance Sheet A Threat To Its Future?

How does MODN’s operating cash flow stack up against its debt? … Can MODN meet its short-term obligations with the cash in hand? … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: At its current level of cash flow coverage, MODN has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

Should You Buy Model N Inc (NYSE:MODN) Now?

In addition to this, it seems like Model N’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … MODN’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

MODN Company Info

Description

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 Cloud for Med Tech, and Revenue Cloud for Semiconductors and High Tech Manufacturing. It develops software applications, such as managed care and government pricing for life science companies; and channel incentives for technology companies. The company also offers revenue management processes, such as pricing, contracting, rebates, incentives, channel management, and regulatory compliance. In addition, Model N, Inc. provides implementation, managed, strategic, and customer support services. It primarily serves large and mid-sized organizations worldwide through its direct sales force. Model N, Inc. was founded in 1999 and is headquartered in San Mateo, California, with additional offices in the United States, India, and Switzerland.

Details
Name: Model N, Inc.
MODN
Exchange: NYSE
Founded: 1999
$563,034,196
31,542,532
Website: http://www.modeln.com
Address: Model N, Inc.
777 Mariners Island Boulevard,
Suite 300,
San Mateo,
California, 94404,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MODN Common Stock New York Stock Exchange US USD 20. Mar 2013
DB 2MD Common Stock Deutsche Boerse AG DE EUR 20. Mar 2013
LSE 0K24 Common Stock London Stock Exchange GB USD 20. Mar 2013
Number of employees
Current staff
Staff numbers
782
Model N employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/17 00:47
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/03/26
Last earnings filing: 2019/02/06
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/09/30


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.