Model N
Market Cap
US$1.1b
Last Updated
2020/05/30 10:25 UTC
Data Sources
Company Financials +
Executive Summary
Model N, Inc. provides revenue management cloud solutions for the life sciences and technology companies.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
11.6%
MODN
0.3%
US Software
2.7%
US Market
1 Year Return
78.2%
MODN
31.9%
US Software
9.1%
US Market
Return vs Industry: MODN exceeded the US Software industry which returned 31.9% over the past year.
Return vs Market: MODN exceeded the US Market which returned 9.1% over the past year.
Shareholder returns
| MODN | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.6% | 0.3% | 2.7% |
| 30 Day | 11.3% | 7.2% | 4.5% |
| 90 Day | 10.8% | 12.9% | 2.3% |
| 1 Year | 78.2%78.2% | 32.9%31.9% | 11.5%9.1% |
| 3 Year | 145.2%145.2% | 125.6%117.9% | 30.6%22.0% |
| 5 Year | 184.5%184.5% | 205.2%186.6% | 57.2%39.5% |
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
1 week ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In Model N, Inc. (NYSE:MODN)2 weeks ago | Simply Wall St
Is Model N (NYSE:MODN) Using Debt In A Risky Way?1 month ago | Simply Wall St
The Model N (NYSE:MODN) Share Price Is Up 127% And Shareholders Are Boasting About ItValuation
Is Model N undervalued compared to its fair value and its price relative to the market?
17.68x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: MODN ($32.12) is trading above our estimate of fair value ($15.21)
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 (17.7x) compared to the US Software industry average (5.9x).
Next Steps
Future Growth
How is Model N forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
12.3%
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 (10% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: MODN's revenue (10% 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 (18%).
Next Steps
Past Performance
How has Model N performed over the past 5 years?
3.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MODN is currently unprofitable.
Growing Profit Margin: MODN is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MODN is unprofitable, but has reduced losses over the past 5 years at a rate of 3% 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 (7.9%).
Return on Equity
High ROE: MODN has a negative Return on Equity (-26.17%), as it is currently unprofitable.
Next Steps
Financial Health
How is Model N's financial position?
Financial Position Analysis
Short Term Liabilities: MODN's short term assets ($96.0M) exceed its short term liabilities ($68.0M).
Long Term Liabilities: MODN's short term assets ($96.0M) exceed its long term liabilities ($43.6M).
Debt to Equity History and Analysis
Debt Level: MODN's debt to equity ratio (63.4%) 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
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 35.8% per year.
Next Steps
Dividend
What is Model N's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MODN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MODN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Jason Blessing (47yo)
2yrs
Tenure
US$3,029,459
Compensation
Mr. Jason Blessing serves as Chief Executive Officer and Director of Model N, Inc. since effective May 10, 2018. Mr. Blessing served as Senior Vice President of product development at Oracle and oversees t ...
CEO Compensation Analysis
Compensation vs Market: Jason's total compensation ($USD3.03M) is about average for companies of similar size in the US market ($USD3.20M).
Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2yrs | US$3.03m | 0.36% $4.0m | |
| Senior VP & CFO | 3yrs | US$1.30m | 0.61% $6.7m | |
| Senior Vice President of Global Services | 4.08yrs | US$840.34k | 0.43% $4.7m | |
| Senior VP & Chief Revenue Officer | 1.08yrs | US$1.91m | 0.29% $3.2m | |
| Senior VP & Chief Product Officer | 0.67yr | US$491.04k | 0.27% $2.9m | |
| Senior VP & General Counsel | no data | no data | no data | |
| Senior VP & Chief Marketing Officer | 0.50yr | no data | no data | |
| Senior VP & Chief People Officer | 1.5yrs | no data | 0.13% $1.5m | |
| Senior VP & GM of High Tech | 3yrs | no data | no data | |
| SVP & Chief Strategy Officer | 1.33yrs | no data | no data |
1.5yrs
Average Tenure
48yo
Average Age
Experienced Management: MODN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2yrs | US$3.03m | 0.36% $4.0m | |
| Independent Director | 3.42yrs | US$239.36k | 0.12% $1.3m | |
| Independent Director | 1.42yrs | US$243.25k | 0.045% $495.9k | |
| Independent Director | 5yrs | US$232.11k | 0.11% $1.2m | |
| Independent Director | 1yr | US$142.04k | 0.025% $277.6k | |
| Independent Non-Executive Chairman of the Board | 1.17yrs | US$247.84k | 0.086% $949.7k | |
| Independent Director | 3.75yrs | US$217.60k | 0.12% $1.3m | |
| Director | 0.33yr | no data | 0.0043% $47.2k |
1.7yrs
Average Tenure
51.5yo
Average Age
Experienced Board: MODN's board of directors are not considered experienced ( 1.7 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: MODN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.5%.
Top Shareholders
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$1.101b
- Shares outstanding: 34.28m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MODN | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 2013 |
| 2MD | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 2013 |
| 0K24 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 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 Cloud for Med Tech, Revenue Cloud for High-Tech Manufacturing, and Revenue Cloud for Semiconductors and Components. 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, quoting, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 10:25 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/09/30 |
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.