Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to small and medium size enterprises.
Established dividend payer and fair value.
Share Price & News
How has Micro Focus International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCFU.F's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MCFU.F underperformed the US Software industry which returned 35.5% over the past year.
Return vs Market: MCFU.F underperformed the US Market which returned 17.9% over the past year.
Price Volatility Vs. Market
How volatile is Micro Focus International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Micro Focus International undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCFU.F ($10.22) is trading below our estimate of fair value ($17.29)
Significantly Below Fair Value: MCFU.F is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MCFU.F is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: MCFU.F 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 MCFU.F's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MCFU.F is good value based on its PB Ratio (0.5x) compared to the US Software industry average (5.9x).
How is Micro Focus International forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCFU.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: MCFU.F is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MCFU.F's is expected to become profitable in the next 3 years.
Revenue vs Market: MCFU.F's revenue is expected to decline over the next 3 years (-4.5% per year).
High Growth Revenue: MCFU.F's revenue is forecast to decline over the next 3 years (-4.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCFU.F's Return on Equity is forecast to be low in 3 years time (9.7%).
How has Micro Focus International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCFU.F is currently unprofitable.
Growing Profit Margin: MCFU.F is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MCFU.F is unprofitable, but has reduced losses over the past 5 years at a rate of 6.9% per year.
Accelerating Growth: Unable to compare MCFU.F's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MCFU.F is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).
Return on Equity
High ROE: MCFU.F has a negative Return on Equity (-0.29%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is Micro Focus International's financial position?
Financial Position Analysis
Short Term Liabilities: MCFU.F's short term assets ($1.4B) do not cover its short term liabilities ($1.8B).
Long Term Liabilities: MCFU.F's short term assets ($1.4B) do not cover its long term liabilities ($6.2B).
Debt to Equity History and Analysis
Debt Level: MCFU.F's debt to equity ratio (74.4%) is considered high.
Reducing Debt: MCFU.F's debt to equity ratio has reduced from 2728.8% to 74.4% over the past 5 years.
Inventory Level: MCFU.F has a low level of unsold assets or inventory.
Debt Coverage by Assets: MCFU.F's debt is not covered by short term assets (assets are 0.3x 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: MCFU.F has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: MCFU.F has been profitable on average in the past, therefore cash runway is not a concern.
What is Micro Focus International's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MCFU.F's dividend (13.73%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: MCFU.F's dividend (13.73%) is in the top 25% of dividend payers in the US market (3.73%)
Stability and Growth of Payments
Stable Dividend: MCFU.F's dividends per share have been stable in the past 10 years.
Growing Dividend: MCFU.F's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: MCFU.F is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: MCFU.F's dividends in 3 years are forecast to be covered by earnings (51.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Stephen Murdoch (52yo)
Mr. Stephen Murdoch has been the Chief Executive Officer and Director of Micro Focus International plc since March 19, 2018 and served as its Chief Operating Officer from September 2017 to March 19, 2018. ...
CEO Compensation Analysis
Compensation vs Market: Stephen's total compensation ($USD2.03M) is below average for companies of similar size in the US market ($USD4.87M).
Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.
|CEO & Director||1.9yrs||US$1.56m||0.10% $3.4m|
|CFO & Director||1yrs||US$720.20k||no data|
|Chief Operating Officer||4yrs||no data||no data|
|Chief Technology Officer||0yrs||no data||no data|
|Interim Head of Investor Relations||0yrs||no data||no data|
|Group General Counsel||13.8yrs||no data||no data|
|Head of Corporate Communication & Investor Relations||0yrs||no data||no data|
|Chief Marketing Officer||0.3yrs||no data||no data|
|Chief Human Resources Officer||2.1yrs||no data||no data|
|Director of Mergers & Acquisition||2.1yrs||US$19.32m||no data|
Experienced Management: MCFU.F's management team is considered experienced (2.1 years average tenure).
|CEO & Director||1.9yrs||US$1.56m||0.10% $3.4m|
|CFO & Director||1yrs||US$720.20k||no data|
|Independent Non-Executive Director||2.3yrs||US$80.00k||no data|
|Senior Independent Non-Executive Director||0yrs||US$120.00k||0.0053% $181.3k|
|Non-Executive Chairman||0yrs||no data||0.060% $2.0m|
|Independent Non-Executive Director||5.8yrs||US$90.00k||0.0050% $171.0k|
|Independent Non-Executive Director||3.6yrs||US$90.00k||0.0014% $47.4k|
Experienced Board: MCFU.F's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCFU.F insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.3%.
Micro Focus International plc's company bio, employee growth, exchange listings and data sources
- Name: Micro Focus International plc
- Ticker: MCFU.F
- Exchange: OTCPK
- Founded: 1976
- Industry: Application Software
- Sector: Software
- Market Cap: UK£2.633b
- Listing Market Cap: UK£3.414b
- Shares outstanding: 333.38m
- Website: https://www.microfocus.com
Number of Employees
- Micro Focus International plc
- The Lawn
- 22-30 Old Bath Road
- RG14 1QN
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MCRO||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||GBP||May 2005|
|MCFU.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||May 2005|
|M7Q7||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||May 2005|
|M7Q3||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||GBP||May 2005|
|M7Q5||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||May 2005|
|MFGP||NYSE (New York Stock Exchange)||SPON ADR NEW||US||USD||Sep 2017|
|MFGP N||BMV (Bolsa Mexicana de Valores)||SPON ADR NEW||MX||MXN||Sep 2017|
|M7Q8||DB (Deutsche Boerse AG)||SPON ADR NEW||DE||EUR||Sep 2017|
Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to small and medium size enterprises. The company offers infrastructure software products that are managed on an investment portfolio. Its product portfolio includes application modernization and connectivity, application delivery management, and IT operations management, as well as security, information management, and Governance. Micro Focus International plc was founded in 1976 and is headquartered in Newbury, the United Kingdom.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 01:33|
|End of Day Share Price||2020/02/21 00:00|
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.