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Micro Focus International

OTCPK:MCFU.F
Snowflake Description

6 star dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCFU.F
OTCPK
£8B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Micro Focus International plc, an infrastructure software company, develops, sells, and supports software products and solutions to small and medium size enterprises. The last earnings update was 32 days ago. More info.


Add to Portfolio Compare Print
  • Micro Focus International has significant price volatility in the past 3 months.
MCFU.F Share Price and Events
7 Day Returns
2.1%
OTCPK:MCFU.F
0.2%
US Software
-1.1%
US Market
1 Year Returns
93.6%
OTCPK:MCFU.F
31.2%
US Software
6.4%
US Market
MCFU.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Micro Focus International (MCFU.F) 2.1% 7.3% 50.1% 93.6% 9% 82.3%
US Software 0.2% 5% 24.9% 31.2% 108.9% 137.5%
US Market -1.1% 0.3% 16.7% 6.4% 37.9% 42.1%
1 Year Return vs Industry and Market
  • MCFU.F outperformed the Software industry which returned 31.2% over the past year.
  • MCFU.F outperformed the Market in United States of America which returned 6.4% over the past year.
Price Volatility
MCFU.F
Industry
5yr Volatility vs Market
Related Companies

MCFU.F Value

 Is Micro Focus International 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 Micro Focus International 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 Micro Focus International.

OTCPK:MCFU.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.9%
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 OTCPK:MCFU.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
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- 19%) (46.32%))
1.38
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.38 * 6.65%)
11.91%

Discounted Cash Flow Calculation for OTCPK:MCFU.F using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Micro Focus International 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.

OTCPK:MCFU.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.91%)
2019 519.08 Analyst x4 463.84
2020 808.33 Analyst x4 645.46
2021 968.95 Analyst x4 691.39
2022 1,099.57 Est @ 13.48% 701.11
2023 1,212.33 Est @ 10.26% 690.76
2024 1,309.29 Est @ 8% 666.63
2025 1,393.31 Est @ 6.42% 633.92
2026 1,467.31 Est @ 5.31% 596.56
2027 1,533.88 Est @ 4.54% 557.27
2028 1,595.15 Est @ 3.99% 517.86
Present value of next 10 years cash flows $6,164.80
OTCPK:MCFU.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,595.15 × (1 + 2.73%) ÷ (11.91% – 2.73%)
$17,855.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $17,855.86 ÷ (1 + 11.91%)10
$5,796.88
OTCPK:MCFU.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,164.80 + $5,796.88
$11,961.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,961.68 / 410.99
$21.86
OTCPK:MCFU.F Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:MCRO)
0.757
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $29.1 x 0.757
£22.04
Non-primary Listing Adjustment Factor 1 share in OTCPK:MCFU.F represents 1.33172x of LSE:MCRO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.33172x
Value per Share
(Listing Adjusted, USD)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 22.04 x 1.33172
$29.35
Value per share (USD) From above. $29.35
Current discount Discount to share price of $25.76
= -1 x ($25.76 - $29.35) / $29.35
12.2%

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

Current Discount
Amount off the current price Micro Focus International is available for.
Intrinsic value
12%
Share price is $25.76 vs Future cash flow value of $29.35
Current Discount Checks
For Micro Focus International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Micro Focus International's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Micro Focus International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Micro Focus International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Micro Focus International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:MCFU.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-10-31) in USD $1.21
LSE:MCRO Share Price ** LSE (2019-03-22) in GBP £19.35
LSE:MCRO Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.32 $25.54
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 53.16x
United States of America Market PE Ratio Median Figure of 3,061 Publicly-Listed Companies 17.15x

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

** Primary Listing of Micro Focus International.

OTCPK:MCFU.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:MCRO Share Price ÷ EPS (both in USD)

= 25.54 ÷ 1.21

21.06x

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

  • Micro Focus International is good value based on earnings compared to the US Software industry average.
  • Micro Focus International is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Micro Focus International's expected growth come at a high price?
Raw Data
OTCPK:MCFU.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
10.4%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.32x
United States of America Market PEG Ratio Median Figure of 2,104 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

OTCPK:MCFU.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.06x ÷ 10.4%

2.03x

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

  • Micro Focus International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Micro Focus International's assets?
Raw Data
OTCPK:MCFU.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-10-31) in USD $18.25
LSE:MCRO Share Price * LSE (2019-03-22) in GBP £19.35
LSE:MCRO Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.32 $25.54
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.62x
United States of America Market PB Ratio Median Figure of 5,164 Publicly-Listed Companies 1.84x
OTCPK:MCFU.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:MCRO Share Price ÷ Book Value per Share (both in USD)

= 25.54 ÷ 18.25

1.4x

* Primary Listing of Micro Focus International.

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

  • Micro Focus International is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Micro Focus International'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. Micro Focus International has a total score of 2/6, 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.

MCFU.F Future Performance

 How is Micro Focus International expected to perform in the next 1 to 3 years based on estimates from 10 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
10.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Micro Focus International expected to grow at an attractive rate?
  • Micro Focus International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Micro Focus International's earnings growth is positive but not above the United States of America market average.
  • Micro Focus International's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:MCFU.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:MCFU.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 10.4%
OTCPK:MCFU.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 0%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16%
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 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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
OTCPK:MCFU.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:MCFU.F Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-10-31 3,264 1,149 480 7
2020-10-31 3,334 1,037 394 10
2019-10-31 3,489 852 62 9
OTCPK:MCFU.F Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-10-31 3,170 615 471
2018-04-30 3,209 364 726
2018-01-31 2,570 378 450
2017-10-31 1,930 391 174
2017-07-31 1,656 422 166
2017-04-30 1,077 452 124
2017-01-31 1,353 404 162
2016-10-31 1,325 356 166
2016-07-31 1,285 320 165
2016-04-30 991 283 136
2016-01-31 1,238 263 151

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Micro Focus International's earnings are expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
  • Micro Focus International's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
OTCPK:MCFU.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Micro Focus International Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MCFU.F Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-10-31 1.56 1.82 1.39 3.00
2020-10-31 1.06 1.24 0.72 4.00
2019-10-31 0.25 0.34 0.18 3.00
OTCPK:MCFU.F Past Financials Data
Date (Data in USD Millions) EPS *
2018-10-31 1.21
2018-04-30 1.99
2018-01-31 1.45
2017-10-31 0.68
2017-07-31 0.71
2017-04-30 0.58
2017-01-31 0.77
2016-10-31 0.80
2016-07-31 0.80
2016-04-30 0.67
2016-01-31 0.75

*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.
  • Micro Focus International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Micro Focus International'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.
Micro Focus International 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.

MCFU.F Past Performance

  How has Micro Focus International 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 Micro Focus International'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.
  • Micro Focus International has delivered over 20% year on year earnings growth in the past 5 years.
  • Micro Focus International's 1-year earnings growth exceeds its 5-year average (171.6% vs 36.3%)
  • Micro Focus International's earnings growth has exceeded the US Software industry average in the past year (171.6% vs 26.2%).
Earnings and Revenue History
Micro Focus International'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 Micro Focus International Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MCFU.F Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-10-31 3,169.60 471.41 1,337.10 428.04
2018-04-30 3,208.68 726.23 1,471.97 458.36
2018-01-31 2,569.58 449.90 1,130.08 381.42
2017-10-31 1,930.48 173.57 787.96 255.33
2017-07-31 1,655.59 165.74 685.30 214.32
2017-04-30 1,077.27 124.19 423.29 116.03
2017-01-31 1,352.99 162.06 565.70 124.90
2016-10-31 1,325.27 166.21 548.99 125.63
2016-07-31 1,285.16 164.55 540.00 144.51
2016-04-30 991.23 135.90 399.82 116.14
2016-01-31 1,237.90 150.72 515.54 207.74
2015-10-31 1,230.74 138.55 500.07 252.09
2015-07-31 1,032.64 120.15 422.41 205.68
2015-04-30 834.54 101.75 344.75 159.28
2015-01-31 634.19 108.19 271.14 109.45
2014-10-31 433.84 114.62 197.53 59.62
2014-07-31 433.45 118.35 193.01 58.73
2014-04-30 433.06 122.08 188.49 57.83
2014-01-31 423.06 120.85 179.75 56.55
2013-10-31 413.07 119.61 171.01 55.27
2013-07-31 412.62 120.70 168.23 53.93
2013-04-30 412.17 121.78 165.46 52.60
2013-01-31 417.27 120.07 169.89 52.20
2012-10-31 422.37 118.36 174.32 51.81
2012-07-31 428.61 119.49 175.32 53.29
2012-04-30 434.84 120.62 176.31 54.77

*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.
  • Micro Focus International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Micro Focus International used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Micro Focus International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Micro Focus International'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.
Micro Focus International has a total score of 3/6, 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.

MCFU.F Health

 How is Micro Focus International'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 Micro Focus International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Micro Focus International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Micro Focus International's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Micro Focus International'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 not covered by short term assets, assets are 0.6x 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 Micro Focus International Company Filings, last reported 4 months ago.

OTCPK:MCFU.F Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-10-31 7,791.98 4,874.36 620.90
2018-04-30 8,155.00 4,911.04 573.67
2018-01-31 8,155.00 4,911.04 573.67
2017-10-31 7,625.86 4,882.11 730.37
2017-07-31 7,625.86 4,882.11 730.37
2017-04-30 1,613.49 1,561.54 150.98
2017-01-31 1,613.49 1,561.54 150.98
2016-10-31 1,581.76 1,735.53 122.97
2016-07-31 1,581.76 1,735.53 122.97
2016-04-30 1,593.73 1,745.21 667.18
2016-01-31 1,593.73 1,745.21 667.18
2015-10-31 1,312.08 1,545.87 91.57
2015-07-31 1,312.08 1,545.87 91.57
2015-04-30 1,278.06 1,644.86 241.32
2015-01-31 1,278.06 1,644.86 241.32
2014-10-31 -2.80 288.91 29.99
2014-07-31 -2.80 288.91 29.99
2014-04-30 -16.25 293.83 32.80
2014-01-31 -16.25 293.83 32.80
2013-10-31 -62.98 195.10 30.65
2013-07-31 -62.98 195.10 30.65
2013-04-30 57.82 215.63 37.94
2013-01-31 57.82 215.63 37.94
2012-10-31 9.49 126.74 30.56
2012-07-31 9.49 126.74 30.56
2012-04-30 117.55 143.61 30.41
  • Micro Focus International's level of debt (62.6%) compared to net worth is high (greater than 40%).
  • Micro Focus International had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is not well covered by operating cash flow (12.6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Micro Focus International'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. Micro Focus International has a total score of 2/6, 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.

MCFU.F Dividends

 What is Micro Focus International'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
4.57%
Current annual income from Micro Focus International dividends. Estimated to be 4.36% next year.
If you bought $2,000 of Micro Focus International shares you are expected to receive $91 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?
  • Micro Focus International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Micro Focus International's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
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
OTCPK:MCFU.F 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 10 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

OTCPK:MCFU.F Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-10-31 1.19 7.00
2020-10-31 1.11 10.00
2019-10-31 1.05 8.00
OTCPK:MCFU.F Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-20 1.167 4.712
2019-02-14 1.167 5.131
2018-07-11 0.929 5.283
2017-07-28 0.951 3.883
2017-07-12 0.951 3.097
2016-08-03 0.720 2.393
2016-07-14 0.720 2.678
2015-08-14 0.523 2.334
2015-07-08 0.523 2.249
2014-07-04 0.512 2.734
2014-06-19 0.512 2.973
2013-06-19 0.504 3.316
2012-06-21 0.453 3.687
2012-06-20 0.453 4.490
2011-06-23 0.368 4.147
2011-06-22 0.368 4.291
2010-06-29 0.343 3.822
2010-06-24 0.343 3.375
2009-12-08 0.263 2.204
2009-06-25 0.246 2.550
2009-04-30 0.246 2.567
2009-03-25 0.219 3.014

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Micro Focus International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Micro Focus International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - 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 Micro Focus International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Micro Focus International has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MCFU.F Management

 What is the CEO of Micro Focus International'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
Stephen Murdoch
COMPENSATION $7,710,068
AGE 51
TENURE AS CEO 1 years
CEO Bio

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. Mr. Murdoch served as the Chief Executive Officer of Micro Focus International plc since February 1, 2016. He served as the Chief Operating Officer of Micro Focus International plc from April 16, 2014 to February 1, 2016. He served as the Chief Marketing Officer and General Manager Product Group at Micro Focus International plc. He is responsible for Micro Focus International's product strategy and execution from development through to implementation in the marketplace. Mr. Murdoch has a 25 year track record of success in the IT industry spanning hardware, software and services. He has held senior executive positions in general management, sales and strategy with IBM and Dell. Mr. Murdoch served as the General Manager of Europe, Middle East & Africa for Dell's Public Sector and Large Commercial Enterprise business unit. He served as an Executive Director of Micro Focus International plc since February 1, 2016 and also served as its Executive Director from April 16, 2014 to November 2014.

CEO Compensation
  • Stephen's compensation has increased by more than 20% in the past year.
  • Stephen's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Micro Focus International management team in years:

1.2
Average Tenure
56
Average Age
  • The average tenure for the Micro Focus International management team is less than 2 years, this suggests a new team.
Management Team

Kevin Loosemore

TITLE
Executive Chairman
COMPENSATION
$29M
AGE
59

Stephen Murdoch

TITLE
CEO & Director
COMPENSATION
$8M
AGE
51
TENURE
1 yrs

Mike Phillips

TITLE
Director of Mergers & Acquisition
COMPENSATION
$19M
AGE
55
TENURE
1.2 yrs

Brian McArthur-Muscroft

TITLE
CFO & Director
AGE
54
TENURE
0.1 yrs

Jerome Labat

TITLE
Chief Technology Officer

Martin Taylor

TITLE
AGE
64

Tim Brill

TITLE
Director of Corporate Communications & Investor Relations

Jane Smithard

TITLE
Group General Counsel & Company Secretary
AGE
64
TENURE
12.8 yrs

Karen Geary

TITLE
Group Human Resources Director
AGE
54
TENURE
3 yrs

Ian Fraser

TITLE
Chief Human Resources Officer
AGE
57
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Micro Focus International board of directors in years:

1.8
Average Tenure
54
Average Age
  • The average tenure for the Micro Focus International board of directors is less than 3 years, this suggests a new board.
Board of Directors

Stephen Murdoch

TITLE
CEO & Director
COMPENSATION
$8M
AGE
51
TENURE
1 yrs

Brian McArthur-Muscroft

TITLE
CFO & Director
AGE
54
TENURE
0.1 yrs

Karen Slatford

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$180K
AGE
61

Kevin Loosemore

TITLE
Executive Chairman
COMPENSATION
$29M
AGE
59
TENURE
7.9 yrs

Richard Atkins

TITLE
Independent Non-Executive Director
COMPENSATION
$135K
AGE
66
TENURE
4.9 yrs

Amanda Brown

TITLE
Independent Non-Executive Director
COMPENSATION
$135K
AGE
49
TENURE
2.7 yrs

Silke Scheiber

TITLE
Independent Non-Executive Director
COMPENSATION
$103K
AGE
45
TENURE
1.8 yrs

Darren Roos

TITLE
Independent Non-Executive Director
COMPENSATION
$103K
AGE
44
TENURE
1.8 yrs

Lawton Fitt

TITLE
Independent Non-Executive Director
COMPENSATION
$83K
AGE
65
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • Information is not available.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Feb 19 Sell Richard Atkins Individual 18. Feb 19 18. Feb 19 -2,800 $22.69 $-63,534
20. Feb 19 Buy Richard Atkins Individual 18. Feb 19 18. Feb 19 2,800 $22.70 $63,570
05. Sep 18 Buy Kevin Loosemore Individual 05. Sep 18 05. Sep 18 4,866 $16.87 $82,077
13. Jul 18 Buy Karen Slatford Individual 13. Jul 18 13. Jul 18 7,789 $16.80 $130,863
X
Management checks
We assess Micro Focus International'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. Micro Focus International 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.

MCFU.F News

Simply Wall St News

MCFU.F Company Info

Description

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.

Details
Name: Micro Focus International plc
MCFU.F
Exchange: OTCPK
Founded: 1976
£10,522,375,990
410,985,881
Website: http://www.microfocus.com
Address: Micro Focus International plc
The Lawn,
22-30 Old Bath Road,
Newbury,
Berkshire, RG14 1QN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE MCRO Ordinary Shares London Stock Exchange GB GBP 12. May 2005
OTCPK MCFU.F Ordinary Shares Pink Sheets LLC US USD 12. May 2005
DB M7Q5 Ordinary Shares Deutsche Boerse AG DE EUR 12. May 2005
DB M7Q3 Ordinary Shares Deutsche Boerse AG DE GBP 12. May 2005
DB M7Q5 Ordinary Shares Deutsche Boerse AG DE EUR 12. May 2005
BATS-CHIXE MCROL Ordinary Shares BATS 'Chi-X Europe' GB GBP 12. May 2005
NYSE MFGP SPON ADR EACH REP 1 ORD SHS New York Stock Exchange US USD 01. Sep 2017
BMV MFGP N SPON ADR EACH REP 1 ORD SHS Bolsa Mexicana de Valores MX MXN 01. Sep 2017
Number of employees
Current staff
Staff numbers
14,800
Micro Focus International employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 00:00
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/02/20
Last earnings reported: 2018/10/31
Last annual earnings reported: 2018/10/31


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.