OTCPK:MRGN

Stock Analysis Report

Executive Summary

Mergence Corporation serves as a holding company that operates in the movie-on-demand marketplace, primarily for the hotel/motel sectors and software technologies industries.

Risk Analysis

Shares are highly illiquid

Latest financial reports are more than a year old

Does not have a meaningful market cap ($454K)



Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MRGN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.5%

MRGN

0.2%

US Software

0.8%

US Market


1 Year Return

n/a

MRGN

28.5%

US Software

17.8%

US Market

Return vs Industry: Insufficient data to determine how MRGN performed against the US Software industry.

Return vs Market: Insufficient data to determine how MRGN performed against the US Market.


Shareholder returns

MRGNIndustryMarket
7 Day22.5%0.2%0.8%
30 Day322.4%1.1%1.8%
90 Dayn/a4.2%4.1%
1 Yearn/a30.5%28.5%20.4%17.8%
3 Year308.3%308.3%125.6%116.5%45.9%36.4%
5 Year345.5%345.5%181.2%161.4%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether Mergence is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Mergence has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of MRGN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Mergence regulatory filings here.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is Mergence forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.4%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mergence has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of MRGN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Mergence's filings and announcements here.
  • Explore growth companies in the Software industry.

Past Performance

How has Mergence performed over the past 5 years?

23.6%

Historical Software annual earnings growth


In this section we usually display a company’s past earnings and revenues to help investors visualise the trend through time. We also gauge the company’s performance by benchmarking its returns and growth to its industry peers and the wider market. However, Mergence has not provided sufficient past data to assess its track record.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have historical data.


Next Steps

  • When a company lacks a financial track record, its management’s track record becomes important. Corporate governance also plays an important role in a young business as board members are seen as highly-experienced leaders to help steer the company into the future. Take a look at Mergence's' management and board experience and expertise to assess their ability to deliver on their strategic promises.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Mergence's filings and announcements here.
  • Explore strong past performing companies in the Software industry.

Financial Health

How is Mergence's financial position?


In this section we usually analyse Mergence's finance health to determine how well-positioned it is against times of financial distress, in particular, its ability to manage its cash and debt levels. Mergence has not provided adequate balance sheet data, its financial health cannot be properly assessed as it.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have financial information.


Next Steps

  • Take a look at our analysis of MRGN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Investors tend to look at the financial health of a company this size in order to assess the sustainability of its current operations. While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website.
  • Financial health is measured at one point in time, so the latest financial report is the best representation of the company’s current financial status. Check when Mergence's financial data was last updated here.
  • Explore more healthy companies in the Software industry.

Dividend

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


Dividend Yield vs Market

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

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MRGN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MRGN'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 MRGN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Mergence's salary, the management and board of directors tenure and is there insider trading?


CEO

Mergence has no CEO, or we have no data on them.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Management Team

  • T. Hutt (79yo)

    CFO, Chief Accounting Officer

    • Tenure: 21.2yrs
    • Compensation: US$420.00k
  • James Budd (77yo)

    Vice President

    • Tenure: 21.2yrs
    • Compensation: US$300.00k
  • Mark Utzinger

    Vice President

    • Tenure: 0yrs
    • Compensation: US$311.00k

Board Members

  • T. Hutt (79yo)

    CFO, Chief Accounting Officer

    • Tenure: 21.2yrs
    • Compensation: US$420.00k
  • James Budd (77yo)

    Vice President

    • Tenure: 21.2yrs
    • Compensation: US$300.00k

Company Information

Mergence Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mergence Corp.
  • Ticker: MRGN
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$454.475k
  • Shares outstanding: 9.28m
  • Website: https://null

Location

  • Mergence Corp.
  • One Technology Drive
  • Building H
  • Irvine
  • California
  • 92618
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRGNOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 1998

Biography

Mergence Corporation serves as a holding company that operates in the movie-on-demand marketplace, primarily for the hotel/motel sectors and software technologies industries. Its subsidiary, Oxford Media C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:48
End of Day Share Price2019/12/09 00:00
Earnings2004/09/30
Annual Earnings2003/12/31


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.