Marketwise, Inc. (NASDAQ: MKTW)

Sector: Financial Services Industry: Financial Data & Stock Exchanges CIK: 0001805651
Market Cap -834.31 Mn
P/B 0.91
P/E 1.55
P/S -2.29
ROIC (Qtr) -380.56
Div Yield % 2.64
Rev 1y % (Qtr) -16.38
Total Debt (Qtr) 6.14 Mn
Debt/Equity (Qtr) -0.42

About

Marketwise, Inc. (MKTW) is a leading multi-brand platform of subscription businesses that offers premium financial research, software, education, and tools for self-directed investors. The company was established in 1999 with a vision to publish intelligent, independent, insightful, and in-depth investment research, treating subscribers the way they would want to be treated. Today, Marketwise provides a comprehensive suite of investment research products and solutions that cater to a broad spectrum of investments, including commodities, equities,...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 27.73M provides robust 4.52x coverage of total debt 6.14M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 50.53M provide 64.87x coverage of short-term debt 779000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 167.65M provides 27.31x coverage of total debt 6.14M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 26.80M exceeds capital expenditure of 931000 by 28.78x, indicating strong organic growth funding capability.
  • Retained earnings of (115.59M) represent substantial 7.96x of equity (14.52M), indicating strong internal capital generation.

Bear case

  • Operating cash flow of 27.73M barely covers its investment activities of (931000), with a coverage ratio of -29.78, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 27.73M provides thin coverage of dividend payments of (4.20M) with a -6.61 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (931000) provide weak support for R&D spending of 9.60M, which is -0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 27.73M provides insufficient coverage of deferred revenue obligations of 374.93M, which is 0.07x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 27.73M shows concerning coverage of stock compensation expenses of 11.98M, with a 2.31 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Financial Data & Stock Exchanges
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CME Cme Group Inc. 108.31 Bn 56.60 23.47 152.46 Bn
2 MCO Moodys Corp /De/ 106.86 Bn 244.59 56.48 7.36 Bn
3 SPGI S&P Global Inc. 105.67 Bn 43.02 13.77 11.87 Bn
4 ICE Intercontinental Exchange, Inc. 96.76 Bn 29.19 7.65 20.28 Bn
5 NDAQ Nasdaq, Inc. 49.34 Bn 112.66 15.25 9.55 Bn
6 MSCI MSCI Inc. 42.66 Bn 35.48 13.61 6.31 Bn
7 COIN Coinbase Global, Inc. 41.84 Bn 13.00 5.45 7.59 Bn
8 CBOE Cboe Global Markets, Inc. 28.66 Bn 29.30 6.21 1.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -4.14 2.21
EV to Cash from Ops. EV/CFO -14.95 43.43
EV to Debt EV to Debt -136.06 7.86
EV to EBIT EV/EBIT 1.55 35.32
EV to EBITDA EV/EBITDA 1.57 31.71
EV to Free Cash Flow [EV/FCF] EV/FCF -15.03 -19.56
EV to Market Cap EV to Market Cap 1.00 1.38
EV to Revenue EV/Rev -2.29 24.41
Price to Book Value [P/B] P/B 0.91 -8.37
Price to Earnings [P/E] P/E 1.55 62.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.39 2.12
Dividend Payout Ratio % Div Payout % (Qtr) 65.90 32.41
Dividend per Basic Share Div per Share (Qtr) 1.70 2.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 15.79 26.82
Interest Coverage Int. cover (Qtr) -0.76 8.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.35 -8.40
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -46.30 24.23
Dividend Growth (1y) % Div 1y % (Qtr) -55.26 1.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 51.59 10.48
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.87 15.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 67.79 17.37
EBT Growth (1y) % EBT 1y % (Qtr) 27.53 21.15
EPS Growth (1y) % EPS 1y % (Qtr) -7.53 30.92
FCF Growth (1y) % FCF 1y % (Qtr) 330.32 30.86
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -19.68 13.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.70 0.61
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.24
Cash Ratio Cash Ratio (Qtr) 0.22 0.51
Current Ratio Curr Ratio (Qtr) 0.51 1.98
Debt to Equity Ratio Debt/Equity (Qtr) -0.42 0.60
Interest Cover Ratio Int Coverage (Qtr) -0.76 8.17
Times Interest Earned Times Interest Earned (Qtr) -0.76 8.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.90 -985.10
EBIT Margin % EBIT Margin % (Qtr) 1.18 -991.86
EBT Margin % EBT Margin % (Qtr) 2.72 -1,071.03
Gross Margin % Gross Margin % (Qtr) 87.00 72.64
Net Profit Margin % Net Margin % (Qtr) 1.70 -1,440.91