Match Group, Inc. (NASDAQ: MTCH)

Sector: Communication Services Industry: Internet Content & Information CIK: 0000891103
Market Cap 2.58 Bn
P/B 1.40
P/E 11.66
P/S 0.80
ROIC (Qtr) 19.19
Div Yield % 5.00
Rev 1y % (Qtr) 2.10
Total Debt (Qtr) 4.05 Bn
Debt/Equity (Qtr) -18.06

About

Match Group, Inc. (MTCH) operates in the digital technologies industry, specifically focusing on helping individuals make meaningful connections through various means. The company's portfolio consists of a diverse range of brands, including Tinder, Hinge, Match, Meetic, OkCupid, Plenty Of Fish, Azar, and BLK, among others. These brands are designed to cater to the varying preferences of users, meeting needs across different age groups, geographic locations, and cultural backgrounds. Match Group's main business activities involve providing a platform...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.05B provide 2.12x coverage of short-term debt 497.59M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 962.64M exceeds capital expenditure of 49.67M by 19.38x, indicating strong organic growth funding capability.
  • Tangible assets of 2B provide exceptional 12.53x coverage of deferred revenue 159.76M, showing strong service capability backing.
  • Operating cash flow of 1.01B provides strong 6.34x coverage of deferred revenue 159.76M, indicating service delivery capability.
  • R&D investment of 449.47M represents healthy 2.81x of deferred revenue 159.76M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 1.01B barely covers its investment activities of (75.35M), with a coverage ratio of -13.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (75.35M) provide weak support for R&D spending of 449.47M, which is -0.17x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 1.01B provides thin coverage of dividend payments of (140.89M) with a -7.18 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of 1.01B shows concerning coverage of stock compensation expenses of 263.37M, with a 3.84 ratio indicating potential earnings quality issues.
  • Operating cash flow of 1.01B shows concerning coverage of minority interest expenses of (10000), which is -101231x, suggesting complex corporate structure risks.

Segments Breakdown of Revenue (2024)

Statement, Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.66 1.10
EV to Cash from Ops. EV/CFO 9.59 -3.08
EV to Debt EV to Debt 0.74 28.98
EV to EBIT EV/EBIT 8.36 -26.54
EV to EBITDA EV/EBITDA 7.25 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 11.99 -67.01
EV to Market Cap EV to Market Cap 1.16 0.90
EV to Revenue EV/Rev 0.94 61.25
Price to Book Value [P/B] P/B 1.40 1.56
Price to Earnings [P/E] P/E 11.66 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.99 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 25.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.76 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 19.00 2.58
Interest Coverage Int. cover (Qtr) 5.78 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.77 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 23.11 175.36
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -10.54 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -6.34 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -6.66 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -5.81 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -2.15 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 7.71 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.61 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.76 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.13 0.02
Cash Ratio Cash Ratio (Qtr) 0.97 1.54
Current Ratio Curr Ratio (Qtr) 1.41 3.38
Debt to Equity Ratio Debt/Equity (Qtr) -18.06 -0.39
Interest Cover Ratio Int Coverage (Qtr) 5.78 -202.56
Times Interest Earned Times Interest Earned (Qtr) 5.78 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.20 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) 24.01 -4,786.62
EBT Margin % EBT Margin % (Qtr) 19.86 -5,002.12
Gross Margin % Gross Margin % (Qtr) 72.30 58.65
Net Profit Margin % Net Margin % (Qtr) 16.20 -5,003.08