MTSL  Mer Telemanagement Solutions L...

Exchange

NASDAQ

Sector

Public Utilities

Industry

Telecommunications Equipment

Market Cap.

4.18M

Vuru Grade

45.50/100

Current Price

$0.48
-0.05 (-9.43%)

Stability Price

$0.71
Undervalued by 47.34%

Company Metrics

  • P/E 47.04
  • P/S 0.35
  • P/B 4.65
  • EPS -0.68
  • Cash ROIC -6.81%
  • Cash Ratio 0.18
  • Dividend 0 / N/A %
  • Avg. Vol. 3,855.00
  • Shares 8.71M
  • Market Cap. 4.18M

Company Description

Mer Telemanagement Solutions Ltd., together with its subsidiaries, engages in designing, developing, marketing, and supporting a line of telecommunication management, and customer care and billing solutions for business organizations and other enterprises. The company provides call accounting and telecommunications expense management solutions that assist enterprises and organizations in the alloc... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Active Runner in Focus: Mer Telemanagement Solutions Ltd (MTSL)
Stock Daily Review - 15 hours ago
Shares of Mer Telemanagement Solutions Ltd (MTSL) is moving on volatility today 1.92% or 0.01 rom the open. The NASDAQ listed company saw a recent bid of 0.53 on 9300 volume.
Unusual Activity Spotted in Mer Telemanagement Solutions Ltd (MTSL)
Concord Register - 18 hours ago
Shares of Mer Telemanagement Solutions Ltd (MTSL) is moving on volatility today 1.92% or 0.01 rom the open. The NASDAQ listed company saw a recent bid of 0.53 on 9300 volume.
MER Telemanagement Solutions (MTSL) Receives Daily News Impact Score of 0.18
The Cerbat Gem - Jun 25, 2017
MER Telemanagement Solutions logo News coverage about MER Telemanagement Solutions (NASDAQ:MTSL) has been trending somewhat positive on Sunday, according to Accern Sentiment Analysis.
MER Telemanagement Solutions (MTSL) Earning Favorable News Coverage, Analysis ...
The Cerbat Gem - Jun 24, 2017
Receive News & Stock Ratings for MER Telemanagement Solutions Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MER Telemanagement Solutions Ltd. and related stocks with our ...
MTS to Acquire Vexigo Ltd.
PR Newswire (press release) - Feb 3, 2015
MTS - Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of mobile virtual network enabler (MVNE), mobile money and telecommunications expense management (TEM) solutions and services, today announced that it has ...
Mer Telemanagement Solutions Ltd (MTSL) Chart Watch: Following the Indicators
Berry Recorder - 17 hours ago
Investors may be looking to compare the current stock price of Mer Telemanagement Solutions Ltd (MTSL) to some of its moving averages.
MER Telemanagement Solutions (MTSL) Receives Media Impact Rating of 0.31
The Cerbat Gem - Jun 21, 2017
Receive News & Stock Ratings for MER Telemanagement Solutions Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MER Telemanagement Solutions Ltd. and related stocks with our ...
MER Telemanagement Solutions Ltd. (MTSL) Downgraded by ValuEngine - Sports Perspectives
MER Telemanagement Solutions Ltd. (MTSL) Rating Lowered to Hold at ValuEngine
The Cerbat Gem - Jun 5, 2017
MER Telemanagement Solutions logo MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) was downgraded by research analysts at ValuEngine from a “buy” rating to a “hold” rating in a note issued to investors on Friday, June 2nd.
The MER Telemanagement Solutions Ltd. (MTSL) Downgraded by ValuEngine
BangaloreWeekly - Jun 7, 2017
ValuEngine downgraded shares of MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) from a buy rating to a hold rating in a research report report published on Friday.
MER Telemanagement Solutions (MTSL) Given News Impact Rating of 0.31
The Cerbat Gem - Jun 3, 2017
Receive News & Stock Ratings for MER Telemanagement Solutions Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MER Telemanagement Solutions Ltd. and related stocks with our ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for MTSL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate MTSL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.48 Current Price

$-0.45 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.71 Stability Price (EPV)

Undervalued by 47.34%


Discount Rate: 15.0%

$0.46 Book Price

Fairly valued


Very Poor Cash Return on Invested Capital over the past 5 years

MTSL has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

MTSL has lost $6.81 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 619,000.00 2.09M -1.52M 299,000.00 -1.24M
divided by
Invested Capital 2.04M 1.53M 1.40M 9.57M 1.30M
Cash ROIC 30.34% 136.72% -108.94% 3.12% -95.29%

Very Poor Return on Equity over the past 5 years

MTSL has shown an inability to deliver results for shareholders. This could be due to poor management, MTSL operating in a highly competitive industry, or having a weak business in general.

MTSL has generated a $69.21 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 1.37M 1.33M -1.69M -4.92M -5.19M
divided by
Stockholders' Equity 5.57M 7.16M 5.63M 6.15M 1.86M
Return on Equity 24.53% 18.61% -30.01% -79.95% -279.25%

Mediocre Business Performance over the past 10 years

MTSL isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

MTSL has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -710,000.00 -423,000.00 428,000.00 -158,000.00 1.03M 619,000.00 2.09M -1.52M 299,000.00 -1.24M

Weak Balance Sheet

MTSL's financial position is not ideal. The key is to check whether MTSL is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 1.61M 2.21M 2.40M 2.27M 3.40M 4.33M 6.52M 5.00M 3.58M 1.64M
Current Assets 3.74M 3.99M 3.60M 3.71M 4.39M 5.98M 7.68M 6.30M 8.44M 7.80M
Total Assets 8.48M 10.62M 9.89M 9.61M 9.73M 11.12M 12.63M 10.89M 22.02M 12.29M
Current Liabilities 5.75M 5.72M 5.70M 5.19M 5.14M 4.76M 4.58M 4.49M 8.88M 9.35M
Total Liabilities 6.91M 6.82M 6.78M 6.24M 5.90M 5.56M 5.47M 5.26M 15.88M 10.43M
Stockholder' Equity 1.57M 3.80M 3.12M 3.36M 3.83M 5.57M 7.16M 5.63M 6.15M 1.86M
Current Ratio 0.65 0.70 0.63 0.72 0.85 1.26 1.68 1.40 0.95 0.83
TL-to-TA 0.81 0.64 0.69 0.65 0.61 0.50 0.43 0.48 0.72 0.85

Low or No Reinvestment of Profits over the past 10 years

MTSL has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to MTSL operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -14.63M -15.59M -16.47M -16.29M -15.91M -14.54M -13.13M -14.74M -19.48M -24.70M
Retained Earnings Growth - -6.56% -5.62% 1.07% 2.38% 8.59% 9.67% -12.26% -32.14% -26.80%

Loss Making Entity over the past 10 years

MTSL has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$14.82 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -5.82M -960,000.00 -877,000.00 244,000.00 471,000.00 1.37M 1.33M -1.69M -4.92M -5.19M
divided by
Revenue 9.34M 8.75M 11.43M 11.64M 12.00M 13.13M 12.47M 7.07M 14.71M 14.05M
Net Profit Margin -62.36% -10.97% -7.67% 2.10% 3.92% 10.41% 10.69% -23.92% -33.41% -36.96%

Strong Pricing Power over the past 10 years

MTSL has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$64.53 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 6.60M 6.43M 7.66M 7.44M 10.09M 8.63M 8.45M 4.17M 6.30M 7.14M
divided by
Revenue 9.34M 8.75M 11.43M 11.64M 12.00M 13.13M 12.47M 7.07M 14.71M 14.05M
Gross Margin 70.70% 73.48% 66.97% 63.91% 84.10% 65.76% 67.74% 59.06% 42.81% 50.80%

Low Capital Intensity over the past 10 years

MTSL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that MTSL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

18.14% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 95,000.00 454,000.00 130,000.00 87,000.00 87,000.00 188,000.00 62,000.00 41,000.00 519,000.00 509,000.00
divided by
Net Income -5.82M -960,000.00 -877,000.00 244,000.00 471,000.00 1.37M 1.33M -1.69M -4.92M -5.19M
Capital Expenditure Ratio -1.63% -47.29% -14.82% 35.66% 18.47% 13.76% 4.65% -2.43% -10.56% -9.80%

No Dividend History over the past 10 years

MTSL has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 2.89M 3.26M 4.46M 4.46M 4.46M 4.53M 4.72M 4.67M 7.17M 8.45M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 1.78 1.90 1.42 1.93 1.36 3.40 2.58 1.03 0.84 0.91
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

MTSL has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 2.89M 3.26M 4.46M 4.46M 4.46M 4.53M 4.72M 4.67M 7.17M 8.45M
Stock Bought Back - -11.58% -26.78% -0.00% -0.00% -1.60% -4.02% 1.07% -34.90% -15.11%
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