MTSL  Mer Telemanagement Solutions L...

Exchange

NASDAQ

Sector

Public Utilities

Industry

Telecommunications Equipment

Market Cap.

7.00M

Vuru Grade

25.50/100

Current Price

$2.40
+0.36 (+17.70%)

Stability Price

$0.73
Overvalued by 69.64%

Company Metrics

  • P/E 47.04
  • P/S 0.49
  • P/B 5.79
  • EPS -1.99
  • Cash ROIC -6.81%
  • Cash Ratio 0.18
  • Dividend 0 / 0%
  • Avg. Vol. 8,005.00
  • Shares 8.45M
  • Market Cap. 7.00M

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

Is MER Telemanagement Solutions Ltd (MTSL) An Industry Laggard Or Leader?
Simply Wall St - Oct 18, 2017
MER Telemanagement Solutions Ltd (NASDAQ:MTSL), is a USD$6.31M small-cap, which operates in the tech hardware industry based in Israel.
MER Telemanagement Solutions: Small Cap Turnaround Opportunity
Seeking Alpha - Oct 29, 2012
MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) is a worldwide provider of innovative products and services for comprehensive telecom expense management (TEM) and enterprise mobility management (EMM) solutions - telecom billing solutions ...
MTS Received 2017 TEMIA Best Practice Award for Technology Expense Management
PR Newswire (press release) - Sep 27, 2017
RA'ANANA, Israel and RIVER EDGE, New Jersey, Sept. 27, 2017 /PRNewswire/ -- MTS - Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of telecommunications expense management (TEM) and enterprise mobility ...
MTS Names Roy Hess as CEO
PR Newswire (press release) - Oct 2, 2017
RA'ANANA, Israel, Oct. 2, 2017 /PRNewswire/ -- MTS - Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM) and enterprise mobility management (EMM) solutions, and ...
MER Telemanagement Solutions Lt (NASDAQ:MTSL) Experiences Lighter than Usual ...
HugoPress - 8 hours ago
Mer Telemanagement Solutions Ltd., launched on December 27, 1995, is a provider of solutions for online video advertising and telecommunications expense management (TEM) used by enterprises, and billing solutions used by information and ...
Seanergy Maritime Holdings Corp. (SHIP) Having Eye Catching Insider Ownership ... - Wallstreet Investorplace
MTS Receives NASDAQ Conditional Notice of Regaining Listing Compliance
PR Newswire (press release) - Aug 17, 2017
RA'ANANA, Israel and RIVER EDGE, New Jersey, Aug. 17, 2017 /PRNewswire/ -- Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), enterprise mobility ...
Percentage Price Oscillator Histogram Below Zero for Mer Telemanagement ...
Lockport Press - 20 hours ago
Traders might be following the technicals on shares of Mer Telemanagement Solutions Ltd (MTSL). after a recent check, we have noticed that the PPOH level is currently below zero.
MER Telemanagement Solutions Lt (NASDAQ:MTSL) Experiences Light Trading Volume - First News 24
MER Telemanagement Solutions (MTSL) Regains Compliance with NASDAQ Minimum Bid ...
StreetInsider.com - Sep 25, 2017
Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq: MTSL), a global provider of software solutions for online video advertising and telecommunications expense management and billing solutions, today announced that it received written notice from the ...
MTS Regains Compliance with NASDAQ Minimum Bid Price Listing Requirement - PR Newswire (press release)
What Does MER Telemanagement Solutions Ltd's (MTSL) Ownership Structure Look Like?
Simply Wall St - Sep 12, 2017
In this article, I will take a quick look at MER Telemanagement Solutions Ltd's (NASDAQ:MTSL) recent ownership structure - an unconventional investing subject, but an important one.
Mer Telemanagement Solutions Ltd (MTSL) Sees Schaff Cycle Continue to Trend Lower
TCT - Oct 19, 2017
Mer Telemanagement Solutions Ltd (MTSL) are being monitored this week as the Schaff Trend Cycle levels have shown a consistent downtrend over the course of the past 5 trading sessions.
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.

$2.40 Current Price

$-0.46 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.73 Stability Price (EPV)

Overvalued by 69.64%


Discount Rate: 15.0%

$0.46 Book Price

Overvalued by 80.84%


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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