MTSL  Mer Telemanagement Solutions L...

Exchange

NASDAQ

Sector

Public Utilities

Industry

Telecommunications Equipment

Market Cap.

5.13M

Vuru Grade

45.50/100

Current Price

$0.59
-0.0397 (-6.6079%)

Growth Price

$0.97
Undervalued by 63.80%

Stability Price

$2.94
Undervalued by 398.98%

Company Metrics

  • P/E 47.04
  • P/S 0.36
  • P/B 2.76
  • EPS -0.62
  • Cash ROIC 29.46%
  • Cash Ratio 0.40
  • Dividend 0 / 0%
  • Avg. Vol. 15,464.00
  • Shares 7.17M
  • Market Cap. 5.13M

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

Why MER Telemanagement Solutions Ltd (MTSL) Has Zero-Debt On Its Balance Sheet?
Simply Wall St - Mar 9, 2017
Including debt in the capital structure of companies such as MER Telemanagement Solutions Ltd (NASDAQ:MTSL), which has no debt, can improve its capital returns as the cost of capital comes down.
MTS – MER Telemanagement Solutions Ltd.: MTS Announces Full Year and Fourth ...
The Wall Street Transcript - Mar 9, 2017
Ra'anana, Israel / River Edge, NJ, USA - March 9, 2017 - Mer Telemanagement Solutions Ltd. (MTS or the Company) (Nasdaq Capital Market: MTSL), a global provider of software solutions for online video advertising and telecommunications management, ...
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 ...
Shareholders Traded Stock: MER Telemanagement Solutions Ltd.'s (MTSL) has ...
Street Updates - Mar 27, 2017
MER Telemanagement Solutions Ltd. (MTSL) , a stock from Diversified Communication Services Industry, has a value of $0.56 per share, noted a price change of -6.61% in recent trade close.
MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) Quarterly Deferred Revenue At ... - Enterprise Leader
Notable Wall Street Stock: MER Telemanagement Solutions Ltd.'s (MTSL) stock ...
WsNews 4investors - Mar 10, 2017
MER Telemanagement Solutions Ltd. (MTSL) stock price escalated 8.32% to finalize at $0.78 throughout previous buying and selling session.
BRIEF-MTS announces departure of CEO Orey Gillian
Reuters - Feb 6, 2017
Feb 6 Mer Telemanagement Solutions Ltd : * MTS announces the departure of Orey Gillian, the company's ceo. * Mer Telemanagement Solutions Ltd says a search for a new chief executive officer will be conducted. * Mer Telemanagement Solutions Ltd says ...
MTS buys content monetization co Vexigo
Globes - Feb 4, 2015
Two weeks after appointing a new CEO, software company Mer Telemanagement Solutions Ltd. (Nasdaq: MTSL) (MTS) is making an important acquisition that will put it into a completely new sector.
Curious Investors Should Take a Look at This Small Cap Stock: MER ...
Morgan Research - 2 hours ago
Savvy investors constantly keep their eyes peeled for bargains and often times they come in the form of stocks under $5. Recently there has been some buzz surrounding MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) stock. As of a recent trade, the ...
3.65% to Target, Liberum Capital Reconfirms “Buy” Rating for Kier Group PLC ...
HuronReport - Mar 23, 2017
Mer Telemanagement Solutions Limited (NASDAQ:MTSL) had a decrease of 92.31% in short interest. MTSL's SI was 200 shares in March as released by FINRA.
MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) Quarterly EBIT Margin At -16.7983%
Enterprise Leader - Mar 19, 2017
For the year completed 2016-09-30, MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) posted comprehensive income of $0.001 millions.
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.

$0.59 Current Price

$0.97 Growth Price (DCF)

Undervalued by 63.80%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.94 Stability Price (EPV)

Undervalued by 398.98%


Discount Rate: 15.0%

$1.64 Book Price

Undervalued by 178.52%


Varying Cash Return on Invested Capital over the past 5 years

MTSL has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

MTSL has created $29.46 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 1.03M 619,000.00 2.09M -1.52M 299,000.00
divided by
Invested Capital 1.20M 2.04M 1.53M 1.40M 9.57M
Cash ROIC 86.06% 30.34% 136.72% -108.94% 3.12%

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 $10.90 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 471,000.00 1.37M 1.33M -1.69M -4.92M
divided by
Stockholders' Equity 3.83M 5.57M 7.16M 5.63M 6.15M
Return on Equity 12.29% 24.53% 18.61% -30.01% -79.95%

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
2006200720082009201020112012201320142015
Free Cash Flow -1.72M -710,000.00 -423,000.00 428,000.00 -158,000.00 1.03M 619,000.00 2.09M -1.52M 299,000.00

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
2006200720082009201020112012201320142015
Cash 1.73M 1.61M 2.21M 2.40M 2.27M 3.40M 4.33M 6.52M 5.00M 3.58M
Current Assets 5.17M 3.74M 3.99M 3.60M 3.71M 4.39M 5.98M 7.68M 6.30M 8.44M
Total Assets 14.05M 8.48M 10.62M 9.89M 9.61M 9.73M 11.12M 12.63M 10.89M 22.02M
Current Liabilities 4.98M 5.75M 5.72M 5.70M 5.19M 5.14M 4.76M 4.58M 4.49M 8.88M
Total Liabilities 6.51M 6.91M 6.82M 6.78M 6.24M 5.90M 5.56M 5.47M 5.26M 15.88M
Stockholder' Equity 7.54M 1.57M 3.80M 3.12M 3.36M 3.83M 5.57M 7.16M 5.63M 6.15M
Current Ratio 1.04 0.65 0.70 0.63 0.72 0.85 1.26 1.68 1.40 0.95
TL-to-TA 0.46 0.81 0.64 0.69 0.65 0.61 0.50 0.43 0.48 0.72

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
2006200720082009201020112012201320142015
Retained Earnings -8.81M -14.63M -15.59M -16.47M -16.29M -15.91M -14.54M -13.13M -14.74M -19.48M
Retained Earnings Growth - -66.10% -6.56% -5.62% 1.07% 2.38% 8.59% 9.67% -12.26% -32.14%

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.

$13.26 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -2.25M -5.82M -960,000.00 -877,000.00 244,000.00 471,000.00 1.37M 1.33M -1.69M -4.92M
divided by
Revenue 10.48M 9.34M 8.75M 11.43M 11.64M 12.00M 13.13M 12.47M 7.07M 14.71M
Net Profit Margin -21.42% -62.36% -10.97% -7.67% 2.10% 3.92% 10.41% 10.69% -23.92% -33.41%

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.

$66.25 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
2006200720082009201020112012201320142015
Gross Profit 7.13M 6.60M 6.43M 7.66M 7.44M 10.09M 8.63M 8.45M 4.17M 6.30M
divided by
Revenue 10.48M 9.34M 8.75M 11.43M 11.64M 12.00M 13.13M 12.47M 7.07M 14.71M
Gross Margin 68.00% 70.70% 73.48% 66.97% 63.91% 84.10% 65.76% 67.74% 59.06% 42.81%

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
2006200720082009201020112012201320142015
Capital Expenditure 107,000.00 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
divided by
Net Income -2.25M -5.82M -960,000.00 -877,000.00 244,000.00 471,000.00 1.37M 1.33M -1.69M -4.92M
Capital Expenditure Ratio -4.76% -1.63% -47.29% -14.82% 35.66% 18.47% 13.76% 4.65% -2.43% -10.56%

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
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 2.88M 2.89M 3.26M 4.46M 4.46M 4.46M 4.53M 4.72M 4.67M 7.17M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.50 1.78 1.90 1.42 1.93 1.36 3.40 2.58 1.03 0.84
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
2006200720082009201020112012201320142015
Shares Outstanding 2.88M 2.89M 3.26M 4.46M 4.46M 4.46M 4.53M 4.72M 4.67M 7.17M
Stock Bought Back - -0.20% -11.58% -26.78% -0.00% -0.00% -1.60% -4.02% 1.07% -34.90%
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