MTSL  Mer Telemanagement Solutions L...

Exchange

NASDAQ

Sector

Public Utilities

Industry

Telecommunications Equipment

Market Cap.

4.35M

Vuru Grade

45.50/100

Current Price

$0.50
+0.0000 (+0.0000%)

Stability Price

$0.71
Undervalued by 41.58%

Company Metrics

  • P/E 47.04
  • P/S 0.3316
  • P/B 4.3851
  • EPS -0.6840
  • Cash ROIC -6.81%
  • Cash Ratio 0.18
  • Dividend 0 / N/A %
  • Avg. Vol. 7,302.00
  • Shares 8.70M
  • Market Cap. 4.35M

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

BRIEF-Mer Telemanagement Solutions Q1 non-gaap loss per share $0.06
Reuters - Mar 27, 2013
LONDON, May 12 Global stocks paused near record highs as worries over China's banking system provided an excuse for investors to lock in some profits.
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. first-quarter loss widens on a YOY basis
Myiris.com - May 25, 2017
Mer Telemanagement Solutions Ltd. (MTSL) saw its loss widen to $0.90 million, or $0.10 a share for the quarter ended Mar. 31, 2017.
Some Traders Are Very Bearish on MER Telemanagement Solutions Ltd. (MTSL ...
Finance News Daily - May 23, 2017
The stock of MER Telemanagement Solutions Ltd. (MTSL) formed a down wedge with $0.48 target or 7.00 % below today's $0.52 share price.
MER Telemanagement Solutions (MTSL) Earns Media Sentiment Score of 0.31
Markets Daily - 9 hours ago
Receive News & 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 companies with ...
Could MER Telemanagement Solutions Ltd. (MTSL) See a Reversal After Having ... - Finance News Daily
MER Telemanagement Solutions Ltd. (MTSL) Is At $0.50 Formed Wedge; Ashland ...
HuronReport - May 26, 2017
The stock increased 0.51% or $0.34 during the last trading session, reaching $66.67. About shares traded. Ashland Global Holdings Inc. (ASH) has risen 18.65% since May 26, 2016 and is uptrending.
MTS Releases New Version of eXsight for Uniļ¬ed Communications and ...
PR Newswire (press release) - May 3, 2017
RA'ANANA, Israel and RIVER EDGE, New Jersey, May 3, 2017 /PRNewswire/ -- MTS - Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of telecommunications expense management (TEM), enterprise mobility ...
Louisiana State Employees Retirement System Has Cut Its Microsoft (MSFT) Stake ...
High Point Observer - May 25, 2017
Mer Telemanagement Solutions Limited (NASDAQ:MTSL) had a decrease of 97.73% in short interest. MTSL's SI was 100 shares in May as released by FINRA.
MER Telemanagement Solutions Ltd. (MTSL) Is At $0.52 Formed Wedge; AutoNation ...
High Point Observer - May 22, 2017
Among 13 analysts covering AutoNation (NYSE:AN), 5 have Buy rating, 1 Sell and 7 Hold. Therefore 38% are positive. AutoNation had 16 analyst reports since July 28, 2015 according to SRatingsIntel.
Curious Investors Should Take a Look at This Small Cap Stock: MER ...
Morgan Research - May 28, 2017
Bargain hunters looking for stocks under $12 with potential upside might want to take a look at shares of MER Telemanagement Solutions Ltd. (NASDAQ:MTSL). As of a recent trade, the stock is valued around $0.50 and has moved 0.00% in the most recent ...
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.

$0.50 Current Price

$-0.45 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.71 Stability Price (EPV)

Undervalued by 41.58%


Discount Rate: 15.0%

$0.46 Book Price

Overvalued by 8.02%


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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