Micro Focus Profitability Analysis

MFGP
 Stock
  

USD 3.67  0.10  2.80%   

For Micro Focus profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Micro Focus to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Micro Focus Intl utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Micro Focus's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Micro Focus Intl over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
Micro Focus Price to Sales Ratio is very stable at the moment as compared to the past year. Micro Focus reported last year Price to Sales Ratio of 0.51. As of 14th of August 2022, Sales per Share is likely to grow to 7.85, while Return on Sales is likely to drop (0.08) . As of 14th of August 2022, Accumulated Other Comprehensive Income is likely to drop to about (317.2 M). In addition to that, Consolidated Income is likely to drop to about (412.1 M).

Micro Focus Revenues

3.18 Billion

Is Micro Focus' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Micro Focus. If investors know Micro will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Micro Focus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.45
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
-0.11
Return On Assets
-9.0E-4
Return On Equity
-0.0855
The market value of Micro Focus Intl is measured differently than its book value, which is the value of Micro that is recorded on the company's balance sheet. Investors also form their own opinion of Micro Focus' value that differs from its market value or its book value, called intrinsic value, which is Micro Focus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Micro Focus' market value can be influenced by many factors that don't directly affect Micro Focus' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Micro Focus' value and its price as these two are different measures arrived at by different means. Investors typically determine Micro Focus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Micro Focus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Micro Focus Intl Revenue vs. Beta Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Micro Focus's current stock value. Our valuation model uses many indicators to compare Micro Focus value to that of its competitors to determine the firm's financial worth.
Micro Focus Intl is considered to be number one stock in beta category among related companies. It is rated top company in revenue category among related companies totaling about  1,161,016,949  of Revenue per Beta. Micro Focus Revenues is very stable at the moment as compared to the past year. Micro Focus reported last year Revenues of 3.33 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Micro Focus by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Micro Focus' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Micro Focus' earnings, one of the primary drivers of an investment's value.

Micro Revenue vs. Beta

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Micro Focus 
Beta 
 = 
Covariance 
Variance 
2.36
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Micro Focus 
Revenue 
 = 
Money Received 
Discounts and Returns 
2.74 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Micro Revenue vs Competition

Micro Focus Intl is rated top company in revenue category among related companies. Market size based on revenue of Software—Infrastructure industry is now estimated at about 5.48 Billion. Micro Focus totals roughly 2.74 Billion in revenue claiming about 50% of equities listed under Software—Infrastructure industry.

Micro Focus Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Micro Focus, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Micro Focus will eventually generate negative long term returns. The profitability progress is the general direction of Micro Focus' change in net profit over the period of time. It can combine multiple indicators of Micro Focus, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-294 M-317.2 M
Consolidated Income-382 M-412.1 M
Net Income-382 M-412.1 M
Net Income Common Stock-382 M-412.1 M
Net Loss Income from Discontinued Operations-12.3 M-13.3 M
Net Income to Non Controlling Interests-270 K-277.1 K
Operating Income-239 M-257.9 M
Income Tax Expense-74.4 M-76.4 M
Net Income Per Employee-281.6 K-289 K
Micro Focus International plc operates in the enterprise software business in the United Kingdom, the United States, Germany, Canada, France, Japan, and internationally. The company was founded in 1976 and is headquartered in Newbury, the United Kingdom. Micro Focus operates under SoftwareInfrastructure classification in the United States and is traded on New York Stock Exchange. It employs 11019 people.

Micro Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Micro Focus. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Micro Focus position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Micro Focus' important profitability drivers and their relationship over time.

Micro Focus Profitability Trends

Micro Focus profitability trend refers to the progression of profit or loss within a business. An upward trend means that Micro Focus' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Micro Focus' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Micro Focus Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Micro Focus different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Micro Focus in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Micro Focus' future profitability.

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Our tools can tell you how much better you can do entering a position in Micro Focus without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Additionally, see Stocks Correlation. Note that the Micro Focus Intl information on this page should be used as a complementary analysis to other Micro Focus' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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When running Micro Focus Intl price analysis, check to measure Micro Focus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Micro Focus is operating at the current time. Most of Micro Focus' value examination focuses on studying past and present price action to predict the probability of Micro Focus' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Micro Focus' price. Additionally, you may evaluate how the addition of Micro Focus to your portfolios can decrease your overall portfolio volatility.
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To fully project Micro Focus' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Micro Focus Intl at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Micro Focus' income statement, its balance sheet, and the statement of cash flows.
Potential Micro Focus investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Micro Focus investors may work on each financial statement separately, they are all related. The changes in Micro Focus's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Micro Focus's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.