MDC Partners Inc. Fundamental Analysis (NASDAQ: MDCA)
MDC Partners Inc. Fundamental Analysis (NASDAQ: MDCA)
MDC Partners Inc. (NASDAQ: MDCA) shows weak financial fundamentals with a PE ratio of 135.50, profit margin of 0.25%, and ROE of 1.08%. The company generates $5.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MDCA's fundamental strength across five key dimensions:
Efficiency Score
WeakMDCA struggles to generate sufficient returns from assets.
Valuation Score
ModerateMDCA shows balanced valuation metrics.
Growth Score
WeakMDCA faces weak or negative growth trends.
Financial Health Score
WeakMDCA carries high financial risk with limited liquidity.
Profitability Score
ModerateMDCA maintains healthy but balanced margins.
Key Financial Metrics
Is MDCA Expensive or Cheap?
P/E Ratio
MDCA trades at 135.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MDCA's PEG of 0.43 indicates potential undervaluation.
Price to Book
The market values MDC Partners Inc. at 1.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.59 times EBITDA. This is generally considered low.
How Well Does MDCA Make Money?
Net Profit Margin
For every $100 in sales, MDC Partners Inc. keeps $0.25 as profit after all expenses.
Operating Margin
Core operations generate 4.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.08 in profit for every $100 of shareholder equity.
ROA
MDC Partners Inc. generates $0.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MDC Partners Inc. produces operating cash flow of $764.64M, showing steady but balanced cash generation.
Free Cash Flow
MDC Partners Inc. generates strong free cash flow of $659.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.45 in free cash annually.
FCF Yield
MDCA converts 14.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
135.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How MDCA Stacks Against Its Sector Peers
| Metric | MDCA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 135.50 | 18.26 | Worse (Expensive) |
| ROE | 1.08% | 939.00% | Weak |
| Net Margin | 0.25% | 3669.00% | Weak |
| Debt/Equity | 2.34 | 0.08 | Weak (High Leverage) |
| Current Ratio | 0.81 | 1.56 | Weak Liquidity |
| ROA | 0.18% | 271.00% | Weak |
MDCA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MDC Partners Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming