Capitalcube gives Mitel Networks Corp. a score of 59.
Our analysis is based on comparing Mitel Networks Corp. with the following peers – ShoreTel, Inc., Microsoft Corporation, Cisco Systems, Inc. and Inventergy Global Inc (SHOR-US, MSFT-US, CSCO-US and INVT-US).
Mitel Networks Corp. has a fundamental score of 59 and has a relative valuation of UNDERVALUED.
Access our research and ratings on Mitel Networks Corp.
- Taking peer performance into consideration, relative performance over the last month and last year is around the peer median.
- It’s current Price/Book of 2.22 is about median in its peer group.
- The market expects MITL-US to grow faster than its peers and for the company to improve its current ROE.
- MITL-US‘s median net profit margins and relatively high asset efficiency give it some operating leverage.
- Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
- MITL-US‘s return on assets currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
- The company’s relatively low gross margin and median pre-tax margin suggest operations may be constrained on pricing versus peers.
- Compared with the peers chosen, MITL-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
- The company is likely overinvesting in a business with only median returns.
- MITL-US seems to be constrained by the current level of debt.
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Leverage & Liquidity
MITL-US is debt-constrained.
- With debt at a relatively high 44.53% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 29.54%), and interest coverage level of 3.61x, MITL-US seems debt-constrained.
- Of the 4 chosen peers for the company, only 3 of the stocks have an outstanding debt balance. Companies with no debt include SHOR-US.
MITL-US has moved to a Some Capacity from a relatively high leverage profile at the prior year-end.
- MITL-US‘s interest coverage is its highest over the last four years and compares to a low of 1x in 2013.
- While its interest coverage increased to 3.61x from 2.49x (in 2015), its peer median decreased during this period to 3.61x from 14.30x.
- Interest coverage rose 11.81 points relative to peers.
- MITL-US‘s debt-EV continues to trend upward and is above (but within one standard deviation of) its four-year average debt-EV of 41.77%.
- The increase in its debt-EV to 44.53% from 43.56% (in 2015) was also accompanied by an increase in its peer median during this period to 29.54% from 23.18%.
- Relative to peers, debt-EV fell 5.39 percentage points.
Access the detailed analysis for Mitel Networks Corp.
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|Cisco Systems, Inc.||29.54||3.67||16.53||37.14|
|Inventergy Global Inc||53.17||0.2||-1.37||-56.83|
|Mitel Networks Corporation||44.53||1.41||3.61||15.58|
|Best In Class||19.48||3.67||16.53||999|
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Mitel Networks Corp. is a provider of business communications and collaboration software, services, and solutions. It operates through the following segments: Enterprise, Cloud, and Mobile. The Enterprise segment includes selling and supporting business communications products and services. The Cloud segment offers sells and supports products that are deployed in a cloud environment. The Mobile segment involves in selling and supporting software-based telecommunications networking solutions. The company was founded by Terence Hedley Matthews in 1972 and is headquartered in Ottawa, Canada.
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