Capitalcube gives Mitel Networks Corp. a score of 50.
Our analysis is based on comparing Mitel Networks Corp. with the following peers – ShoreTel, Inc., Microsoft Corporation, Inventergy Global Inc and Cisco Systems, Inc. (SHOR-US, MSFT-US, INVT-US and CSCO-US).
Mitel Networks Corp. has a fundamental score of 50 and has a relative valuation of UNDERVALUED.
Access our research and ratings on Mitel Networks Corp.
- With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.
- It’s current Price/Book of 2.87 is about median in its peer group.
- The market expects faster earnings growth from MITL-US than from its peers and also a turnaround in its current ROE.
- MITL-US has relatively low net profit margins while its asset efficiency is relatively high.
- 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.
- Over the last five years, MITL-US‘s return on assets has declined from about median to less than the median among its peers suggesting that the company’s historical competitiveness in operations is slipping away.
- The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to 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 does not seem to have the flexibility to raise more debt.
Access our research and ratings on Mitel Networks Corp.
Leverage & Liquidity
MITL-US does not seem able to raise more debt easily.
- MITL-US‘s debt at 24.09% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 18.21%), and interest coverage level of 2.32x, would make major new borrowings difficult.
- 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 towards a median liquidity and leverage from an Some Capacity profile at the recent year-end.
- MITL-US‘s interest coverage has declined 1.29 points from last year’s high and is now close to its five-year average interest coverage.
- The decrease in its interest coverage to 2.32x from 3.61x (in 2016) was also accompanied by a decrease in its peer median during this period to 2.32x from 3.61x.
- MITL-US‘s debt-EV is its lowest relative to the last five years and compares to a high of 64.01% in 2012.
- Like the interest coverage trend, the decrease in its debt-EV (to 24.09% from 44.54%) was also accompanied by a decrease in its peer median during this period (to 18.21% from 28.03%).
- Relative to peers, debt-EV fell 10.63 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 (%)|
|Inventergy Global Inc||15.83||0.13||-1.06||-85|
|Cisco Systems, Inc.||28.03||3.03||14.94||42.62|
|Mitel Networks Corporation||24.09||1.35||2.32||41.4|
|Best In Class||15.83||3.03||14.94||999|
Looking for more metrics and analysis for Mitel Networks Corp.?
Mitel Networks Corp. engages in the provision of cloud and enterprise communications and collaboration solutions through software product development. It operates through Enterprise, and Cloud segments. The Enterprise segment offers a broad range of unified communications and collaboration solutions, which address and support the full spectrum of technology specifications from digital to internet protocol to mobile, and from platforms to applications to end-user devices. The Cloud segment offers a full range of private, public, hybrid, and mobile software as a service solutions for businesses of all sizes. The company was founded by Terence Hedley Matthews in 1972 and is headquartered in Ottawa, Canada.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.