Sunday, November 10, 2024

Match Group (MTCH): Possible Turnaround Stock, But Too Much Gambling For My Taste

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Investment Thesis

Match Group (NASDAQ:MTCH) has several positive aspects: it’s a company with globally recognized apps. It offers a product for which there will probably always be demand. They have good margins and buy back shares. However, the market

Investor’s Checklist

Check

Description

Rising revenues?

Yes

Increasing over longer periods

Improving margins?

Yes (net income margin over the last two years)

Possible competitive edge

PEG ratio below one?

No (10/6 = PEG ratio of 1.6; PE of 10 / EPS growth of about 6% this year)

PEG ratio below one may suggest undervaluation

Sufficient cash reserves?

Yes

Vital for the survival & growth, especially of unprofitable companies

Rewards shareholders?

Yes, buybacks

Returning capital to shareholders

Shareholder negatives?

Quite high SBCs

Actions that disadvantage shareholders

Stock in an uptrend?

No

Trading above its 200-day moving average?

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