|Bid||1,005.40 x 0|
|Ask||1,006.20 x 0|
|Day's Range||1,002.00 - 1,021.60|
|52 Week Range||999.40 - 2,174.50|
|Beta (3Y Monthly)||2.09|
|PE Ratio (TTM)||2.42|
|Forward Dividend & Yield||1.01 (8.97%)|
|1y Target Est||N/A|
FT premium subscribers can click here to receive Due Diligence every day by email. One big thing to start: WeWork is nearing a rescue deal with Japan’s SoftBank. What it all means and details here . At ...
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
(Bloomberg) -- Canada’s Open Text Corp. is weighing a takeover bid for rival software firm Micro Focus International Plc, according to people familiar with the matter.Open Text is speaking to potential advisers about whether to make an offer, said the people, who asked not to be identified because the matter is private. No final decisions have been made and Open Text could opt to not proceed with an offer, they said.Open Text “notes the recent press speculation and confirms that it is not considering a potential acquisition of Micro Focus,” it said in a statement late Friday.Newbury, U.K.-based Micro Focus has a market value of about 3.6 billion pounds ($4.6 billion) while Waterloo, Ontario-based Open Text has a market value of about $10.9 billion. Micro Focus’s American depository receipts jumped as much as 13% on the news.A representative for Micro Focus declined to comment.Forecast CutMicro Focus, whose shares have fallen 35% this year in London, cut its full-year revenue forecast in August and said it was accelerating a strategic review of its operations.As part of the review, Micro Focus is open to options ranging from partial sale to full takeover, the people said. Any deal for the company would be challenging for a buyer because of its nearly $5 billion of debt and declining growth prospects, they said.Micro Focus has built a business model on acquiring legacy software assets and squeezing out costs. Last year, the company agreed to sell its infrastructure software business SUSE to private equity firm EQT Partners AB for $2.54 billion in cash.Micro Focus agreed in 2016 to merge with Hewlett Packard Enterprise Co.’s non-core software assets in a deal worth $8.8 billion.Open Text makes software used for searching corporate intranets and managing documents. In 2017, it acquired Dell Technologies Inc.’s enterprise content division for $1.6 billion.(Updates with statement in third paragraph.)\--With assistance from Gillian Tan and Liana Baker.To contact the reporters on this story: Scott Deveau in New York at firstname.lastname@example.org;Dinesh Nair in London at email@example.com;Ruth David in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Hauck at email@example.com, Matthew Monks, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
For many investors, the main point of stock picking is to generate higher returns than the overall market. But its...
Anyone researching Micro Focus International plc (LON:MCRO) might want to consider the historical volatility of the...
(Bloomberg) -- The timing of Micro Focus International Plc’s reduced revenue guidance couldn’t have been much worse.Thursday’s drop of as much as 34% in the stock caused the software provider to briefly fall below 110th place among the U.K.’s biggest listed companies, the point at which it would face expulsion from the FTSE 100 index. With a quarterly review of the U.K.’s benchmark gauge due to take place after markets close on Tuesday, Micro Focus’s place is on the line.“FTSE 100 exclusion looks a higher risk than before,” Ken Odeluga, an analyst at City Index, said by email. “It’s not a given that it will occur at the next review, but it’s certainly another growing worry for Micro Focus.”FTSE 100 membership is important not just in terms of prestige, but because it brings investment from funds that track the index. Also at risk in next week’s review is retailer Marks & Spencer Group Plc, the index’s least valuable member with a market capitalization of about 3.7 billion pounds ($4.5 billion).At Thursday’s session low, Micro Focus’s market value fell to just 3.5 billion pounds, reducing its ranking among fully listed U.K. companies to about 118th. According to FTSE rules, a security will be removed if it falls to 111th or below.While a partial rally in the stock took its valuation back to about 3.9 billion pounds -- a level that may just secure its spot in the index -- Micro Focus will need to avoid any renewed weakness in the coming days to ensure its FTSE 100 survival.According to JPMorgan Chase & Co. analyst Pankaj Gupta, removal from the index is a possibility for the stock and there are two or three potential replacements. “It still has until next Tuesday to recover,” he said by email.READ MORE: Micro Focus Turmoil Grows as Firm Cuts Guidance, Shares Slump\--With assistance from Jan-Patrick Barnert and Justina Lee.To contact the reporter on this story: Kit Rees in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Celeste Perri at email@example.com, Paul Jarvis, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Micro Focus International Plc cut its outlook for full-year revenue causing its shares to plummet, blaming uncertainty among its clients to sign new software deals.The U.K. tech company is cutting its full year constant currency revenue guidance to minus 6% to 8%, down from minus 4% to 6%, according to a statement Thursday. Shares in Micro Focus fell as much as 34% during trading in London, the most since March 2018.Micro Focus is also accelerating a strategic review of the group’s operations, and will consider a range of strategic, operational and financial alternatives.It was only in July that the company said it was maintaining its full year guidance, as it continued to battle integrating the $8.8 billion of software assets it bought from Hewlett Packard Enterprise Co. two years ago.Micro Focus has built a business model on acquiring legacy software assets and squeezing out costs. In 2017 it bought Hewlett Packard Enterprise’s software assets, such as application delivery management, big-data analytics and enterprise security, but has struggled to integrate the deal, causing the departure of its chief executive officer.Investors have continued to question the company’s ability to integrate HPE’s assets, with shares falling 11% over the past month. Elliott Management Corp., the New York hedge fund run by billionaire Paul Singer, built up a position in the company last year, but has since exited its holding, according to a person familiar with the matter. Elliott’s holding fell below 5% of Micro Focus in October 2018, according to regulatory filings. “Following the recent disappointing trading performance, we have determined that it is appropriate to accelerate the undertaking of a strategic review of the Group’s operations,” said Stephen Murdoch, chief executive officer of Micro Focus.The company declined to give more details on the strategic review. In July 2018 the company agreed to sell its infrastructure software business SUSE to private equity firm EQT Partners AB for $2.54 billion in cash.“There is worse to come as the company has launched a strategic review,” said George O’Connor, analyst at Stifel, in a research note.(Updated with share price, Elliott sale and analyst quote.)To contact the reporter on this story: Giles Turner in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Nate Lanxon, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Britain’s once biggest software company had eyes bigger than its tummy.Micro Focus International Plc acquired part of Hewlett Packard Enterprise Co.’s software assets in an $8.8 billion deal in 2017, trebling its headcount in the process. On Thursday, the British company cut its revenue forecast for the second time in as many years.Sales will fall as much as 8% this year, compared to the company’s earlier estimate of as much as 6%. The stock dropped 34%, dragging Micro Focus’s market capitalization down to 4 billion pounds ($4.9 billion), below its level before the takeover.There’s no obvious solution beyond, well, selling more product. Thursday’s announcement included plans for a strategic review of its operations. The statement made vague allusions to “execution improvements” and “strategic, operational and financial alternatives”.That wording seems to encompass the prospect of a private equity-backed buyout. Micro Focus is certainly cheap now: it trades at just six times forward earnings. But given Chairman Kevin Loosemore’s approach to generating shareholder returns, it’s unclear exactly how going private might improve the business.Since taking over as chairman in 2011, Loosemore has grown Ebitda more than eight-fold by acquiring legacy software companies, dramatically cutting costs and cross-selling products. This strategy appears to leave little room for a private equity buyer to take similar steps. A leveraged buyout of a shrinking business, whose costs have theoretically already been cut to the bone, would require some considerable strategic vision.The primary benefit of shelter from the capital markets might be to increase investment in research and development, potentially allowing the company to re-emerge in five years’ time with a compelling growth story. That would not only be a major gamble, but a significant strategic shift.With the existing strategy, improvement needs to come from the sales side, and that’s something that benefits from greater scale. On that basis, carving the company up and selling off its constituent pieces would seem counter-intuitive, since it would reduce said scale.In the 12 years before the HPE acquisition, Micro Focus boasted annual compound shareholder returns of almost 30%. In the two years since, the compound return has been a negative 14%. It’s hard to see the escape route from this trajectory.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
British IT group Micro Focus International will miss its full-year revenue target and accelerate a review of its operations, it said on Thursday, sending its shares plunging in early trade. The company, which maintains and upgrades the legacy software systems that underpin big businesses such as banks and airlines, had reiterated its guidance as recently as last month, when it reported a 5.3% fall in first-half revenue.
Could Micro Focus International plc (LON:MCRO) be an attractive dividend share to own for the long haul? Investors are...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Micro Focus International plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Moody's Investors Service ("Moody's") affirmed Micro Focus International plc's B1 corporate family rating (CFR) and B1-PD probability of default rating (PDR), as well as the B1 ratings on the senior secured bank facilities borrowed at subsidiaries MA FinanceCo., LLC and Seattle Spinco, Inc. Concurrently, Moody's changed the outlook to positive from stable. The rating action reflects the company's improved positioning at B1 following solid results during the six months ended 30 April 2019 as well as further progress with the integration of the former HPE Software business and legacy Micro Focus operations. Moody's-adjusted gross debt/EBITDA stood at 3.5x, pro forma for continuing operations (excluding the SUSE disposal), while also generating good free cash flow after capex, interest and dividends and notwithstanding USD161 million of integration-related exceptional cash outflows during the period.
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also...
Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Micro Focus...
Micro Focus International plc (LON:MCRO) is a stock with outstanding fundamental characteristics. When we build an...
Investment company Harbor Island Capital LLC buys HP Inc, sells USG Corp, Micro Focus International PLC during the 3-months ended 2019Q1, according to the most recent filings of the investment company, ...
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Does the April share price for Micro Focus International plc (LON:MCRO) reflect what it's really wort...