Stock on Watch: Marin Software Incorporated (MRIN)

Company Profile:

Marin Software Incorporated operates a cloud-based digital advertising management platform in the United States and internationally. The companys platform allows marketing professionals to manage their digital advertising across search, display, and social channels. Its platform consists of various modules, including Optimization module that helps advertisers to manage bids across publishers to meet revenue goals and identify opportunities for campaign improvements; Reporting and Analytics module that enables advertisers to report results at a business level and analyze cross-channel performance trends; Campaign Management module, which provides the digital advertiser with an interface to create, manage, and optimize campaigns across various publishers; and Connect module that enables advertisers automate and streamline their ability to capture revenue, cost, and audience data from various sources, such as ad servers, analytics systems, CRM platforms, publishers, and third party databases. Marin Software Incorporated was founded in 2006 and is headquartered in San Francisco, California.

Recent News:

Marin Software announced it will report its financial results for the first quarter ended March 31, 2016, after market close on Thursday, May 5, 2016. The company also announced it will hold a conference call on the same day at 2:00 PM Pacific Time (5:00 PM Eastern Time) to discuss its quarterly financial results.

On Apri 6, Marin Software released its annual report, Mobile Advertising Around the Globe. Among other things, this report reveals that mobile devices not only represented the majority of consumer online usage in 2015, but also that mobile conversion rates grew significantly compared to 2014.

For the fourth quarter of 2015, net revenues totaled $29.0 million, a year-over-year increase of 7% when compared to $27.0 million in the fourth quarter of 2014. GAAP net income was ($2.1) million or ($0.06) per share based on 37.2 million weighted average shares outstanding.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

MRIN’s strengths can be seen in its better growth and better efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD ans Stochastic Oscillator and RSI is increasing to 54.22. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Marin Software Incorporated (MRIN) a STRONG BUY.