MoneyGram International equity, debt and subsidiaries

Accuracy score :
97%

Summary (from the latest annual and quarterly  report – 2018)

  • Total equity: -256 million USD
  • Market Cap is 135 million USD ( the last price of the stock is 2.43 USD)
  • MoneyGram principally provides money transfer services, which make up nearly 90% of company revenue. It also provides bill payment services, issues money orders, and processes checks. The company has a global network that includes over 350,000 locations in more than 200 countries
  • The company has 200 million USD in cash on account
  • In 2018 the company had 900 million USD long-term debt, short – term debt was zero                                                                       (In 2016 total debt was 915 million USD)
  • The company's revenue has decreased in the latest 2017 annual report  to 1.6 billion USD from 1.63 billion in 2016
  • Net loss in 2017 was 30 million USD, Net income in 2016 was 16 million USD

 

Opinion about the company

Fundamentally it is a not good company but in the future we can expect its growth ( total debt is 900 million USD, big amount of cash on company's account, ROE is N/A).

MoneyGram principally provides money transfer services, which make up nearly 90% of company revenue. It also provides bill payment services, issues money orders, and processes checks. The company has a global network that includes over 350,000 locations in more than 200 countries. Customers can also access the company’s services online and at kiosks. Most company revenue consists of customer fees on all of its services. It also earns revenue on exchange spreads when money transfer transactions involve different “send” and “receive” currencies. MoneyGram is the second largest provider of money transfers in the world, the company is based in the United States with headquarters in Dallas. MoneyGram was first established as a subsidiary of Integrated Payment Systems and afterward became an independent company before it was acquired by Travelers in 1998. In 2004, Travelers Express became what is known today as MoneyGram International. By 2006, MoneyGram International had expanded internationally to include over 96,000 agents in regions such as the Asian-Pacific, Eastern Europe, and Central America. During the financial crisis, MoneyGram's shares fell 96 percent from 2007 to 2009. It lost more than $1.6 billion from investments in securities backed by risky mortgages in 2008, and the losses led the company to sell a majority stake to Thomas H. Lee Partners and Goldman Sachs in exchange for a cash infusion. During the drop, U.S. Bancorp shifted its money transfer services to Western Union. The company began to see profitability again in 2009.

In 2013 Moneygram began considering a sale. In 2014, Moneygram lost a relationship with Wal-Mart Stores Inc. and afterward began restructuring to cut costs. From their peak in 2013 until late 2015, shares fell about 70%. Moneygram closed a Global Customer Care Operations center in Lakewood, CO resulting in over 500 layoffs. Furthermore, MoneyGram closed its 376-person Brooklyn Center operation in 2015. Moneygram has offshored numerous positions to Warsaw, Poland from its Colorado and Minnesota locations for additional cost-cutting. In 2015, the company's agent network in Africa reached 25,000 locations, including an agreement with the Mauritius Post Office. Between late October 2016 and January 2017, Moneygram's shares doubled in value. On January 26, 2017, Ant Financial Services Group announced a deal to acquire MoneyGram International for $880 million; the deal subsequently collapsed after it was rejected by the Committee on Foreign Investment in the United States.

MGI standalone subsidiaries:

MoneyGram manages its business primarily through two reporting segments: Global Funds Transfer and Financial Paper Products:

  • The Global Funds Transfer segment is a primary revenue driver, providing money transfer services and bill payment services primarily to unbanked and underbanked consumers. It is important to mention that money transfer services represent 89% of the total revenues and bill payment services represent 5% of the total revenues. The Global Funds Transfer segment is worth around 500 million USD
  • Financial Paper Products segment provides money orders to consumers through its agents and financial institutions located throughout the U.S. and Puerto Rico and provides official check outsourcing services for financial institutions across the U.S. Financial Paper Products segment is worth around 40 million USD and represents 6% of the total revenues
  • It is important to mention that Ripple is the new business partner of MoneyGram

 

Total =540 million USD

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