MobileIron Stock: Paving a Path to Higher Prices

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MobileIron Stock Improving, Outlook Is Bullish

If you are searching for a high-potential small-cap technology stock that offers a good risk-to-reward trade, look at MobileIron stock.

Mobileiron Inc (NASDAQ:MOBL) is a developer of advanced mobile security solutions for the growing enterprise mobility management (EMM) space in financial services, healthcare, pharmaceuticals, and the U.S. federal government.

MobileIron’s products secure data in mobile devices, applications, and the cloud—as well as the movement of data between devices and platforms.

The tailwinds in the EMM space are strong, especially as more people use their mobile devices for transactions, connecting to networks, and other critical communications.

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MOBL stock has outperformed the S&P 500 and the Nasdaq, with a 27% gain this year.

The MobileIron stock price established a decent base of support around $3.00, prior to staging an upside breakout on a bullish golden cross, where the 50-day moving average broke above the 200-day moving average.

Chart courtesy of StockCharts.com

The Fundamental Bull Case for MOBL Stock

A look at the fundamentals supports the rally in MobileIron stock, with rising revenues and a move toward potential profitability by 2019.

Revenues ($ Millions)

2013 $105.6
2014 $132.3
2015 $149.3
2016 $163.9
2017 $176.5

MobileIron, however, does need to address its declining revenue growth rate, which is expected to see some improvement on the horizon.

Revenue Growth

2014 25.31%
2015 12.85%
2016 9.80%
2017 7.67%

MobileIron has been able to control its cost side and drive cash flow and cut losses.

For 2018, revenue growth is expected to improve to 9.7% (to $193.6 million), followed by 8.9% (to $210.8 million) in 2019. (Source: “MobileIron, Inc. (MOBL),” Yahoo! Finance, last accessed April 13, 2018.)

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) growth moved from a negative figure in 2014 and 2015 to two consecutive years of growth, including 1,894% growth in 2017.

EBITDA Growth

2014 −121.28%
2015 −37.41%
2016 22.06%
2017 1,893.93%

The result of the stronger EBITDA growth by MobileIron has translated into a narrowing of losses in 2016 and 2017.

Diluted Earnings Per Share (EPS)

2013 −$0.30
2014 −$1.30
2015 −$1.07
2016 −$0.78
2017 −$0.60

If everything goes to plan, MobileIron could see its loss decline to $0.08 per diluted share in 2018 and could turn a profit of between $0.01 and $0.04 per diluted share in 2019.

The company has no debt on its balance sheet. MobileIron’s key free cash flow (FCF) is negative, but it has fallen in two straight years to only −$3.42 million in 2017.

Free Cash Flow ($ Millions)

2013 −$27.79
2014 −$39.69
2015 −$52.27
2016 −$14.66
2017 −$3.42

The company’s move to positive FCF will allow MobileIron more flexibility to undertake corporate initiatives, such as capital expenditure.

Analyst Take

The MobileIron stock chart looks bullish, and indicates that a firm base has been established. If MOBL stock can break higher, we could see a targeting of $5.30 to $6.80 and an eventual retest of $9.00, which was last encountered in 2015.