Executive Summary
RM plc supplies products, services, and solutions to educational markets in the United Kingdom and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with excellent balance sheet and pays a dividend.
Share Price & News
How has RM's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RMP1 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.5%
RMP1
0.7%
DE Software
-0.2%
DE Market
1 Year Return
23.5%
RMP1
35.8%
DE Software
13.7%
DE Market
Return vs Industry: RMP1 underperformed the German Software industry which returned 38% over the past year.
Return vs Market: RMP1 exceeded the German Market which returned 14.4% over the past year.
Shareholder returns
| RMP1 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 0.7% | -0.2% |
| 30 Day | 1.5% | 1.6% | 0.3% |
| 90 Day | -3.5% | 5.4% | 3.7% |
| 1 Year | 27.8%23.5% | 37.6%35.8% | 17.2%13.7% |
| 3 Year | 79.7%62.0% | 55.4%49.2% | 15.4%5.3% |
| 5 Year | 98.2%67.0% | 128.0%111.8% | 21.3%4.7% |
Price Volatility Vs. Market
How volatile is RM's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is RM undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RMP1 (€3.31) is trading below our estimate of fair value (€8.94)
Significantly Below Fair Value: RMP1 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RMP1 is good value based on its PE Ratio (12.4x) compared to the Software industry average (45.5x).
PE vs Market: RMP1 is good value based on its PE Ratio (12.4x) compared to the German market (20.7x).
Price to Earnings Growth Ratio
PEG Ratio: RMP1 is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: RMP1 is overvalued based on its PB Ratio (4x) compared to the DE Software industry average (3.2x).
Next Steps
Future Growth
How is RM forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
7.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RMP1's forecast earnings growth (7.8% per year) is above the savings rate (-0.4%).
Earnings vs Market: RMP1's earnings (7.8% per year) are forecast to grow slower than the German market (13.3% per year).
High Growth Earnings: RMP1's earnings are forecast to grow, but not significantly.
Revenue vs Market: RMP1's revenue (1.8% per year) is forecast to grow slower than the German market (5% per year).
High Growth Revenue: RMP1's revenue (1.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if RMP1's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has RM performed over the past 5 years?
8.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RMP1 has high quality earnings.
Growing Profit Margin: RMP1's current net profit margins (8.5%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: RMP1's earnings have grown by 8.3% per year over the past 5 years.
Accelerating Growth: RMP1's earnings growth over the past year (12.6%) exceeds its 5-year average (8.3% per year).
Earnings vs Industry: RMP1 earnings growth over the past year (12.6%) underperformed the Software industry 14.6%.
Return on Equity
High ROE: RMP1's Return on Equity (32%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is RM's financial position?
Financial Position Analysis
Short Term Liabilities: RMP1's short term assets (£61.6M) exceed its short term liabilities (£56.9M).
Long Term Liabilities: RMP1's short term assets (£61.6M) exceed its long term liabilities (£34.2M).
Debt to Equity History and Analysis
Debt Level: RMP1's debt to equity ratio (34.5%) is considered satisfactory.
Reducing Debt: RMP1's debt to equity ratio has increased from 0.6% to 34.5% over the past 5 years.
Debt Coverage: RMP1's debt is well covered by operating cash flow (56.8%).
Interest Coverage: RMP1's interest payments on its debt are well covered by EBIT (25.8x coverage).
Balance Sheet
Inventory Level: RMP1 has a high level of physical assets or inventory.
Debt Coverage by Assets: RMP1's debt is covered by short term assets (assets are 3x debt).
Next Steps
Dividend
What is RM's current dividend yield, its reliability and sustainability?
2.79%
Current Dividend Yield
Upcoming Dividend Payment
Purchase RM before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RMP1's dividend (2.79%) is higher than the bottom 25% of dividend payers in the German market (1.32%).
High Dividend: RMP1's dividend (2.79%) is low compared to the top 25% of dividend payers in the German market (3.63%).
Stability and Growth of Payments
Stable Dividend: RMP1's dividend payments have been volatile in the past 10 years.
Growing Dividend: RMP1's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.6%), RMP1's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RMP1's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average board tenure
CEO
David Brooks (50yo)
6.9yrs
Tenure
UK£982,000
Compensation
Mr. David Brooks has been the Chief Executive Officer of RM Plc since March 01, 2013. Mr. Brooks served as a Chief Operating Officer RM Plc since July 01, 2012 until March 01, 2013. Mr. Brooks joined RM Ed ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD1.26M) is above average for companies of similar size in the German market ($USD792.94K).
Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 6.9yrs | UK£982.00k | 0.54% £1.5m | |
| CFO & Executive Director | 4.4yrs | UK£840.00k | 0.14% £395.2k | |
| Non Executive Chairman | 6.8yrs | UK£131.00k | 0.11% £299.6k | |
| Independent Non-Executive Director | 6.1yrs | UK£43.00k | 0.0061% £17.1k | |
| Senior Independent Non-Executive Director | 5.9yrs | UK£48.00k | 0.022% £61.4k | |
| Chairman of Education Advisory Council | 0yrs | UK£16.00k | no data | |
| Non-Executive Director | 0yrs | no data | no data | |
| Independent Non-Executive Director | 2.8yrs | UK£39.00k | 0.0079% £22.3k |
6.0yrs
Average Tenure
56.5yo
Average Age
Experienced Board: RMP1's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
RM plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: RM plc
- Ticker: RMP1
- Exchange: BST
- Founded: 1973
- Industry: Application Software
- Sector: Software
- Market Cap: UK£234.943m
- Listing Market Cap: UK£280.287m
- Shares outstanding: 81.86m
- Website: https://www.rmplc.com
Number of Employees
Location
- RM plc
- 140 Eastern Avenue
- Milton Park
- Abingdon
- Oxfordshire
- OX14 4SB
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RM. | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Dec 1994 |
| RMP1 | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Dec 1994 |
| RMl | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Dec 1994 |
Biography
RM plc supplies products, services, and solutions to educational markets in the United Kingdom and internationally. The company operates through three divisions: RM Resources, RM Results, and RM Education. The RM Resources division provides curriculum and education resources for schools and nurseries through direct sales force, online, and direct catalogue. The RM Results division provides IT software and services to exam boards and professional awarding bodies. It offers IT software and services to enable onscreen exam marking, onscreen testing, and the management and analysis of educational data. The RM Education division supplies IT software and services to schools and colleges. This division provides IT outsourcing services; cloud-based SaaS solutions, and software and services that enable technology use in the classroom; and digital platforms. RM plc was founded in 1973 and is headquartered in Abingdon, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 20:48 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/11/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.