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RM

BST:RMP1
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RMP1
BST
£196M
Market Cap
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Last updated 2019/07/16 20:43
Company description

RM plc supplies products, services, and solutions to educational markets in the United Kingdom and internationally. The last earnings update was 7 days ago. More info.

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RMP1 Share Price and Events
7 Day Returns
-4.1%
BST:RMP1
-1.3%
DE Software
-1%
DE Market
1 Year Returns
4%
BST:RMP1
17.3%
DE Software
-6.2%
DE Market
RMP1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RM (RMP1) -4.1% 0.8% -0.8% 4% 63.3% 28.1%
DE Software -1.3% 7.3% 20.7% 17.3% 71.6% 108.7%
DE Market -1% 2.1% -1.8% -6.2% 10.4% 12.6%
1 Year Return vs Industry and Market
  • RMP1 underperformed the Software industry which returned 17.3% over the past year.
  • RMP1 outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
RMP1
Industry
5yr Volatility vs Market

Value

 Is RM undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RM to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RM.

BST:RMP1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BST:RMP1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.12 (1 + (1- 19%) (11.67%)) 		1.151
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.151 * 6.65%) 		7.89%

Discounted Cash Flow Calculation for BST:RMP1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RM is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BST:RMP1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.89%)
2020 11.64 Est @ 0.19% 10.79
2021 11.66 Est @ 0.2% 10.02
2022 11.69 Est @ 0.21% 9.31
2023 11.71 Est @ 0.21% 8.65
2024 11.74 Est @ 0.22% 8.03
2025 11.76 Est @ 0.22% 7.46
2026 11.79 Est @ 0.22% 6.93
2027 11.82 Est @ 0.22% 6.44
2028 11.84 Est @ 0.23% 5.98
2029 11.87 Est @ 0.23% 5.56
Present value of next 10 years cash flows £79.17
BST:RMP1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £11.87 × (1 + 0.23%) ÷ (7.89% – 0.23%) 		£155.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £155.38 ÷ (1 + 7.89%)10 		£72.74
BST:RMP1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £79.17 + £72.74 		£151.91
Equity Value per Share
(GBP)		 = Total value / Shares Outstanding
= £151.91 / 81.86 		£1.86
BST:RMP1 Discount to Share Price
Calculation Result
Value per share (EUR) From above. €2.01
Current discount Discount to share price of €2.60
= -1 x (€2.60 - €2.01) / €2.01 		-29.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of RM is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RM's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RM's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BST:RMP1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-31) in GBP £0.22
LSE:RM. Share Price ** LSE (2019-07-16) in GBP £2.4
Germany Software Industry PE Ratio Median Figure of 18 Publicly-Listed Software Companies 34.59x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 19.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RM.

BST:RMP1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RM. Share Price ÷ EPS (both in GBP)

= 2.4 ÷ 0.22

 10.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RM is good value based on earnings compared to the DE Software industry average.
  • RM is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does RM's expected growth come at a high price?
Raw Data
BST:RMP1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts		 -11.3%per year
Germany Software Industry PEG Ratio Median Figure of 13 Publicly-Listed Software Companies 2.22x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for RM, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on RM's assets?
Raw Data
BST:RMP1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-31) in GBP £0.51
LSE:RM. Share Price * LSE (2019-07-16) in GBP £2.4
Germany Software Industry PB Ratio Median Figure of 32 Publicly-Listed Software Companies 3.08x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
BST:RMP1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RM. Share Price ÷ Book Value per Share (both in GBP)

= 2.4 ÷ 0.51

 4.72x

* Primary Listing of RM.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RM is overvalued based on assets compared to the DE Software industry average.
X
Value checks
We assess RM's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
    5. RM has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is RM expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

  • No analysts cover RM, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-11.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RM expected to grow at an attractive rate?
  • RM's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • RM's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • RM's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
BST:RMP1 Future Growth Rates Data Sources
Data Point Source Value (per year)
BST:RMP1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -11.3%
BST:RMP1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 2.3%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 19.7%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BST:RMP1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BST:RMP1 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-11-30 234 29 2
2020-11-30 228 25 2
2019-11-30 223 21 2
BST:RMP1 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-05-31 222 14 18
2019-02-28 221 15 18
2018-11-30 221 16 17
2018-08-31 215 15 16
2018-05-31 209 14 15
2018-02-28 198 13 14
2017-11-30 186 12 13
2017-08-31 174 8 12
2017-05-31 162 4 11
2017-02-28 165 1 11
2016-11-30 168 -2 12
2016-08-31 171 -4 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RM's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • RM's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BST:RMP1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from RM Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:RMP1 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-11-30
2020-11-30
2019-11-30
BST:RMP1 Past Financials Data
Date (Data in GBP Millions) EPS *
2019-05-31 0.22
2019-02-28 0.21
2018-11-30 0.21
2018-08-31 0.19
2018-05-31 0.18
2018-02-28 0.17
2017-11-30 0.16
2017-08-31 0.15
2017-05-31 0.13
2017-02-28 0.14
2016-11-30 0.14
2016-08-31 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if RM will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess RM's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RM has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has RM performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RM's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RM's year on year earnings growth rate has been positive over the past 5 years.
  • RM's 1-year earnings growth exceeds its 5-year average (24.1% vs 8.6%)
  • RM's earnings growth has exceeded the DE Software industry average in the past year (24.1% vs 17.1%).
Earnings and Revenue History
RM's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RM Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:RMP1 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-31 221.58 18.14 58.39 6.75
2019-02-28 221.28 17.53 57.98 6.75
2018-11-30 220.98 16.93 57.58 6.75
2018-08-31 215.22 15.77 55.08 6.79
2018-05-31 209.47 14.62 52.58 6.84
2018-02-28 197.67 13.73 48.98 6.84
2017-11-30 185.86 12.85 45.38 6.84
2017-08-31 174.00 11.85 42.26 7.56
2017-05-31 162.14 10.85 39.13 8.29
2017-02-28 164.88 11.25 40.38 8.29
2016-11-30 167.62 11.65 41.63 8.29
2016-08-31 171.40 11.94 43.53 7.69
2016-05-31 175.18 12.22 45.43 7.09
2016-02-29 176.70 13.59 45.44 7.09
2015-11-30 178.23 14.96 45.45 7.09
2015-08-31 184.23 14.34 50.65 3.54
2015-05-31 190.24 13.72 55.84
2015-02-28 196.39 12.66 57.10
2014-11-30 202.54 11.60 58.36
2014-08-31 218.80 9.83 57.93
2014-05-31 235.06 8.06 57.51
2014-02-28 248.41 7.11 57.80
2013-11-30 261.76 6.17 58.09
2013-08-31 272.29 6.79 58.44
2013-05-31 282.82 7.41 58.78
2013-02-28 285.76 5.66 58.97
2012-11-30 288.69 3.91 59.15

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RM made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • RM used its assets more efficiently than the DE Software industry average last year based on Return on Assets.
  • RM's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Show me more strong past performing companies in the Software industry
X
Past performance checks
We assess RM's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RM has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is RM's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RM's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RM is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RM's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RM's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RM Company Filings, last reported 1 month ago.

BST:RMP1 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-31 41.79 22.92 1.75
2019-02-28 41.79 22.92 1.75
2018-11-30 54.99 8.43 2.63
2018-08-31 54.99 8.43 2.63
2018-05-31 40.35 24.62 1.24
2018-02-28 40.35 24.62 1.24
2017-11-30 29.88 15.22 1.80
2017-08-31 29.88 15.22 1.80
2017-05-31 17.53 0.00 29.27
2017-02-28 17.53 0.00 29.27
2016-11-30 7.80 0.00 39.99
2016-08-31 7.80 0.00 39.99
2016-05-31 13.20 0.00 32.12
2016-02-29 13.20 0.00 32.12
2015-11-30 19.15 0.00 48.32
2015-08-31 19.15 0.00 48.32
2015-05-31 7.17 0.00 43.10
2015-02-28 7.17 0.00 43.10
2014-11-30 8.11 0.00 47.89
2014-08-31 8.11 0.00 47.89
2014-05-31 16.20 0.00 40.28
2014-02-28 16.20 0.00 40.28
2013-11-30 29.03 0.00 63.17
2013-08-31 29.03 0.00 63.17
2013-05-31 22.01 0.00 51.80
2013-02-28 22.01 0.00 51.80
2012-11-30 25.23 0.00 37.82
  • RM's level of debt (54.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.8% vs 54.8% today).
  • Debt is well covered by operating cash flow (60.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 46.8x coverage).
Show me more healthy companies in the Software industry
X
Financial health checks
We assess RM's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. RM has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is RM's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.17%
Current annual income from RM dividends. Estimated to be 3.67% next year.
If you bought €2,000 of RM shares you are expected to receive €63 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RM's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • RM's dividend is below the markets top 25% of dividend payers in Germany (3.82%).
Upcoming dividend payment

Purchase RM before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BST:RMP1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BST:RMP1 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-11-30 0.09 2.00
2020-11-30 0.09 2.00
2019-11-30 0.08 2.00
BST:RMP1 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.076 3.184
2018-02-23 0.066 3.089
2018-02-06 0.066 3.513
2017-02-24 0.060 3.471
2017-02-07 0.060 3.258
2016-02-01 0.050 3.700
2015-02-27 0.040 2.517
2014-02-21 0.038 2.472
2014-02-03 0.038 2.446
2013-07-08 0.035 3.089
2013-02-21 0.034 4.130
2012-02-06 0.034 3.798
2010-11-22 0.076 6.441
2009-11-30 0.071 3.868
2009-11-23 0.071 3.816
2009-05-11 0.067 3.670
2008-11-24 0.066 3.589

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of RM's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
Show me more dividend paying companies in the Software industry
X
Income/ dividend checks
We assess RM's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RM afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. RM has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of RM's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Brooks
COMPENSATION £982,000
AGE 50
TENURE AS CEO 6.3 years
CEO Bio

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 Education in 1991 and served a number of senior positions across different functions. He served as Managing Director of RM's Education Software Division. Mr. Brooks has been an Executive Director of RM Plc. since July 1, 2012. He has a Degree in Computer Studies.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year, both up more than 20%.
  • David's remuneration is higher than average for companies of similar size in Germany.
Management Team

David Brooks

TITLE
CEO & Executive Director
COMPENSATION
£982K
AGE
50
TENURE
6.3 yrs

Neil Martin

TITLE
CFO & Executive Director
COMPENSATION
£840K
AGE
47
TENURE
3.8 yrs

Greg Davidson

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the RM board of directors in years:

5.4
Average Tenure
55
Average Age
  • The tenure for the RM board of directors is about average.
Board of Directors

John Poulter

TITLE
Non Executive Chairman
COMPENSATION
£131K
AGE
76
TENURE
6.2 yrs

David Brooks

TITLE
CEO & Executive Director
COMPENSATION
£982K
AGE
50
TENURE
7 yrs

Neil Martin

TITLE
CFO & Executive Director
COMPENSATION
£840K
AGE
47
TENURE
3.8 yrs

Mike Tomlinson

TITLE
Chairman of Education Advisory Council
COMPENSATION
£16K
AGE
77

Deena Mattar

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£48K
AGE
54
TENURE
5.3 yrs

Pat Martell

TITLE
Independent Non-Executive Director
COMPENSATION
£43K
AGE
55
TENURE
5.5 yrs

Andy Blundell

TITLE
Independent Non-Executive Director
COMPENSATION
£39K
AGE
59
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
05. Feb 19 Sell Andy Wilson Individual 05. Feb 19 05. Feb 19 -68,089 €2.71 €-184,204
X
Management checks
We assess RM's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. RM has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: RM plc
RMP1
Exchange: BST
Founded: 1973
£217,312,475
81,861,840
Website: http://www.rmplc.com
Address: RM plc
140 Eastern Avenue,
Milton Park,
Abingdon,
Oxfordshire, OX14 4SB,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RM. Ordinary Shares London Stock Exchange GB GBP 14. Dec 1994
BST RMP1 Ordinary Shares Boerse-Stuttgart DE EUR 14. Dec 1994
BATS-CHIXE RMl Ordinary Shares BATS 'Chi-X Europe' GB GBP 14. Dec 1994
Number of employees
Current staff
Staff numbers
1,760
RM employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 20:43
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/09
Last earnings filing: 2019/07/09
Last earnings reported: 2019/05/31
Last annual earnings reported: 2018/11/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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