DB:5IG

Stock Analysis Report

Executive Summary

Ideagen plc develops and sells information management software in the United Kingdom, rest of Europe, North America, the Middle East, and internationally.


Snowflake Analysis

Reasonable growth potential with proven track record.

Share Price & News

How has Ideagen's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5IG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.3%

5IG

-1.3%

DE Software

-0.6%

DE Market


1 Year Return

8.3%

5IG

-4.8%

DE Software

-20.9%

DE Market

Return vs Industry: 5IG exceeded the German Software industry which returned -1.1% over the past year.

Return vs Market: 5IG exceeded the German Market which returned -17.2% over the past year.


Shareholder returns

5IGIndustryMarket
7 Day9.3%-1.3%-0.6%
30 Day-15.7%-12.0%-20.0%
90 Day-18.4%-17.3%-26.3%
1 Year8.5%8.3%-3.5%-4.8%-18.6%-20.9%
3 Yearn/a14.2%9.7%-19.0%-25.8%
5 Yearn/a57.4%46.2%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is Ideagen's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ideagen undervalued compared to its fair value and its price relative to the market?

153.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 5IG (€1.86) is trading above our estimate of fair value (€1.55)

Significantly Below Fair Value: 5IG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 5IG is poor value based on its PE Ratio (159.3x) compared to the Software industry average (37x).

PE vs Market: 5IG is poor value based on its PE Ratio (159.3x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 5IG is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: 5IG is overvalued based on its PB Ratio (4.8x) compared to the DE Software industry average (2.3x).


Next Steps

Future Growth

How is Ideagen forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5IG's forecast earnings growth (33.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: 5IG's earnings (33.6% per year) are forecast to grow faster than the German market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 5IG's revenue (10.6% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: 5IG's revenue (10.6% 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 5IG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ideagen performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5IG has a large one-off loss of £957.0K impacting its October 31 2019 financial results.

Growing Profit Margin: 5IG's current net profit margins (4.3%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: 5IG's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: 5IG's earnings growth over the past year (1707.1%) exceeds its 5-year average (18.9% per year).

Earnings vs Industry: 5IG earnings growth over the past year (1707.1%) exceeded the Software industry 19.1%.


Return on Equity

High ROE: 5IG's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is Ideagen's financial position?


Financial Position Analysis

Short Term Liabilities: 5IG's short term assets (£26.1M) do not cover its short term liabilities (£53.2M).

Long Term Liabilities: 5IG's short term assets (£26.1M) exceed its long term liabilities (£11.5M).


Debt to Equity History and Analysis

Debt Level: 5IG's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 5IG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 5IG's debt is well covered by operating cash flow (42.1%).

Interest Coverage: 5IG's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: 5IG has a low level of unsold assets or inventory.

Debt Coverage by Assets: 5IG's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

0.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5IG's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: 5IG's dividend (0.17%) is low compared to the top 25% of dividend payers in the German market (4.87%).


Stability and Growth of Payments

Stable Dividend: 5IG is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: 5IG is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 5IG is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 5IG's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Ben Dorks (44yo)

1.92s

Tenure

UK£432,000

Compensation

Mr. Benjamin Charles Dorks, also known as Ben, has been the Chief Executive Officer of Ideagen PLC since May 2018. Mr. Dorks served as Chief Customer Officer of Ideagen PLC since January 2017 until May 201 ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD537.84K) is below average for companies of similar size in the German market ($USD1.12M).

Compensation vs Earnings: Ben's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David R. Hornsby
Group Executive Chairman1.92yrsUK£325.00k4.52% £18.6m
Benjamin Dorks
CEO & Director1.92yrsUK£432.00k1.04% £4.3m
Graeme Spenceley
CFO, Company Secretary & Director10.08yrsUK£311.00k0.99% £4.1m
Barnaby Kent
COO & Director3.25yrsUK£337.00k1.38% £5.7m
Leslie Paul
no dataUK£24.00kno data
Ian Hepworth
Chief Technical Officer1.92yrsno data0.014% £57.3k
Alex Hewitt
Chief Legal Officerno datano data0.058% £239.7k
Arun Varma
Chief Marketing Officerno datano datano data
Ken Ebbage
Managing Director of Product & Services for Risk and Compliance Businessno datano datano data
Paul Marshall
Chief Customer Officer1yrno datano data

1.9yrs

Average Tenure

48yo

Average Age

Experienced Management: 5IG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David R. Hornsby
Group Executive Chairman1.92yrsUK£325.00k4.52% £18.6m
Benjamin Dorks
CEO & Director1.92yrsUK£432.00k1.04% £4.3m
Graeme Spenceley
CFO, Company Secretary & Director10.08yrsUK£311.00k0.99% £4.1m
Barnaby Kent
COO & Director3.25yrsUK£337.00k1.38% £5.7m
Richard Longdon
Non-Executive Director0.42yrno datano data
Tony Rodriguez
Independent Non-Executive Director2.58yrsUK£25.00kno data
Alan M. Carroll
Senior Independent Non-Executive Directorno dataUK£30.00k0.090% £371.6k

2.9yrs

Average Tenure

52yo

Average Age

Experienced Board: 5IG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.


Top Shareholders

Company Information

Ideagen plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ideagen plc
  • Ticker: 5IG
  • Exchange: DB
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: UK£360.543m
  • Listing Market Cap: UK£411.271m
  • Shares outstanding: 226.05m
  • Website: https://www.ideagen.com

Number of Employees


Location

  • Ideagen plc
  • Ergo House
  • Mere Way
  • Ruddington
  • Nottinghamshire
  • NG11 6JS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IDEAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 2007
5IGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2007

Biography

Ideagen plc develops and sells information management software in the United Kingdom, rest of Europe, North America, the Middle East, and internationally. Its governance, risk and compliance (GRC) solutions include Q-Pulse QMS, a quality management software; Q-Pulse PM, a product management software; Q-Pulse Law, an EHS legal compliance register software; Pentana Audit, an audit automation software; Pentana Disclose, a financial disclosure checklist software; and Pentana Risk, a performance and risk management software. The company’s GRC solutions also comprise Coruson, an enterprise cloud safety management software; PleaseReview, a document co-authoring and review software; and Ideagen Academy, a cloud-based E-learning solution. It serves aerospace and defense, accounting, finance and banking, aviation, energy, food and drink, healthcare, life science, manufacturing, and rail industries. The company was formerly known as Datum International Plc and changed its name to Ideagen plc in July 2011. Ideagen plc was incorporated in 1993 and is headquartered in Ruddington, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 23:28
End of Day Share Price2020/04/02 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.