DB:LYU

Stock Analysis Report

Executive Summary

iomart Group plc provides managed cloud services in the United Kingdom and internationally.

Snowflake

Fundamentals

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.6%

DB:LYU

-4.7%

DE IT

-1.6%

DE Market


1 Year Return

-23.0%

DB:LYU

-19.3%

DE IT

-10.5%

DE Market

LYU underperformed the IT industry which returned -12.5% over the past year.

LYU underperformed the Market in Germany which returned -10.7% over the past year.


Share holder returns

LYUIndustryMarket
7 Day-3.6%-4.7%-1.6%
30 Day-2.1%-5.2%-5.4%
90 Day-13.0%-4.2%-6.0%
1 Year-21.1%-23.0%-18.9%-19.3%-7.7%-10.5%
3 Yearn/a155.3%149.0%9.4%-0.02%
5 Yearn/a299.8%282.9%25.5%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

13%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

iomart Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

iomart Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

iomart Group is overvalued based on earnings compared to the DE IT industry average.

iomart Group is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

iomart Group is poor value based on expected growth next year.


Price Based on Value of Assets

iomart Group is good value based on assets compared to the DE IT industry average.


Next Steps

Future Growth

How is iomart Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

iomart Group's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

iomart Group's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).

iomart Group's revenue growth is expected to exceed the Germany market average.

iomart Group's earnings growth is expected to exceed the Germany market average.

iomart Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

iomart Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has iomart Group performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

iomart Group's year on year earnings growth rate has been positive over the past 5 years.

iomart Group's 1-year earnings growth is less than its 5-year average (4% vs 9.4%)

iomart Group's earnings growth has not exceeded the DE IT industry average in the past year (4% vs 19.5%).


Return on Equity

iomart Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

iomart Group used its assets more efficiently than the DE IT industry average last year based on Return on Assets.


Return on Capital Employed

iomart Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is iomart Group's financial position?


Financial Position Analysis

iomart Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

iomart Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

iomart Group's level of debt (46.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (46.2% vs 46.5% today).

Debt is well covered by operating cash flow (64.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 17.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

2.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

iomart Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.59%).

iomart Group's dividend is below the markets top 25% of dividend payers in Germany (4.3%).

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

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Angus MacSween (62yo)

19.6yrs

Tenure

UK£617,880

Compensation

Mr. Angus MacSween has been the Chief Executive Officer at Iomart Group Plc of iomart hosting Limited since 2000. Mr. MacSween started his first business selling telephone systems in 1984. He then grew and ...


CEO Compensation Analysis

Angus's remuneration is about average for companies of similar size in Germany.

Angus's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

The average tenure for the iomart Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

54yo

Average Age

The average tenure for the iomart Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy€14,70410 Dec 18
Scott Cunningham
EntityIndividual
Role
CFO & Executive Director
Member of the Board of Directors
Shares4,000
Max Price€3.68

Ownership Breakdown


Management Team

  • Stewart Moir

    Financial Controller

  • Angus MacSween (62yo)

    CEO & Director

    • Tenure: 19.6yrs
    • Compensation: £617.88k
  • Bill Strain

    Chief Technology Officer

  • Scott Cunningham (48yo)

    CFO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: £332.69k
  • Andrew McDonald

    Company Secretary

    • Tenure: 1.5yrs

Board Members

  • Angus MacSween (62yo)

    CEO & Director

    • Tenure: 19.4yrs
    • Compensation: £617.88k
  • Scott Cunningham (48yo)

    CFO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: £332.69k
  • Richard Maurice Masters (54yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: £45.00k
  • Ian Steele (62yo)

    Chairman of the Board

    • Tenure: 1.0yrs
    • Compensation: £62.50k
  • Karyn Lamont (50yo)

    Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: £4.27k

Company Information

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


Key Information

  • Name: iomart Group plc
  • Ticker: LYU
  • Exchange: DB
  • Founded: 1998
  • Industry: internet services and infrastructure
  • Sector: software
  • Market Cap: UK£344.178m
  • Listing Market Cap: UK£375.513m
  • Shares outstanding: 108.75m
  • Website: Click here

Number of Employees


Location

  • iomart Group plc
  • West of Scotland Science Park
  • Kelvin Campus
  • Glasgow
  • G20 0SP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IOMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2000
IMRT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2000
LYUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2000

Biography

iomart Group plc provides managed cloud services in the United Kingdom and internationally. It operates through two segments, Cloud Services and Easyspace. The company offers a range of products to the mic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/15 23:02
End of Day Share Price2019/08/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.