GlobalData (AIM:DATA) - Share price, News & Analysis

Q: What is the Fair Price of DATA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DATA (£12.6) is trading below our estimate of [[fair value]] (£13.97)

DATA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	2/6
Financial Health	2/6
Dividends	1/6

DATA Stock Overview

GlobalData Plc provides business information in the form of proprietary data, analytics, and insights in Europe, North America, and the Asia Pacific.

Rewards

Trading at 9.8% below our estimate of its fair value

Revenue is forecast to grow 7.73% per year

Risk Analysis

Has a high level of debt

GlobalData Competitors

RWS Holdings

AIM:RWS

UK£1.4b

Alpha Financial Markets Consulting

AIM:AFM

UK£513.6m

Elixirr International

AIM:ELIX

UK£344.1m

Intertek Group

LSE:ITRK

UK£6.8b

Price History & Performance

Summary of all time highs, changes and price drops for GlobalData
Historical stock prices
Current Share Price	UK£12.60
52 Week High	UK£16.00
52 Week Low	UK£9.00
Beta	0.65
1 Month Change	26.51%
3 Month Change	1.61%
1 Year Change	-18.71%
3 Year Change	52.73%
5 Year Change	124.00%
Change since IPO	1,311.20%

Recent News & Updates

Aug 04

GlobalData's (LON:DATA) Upcoming Dividend Will Be Larger Than Last Year's

The board of GlobalData Plc ( LON:DATA ) has announced that the dividend on 7th of October will be increased to £0.077...

Jul 19

GlobalData (LON:DATA) Ticks All The Boxes When It Comes To Earnings Growth

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

	DATA	GB Professional Services	GB Market
7D	-1.2%	0.8%	0.7%
1Y	-18.7%	-2.6%	-7.8%

Return vs Industry: DATA underperformed the UK Professional Services industry which returned -2.6% over the past year.

Return vs Market: DATA underperformed the UK Market which returned -7.8% over the past year.

Price Volatility

Is DATA's price volatile compared to industry and market?
DATA volatility
DATA Average Weekly Movement	5.2%
Professional Services Industry Average Movement	4.2%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: DATA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DATA's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	3,624	Mike Danson	https://www.globaldata.com

GlobalData Plc provides business information in the form of proprietary data, analytics, and insights in Europe, North America, and the Asia Pacific. The company offers performance advertising services. It serves aerospace, defense, and security; apparel; automotive; banking and payments; construction; consumer; foodservices; healthcare; insurance; medical devices; mining; oil and gas; packaging; pharmaceutical; power; retail; technology; travel and tourism; and sport industries, as well as public sectors.

GlobalData Fundamentals Summary

How do GlobalData's earnings and revenue compare to its market cap?
DATA fundamental statistics
Market Cap	UK£1.42b
Earnings (TTM)	UK£24.30m
Revenue (TTM)	UK£210.10m

58.3x

P/E Ratio

6.7x

P/S Ratio

Is DATA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DATA income statement (TTM)
Revenue	UK£210.10m
Cost of Revenue	UK£166.10m
Gross Profit	UK£44.00m
Other Expenses	UK£19.70m
Earnings	UK£24.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.22
Gross Margin	20.94%
Net Profit Margin	11.57%
Debt/Equity Ratio	277.5%

How did DATA perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

96%

Payout Ratio

Does DATA pay a reliable dividends?

See DATA dividend history and benchmarks

When do you need to buy DATA by to receive an upcoming dividend?
GlobalData dividend dates
Ex Dividend Date	Sep 08 2022
Dividend Pay Date	Oct 07 2022
Days until Ex dividend	25 days
Days until Dividend pay date	54 days

Does DATA pay a reliable dividends?

See DATA dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is DATA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DATA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DATA. This is calculated by dividing DATA's market cap by their current preferred multiple.
What is DATA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£1.42b

DATA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.8x
Enterprise Value/EBITDA	31.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does DATA's PE Ratio compare to its peers?

DATA PE Ratio vs Peers

The above table shows the PE ratio for DATA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	36x
RWS RWS Holdings	26.8x	12.3%	UK£1.4b
AFM Alpha Financial Markets Consulting	60.3x	26.0%	UK£513.6m
ELIX Elixirr International	33.9x	14.5%	UK£344.1m
ITRK Intertek Group	23.1x	8.9%	UK£6.8b
DATA GlobalData	58.3x	n/a	UK£1.4b

Price-To-Earnings vs Peers: DATA is expensive based on its Price-To-Earnings Ratio (58.3x) compared to the peer average (36x).

Price to Earnings Ratio vs Industry

How does DATA's PE Ratio compare vs other companies in the GB Professional Services Industry?

Price-To-Earnings vs Industry: DATA is expensive based on its Price-To-Earnings Ratio (58.3x) compared to the UK Professional Services industry average (17.7x)

Price to Earnings Ratio vs Fair Ratio

What is DATA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DATA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	58.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DATA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of DATA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DATA (£12.6) is trading below our estimate of fair value (£13.97)

Significantly Below Fair Value: DATA is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DATA's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if DATA's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if DATA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DATA's revenue (7.7% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: DATA's revenue (7.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DATA's Return on Equity is forecast to be very high in 3 years time (47.6%).

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Past Performance

How has GlobalData performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

61.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DATA has high quality earnings.

Growing Profit Margin: DATA's current net profit margins (11.6%) are lower than last year (15.3%).

Past Earnings Growth Analysis

Earnings Trend: DATA's earnings have grown significantly by 61.6% per year over the past 5 years.

Accelerating Growth: DATA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DATA had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Professional Services industry average (49.8%).

Return on Equity

High ROE: Whilst DATA's Return on Equity (29.07%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is GlobalData's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DATA's short term assets (£96.7M) do not cover its short term liabilities (£157.4M).

Long Term Liabilities: DATA's short term assets (£96.7M) do not cover its long term liabilities (£259.0M).

Debt to Equity History and Analysis

Debt Level: DATA's net debt to equity ratio (227.9%) is considered high.

Reducing Debt: DATA's debt to equity ratio has increased from 43.6% to 277.5% over the past 5 years.

Debt Coverage: DATA's debt is well covered by operating cash flow (27.2%).

Interest Coverage: DATA's interest payments on its debt are well covered by EBIT (3.5x coverage).

Balance Sheet

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Dividend

What is GlobalData current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.66%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: DATA's dividend (1.66%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: DATA's dividend (1.66%) is low compared to the top 25% of dividend payers in the UK market (5.11%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DATA has been paying a dividend for less than 10 years.

Growing Dividend: DATA's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (96%), DATA's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.1%), DATA's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.5yrs

Average board tenure

CEO

Mike Danson (58 yo)

6.58yrs

Tenure

Mr. Michael Thomas Danson, also known as Mike, is an Investment Partner at PROFounders Capital. Mr. Danson is the Owner of Progressive Capital Limited. He was with Strategic Planning Associates, where he w...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Mike's total compensation is reasonable compared to companies of similar size in the UK market.

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: DATA's board of directors are considered experienced (5.5 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31