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Frontier Developments

AIM:FDEV
Snowflake Description

Outstanding track record with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FDEV
AIM
£374M
Market Cap
  1. Home
  2. GB
  3. Media
Company description

Frontier Developments plc develops and publishes video games for the interactive entertainment sector in the United Kingdom and internationally. The last earnings update was 45 days ago. More info.


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FDEV Share Price and Events
7 Day Returns
-2%
AIM:FDEV
-0.7%
GB Entertainment
-0.7%
GB Market
1 Year Returns
-25.2%
AIM:FDEV
25.6%
GB Entertainment
1.4%
GB Market
FDEV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Frontier Developments (FDEV) -2% 11.1% 28.4% -25.2% 350.8% 211.5%
GB Entertainment -0.7% 7.8% 17.4% 25.6% -20.4% 6.4%
GB Market -0.7% -0.2% 7.6% 1.4% 14.8% 2%
1 Year Return vs Industry and Market
  • FDEV underperformed the Entertainment industry which returned 25.6% over the past year.
  • FDEV underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.4% over the past year.
Price Volatility
FDEV
Industry
5yr Volatility vs Market

FDEV Value

 Is Frontier Developments 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 Frontier Developments 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 Frontier Developments.

AIM:FDEV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

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 AIM:FDEV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.967 (1 + (1- 19%) (0%))
0.978
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.978 * 6.65%)
7.73%

Discounted Cash Flow Calculation for AIM:FDEV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Frontier Developments 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.

AIM:FDEV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.73%)
2019 10.86 Analyst x3 10.08
2020 3.92 Analyst x4 3.38
2021 9.85 Analyst x3 7.88
2022 8.40 Est @ -14.73% 6.24
2023 7.56 Est @ -9.94% 5.21
2024 7.07 Est @ -6.59% 4.52
2025 6.77 Est @ -4.24% 4.02
2026 6.59 Est @ -2.6% 3.63
2027 6.49 Est @ -1.45% 3.32
2028 6.45 Est @ -0.65% 3.06
Present value of next 10 years cash flows £51.35
AIM:FDEV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £6.45 × (1 + 1.23%) ÷ (7.73% – 1.23%)
£100.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £100.45 ÷ (1 + 7.73%)10
£47.71
AIM:FDEV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £51.35 + £47.71
£99.06
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £99.06 / 38.17
£2.6
AIM:FDEV Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.60
Current discount Discount to share price of £9.58
= -1 x (£9.58 - £2.60) / £2.60
-269.1%

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

  • The current share price of Frontier Developments 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 Frontier Developments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Frontier Developments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:FDEV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-30) in GBP £0.42
AIM:FDEV Share Price ** AIM (2019-03-22) in GBP £9.58
United Kingdom of Great Britain and Northern Ireland Entertainment Industry PE Ratio Median Figure of 10 Publicly-Listed Entertainment Companies 30.13x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 805 Publicly-Listed Companies 15.82x

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

** Primary Listing of Frontier Developments.

AIM:FDEV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:FDEV Share Price ÷ EPS (both in GBP)

= 9.58 ÷ 0.42

22.87x

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

  • Frontier Developments is good value based on earnings compared to the GB Entertainment industry average.
  • Frontier Developments is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Frontier Developments's expected growth come at a high price?
Raw Data
AIM:FDEV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-10.3%per year
United Kingdom of Great Britain and Northern Ireland Entertainment Industry PEG Ratio Median Figure of 5 Publicly-Listed Entertainment Companies 1.28x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

AIM:FDEV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.87x ÷ -10.3%

-2.22x

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

  • Frontier Developments earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Frontier Developments's assets?
Raw Data
AIM:FDEV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-30) in GBP £1.80
AIM:FDEV Share Price * AIM (2019-03-22) in GBP £9.58
United Kingdom of Great Britain and Northern Ireland Entertainment Industry PB Ratio Median Figure of 20 Publicly-Listed Entertainment Companies 1.93x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,360 Publicly-Listed Companies 1.48x
AIM:FDEV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:FDEV Share Price ÷ Book Value per Share (both in GBP)

= 9.58 ÷ 1.80

5.33x

* Primary Listing of Frontier Developments.

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

  • Frontier Developments is overvalued based on assets compared to the GB Entertainment industry average.
X
Value checks
We assess Frontier Developments'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 Entertainment 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 Entertainment industry average (and greater than 0)? (1 check)
  5. Frontier Developments has a total score of 1/6, 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.

FDEV Future Performance

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

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
-10.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Frontier Developments expected to grow at an attractive rate?
  • Frontier Developments's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Frontier Developments's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Frontier Developments's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:FDEV Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:FDEV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -10.3%
AIM:FDEV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 5.1%
United Kingdom of Great Britain and Northern Ireland Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 28.6%
United Kingdom of Great Britain and Northern Ireland Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*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
AIM:FDEV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:FDEV Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-05-31 66 1
2022-05-31 102 4
2021-05-31 88 28 13 6
2020-05-31 69 22 8 6
2019-05-31 83 26 14 5
AIM:FDEV Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-11-30 80 31 16
2018-08-31 57 21 10
2018-05-31 34 10 4
2018-02-28 36 19 5
2017-11-30 38 22 7
2017-08-31 38 18 7
2017-05-31 37 14 8
2017-02-28 33 4 6
2016-11-30 29 -6 5
2016-08-31 25 -3 3
2016-05-31 21 -1 1
2016-02-29 24 2 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Frontier Developments's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Frontier Developments's revenue is expected to grow by 5.1% 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
AIM:FDEV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Frontier Developments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FDEV Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-05-31
2022-05-31 0.60 0.60 0.60 1.00
2021-05-31 0.48 0.53 0.46 4.00
2020-05-31 0.23 0.30 0.18 6.00
2019-05-31 0.40 0.44 0.35 6.00
AIM:FDEV Past Financials Data
Date (Data in GBP Millions) EPS *
2018-11-30 0.42
2018-08-31 0.26
2018-05-31 0.10
2018-02-28 0.15
2017-11-30 0.20
2017-08-31 0.21
2017-05-31 0.23
2017-02-28 0.18
2016-11-30 0.14
2016-08-31 0.09
2016-05-31 0.04
2016-02-29 0.08

*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.
  • Frontier Developments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Frontier Developments'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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Frontier Developments has a total score of 1/6, 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.

FDEV Past Performance

  How has Frontier Developments 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 Frontier Developments's growth in the last year to its industry (Entertainment).
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.
  • Frontier Developments has delivered over 20% year on year earnings growth in the past 5 years.
  • Frontier Developments's 1-year earnings growth exceeds its 5-year average (129.3% vs 59.1%)
  • Frontier Developments's earnings growth has exceeded the GB Entertainment industry average in the past year (129.3% vs 63.9%).
Earnings and Revenue History
Frontier Developments'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 Frontier Developments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:FDEV Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-11-30 79.86 16.09 20.44 12.71
2018-08-31 57.03 9.84 16.62 10.60
2018-05-31 34.19 3.59 12.80 8.50
2018-02-28 36.24 5.31 12.25 8.38
2017-11-30 38.28 7.02 11.70 8.26
2017-08-31 37.82 7.36 11.82 7.95
2017-05-31 37.36 7.71 11.93 7.63
2017-02-28 32.94 6.19 10.88 7.64
2016-11-30 28.52 4.67 9.83 7.66
2016-08-31 24.94 3.05 8.94 7.32
2016-05-31 21.37 1.43 8.04 6.99
2016-02-29 23.89 2.68 8.13 8.25
2015-11-30 26.41 3.93 8.21 9.52
2015-08-31 24.58 2.79 7.76 10.65
2015-05-31 22.76 1.65 7.31 11.77
2015-02-28 17.27 -0.22 5.99 8.65
2014-11-30 11.77 -2.08 4.67 5.53
2014-08-31 10.66 -1.92 3.99 2.77
2014-05-31 9.54 -1.75 3.30
2014-02-28 10.35 -1.60 3.21
2013-11-30 11.15 -1.45 3.11
2013-08-31 11.61 -0.20 2.85
2013-05-31 12.07 1.05 2.58
2013-02-28 11.79 1.40 2.18
2012-11-30 11.50 1.76 1.77
2012-08-31 12.83 1.58 1.62
2012-05-31 14.16 1.40 1.47

*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.
  • Frontier Developments has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Frontier Developments used its assets more efficiently than the GB Entertainment industry average last year based on Return on Assets.
  • Frontier Developments has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Frontier Developments'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 Entertainment 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.
Frontier Developments has a total score of 6/6, 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.

FDEV Health

 How is Frontier Developments'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 Frontier Developments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Frontier Developments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Frontier Developments's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Frontier Developments'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.
  • Low level of unsold assets.
  • Frontier Developments has no debt, it does not need to be covered by short term assets.
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 Frontier Developments Company Filings, last reported 3 months ago.

AIM:FDEV Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-30 68.63 0.00 39.46
2018-08-31 68.63 0.00 39.46
2018-05-31 55.29 0.00 24.12
2018-02-28 55.29 0.00 24.12
2017-11-30 53.68 0.00 29.10
2017-08-31 53.68 0.00 29.10
2017-05-31 31.30 0.00 12.58
2017-02-28 31.30 0.00 12.58
2016-11-30 26.83 0.00 6.75
2016-08-31 26.83 0.00 6.75
2016-05-31 22.76 0.00 8.61
2016-02-29 22.76 0.00 8.61
2015-11-30 21.53 0.00 8.64
2015-08-31 21.53 0.00 8.64
2015-05-31 20.89 0.00 10.64
2015-02-28 20.89 0.00 10.64
2014-11-30 17.47 0.00 9.97
2014-08-31 17.47 0.00 9.97
2014-05-31 18.89 0.14 8.65
2014-02-28 18.89 0.14 8.65
2013-11-30 13.67 0.00 11.05
2013-08-31 13.67 0.00 11.05
2013-05-31 8.40 1.13 7.16
2013-02-28 8.40 1.13 7.16
2012-11-30 8.02 0.00 3.80
2012-08-31 8.02 0.00 3.80
2012-05-31 6.76 0.00 1.69
  • Frontier Developments has no debt.
  • Frontier Developments had no debt 5 years ago.
  • Frontier Developments has no debt, it does not need to be covered by operating cash flow.
  • Frontier Developments has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Frontier Developments'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. Frontier Developments has a total score of 6/6, 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.

FDEV Dividends

 What is Frontier Developments'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
0%
Current annual income from Frontier Developments dividends. Estimated to be 0% next year.
If you bought £2,000 of Frontier Developments shares you are expected to receive £0 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?
  • Unable to evaluate Frontier Developments's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Frontier Developments's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
AIM:FDEV 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 6 Analyst Estimates (S&P Global) See Below
Europe Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.1%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

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

AIM:FDEV Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-05-31
2022-05-31 0.00 1.00
2021-05-31 0.00 3.00
2020-05-31 0.00 4.00
2019-05-31 0.00 4.00

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

  • Unable to perform a dividend volatility check as Frontier Developments has not reported any payouts.
  • Unable to verify if Frontier Developments's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Frontier Developments's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Frontier Developments has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Frontier Developments's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Frontier Developments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 Frontier Developments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Frontier Developments has a total score of 0/6, see the detailed checks below.


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

FDEV Management

 What is the CEO of Frontier Developments'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 Braben
COMPENSATION £407,000
AGE 54
CEO Bio

Mr. David John Braben, O.B.E. founded Frontier Developments Plc in January 1994 and serves as its Chief Executive Officer and has been its Executive Director since January 1994. At Frontier, he has achieved a succession of hit games titles such as Thrillville, RollerCoaster Tycoon and Wallace and Gromit. Mr. Braben serves as Chairman of Frontier Developments. He is a Founding Trustee of the Raspberry Pi Foundation. Mr. Braben served as a Non-Executive director of Phonetic Arts Limited. He sits on the BAFTA Games Board, is a Fellow of the Royal Academy of Engineering and Institute of Engineering and Technology and the Chairman of Skill set University Approvals Board. Mr. Braben has been in the games industry for over three decades. Mr. Braben is the co-author of Elite. His most recent hit, Lost Winds has won critical acclaim for its innovation. He has over 30 years' experience in the gaming industry. Mr. Braben studied Natural Sciences at Jesus College, specialising in Electrical Science in his final year. He then went on to study Computer Science. is a Fellow of the Royal Academy of Engineering, was honoured with a Fellowship of BAFTA in 2015, the recipient of three honorary doctorates (from Abertay University, The Open University and York University), and was honoured with an OBE in the 2014.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year.
  • David's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

David Braben

TITLE
Founder
COMPENSATION
£407K
AGE
54

Alex Bevis

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£411K
AGE
42
TENURE
1.9 yrs

Jonny Watts

TITLE
Chief Creative Officer & Executive Director
COMPENSATION
£406K
AGE
49

Stewart Stanbury

TITLE
Director of Marketing
TENURE
1.5 yrs

Yvonne Dawes

TITLE
HR Manager
Board of Directors Tenure

Average tenure and age of the Frontier Developments board of directors in years:

6.8
Average Tenure
54
Average Age
  • The tenure for the Frontier Developments board of directors is about average.
Board of Directors

David Gammon

TITLE
Non-Executive Chairman
COMPENSATION
£55K
AGE
57
TENURE
6.8 yrs

David Braben

TITLE
Founder
COMPENSATION
£407K
AGE
54
TENURE
25.2 yrs

Alex Bevis

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£411K
AGE
42
TENURE
1.9 yrs

Jonny Watts

TITLE
Chief Creative Officer & Executive Director
COMPENSATION
£406K
AGE
49
TENURE
7.1 yrs

David Walsh

TITLE
Non-Executive Director
COMPENSATION
£379K
AGE
54
TENURE
17.5 yrs

Charles William Cotton

TITLE
Non-Executive Director
COMPENSATION
£30K
AGE
71
TENURE
2.7 yrs

James Mitchell

TITLE
Non-Executive Director
AGE
44
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
05. Sep 18 Buy David Gammon Individual 05. Sep 18 05. Sep 18 5,000 £10.45 £52,250
X
Management checks
We assess Frontier Developments'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. Frontier Developments 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.

FDEV News

Simply Wall St News

Frontier Developments plc (LON:FDEV) Earns A Nice Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is Frontier Developments plc's (LON:FDEV) CEO Paid Enough Relative To Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does David Braben's Compensation Compare With Similar Sized Companies. … According to our data, Frontier Developments plc has a market capitalization of UK£334m, and pays its CEO total annual compensation worth UK£407k.

Simply Wall St -

Investors Who Bought Frontier Developments Shares Five Years Ago Are Now Up 349%

For example, the Frontier Developments plc (LON:FDEV) share price is up a whopping 349% in the last half decade, a handsome return for long term holders. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Frontier Developments managed to grow its earnings per share at 59% a year.

Simply Wall St -

Why Frontier Developments plc (LON:FDEV) Could Be Worth Watching

Frontier Developments plc (LON:FDEV), which is in the entertainment business, and is based in United Kingdom,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s examine Frontier Developments’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Simply Wall St -

What Frontier Developments plc's (LON:FDEV) ROE Can Tell Us

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Frontier Developments has a return on equity of 6.5% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's What Frontier Developments plc's (LON:FDEV) P/E Is Telling Us

We'll look at Frontier Developments plc's (LON:FDEV) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Frontier Developments's P/E ratio is 97.09. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Frontier Developments plc (LON:FDEV) Insiders Increased Their Holdings

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … The Last 12 Months Of Insider Transactions At Frontier Developments.

Simply Wall St -

Brief Commentary On Frontier Developments plc's (LON:FDEV) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … financial health as well as

Simply Wall St -

Understanding Your Return On Investment In Frontier Developments plc (LON:FDEV)

and want to begin learning the link between Frontier Developments plc (LON:FDEV)’s return fundamentals and stock market performance. … Frontier Developments stock represents an ownership share in the company. … Thus, to understand how your money can grow by investing in Frontier Developments, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Did Frontier Developments Plc (LON:FDEV) Use Debt To Deliver Its ROE Of 6.5%?

We'll use ROE to examine Frontier Developments Plc (LON:FDEV), by way of a worked example. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.065 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

FDEV Company Info

Description

Frontier Developments plc develops and publishes video games for the interactive entertainment sector in the United Kingdom and internationally. It develops games across various platforms using its cross platform technology. The company was founded in 1994 and is based in Cambridge, the United Kingdom.

Details
Name: Frontier Developments plc
FDEV
Exchange: AIM
Founded: 1994
£374,068,450
38,170,250
Website: http://www.frontier.co.uk
Address: Frontier Developments plc
26 Science Park,
Milton Road,
Cambridge,
Cambridgeshire, CB4 0FP,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM FDEV Ordinary Shares London Stock Exchange AIM Market GB GBP 15. Jul 2013
OTCPK FRRD.F Ordinary Shares Pink Sheets LLC US USD 15. Jul 2013
Number of employees
Current staff
Staff numbers
422
Frontier Developments employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/23 21:35
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/02/06
Last earnings reported: 2018/11/30
Last annual earnings reported: 2018/05/31


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.