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FDEV

Frontier Developments AIM:FDEV Stock Report

Last Price

UK£12.32

Market Cap

UK£479.9m

7D

-2.7%

1Y

-51.4%

Updated

23 May, 2022

Data

Company Financials +
FDEV fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

FDEV Stock Overview

Frontier Developments plc develops and publishes video games for personal computers and videogame consoles in the United Kingdom.

Frontier Developments Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Frontier Developments
Historical stock prices
Current Share PriceUK£12.32
52 Week HighUK£29.00
52 Week LowUK£10.80
Beta0.75
1 Month Change-2.53%
3 Month Change-1.91%
1 Year Change-51.40%
3 Year Change23.45%
5 Year Change203.45%
Change since IPO697.41%

Recent News & Updates

Mar 08
Frontier Developments plc's (LON:FDEV) Intrinsic Value Is Potentially 75% Above Its Share Price

Frontier Developments plc's (LON:FDEV) Intrinsic Value Is Potentially 75% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Frontier Developments...

Feb 21
Frontier Developments (LON:FDEV) Will Be Hoping To Turn Its Returns On Capital Around

Frontier Developments (LON:FDEV) Will Be Hoping To Turn Its Returns On Capital Around

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

FDEVGB EntertainmentGB Market
7D-2.7%-0.3%-0.4%
1Y-51.4%-41.1%-4.0%

Return vs Industry: FDEV underperformed the UK Entertainment industry which returned -41.1% over the past year.

Return vs Market: FDEV underperformed the UK Market which returned -4% over the past year.

Price Volatility

Is FDEV's price volatile compared to industry and market?
FDEV volatility
FDEV Average Weekly Movement6.0%
Entertainment Industry Average Movement6.1%
Market Average Movement6.2%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.2%

Stable Share Price: FDEV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FDEV's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994745David Brabenhttps://www.frontier.co.uk

Frontier Developments plc develops and publishes video games for personal computers and videogame consoles in the United Kingdom. The company develops games across various platforms using its cross-platform technology, Cobra. It also publishes games developed by selected partner studios under its Frontier Foundry games label.

Frontier Developments Fundamentals Summary

How do Frontier Developments's earnings and revenue compare to its market cap?
FDEV fundamental statistics
Market CapUK£479.85m
Earnings (TTM)UK£14.10m
Revenue (TTM)UK£102.90m

34.0x

P/E Ratio

4.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FDEV income statement (TTM)
RevenueUK£102.90m
Cost of RevenueUK£35.12m
Gross ProfitUK£67.78m
Other ExpensesUK£53.68m
EarningsUK£14.10m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.36
Gross Margin65.87%
Net Profit Margin13.70%
Debt/Equity Ratio0%

How did FDEV perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


36.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FDEV (£12.32) is trading below our estimate of fair value (£19.31)

Significantly Below Fair Value: FDEV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FDEV is poor value based on its PE Ratio (34x) compared to the UK Entertainment industry average (26.9x).

PE vs Market: FDEV is poor value based on its PE Ratio (34x) compared to the UK market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: FDEV is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FDEV is overvalued based on its PB Ratio (4.2x) compared to the GB Entertainment industry average (2.9x).


Future Growth

How is Frontier Developments forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


55.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDEV's forecast earnings growth (55.1% per year) is above the savings rate (0.9%).

Earnings vs Market: FDEV's earnings (55.1% per year) are forecast to grow faster than the UK market (11.3% per year).

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

Revenue vs Market: FDEV's revenue (19.3% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: FDEV's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FDEV's Return on Equity is forecast to be low in 3 years time (17.6%).


Past Performance

How has Frontier Developments 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


23.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FDEV has high quality earnings.

Growing Profit Margin: FDEV's current net profit margins (13.7%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: FDEV's earnings have grown significantly by 23.4% per year over the past 5 years.

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

Earnings vs Industry: FDEV had negative earnings growth (-22.1%) over the past year, making it difficult to compare to the Entertainment industry average (8.2%).


Return on Equity

High ROE: FDEV's Return on Equity (12.4%) is considered low.


Financial Health

How is Frontier Developments's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FDEV's short term assets (£63.9M) exceed its short term liabilities (£22.9M).

Long Term Liabilities: FDEV's short term assets (£63.9M) exceed its long term liabilities (£28.9M).


Debt to Equity History and Analysis

Debt Level: FDEV is debt free.

Reducing Debt: FDEV has not had any debt for past 5 years.

Debt Coverage: FDEV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FDEV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FDEV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FDEV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FDEV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FDEV's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FDEV has not reported any payouts.


Discover strong dividend paying companies

Management

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

8.0yrs

Average board tenure


CEO

David Braben (57 yo)

28.33yrs

Tenure

UK£498,000

Compensation

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 achieve...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD626.16K) is below average for companies of similar size in the UK market ($USD1.38M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

Experienced Board: FDEV's board of directors are considered experienced (8 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.


Top Shareholders

Company Information

Frontier Developments plc's employee growth, exchange listings and data sources


Key Information

  • Name: Frontier Developments plc
  • Ticker: FDEV
  • Exchange: AIM
  • Founded: 1994
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Implied Market Cap: UK£479.852m
  • Shares outstanding: 38.95m
  • Website: https://www.frontier.co.uk

Number of Employees


Location

  • Frontier Developments plc
  • 26 Science Park
  • Milton Road
  • Cambridge
  • Cambridgeshire
  • CB4 0FP
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/23 00:00
End of Day Share Price2022/05/23 00:00
Earnings2021/11/30
Annual Earnings2021/05/31


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.