AIM:FDEV

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Frontier Developments

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FDEV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FDEV's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

7.5%

FDEV

6.2%

GB Entertainment

1.3%

GB Market


1 Year Return

111.6%

FDEV

-5.9%

GB Entertainment

-6.4%

GB Market

Return vs Industry: FDEV exceeded the UK Entertainment industry which returned -1.9% over the past year.

Return vs Market: FDEV exceeded the UK Market which returned -6.8% over the past year.


Shareholder returns

FDEVIndustryMarket
7 Day7.5%6.2%1.3%
30 Day-2.9%23.0%14.1%
90 Day8.4%18.1%9.6%
1 Year111.6%111.6%-5.2%-5.9%-2.7%-6.4%
3 Year90.6%90.6%-41.3%-73.3%3.9%-8.6%
5 Year922.4%922.4%-36.3%-73.6%34.6%4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

60.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FDEV (£25.1) is trading above our estimate of fair value (£15.44)

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


Price To Earnings Ratio

PE vs Industry: FDEV is poor value based on its PE Ratio (60.8x) compared to the GB Entertainment industry average (48.8x).

PE vs Market: FDEV is poor value based on its PE Ratio (60.8x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: FDEV is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: FDEV is overvalued based on its PB Ratio (10.1x) compared to the GB Entertainment industry average (2.1x).


Next Steps

Future Growth

How is Frontier Developments forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDEV's forecast earnings growth (21.7% per year) is above the savings rate (1.2%).

Earnings vs Market: FDEV's earnings (21.7% per year) are forecast to grow slower than the UK market (27% per year).

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

Revenue vs Market: FDEV's revenue (19.8% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: FDEV's revenue (19.8% 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 (14.9%).


Next Steps

Past Performance

How has Frontier Developments performed over the past 5 years?

34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDEV has high quality earnings.

Growing Profit Margin: FDEV's current net profit margins (20.9%) are higher than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: FDEV's earnings have grown significantly by 34.1% 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 (-11.3%) over the past year, making it difficult to compare to the Entertainment industry average (95.6%).


Return on Equity

High ROE: FDEV's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Frontier Developments's financial position?


Financial Position Analysis

Short Term Liabilities: FDEV's short term assets (£60.4M) exceed its short term liabilities (£16.4M).

Long Term Liabilities: FDEV's short term assets (£60.4M) exceed its long term liabilities (£34.7M).


Debt to Equity History and Analysis

Debt Level: FDEV is debt free.

Reducing Debt: FDEV had no debt 5 years ago.

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


Next Steps

Dividend

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

0.001%

Forecast Dividend Yield


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

8.5yrs

Average board tenure


CEO

David Braben (56 yo)

no data

Tenure

UK£390,000

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 ($USD520.33K) is below average for companies of similar size in the UK market ($USD1.84M).

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

NamePositionTenureCompensationOwnership
David Braben
Founderno dataUK£390.00k33.25%
£ 323.8m
Alexander Bevis
CFO, Company Secretary & Executive Director3.67yrsUK£391.00k0.044%
£ 426.7k
Jonathan Watts
Chief Creative Officer & Executive Director8.83yrsUK£423.00k0.052%
£ 502.0k
Charles William Cotton
Independent Non-Executive Director4.42yrsUK£38.00k0.40%
£ 3.9m
David Gammon
Independent Non-Executive Chairman8.5yrsUK£69.00k0.75%
£ 7.3m
James Mitchell
Independent Non-Executive Director3.25yrsno data0.31%
£ 3.0m
David Walsh
Independent Non-Executive Director19.25yrsUK£58.00k0%
£ 0

8.5yrs

Average Tenure

56yo

Average Age

Experienced Board: FDEV's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FDEV insiders have only sold shares 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 company bio, 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
  • Market Cap: UK£973.664m
  • Shares outstanding: 38.79m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDEVAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2013

Biography

Frontier Developments plc develops and publishes video games for personal computers and videogame consoles in the United Kingdom. It develops games across various platforms using its cross platform technol...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 19:58
End of Day Share Price2020/12/02 00:00
Earnings2020/05/31
Annual Earnings2020/05/31


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.