AIM:D4T4

Stock Analysis Report

Executive Summary

D4t4 Solutions Plc provides data collection, management, and analytics solutions.

Rewards

Trading at 22.4% below its fair value

Earnings are forecast to grow 27.6% per year

Risk Analysis

High level of non-cash earnings

Profit margins (16.3%) are lower than last year (24%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

How has D4t4 Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: D4T4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

D4T4

0.06%

GB IT

0.5%

GB Market


1 Year Return

1.2%

D4T4

42.7%

GB IT

6.6%

GB Market

Return vs Industry: D4T4 underperformed the UK IT industry which returned 45.9% over the past year.

Return vs Market: D4T4 underperformed the UK Market which returned 6.1% over the past year.


Shareholder returns

D4T4IndustryMarket
7 Day0%0.06%0.5%
30 Day0.5%-0.4%-2.4%
90 Day-5.6%9.8%4.0%
1 Year2.7%1.2%46.0%42.7%12.2%6.6%
3 Year46.8%40.3%113.1%98.7%17.8%2.9%
5 Year295.3%266.4%114.8%98.0%35.7%4.6%

Price Volatility Vs. Market

How volatile is D4t4 Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is D4t4 Solutions undervalued compared to its fair value and its price relative to the market?

22.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: D4T4 (£2.13) is trading below our estimate of fair value (£2.74)

Significantly Below Fair Value: D4T4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: D4T4 is good value based on its PE Ratio (26.2x) compared to the IT industry average (30x).

PE vs Market: D4T4 is poor value based on its PE Ratio (26.2x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: D4T4 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: D4T4 is overvalued based on its PB Ratio (3.3x) compared to the GB IT industry average (2.6x).


Next Steps

Future Growth

How is D4t4 Solutions forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: D4T4's forecast earnings growth (27.6% per year) is above the savings rate (0.5%).

Earnings vs Market: D4T4's earnings (27.6% per year) are forecast to grow faster than the UK market (12.2% per year).

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

Revenue vs Market: D4T4's revenue (20.3% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: D4T4's revenue (20.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if D4T4's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has D4t4 Solutions performed over the past 5 years?

28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: D4T4 has a high level of non-cash earnings.

Growing Profit Margin: D4T4's current net profit margins (16.3%) are lower than last year (24%).


Past Earnings Growth Analysis

Earnings Trend: D4T4's earnings have grown significantly by 28.8% per year over the past 5 years.

Accelerating Growth: D4T4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: D4T4 had negative earnings growth (-50.7%) over the past year, making it difficult to compare to the IT industry average (12.3%).


Return on Equity

High ROE: D4T4's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is D4t4 Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: D4T4's short term assets (£15.5M) exceed its short term liabilities (£3.9M).

Long Term Liabilities: D4T4's short term assets (£15.5M) exceed its long term liabilities (£188.0K).


Debt to Equity History and Analysis

Debt Level: D4T4 is debt free.

Reducing Debt: D4T4 has no debt compared to 5 years ago when its debt to equity ratio was 10.2%.

Debt Coverage: D4T4 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: D4T4 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: D4T4 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if D4T4's debt is covered by short term assets.


Next Steps

Dividend

What is D4t4 Solutions's current dividend yield, its reliability and sustainability?

1.41%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.8%markettop25%5.1%industryaverage2.0%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: D4T4's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: D4T4's dividend (1.41%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

Stable Dividend: D4T4's dividend payments have been volatile in the past 10 years.

Growing Dividend: D4T4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), D4T4's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Pete Kear 0

3.8yrs

Tenure

UK£390,000

Compensation

Mr. Peter J. Kear, Esq., also known as Pete, has been the Chief Executive Officer of D4t4 Solutions Plc since April 1, 2016 and serves as its Executive Director. Mr. Kear served as Sales Director of D4t4 S ...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD507.53K) is above average for companies of similar size in the UK market ($USD325.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Kear
CEO & Executive Director3.8yrsUK£390.00k4.13% £3.5m
Mark Boxall
COO & Executive Director3.4yrsUK£319.00k0.087% £74.4k
Jim Dodkins
CTO & Executive Director0yrsUK£299.00k1.71% £1.5m
Charles Irvine
Chief Financial Officer0.3yrsno datano data
David Hetling
Head of Marketing0yrsno datano data
James Thorne
Company Secretary2.6yrsno datano data

2.6yrs

Average Tenure

Experienced Management: D4T4's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Kear
CEO & Executive Director3.8yrsUK£390.00k4.13% £3.5m
Mark Boxall
COO & Executive Director3.4yrsUK£319.00k0.087% £74.4k
Jim Dodkins
CTO & Executive Director0yrsUK£299.00k1.71% £1.5m
John Lythall
Non-Executive Director3.9yrsUK£27.00k2.48% £2.1m
Peter Whiting
Non-Executive Director1.6yrsUK£34.00k0.055% £46.8k
Peter Simmonds
Non-Executive Chairman4.8yrsUK£50.00k0.86% £736.3k
Monika Biddulph
Independent Non-Executive Director0.2yrsno datano data

3.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: D4T4's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: D4T4 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Top Shareholders

Company Information

D4t4 Solutions Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: D4t4 Solutions Plc
  • Ticker: D4T4
  • Exchange: AIM
  • Founded: 1985
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£85.624m
  • Shares outstanding: 40.29m
  • Website: https://www.d4t4solutions.com

Number of Employees


Location

  • D4t4 Solutions Plc
  • Windmill House
  • 91-93 Windmill Road
  • Sunbury-on-Thames
  • Middlesex
  • TW16 7EF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
D4T4AIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 1997
DFOR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1997

Biography

D4t4 Solutions Plc provides data collection, management, and analytics solutions. It offers Celebrus, a customer data platform software product that captures customer data from various digital channels to deliver artificial intelligence, customer insight and analytics, personalization, decisioning, and customer relationship management. The company also provides management services for data platforms, including hosting, private cloud, public cloud, and application management. In addition, it offers insight and models using analytical data platforms to join dis-similar data sets into a single environment, as well as data platforms. The company serves finance, consumer, and other sectors in the United Kingdom, other European countries, the United States, and internationally. The company was formerly known as IS Solutions plc and changed its name to D4t4 Solutions Plc in July 2016. D4t4 Solutions Plc was founded in 1985 and is headquartered in Sunbury-on-Thames, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 20:40
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
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.