FD Technologies (AIM:FDP) - Share price, News & Analysis

FDP fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

FDP Stock Overview

FD Technologies Plc provides software and consulting services in the United Kingdom and internationally.

Rewards

Earnings are forecast to grow 21.16% per year

Risk Analysis

Volatile share price over the past 3 months

Large one-off items impacting financial results

Profit margins (2.4%) are lower than last year (3.8%)

FD Technologies Competitors

International Business Machines

NYSE:IBM

US$120.2b

Price History & Performance

Summary of all time highs, changes and price drops for FD Technologies
Historical stock prices
Current Share Price	UK£24.20
52 Week High	UK£26.65
52 Week Low	UK£12.76
Beta	0.62
1 Month Change	2.54%
3 Month Change	68.99%
1 Year Change	-5.47%
3 Year Change	-20.92%
5 Year Change	-10.04%
Change since IPO	4,509.52%

Recent News & Updates

Mar 01

There Are Reasons To Feel Uneasy About FD Technologies' (LON:FDP) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

	FDP	GB Software	GB Market
7D	4.5%	-1.2%	0.2%
1Y	-5.5%	-13.8%	-3.8%

Return vs Industry: FDP exceeded the UK Software industry which returned -13.8% over the past year.

Return vs Market: FDP underperformed the UK Market which returned -3.8% over the past year.

Price Volatility

Is FDP's price volatile compared to industry and market?
FDP volatility
FDP Average Weekly Movement	10.6%
Software Industry Average Movement	6.1%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: FDP is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: FDP's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
1996	3,000	Seamus Keating	https://fdtechnologies.com

FD Technologies Plc provides software and consulting services in the United Kingdom and internationally. The company operates through Managed Services and Consulting, and Software segments. It provides KX, a technology for real-time continuous intelligence; First Derivative, a technology-led service for capital markets; and MRP Prelytix platform, an enterprise-class predictive account-based marketing solution.

FD Technologies Fundamentals Summary

How do FD Technologies's earnings and revenue compare to its market cap?
FDP fundamental statistics
Market Cap	UK£673.40m
Earnings (TTM)	UK£6.43m
Revenue (TTM)	UK£263.46m

104.8x

P/E Ratio

2.6x

P/S Ratio

Is FDP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FDP income statement (TTM)
Revenue	UK£263.46m
Cost of Revenue	UK£157.33m
Gross Profit	UK£106.14m
Other Expenses	UK£99.71m
Earnings	UK£6.43m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.23
Gross Margin	40.28%
Net Profit Margin	2.44%
Debt/Equity Ratio	25.1%

How did FDP perform over the long term?

See historical performance and comparison

Valuation

Is FD Technologies undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

104.78x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: FDP (£24.2) is trading above our estimate of fair value (£14.48)

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

Price To Earnings Ratio

PE vs Industry: FDP is poor value based on its PE Ratio (104.8x) compared to the UK Software industry average (41.8x).

PE vs Market: FDP is poor value based on its PE Ratio (104.8x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: FDP is poor value based on its PEG Ratio (5x)

Price to Book Ratio

PB vs Industry: FDP is overvalued based on its PB Ratio (3.5x) compared to the GB Software industry average (2.7x).

Future Growth

How is FD Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 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

21.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDP's forecast earnings growth (21.2% per year) is above the savings rate (0.9%).

Earnings vs Market: FDP's earnings (21.2% per year) are forecast to grow faster than the UK market (11.2% per year).

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

Revenue vs Market: FDP's revenue (8% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: FDP's revenue (8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FDP's Return on Equity is forecast to be low in 3 years time (6.6%).

Past Performance

How has FD Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FDP has a large one-off gain of £6.9M impacting its February 28 2022 financial results.

Growing Profit Margin: FDP's current net profit margins (2.4%) are lower than last year (3.8%).

Past Earnings Growth Analysis

Earnings Trend: FDP's earnings have declined by 7.4% per year over the past 5 years.

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

Earnings vs Industry: FDP had negative earnings growth (-28.6%) over the past year, making it difficult to compare to the Software industry average (-5.4%).

Return on Equity

High ROE: FDP's Return on Equity (3.3%) is considered low.

Financial Health

How is FD Technologies's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: FDP's short term assets (£126.8M) exceed its short term liabilities (£78.6M).

Long Term Liabilities: FDP's short term assets (£126.8M) exceed its long term liabilities (£81.0M).

Debt to Equity History and Analysis

Debt Level: FDP has more cash than its total debt.

Reducing Debt: FDP's debt to equity ratio has increased from 22.5% to 25.1% over the past 5 years.

Debt Coverage: FDP's debt is well covered by operating cash flow (59%).

Interest Coverage: FDP's interest payments on its debt are not well covered by EBIT (2.3x coverage).

Balance Sheet

Dividend

What is FD Technologies'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 FDP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FDP'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 FDP's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: FDP is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

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

2.2yrs

Average management tenure

CEO

Seamus Keating (57 yo)

2.33yrs

Tenure

UK£451,000

Compensation

Mr. Seamus Declan Keating serves as Chief Executive Officer at Kx Systems, Inc. since January 2020. He served as Executive Chairman of the Board of FD Technologies Plc (formerly known as First Derivatives...

CEO Compensation Analysis

Compensation vs Market: Seamus's total compensation ($USD551.81K) is below average for companies of similar size in the UK market ($USD1.36M).

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

Leadership Team

Experienced Management: FDP's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: FDP's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

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	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/02/28
Annual Earnings	2022/02/28