AIM:FDP

Stock Analysis Report

Executive Summary

First Derivatives plc provides software and consulting services internationally.

Snowflake

Fundamentals

Excellent balance sheet with solid track record and pays a dividend.

Risks

  • First Derivatives has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has First Derivatives's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

AIM:FDP

1.6%

GB Software

1.4%

GB Market


1 Year Return

-44.6%

AIM:FDP

1.7%

GB Software

-5.7%

GB Market

FDP underperformed the Software industry which returned 4.4% over the past year.

FDP underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -4.8% over the past year.


Share holder returns

FDPIndustryMarket
7 Day0.2%1.6%1.4%
30 Day-22.2%-6.3%-4.8%
90 Day-27.0%-5.6%-1.9%
1 Year-44.1%-44.6%6.3%1.7%-1.3%-5.7%
3 Year23.0%20.2%14.5%-3.4%17.6%3.6%
5 Year161.3%150.6%93.0%56.1%24.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Derivatives undervalued based on future cash flows and its price relative to the stock market?

46.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

First Derivatives's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

First Derivatives's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

First Derivatives is overvalued based on earnings compared to the GB Software industry average.

First Derivatives is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

First Derivatives is poor value based on expected growth next year.


Price Based on Value of Assets

First Derivatives is overvalued based on assets compared to the GB Software industry average.


Next Steps

Future Growth

How is First Derivatives expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

First Derivatives's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).

First Derivatives's earnings are expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).

First Derivatives's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

First Derivatives's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

First Derivatives's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

First Derivatives is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has First Derivatives performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

First Derivatives's year on year earnings growth rate has been positive over the past 5 years.

First Derivatives's 1-year earnings growth exceeds its 5-year average (29.1% vs 2.3%)

First Derivatives's earnings growth has exceeded the GB Software industry average in the past year (29.1% vs 8.8%).


Return on Equity

First Derivatives has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

First Derivatives used its assets more efficiently than the GB Software industry average last year based on Return on Assets.


Return on Capital Employed

First Derivatives has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is First Derivatives's financial position?


Financial Position Analysis

First Derivatives's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

First Derivatives's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

First Derivatives's level of debt (24.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (26.5% vs 24.4% today).

Debt is well covered by operating cash flow (68.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

What is First Derivatives's current dividend yield, its reliability and sustainability?

1.42%

Expected Dividend Yield


Dividend Yield and Payments Analysis

First Derivatives's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.07%).

First Derivatives's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.66%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of First Derivatives's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Seamus Keating (55yo)

0.1yrs

Tenure

UK£100,000

Compensation

Mr. Seamus Declan Keating has been Executive Chairman of the Board and Acting Chief Executive Officer of First Derivatives Plc since July 29, 2019 and served as Non-Executive Chairman since July 18, 2013 u ...


Management Age and Tenure

4.4yrs

Average Tenure

55yo

Average Age

The tenure for the First Derivatives management team is about average.


Board Age and Tenure

4.4yrs

Average Tenure

59yo

Average Age

The tenure for the First Derivatives board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Pat Brazel (61yo)

    Global Head of Software Sales

    • Tenure: 4.4yrs
  • Seamus Keating (55yo)

    Executive Chairman & Acting CEO

    • Tenure: 0.1yrs
    • Compensation: UK£100.00k
  • Gerry Buggy

    Chief Technology Officer

    • Tenure: 4.4yrs
  • Adrian Toner

    Chief Operating Officer

    • Tenure: 0.0yrs
  • Robert Ferguson (47yo)

    CFO & Director

    • Tenure: 10.9yrs
    • Compensation: UK£513.00k
  • Ian Mitchell

    Head of Investor Relations

    • Tenure: 4.9yrs
  • P. O'Kane

    Vice President of Marketing & Innovation

    • Tenure: 6.5yrs
  • Catherine Harrison

    Vice President of HR & Training

    • Tenure: 0.0yrs
  • Patrick Dooher

    Global Head of Product Development

    • Tenure: 0.0yrs
  • Victoria Shanks

    Senior Vice President of Business Development

    • Tenure: 0.0yrs

Board Members

  • Virginia Gambale (59yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£76.00k
  • Donna Troy (63yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£75.00k
  • Seamus Keating (55yo)

    Executive Chairman & Acting CEO

    • Tenure: 0.1yrs
    • Compensation: UK£100.00k
  • Robert Ferguson (47yo)

    CFO & Director

    • Tenure: 10.9yrs
    • Compensation: UK£513.00k
  • Keith MacDonald (61yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: UK£60.00k

Company Information

First Derivatives plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Derivatives plc
  • Ticker: FDP
  • Exchange: AIM
  • Founded: 1996
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£626.793m
  • Shares outstanding: 26.67m
  • Website: https://www.firstderivatives.com

Number of Employees


Location

  • First Derivatives plc
  • 3 Canal Quay
  • Newry
  • County Down
  • BT35 6BP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2002
GYQISE (Irish Stock Exchange)YesOrdinary SharesIEEURMar 2002
FDRV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2002

Biography

First Derivatives plc provides software and consulting services internationally. The company operates through Consulting and Software segments. It provides kdb+, an in-memory, time-series database. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 20:41
End of Day Share Price2019/08/22 00:00
Earnings2019/02/28
Annual Earnings2019/02/28


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.