AIM:FDP

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Executive Summary

First Derivatives plc provides software and consulting services in the United Kingdom and internationally. More Details


Snowflake Analysis

Solid track record with mediocre balance sheet.


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

Stable Share Price: FDP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

FDP

0.2%

GB Software

0.4%

GB Market


1 Year Return

40.8%

FDP

7.7%

GB Software

-13.8%

GB Market

Return vs Industry: FDP exceeded the UK Software industry which returned 8.2% over the past year.

Return vs Market: FDP exceeded the UK Market which returned -13.2% over the past year.


Shareholder returns

FDPIndustryMarket
7 Day4.1%0.2%0.4%
30 Day9.3%2.2%-0.3%
90 Day38.4%7.2%-1.7%
1 Year41.3%40.8%9.1%7.7%-10.4%-13.8%
3 Year13.3%11.2%-20.6%-30.2%-4.3%-15.8%
5 Year147.2%138.5%34.7%10.9%22.8%-4.6%

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 compared to its fair value and its price relative to the market?

58.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FDP (£32.8) is trading above our estimate of fair value (£8.5)

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 (58.6x) compared to the GB Software industry average (37.9x).

PE vs Market: FDP is poor value based on its PE Ratio (58.6x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: FDP is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: FDP is overvalued based on its PB Ratio (5.5x) compared to the GB Software industry average (3.8x).


Next Steps

Future Growth

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

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDP's forecast earnings growth (19.5% per year) is above the savings rate (1.2%).

Earnings vs Market: FDP's earnings (19.5% per year) are forecast to grow slower than the UK market (23.7% per year).

High Growth Earnings: FDP's earnings are forecast to grow, but not significantly.

Revenue vs Market: FDP's revenue (7.1% per year) is forecast to grow faster than the UK market (6.2% per year).

High Growth Revenue: FDP's revenue (7.1% 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 (11.1%).


Next Steps

Past Performance

How has First Derivatives performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDP has high quality earnings.

Growing Profit Margin: FDP's current net profit margins (6.3%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: FDP's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: FDP's earnings growth over the past year (13%) exceeds its 5-year average (1.3% per year).

Earnings vs Industry: FDP earnings growth over the past year (13%) exceeded the Software industry 10.7%.


Return on Equity

High ROE: FDP's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is First Derivatives's financial position?


Financial Position Analysis

Short Term Liabilities: FDP's short term assets (£105.5M) exceed its short term liabilities (£65.1M).

Long Term Liabilities: FDP's short term assets (£105.5M) do not cover its long term liabilities (£107.5M).


Debt to Equity History and Analysis

Debt Level: FDP's debt to equity ratio (46.3%) is considered high.

Reducing Debt: FDP's debt to equity ratio has increased from 30.7% to 46.3% over the past 5 years.

Debt Coverage: FDP's debt is well covered by operating cash flow (41.6%).

Interest Coverage: FDP's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.81%

Forecast Dividend Yield


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FDP'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?

0.6yrs

Average management tenure


CEO

Seamus Keating (56 yo)

0.67

Tenure

UK£486,470

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 First Derivatives Plc since July 29, 2019 and served as N ...


CEO Compensation Analysis

Compensation vs Market: Seamus's total compensation ($USD630.22K) is below average for companies of similar size in the UK market ($USD1.20M).

Compensation vs Earnings: Seamus's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Seamus Keating
CEO & Director0.67yrUK£486.47k0.092%
£ 830.3k
Robert Ferguson
CFO & Director12yrsUK£442.00k0.36%
£ 3.3m
David Humphries
Global Chief Operating Officer0.25yrno datano data
Mark Sykes
Chief Technical Officerno datano datano data
Ian Mitchell
Head of Investor Relationsno datano datano data
Victoria Shanks
Senior Vice President of Business Developmentno datano datano data
P. O'Kane
Vice President of Marketing & Innovation7.58yrsno datano data
Kathleen Schneider
Global Chief Marketing Officer0.50yrno datano data
Catherine Harrison
Vice President of HR & Trainingno datano datano data
Patrick Brazel
Chief Commercial Officerno datano datano data
Gerard Buggy
Chief Strategy Officerno datano datano data
Patrick Dooher
Global Head of Product Developmentno datano datano data

0.6yrs

Average Tenure

57yo

Average Age

Experienced Management: FDP's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Seamus Keating
CEO & Director0.67yrUK£486.47k0.092%
£ 830.3k
Robert Ferguson
CFO & Director12yrsUK£442.00k0.36%
£ 3.3m
Virginia Gambale
Independent Non-Executive Director5.5yrsUK£116.00k0.034%
£ 303.7k
Donna Troy
Independent Chairman0.67yrUK£140.00k0.012%
£ 106.3k
Thomas Seifert
Non-Executive Director0.17yrno datano data
Keith MacDonald
Senior Independent Directorno dataUK£105.00k0.17%
£ 1.5m
Stephen Fisher
Non-Executive Directorno datano datano data
Ayman Sayed
Independent Non-Executive Director0.17yrno datano data

3.1yrs

Average Tenure

57yo

Average Age

Experienced Board: FDP's board of directors are considered experienced (3.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

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£904.509m
  • Shares outstanding: 27.58m
  • 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 in the United Kingdom and internationally. The company operates through Managed Services and Consulting and Software segments. It provides kd ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 02:44
End of Day Share Price2020/09/18 00:00
Earnings2020/02/29
Annual Earnings2020/02/29


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.