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.


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

-1.4%

FDP

4.1%

GB Software

-0.4%

GB Market


1 Year Return

-31.6%

FDP

6.6%

GB Software

2.9%

GB Market

Return vs Industry: FDP underperformed the UK Software industry which returned 6.6% over the past year.

Return vs Market: FDP underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

FDPIndustryMarket
7 Day-1.4%4.1%-0.4%
30 Day-8.4%2.1%-1.4%
90 Day-30.8%-9.3%-2.1%
1 Year-31.0%-31.6%12.7%6.6%8.0%2.9%
3 Year8.4%5.9%6.6%-11.0%18.0%3.6%
5 Year89.4%81.6%69.3%35.6%35.8%6.4%

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?

41.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FDP (£21.35) is trading above our estimate of fair value (£14)

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 (42x) compared to the Software industry average (27.9x).

PE vs Market: FDP is poor value based on its PE Ratio (42x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: FDP is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: FDP is overvalued based on its PB Ratio (3.9x) compared to the GB Software industry average (3.1x).


Next Steps

Future Growth

How is First Derivatives forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDP's forecast earnings growth (15.7% per year) is above the savings rate (1.2%).

Earnings vs Market: FDP's earnings (15.7% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: FDP's revenue (10.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: FDP's revenue (10.2% 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 (14.3%).


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

Earnings Trend: FDP's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: FDP's earnings growth over the past year (29.1%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: FDP earnings growth over the past year (29.1%) exceeded the Software industry 7%.


Return on Equity

High ROE: FDP's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: FDP has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: FDP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is First Derivatives's financial position?


Financial Position Analysis

Short Term Liabilities: FDP's short term assets (£78.2M) do not cover its short term liabilities (£120.6M)

Long Term Liabilities: FDP's short term assets (78.2M) exceeds its long term liabilities (14.4M)


Debt to Equity History and Analysis

Debt Level: FDP's debt to equity ratio (24.4%) is considered satisfactory

Reducing Debt: FDP's debt to equity ratio has reduced from 26.5% to 24.4% over the past 5 years.

Debt Coverage: FDP's debt is well covered by operating cash flow (68.4%).

Interest Coverage: FDP's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: FDP's debt is covered by short term assets (assets are 2.239360x debt).


Next Steps

Dividend

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

1.26%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FDP's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: FDP's dividend (1.26%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: FDP's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.1%), FDP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FDP's dividends in 3 years are forecast to be well covered by earnings (33.4% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Seamus Keating (55yo)

0.3yrs

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

4.6yrs

Average Tenure

55yo

Average Age

Experienced Management: FDP's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

59yo

Average Age

Experienced Board: FDP's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Pat Brazel (61yo)

    Global Head of Software Sales

    • Tenure: 4.6yrs
  • Seamus Keating (55yo)

    Executive Chairman & Acting CEO

    • Tenure: 0.3yrs
    • Compensation: UK£100.00k
  • Gerry Buggy

    Chief Technology Officer

    • Tenure: 4.6yrs
  • Adrian Toner

    Chief Operating Officer

    • Tenure: 0yrs
  • Robert Ferguson (47yo)

    CFO & Director

    • Tenure: 11.1yrs
    • Compensation: UK£513.00k
  • Ian Mitchell

    Head of Investor Relations

    • Tenure: 0yrs
  • P. O'Kane

    Vice President of Marketing & Innovation

    • Tenure: 6.7yrs
  • Catherine Harrison

    Vice President of HR & Training

    • Tenure: 0yrs
  • Patrick Dooher

    Global Head of Product Development

    • Tenure: 0yrs
  • Victoria Shanks

    Senior Vice President of Business Development

    • Tenure: 0yrs

Board Members

  • Virginia Gambale (59yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£76.00k
  • Donna Troy (63yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£75.00k
  • Seamus Keating (55yo)

    Executive Chairman & Acting CEO

    • Tenure: 0.3yrs
    • Compensation: UK£100.00k
  • Robert Ferguson (47yo)

    CFO & Director

    • Tenure: 11.1yrs
    • Compensation: UK£513.00k
  • Keith MacDonald (61yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • 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£569.779m
  • Shares outstanding: 26.69m
  • 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 Analysis2019/10/20 20:40
End of Day Share Price2019/10/18 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.