AIM:IDE

Stock Analysis Report

Executive Summary

IDE Group Holdings plc, through its subsidiaries, provides network, hosting, and managed services to public and private companies in the United Kingdom.

Rewards

PE ratio (4.5x) is below the UK market (18.5x)

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (£16M)



Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

How has IDE Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

8.0%

IDE

-0.8%

GB IT

-0.9%

GB Market


1 Year Return

118.9%

IDE

42.8%

GB IT

6.2%

GB Market

Return vs Industry: IDE exceeded the UK IT industry which returned 42.8% over the past year.

Return vs Market: IDE exceeded the UK Market which returned 6.2% over the past year.


Shareholder returns

IDEIndustryMarket
7 Day8.0%-0.8%-0.9%
30 Day-4.7%-0.8%-3.1%
90 Day20.9%8.4%3.9%
1 Year118.9%118.9%46.1%42.8%11.9%6.2%
3 Year-85.3%-85.3%118.7%103.8%17.3%2.4%
5 Year-78.3%-78.3%121.7%103.7%34.1%3.2%

Price Volatility Vs. Market

How volatile is IDE Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IDE Group Holdings undervalued compared to its fair value and its price relative to the market?

4.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IDE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IDE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IDE is good value based on its PE Ratio (4.5x) compared to the IT industry average (30.5x).

PE vs Market: IDE is good value based on its PE Ratio (4.5x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IDE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IDE is good value based on its PB Ratio (1x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

How is IDE Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.7%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as IDE Group Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has IDE Group Holdings performed over the past 5 years?

-60.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: IDE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IDE has become profitable over the past 5 years, growing earnings by -60% per year.

Accelerating Growth: IDE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IDE has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (12.3%).


Return on Equity

High ROE: IDE's Return on Equity (20.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IDE Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: IDE's short term assets (£8.7M) do not cover its short term liabilities (£10.5M).

Long Term Liabilities: IDE's short term assets (£8.7M) do not cover its long term liabilities (£19.4M).


Debt to Equity History and Analysis

Debt Level: IDE's debt to equity ratio (80.2%) is considered high.

Reducing Debt: Insufficient data to determine if IDE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: IDE has a high level of physical assets or inventory.

Debt Coverage by Assets: IDE's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IDE is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: IDE is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is IDE Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%5.1%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate IDE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IDE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IDE's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.3yrs

Average board tenure


CEO

IDE Group Holdings has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Andrew Parker
Executive Chairman1.3yrsUK£98.21kno data
Andrew Smith
Executive Director1.7yrsUK£49.99kno data
Matthew Max Royde
Non-Executive Director1.3yrsUK£7.18kno data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Board: IDE's board of directors are not considered experienced ( 1.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 72.4%.


Top Shareholders

Company Information

IDE Group Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IDE Group Holdings plc
  • Ticker: IDE
  • Exchange: AIM
  • Founded: 2005
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: UK£16.232m
  • Shares outstanding: 400.80m
  • Website: https://www.idegroup.com

Number of Employees


Location

  • IDE Group Holdings plc
  • Interchange 81 – 85 Station Road
  • Croydon
  • CR0 2RD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IDEAIM (London Stock Exchange AIM Market)YesClass A Ordinary SharesGBGBPJun 2010

Biography

IDE Group Holdings plc, through its subsidiaries, provides network, hosting, and managed services to public and private companies in the United Kingdom. Its cloud and hosting services include co-location, private and public, hybrid cloud, and cloud migration; network and connectivity service includes cloud connectivity, multiprotocol label switching, local and wide area network, and wireless services; collaboration services comprise hosted telephony, contact centre, and unified communication; cyber security services include security operations centre, managed security information and event management, distributed denial of service and endpoint protection, endpoint protection, disaster recovery and business continuity, advanced network security analysis, and threat protection; managed services include remote monitoring, systems management, onsite support, field, and professional services; and device management services comprise procurement, build and configure, deploy, manage, refresh and upgrade, redeploy, and retire. The company also offers training courses, including technical, application, business, and learning cloud, as well as provides professional services. The company was formerly known as Coretx Holdings plc and changed its name to IDE Group Holdings Plc in November 2017. IDE Group Holdings plc was founded in 2005 and is headquartered in Croydon, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 21:58
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.