AIM:IDEA

Stock Analysis Report

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Executive Summary

Ideagen plc develops and sells information management software in the United Kingdom, rest of Europe, North America, the Middle East, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.7%

IDEA

-0.5%

GB Software

0.07%

GB Market


1 Year Return

28.9%

IDEA

3.6%

GB Software

-15.4%

GB Market

Return vs Industry: IDEA exceeded the UK Software industry which returned 3.8% over the past year.

Return vs Market: IDEA exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

IDEAIndustryMarket
7 Day-6.7%-0.5%0.07%
30 Day-1.0%-0.5%2.2%
90 Day9.5%3.0%-2.1%
1 Year29.2%28.9%5.0%3.6%-12.1%-15.4%
3 Year147.2%145.8%-25.8%-35.2%-8.4%-19.7%
5 Year328.2%323.8%28.4%5.9%16.4%-9.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: IDEA (£1.96) is trading above our estimate of fair value (£1.15)

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


Price To Earnings Ratio

PE vs Industry: IDEA is unprofitable, so we can't compare its PE Ratio to the GB Software industry average.

PE vs Market: IDEA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IDEA is overvalued based on its PB Ratio (5.8x) compared to the GB Software industry average (3.8x).


Next Steps

Future Growth

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

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDEA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: IDEA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IDEA's is expected to become profitable in the next 3 years.

Revenue vs Market: IDEA's revenue (9.8% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: IDEA's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IDEA's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Ideagen performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDEA is currently unprofitable.

Growing Profit Margin: IDEA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IDEA is unprofitable, but has reduced losses over the past 5 years at a rate of 9.9% per year.

Accelerating Growth: Unable to compare IDEA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IDEA is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (7.7%).


Return on Equity

High ROE: IDEA has a negative Return on Equity (-0.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ideagen's financial position?


Financial Position Analysis

Short Term Liabilities: IDEA's short term assets (£26.8M) do not cover its short term liabilities (£57.0M).

Long Term Liabilities: IDEA's short term assets (£26.8M) exceed its long term liabilities (£16.8M).


Debt to Equity History and Analysis

Debt Level: IDEA's debt to equity ratio (32.5%) is considered satisfactory.

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

Debt Coverage: IDEA's debt is well covered by operating cash flow (64%).

Interest Coverage: IDEA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Ideagen current dividend yield, its reliability and sustainability?

0.16%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: IDEA's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: IDEA's dividend (0.16%) is low compared to the top 25% of dividend payers in the UK market (5.24%).


Stability and Growth of Payments

Stable Dividend: IDEA is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: IDEA is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.4yrs

Average management tenure


CEO

Ben Dorks (45 yo)

2.42yrs

Tenure

UK£269,000

Compensation

Mr. Benjamin Charles Dorks, also known as Ben, has been the Chief Executive Officer of Ideagen PLC since May 2018. He is responsible for the overall performance of the business with specific focus on opera ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD350.96K) is below average for companies of similar size in the UK market ($USD891.10K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David R. Hornsby
Group Executive Chairman2.42yrsUK£238.00k4.51%
£ 20.0m
Benjamin Dorks
CEO & Director2.42yrsUK£269.00k1.04%
£ 4.6m
Barnaby Kent
COO & Director3.75yrsUK£186.00k1.37%
£ 6.1m
Graeme Spenceley
Company Secretaryno dataUK£185.00k0.59%
£ 2.6m
Leslie Paul
no dataUK£24.00kno data
Emma Hayes
CFO & Director0.25yrno datano data
Ian Hepworth
Chief Technical Officer2.42yrsno data0.014%
£ 61.7k
Alex Hewitt
Chief Legal Officerno datano data0.058%
£ 258.2k
Arun Varma
Chief Marketing Officerno datano datano data
Paul Marshall
Chief Customer Officer1.5yrsno datano data
Geoff Neil
Chief Development Officerno datano datano data

2.4yrs

Average Tenure

45yo

Average Age

Experienced Management: IDEA's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David R. Hornsby
Group Executive Chairman2.42yrsUK£238.00k4.51%
£ 20.0m
Benjamin Dorks
CEO & Director2.42yrsUK£269.00k1.04%
£ 4.6m
Barnaby Kent
COO & Director3.75yrsUK£186.00k1.37%
£ 6.1m
Emma Hayes
CFO & Director0.25yrno datano data
Richard Longdon
Senior Independent Non-Executive Director0.92yrUK£32.00kno data
Tony Rodriguez
Independent Non-Executive Director3.08yrsUK£25.00kno data
Alan M. Carroll
Independent Non-Executive Director8.33yrsUK£30.00k0.090%
£ 400.4k

3.1yrs

Average Tenure

51yo

Average Age

Experienced Board: IDEA'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: IDEA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Ideagen plc
  • Ticker: IDEA
  • Exchange: AIM
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: UK£443.934m
  • Shares outstanding: 226.50m
  • Website: https://www.ideagen.com

Number of Employees


Location

  • Ideagen plc
  • Ergo House
  • Mere Way
  • Ruddington
  • Nottinghamshire
  • NG11 6JS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IDEAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 2007
5IGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2007

Biography

Ideagen plc develops and sells information management software in the United Kingdom, rest of Europe, North America, the Middle East, and internationally. Its governance, risk, and compliance (GRC) solutio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 21:40
End of Day Share Price2020/10/23 00:00
Earnings2020/04/30
Annual Earnings2020/04/30


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.