AIM:IDEA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with adequate 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

-5.3%

IDEA

-2.3%

GB Software

-2.5%

GB Market


1 Year Return

32.0%

IDEA

19.4%

GB Software

5.3%

GB Market

Return vs Industry: IDEA exceeded the UK Software industry which returned 19.4% over the past year.

Return vs Market: IDEA exceeded the UK Market which returned 5.3% over the past year.


Shareholder returns

IDEAIndustryMarket
7 Day-5.3%-2.3%-2.5%
30 Day13.2%4.6%-1.3%
90 Day14.8%9.8%0.9%
1 Year32.3%32.0%27.3%19.4%10.9%5.3%
3 Year173.1%171.4%16.5%-2.2%19.4%4.1%
5 Year402.5%395.7%63.8%33.9%36.4%5.1%

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?

262.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IDEA (£1.71) is trading above our estimate of fair value (£1.34)

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


Price To Earnings Ratio

PE vs Industry: IDEA is poor value based on its PE Ratio (262.8x) compared to the Software industry average (29.5x).

PE vs Market: IDEA is poor value based on its PE Ratio (262.8x) compared to the UK market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: IDEA is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: IDEA is overvalued based on its PB Ratio (5.1x) compared to the GB Software industry average (3.6x).


Next Steps

Future Growth

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

44.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDEA's forecast earnings growth (44.2% per year) is above the savings rate (0.5%).

Earnings vs Market: IDEA's earnings (44.2% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IDEA's revenue (12.5% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: IDEA's revenue (12.5% 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 (17.9%).


Next Steps

Past Performance

How has Ideagen performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDEA has a large one-off loss of £1.7M impacting its April 30 2019 financial results.

Growing Profit Margin: IDEA's current net profit margins (3%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: IDEA's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: IDEA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IDEA had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Software industry average (8%).


Return on Equity

High ROE: IDEA's Return on Equity (1.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ideagen's financial position?


Financial Position Analysis

Short Term Liabilities: IDEA's short term assets (£23.7M) do not cover its short term liabilities (£34.5M).

Long Term Liabilities: IDEA's short term assets (£23.7M) exceed its long term liabilities (£7.3M).


Debt to Equity History and Analysis

Debt Level: IDEA's debt to equity ratio (10.2%) 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 (128.7%).

Interest Coverage: IDEA's interest payments on its debt are well covered by EBIT (12.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: IDEA's debt is covered by short term assets (assets are 3.2x debt).


Next Steps

Dividend

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

0.16%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%2.0%markettop25%5.3%industryaverage2.7%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: IDEA's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: IDEA's dividend (0.16%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


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

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

1.6yrs

Average management tenure


CEO

Ben Dorks (44yo)

1.6yrs

Tenure

UK£432,000

Compensation

Mr. Benjamin Charles Dorks, also known as Ben, has been the Chief Executive Officer of Ideagen PLC since May 2018. Mr. Dorks served as Chief Customer Officer of Ideagen PLC since January 2017 until May 201 ...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD565.93K) is below average for companies of similar size in the UK market ($USD897.37K).

Compensation vs Earnings: Ben's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.6yrs

Average Tenure

48yo

Average Age

Experienced Management: IDEA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

53yo

Average Age

Experienced Board: IDEA's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: IDEA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£189,00020 Nov 19
Alex Hewitt
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer
Shares126,000
Max PriceUK£1.50
BuyUK£7212 Apr 19
Alan M. Carroll
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares48
Max PriceUK£1.51
BuyUK£411 Apr 19
Graeme Spenceley
EntityIndividual
Role
Member of the Board of Directors
CFO, Company Secretary & Director
Shares3
Max PriceUK£1.44
BuyUK£411 Apr 19
Benjamin Dorks
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3
Max PriceUK£1.44
BuyUK£411 Apr 19
David R. Hornsby
EntityIndividual
Role
Chairman of the Board
Group Executive Chairman
Shares3
Max PriceUK£1.44
BuyUK£13511 Dec 18
Alan M. Carroll
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares102
Max PriceUK£1.33

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.7%.


Management Team

  • David R. Hornsby (52yo)

    Group Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: UK£325.00k
  • Les Paul (60yo)

    • Tenure: 0yrs
    • Compensation: UK£24.00k
  • Ian Hepworth (43yo)

    Chief Technical Officer

    • Tenure: 1.6yrs
  • Graeme Spenceley (54yo)

    CFO, Company Secretary & Director

    • Tenure: 9.8yrs
    • Compensation: UK£311.00k
  • Ben Dorks (44yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£432.00k
  • Barney Kent (42yo)

    COO & Director

    • Tenure: 2.9yrs
    • Compensation: UK£337.00k
  • Ken Ebbage

    Managing Director of Product & Services for Risk and Compliance Business

    • Tenure: 0yrs
  • Arun Varma

    Chief Marketing Officer

    • Tenure: 0yrs
  • Paul Marshall

    Chief Customer Officer

    • Tenure: 0.7yrs
  • Alex Hewitt

    Chief Legal Officer

    • Tenure: 0yrs

Board Members

  • Richard Longdon (63yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Tony Rodriguez (50yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£25.00k
  • David R. Hornsby (52yo)

    Group Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: UK£325.00k
  • Jonathan Wearing (66yo)

    Non-Executive Director

    • Tenure: 19.3yrs
    • Compensation: UK£30.00k
  • Graeme Spenceley (54yo)

    CFO, Company Secretary & Director

    • Tenure: 9.8yrs
    • Compensation: UK£311.00k
  • Alan M. Carroll (68yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£30.00k
  • Ben Dorks (44yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£432.00k
  • Barney Kent (42yo)

    COO & Director

    • Tenure: 2.9yrs
    • Compensation: UK£337.00k

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£385.253m
  • Shares outstanding: 225.95m
  • 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) solution ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 21:00
End of Day Share Price2019/12/05 00:00
Earnings2019/04/30
Annual Earnings2019/04/30


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.