AIM:IDOX

Stock Analysis Report

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Executive Summary

Idox plc, through its subsidiaries, provides software solutions and information services for the management of local government and other organizations. More Details


Snowflake Analysis

Questionable track record with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IDOX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IDOX's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

IDOX

-0.3%

GB Software

0.3%

GB Market


1 Year Return

80.4%

IDOX

-4.7%

GB Software

0.8%

GB Market

Return vs Industry: IDOX exceeded the UK Software industry which returned -4.4% over the past year.

Return vs Market: IDOX exceeded the UK Market which returned 1.1% over the past year.


Shareholder returns

IDOXIndustryMarket
7 Day-1.1%-0.3%0.3%
30 Day33.8%-1.1%3.2%
90 Day44.5%7.4%4.5%
1 Year80.4%80.4%4.1%-4.7%6.7%0.8%
3 Year110.5%106.0%7.5%-6.1%11.5%-1.9%
5 Year47.2%39.7%27.8%6.1%41.8%14.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

246.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IDOX (£0.72) is trading above our estimate of fair value (£0.39)

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


Price To Earnings Ratio

PE vs Industry: IDOX is poor value based on its PE Ratio (246.6x) compared to the GB Software industry average (54.8x).

PE vs Market: IDOX is poor value based on its PE Ratio (246.6x) compared to the UK market (24.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IDOX is overvalued based on its PB Ratio (6.7x) compared to the GB Software industry average (4.1x).


Next Steps

Future Growth

How is IDOX forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if IDOX's forecast earnings growth is above the savings rate (1%).

Earnings vs Market: Insufficient data to determine if IDOX's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: IDOX's revenue (5.9% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: IDOX's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IDOX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has IDOX performed over the past 5 years?

-33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDOX has high quality earnings.

Growing Profit Margin: IDOX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IDOX's earnings have declined by 33.7% per year over the past 5 years.

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

Earnings vs Industry: IDOX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (3.3%).


Return on Equity

High ROE: IDOX's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is IDOX's financial position?


Financial Position Analysis

Short Term Liabilities: IDOX's short term assets (£50.6M) exceed its short term liabilities (£35.4M).

Long Term Liabilities: IDOX's short term assets (£50.6M) do not cover its long term liabilities (£55.9M).


Debt to Equity History and Analysis

Debt Level: IDOX's debt to equity ratio (99.9%) is considered high.

Reducing Debt: IDOX's debt to equity ratio has increased from 50.6% to 99.9% over the past 5 years.

Debt Coverage: IDOX's debt is well covered by operating cash flow (45.5%).

Interest Coverage: IDOX's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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

0.42%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: IDOX's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.47%).

High Dividend: IDOX's dividend (0.42%) is low compared to the top 25% of dividend payers in the UK market (4.48%).


Stability and Growth of Payments

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

Growing Dividend: IDOX 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: IDOX is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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

2.3yrs

Average management tenure


CEO

Dave Meaden (58 yo)

2.75yrs

Tenure

UK£510,000

Compensation

Mr. David J. Meaden, also known as Dave, has been the Chief Executive Officer of IDOX plc since June 1, 2018 and its Director since 2018. Mr. Meaden served as the Chief Executive of Northgate Public Servic...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD713.37K) is about average for companies of similar size in the UK market ($USD765.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Meaden
CEO & Director2.75yrsUK£510.00k0.11%
£ 335.2k
Robert Grubb
CFO & Director2.33yrsUK£268.00k0.016%
£ 50.2k
Jonathan Legdon
Chief Operating Officerno datano datano data
Ruth Paterson
Chief Legal & Corporate Officer and Company Secretaryno datano datano data
Andy Jones
Sales Directorno datano datano data
Matthew Salter
Head of Professional Service0.42yrno datano data
Ian Noble
Chief Process & Transformation Officerno datano datano data
Henk Heerink
Managing Director of Contentno datano datano data

2.3yrs

Average Tenure

Experienced Management: IDOX's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Meaden
CEO & Director2.75yrsUK£510.00k0.11%
£ 335.2k
Robert Grubb
CFO & Director2.33yrsUK£268.00k0.016%
£ 50.2k
Christopher Michael Stone
Independent Non-Executive Chairman2.33yrsUK£100.00k0.21%
£ 670.4k
Philip Kelly
Independent Non-Executive Director2yrsUK£35.00k0.024%
£ 75.4k
Alice Sarah Cummings
Independent Non-Executive Director0.92yrUK£19.00kno data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: IDOX's board of directors are not considered experienced ( 2.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: IDOX plc
  • Ticker: IDOX
  • Exchange: AIM
  • Founded: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£315.520m
  • Shares outstanding: 440.67m
  • Website: https://www.idoxplc.com

Number of Employees


Location

  • IDOX plc
  • 1310 Waterside
  • 2nd Floor
  • Reading
  • Berkshire
  • RG7 4SA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IDOXAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2000
LWLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2000

Biography

Idox plc, through its subsidiaries, provides software solutions and information services for the management of local government and other organizations. The company operates through three segments: Public ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 20:35
End of Day Share Price2021/03/03 00:00
Earnings2020/10/31
Annual Earnings2020/10/31


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.