AIM:IGP

Stock Analysis Report

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Market Cap

UK£61.2m

Last Updated

2021/08/02 22:50 UTC

Data Sources

Company Financials +

Executive Summary

Intercede Group plc, a cybersecurity company, engages in identity, credential management, and secure mobility business to enable digital trust in the United Kingdom, rest of Europe, North America, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IGP is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: IGP's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

5.4%

IGP

1.2%

GB Software

0.9%

GB Market


1 Year Return

23.0%

IGP

6.4%

GB Software

25.9%

GB Market

Return vs Industry: IGP exceeded the UK Software industry which returned 8.7% over the past year.

Return vs Market: IGP matched the UK Market which returned 22.5% over the past year.


Shareholder returns

IGPIndustryMarket
7 Day5.4%1.2%0.9%
30 Day5.4%4.8%1.6%
90 Day13.2%10.7%6.5%
1 Year23.0%23.0%16.4%6.4%26.0%25.9%
3 Year328.0%328.0%31.4%16.1%25.0%24.9%
5 Year8.6%8.6%17.3%-6.3%40.3%13.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IGP (£1.07) is trading above our estimate of fair value (£0.71)

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


Price To Earnings Ratio

PE vs Industry: IGP is good value based on its PE Ratio (35.9x) compared to the UK Software industry average (56.4x).

PE vs Market: IGP is poor value based on its PE Ratio (35.9x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: IGP is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: IGP is overvalued based on its PB Ratio (12.9x) compared to the GB Software industry average (4.2x).


Future Growth

How is Intercede Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IGP's forecast earnings growth (18.6% per year) is above the savings rate (0.9%).

Earnings vs Market: IGP's earnings (18.6% per year) are forecast to grow faster than the UK market (14.8% per year).

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

Revenue vs Market: IGP's revenue (7.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: IGP's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IGP's Return on Equity is forecast to be high in 3 years time (23.6%)


Past Performance

How has Intercede Group performed over the past 5 years?

57.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IGP has high quality earnings.

Growing Profit Margin: IGP's current net profit margins (13.9%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: IGP has become profitable over the past 5 years, growing earnings by 57.9% per year.

Accelerating Growth: IGP's earnings growth over the past year (52%) is below its 5-year average (57.9% per year).

Earnings vs Industry: IGP earnings growth over the past year (52%) exceeded the Software industry 3.6%.


Return on Equity

High ROE: IGP's Return on Equity (32.2%) is considered high.


Financial Health

How is Intercede Group's financial position?


Financial Position Analysis

Short Term Liabilities: IGP's short term assets (£12.1M) exceed its short term liabilities (£7.1M).

Long Term Liabilities: IGP's short term assets (£12.1M) exceed its long term liabilities (£1.2M).


Debt to Equity History and Analysis

Debt Level: IGP is debt free.

Reducing Debt: IGP had no debt 5 years ago.

Debt Coverage: IGP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IGP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Intercede Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

6.1yrs

Average management tenure


CEO

Klaas van der Leest (54 yo)

3.33yrs

Tenure

UK£411,000

Compensation

Mr. Klaas Peter van der Leest serves as Chief Executive Officer and Director of Intercede Group plc since April 10, 2018 and he is responsible for sales since April 26, 2018. He served as the Managing Dire...


CEO Compensation Analysis

Compensation vs Market: Klaas's total compensation ($USD571.25K) is above average for companies of similar size in the UK market ($USD324.01K).

Compensation vs Earnings: Klaas's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: IGP's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: IGP's board of directors are considered experienced (9.4 years average tenure).


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 diluted in the past year, with total shares outstanding growing by 13.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Intercede Group plc
  • Ticker: IGP
  • Exchange: AIM
  • Founded: 1992
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£61.205m
  • Shares outstanding: 57.20m
  • Website: https://www.intercede.com

Number of Employees


Location

  • Intercede Group plc
  • Lutterworth Hall
  • St. Mary's Road
  • Lutterworth
  • Leicestershire
  • LE17 4PS
  • United Kingdom

Listings


Biography

Intercede Group plc, a cybersecurity company, engages in identity, credential management, and secure mobility business to enable digital trust in the United Kingdom, rest of Europe, North America, and inte...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 22:50
End of Day Share Price2021/08/02 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.