AIM:IGP

Stock Analysis Report

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.

Snowflake

Poor track record with worrying balance sheet.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

IGP

1.1%

GB Software

-0.4%

GB Market


1 Year Return

34.0%

IGP

15.4%

GB Software

4.4%

GB Market

Return vs Industry: IGP exceeded the UK Software industry which returned 15.4% over the past year.

Return vs Market: IGP exceeded the UK Market which returned 4.4% over the past year.


Shareholder returns

IGPIndustryMarket
7 Day0%1.1%-0.4%
30 Day6.0%6.0%1.8%
90 Day6.9%4.2%3.8%
1 Year34.0%34.0%22.6%15.4%9.9%4.4%
3 Year-41.3%-41.3%15.5%-3.2%22.4%6.9%
5 Year-76.6%-76.6%66.4%35.8%33.0%2.9%

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?

33.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: IGP is poor value based on its PE Ratio (33.9x) compared to the Software industry average (30.5x).

PE vs Market: IGP is poor value based on its PE Ratio (33.9x) compared to the UK market (17.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IGP has negative assets, so we can't compare its PB Ratio to the GB Software industry average.


Next Steps

Future Growth

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

31.7%

Forecasted Software industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if IGP's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if IGP'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: Insufficient data to determine if IGP's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if IGP's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Intercede Group performed over the past 5 years?

-23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if IGP has high quality earnings.

Growing Profit Margin: IGP's current net profit margins (5.2%) are higher than last year (-41.6%).


Past Earnings Growth Analysis

Earnings Trend: IGP's earnings have declined by -23.2% per year over the past 5 years.

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

Earnings vs Industry: IGP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (8%).


Return on Equity

High ROE: IGP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intercede Group's financial position?


Financial Position Analysis

Short Term Liabilities: IGP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: IGP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: IGP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: IGP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: IGP's debt is well covered by operating cash flow (20.2%).

Interest Coverage: Insufficient data to determine if IGP's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: IGP has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate IGP'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 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

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

4.3yrs

Average management tenure


CEO

Klaas van der Leest (52yo)

1.6yrs

Tenure

UK£409,850

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 ($USD528.63K) is above average for companies of similar size in the UK market ($USD319.95K).

Compensation vs Earnings: Insufficient data to compare Klaas's compensation with company performance.


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: IGP's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

56yo

Average Age

Experienced Board: IGP's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Andrew Walker (59yo)

    Finance Director

    • Tenure: 19.2yrs
    • Compensation: UK£282.00k
  • Klaas van der Leest (52yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£409.85k
  • Chris Edwards

    Chief Technical Officer

    • Tenure: 0yrs
  • Allen Storey

    Chief Product Officer

    • Tenure: 4.3yrs
  • Mike Weston

    Chief Operations Officer

    • Tenure: 0yrs

Board Members

  • Royston Hoggarth (57yo)

    Non-Executive Director

    • Tenure: 17.3yrs
    • Compensation: UK£25.00k
  • Chuck Pol

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£92.00k
  • Jacques Tredoux (55yo)

    Non Executive Director

    • Tenure: 13.7yrs
  • Andrew Walker (59yo)

    Finance Director

    • Tenure: 19.2yrs
    • Compensation: UK£282.00k
  • Klaas van der Leest (52yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£409.85k
  • Rob Chandhok (56yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs

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£17.921m
  • Shares outstanding: 50.48m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IGPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 2001

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 Analysis2019/11/17 20:40
End of Day Share Price2019/11/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.