Itim Group (AIM:ITIM) - Share price, News & Analysis

Q: What is the Fair Price of ITIM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ITIM (£0.82) is trading above our estimate of [[fair value]] (£0.27)

ITIM fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

ITIM Stock Overview

Itim Group plc, together with its subsidiaries, provides software, and related implementation and consultancy services in the United Kingdom, Europe, and internationally.

Rewards

Revenue is forecast to grow 26.05% per year

Risk Analysis

Earnings have declined by 5.5% per year over past 5 years

Large one-off items impacting financial results

Profit margins (1.9%) are lower than last year (8.1%)

Does not have a meaningful market cap (£25M)

Itim Group Competitors

Intercede Group

AIM:IGP

UK£25.3m

Eleco

AIM:ELCO

UK£58.4m

Sopheon

AIM:SPE

UK£55.8m

Pebble Beach Systems Group

AIM:PEB

UK£11.9m

Price History & Performance

Summary of all time highs, changes and price drops for Itim Group
Historical stock prices
Current Share Price	UK£0.81
52 Week High	UK£1.33
52 Week Low	UK£0.80
Beta	0
1 Month Change	-28.19%
3 Month Change	-30.34%
1 Year Change	-35.32%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-47.92%

Recent News & Updates

Oct 01

Itim Group's (LON:ITIM) Robust Earnings Are Supported By Other Strong Factors

The subdued stock price reaction suggests that Itim Group Plc's ( LON:ITIM ) strong earnings didn't offer any...

Shareholder Returns

	ITIM	GB Software	GB Market
7D	-6.9%	2.4%	0.4%
1Y	-35.3%	-19.8%	-9.0%

Return vs Industry: ITIM underperformed the UK Software industry which returned -19.8% over the past year.

Return vs Market: ITIM underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is ITIM's price volatile compared to industry and market?
ITIM volatility
ITIM Average Weekly Movement	4.9%
Software Industry Average Movement	5.2%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: ITIM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ITIM's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	160	M. Athar	https://www.itim.com

Itim Group plc, together with its subsidiaries, provides software, and related implementation and consultancy services in the United Kingdom, Europe, and internationally. The company offers retail software solutions, including multi channel sales & service, enterprise order management, price & stock optimization, and supplier management solutions. It also provides data exchange, and software consultancy and supply services.

Itim Group Fundamentals Summary

How do Itim Group's earnings and revenue compare to its market cap?
ITIM fundamental statistics
Market Cap	UK£25.44m
Earnings (TTM)	UK£252.00k
Revenue (TTM)	UK£13.47m

101.0x

P/E Ratio

1.9x

P/S Ratio

Is ITIM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ITIM income statement (TTM)
Revenue	UK£13.47m
Cost of Revenue	UK£7.95m
Gross Profit	UK£5.52m
Other Expenses	UK£5.27m
Earnings	UK£252.00k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0081
Gross Margin	40.98%
Net Profit Margin	1.87%
Debt/Equity Ratio	2.4%

How did ITIM perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ITIM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ITIM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ITIM. This is calculated by dividing ITIM's market cap by their current preferred multiple.
What is ITIM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£25.44m

ITIM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	17.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does ITIM's PE Ratio compare to its peers?

ITIM PE Ratio vs Peers

The above table shows the PE ratio for ITIM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	36.8x
IGP Intercede Group	35.1x	n/a	UK£25.3m
ELCO Eleco	21.4x	n/a	UK£58.4m
SPE Sopheon	82.7x	-70.9%	UK£55.8m
PEB Pebble Beach Systems Group	8.2x	8.0%	UK£11.9m
ITIM Itim Group	101x	n/a	UK£25.4m

Price-To-Earnings vs Peers: ITIM is expensive based on its Price-To-Earnings Ratio (101x) compared to the peer average (36.8x).

Price to Earnings Ratio vs Industry

How does ITIM's PE Ratio compare vs other companies in the GB Software Industry?

Price-To-Earnings vs Industry: ITIM is expensive based on its Price-To-Earnings Ratio (101x) compared to the UK Software industry average (49.4x)

Price to Earnings Ratio vs Fair Ratio

What is ITIM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ITIM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	101x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ITIM's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ITIM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ITIM (£0.82) is trading above our estimate of fair value (£0.27)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ITIM's forecast earnings growth is above the savings rate (0.9%).

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

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

Revenue vs Market: ITIM's revenue (26.1% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: ITIM's revenue (26.1% per year) 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 ITIM's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Itim Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-5.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ITIM has a large one-off loss of £657.0K impacting its December 31 2021 financial results.

Growing Profit Margin: ITIM's current net profit margins (1.9%) are lower than last year (8.1%).

Past Earnings Growth Analysis

Earnings Trend: ITIM's earnings have declined by 5.5% per year over the past 5 years.

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

Earnings vs Industry: ITIM had negative earnings growth (-73.6%) over the past year, making it difficult to compare to the Software industry average (-13.1%).

Return on Equity

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

Discover strong past performing companies

Financial Health

How is Itim Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ITIM's short term assets (£9.9M) exceed its short term liabilities (£5.5M).

Long Term Liabilities: ITIM's short term assets (£9.9M) exceed its long term liabilities (£1.1M).

Debt to Equity History and Analysis

Debt Level: ITIM has more cash than its total debt.

Reducing Debt: ITIM's debt to equity ratio has reduced from 121.3% to 2.4% over the past 5 years.

Debt Coverage: ITIM's debt is well covered by operating cash flow (653.1%).

Interest Coverage: ITIM's interest payments on its debt are well covered by EBIT (9.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ITIM'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 ITIM's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ITIM has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average board tenure

CEO

M. Athar

29.58yrs

Tenure

Mr. M. Ali Athar Founded Itim Limited in 1982 and serves as it's Chief Executive Officer. Mr. Athar and has spent thirty years working in various capacities in the Retail Industry. His career started at IB...

Board Members

Experienced Board: ITIM's board of directors are not considered experienced ( 1.2 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/14 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31