AIM:KAPE

Stock Analysis Report

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Executive Summary

Kape Technologies Plc, a cybersecurity company, develops and distributes digital products in the online security space. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KAPE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: KAPE's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

10.2%

KAPE

-3.1%

GB Software

0.0002%

GB Market


1 Year Return

46.5%

KAPE

-10.2%

GB Software

-10.0%

GB Market

Return vs Industry: KAPE exceeded the UK Software industry which returned -9.8% over the past year.

Return vs Market: KAPE exceeded the UK Market which returned -9.1% over the past year.


Shareholder returns

KAPEIndustryMarket
7 Day10.2%-3.1%0.0002%
30 Day23.9%-3.8%10.0%
90 Day-4.3%-10.5%7.0%
1 Year46.5%46.5%-9.0%-10.2%-6.4%-10.0%
3 Year188.8%180.0%-30.1%-38.5%1.3%-11.1%
5 Year254.5%243.6%17.7%-2.7%25.7%-2.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KAPE (£1.89) is trading below our estimate of fair value (£2.69)

Significantly Below Fair Value: KAPE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KAPE is poor value based on its PE Ratio (221.2x) compared to the GB Software industry average (30.8x).

PE vs Market: KAPE is poor value based on its PE Ratio (221.2x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: KAPE is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: KAPE is good value based on its PB Ratio (2.5x) compared to the GB Software industry average (3.5x).


Next Steps

Future Growth

How is Kape Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAPE's forecast earnings growth (42.7% per year) is above the savings rate (1.2%).

Earnings vs Market: KAPE's earnings (42.7% per year) are forecast to grow faster than the UK market (27% per year).

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

Revenue vs Market: KAPE's revenue (14% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: KAPE's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KAPE's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Kape Technologies performed over the past 5 years?

59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAPE has a large one-off loss of $2.4M impacting its June 30 2020 financial results.

Growing Profit Margin: KAPE's current net profit margins (1.8%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: KAPE has become profitable over the past 5 years, growing earnings by 59.9% per year.

Accelerating Growth: KAPE's earnings growth over the past year (3.3%) is below its 5-year average (59.9% per year).

Earnings vs Industry: KAPE earnings growth over the past year (3.3%) exceeded the Software industry -3.2%.


Return on Equity

High ROE: KAPE's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is Kape Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: KAPE's short term assets ($44.1M) do not cover its short term liabilities ($71.5M).

Long Term Liabilities: KAPE's short term assets ($44.1M) do not cover its long term liabilities ($78.0M).


Debt to Equity History and Analysis

Debt Level: KAPE's debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KAPE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KAPE's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: KAPE's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if KAPE'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 KAPE'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?

6.6yrs

Average management tenure


CEO

Ido Erlichman (39 yo)

4.5yrs

Tenure

US$580,000

Compensation

Mr. Ido Erlichman has been Group Chief Executive Officer of Kape Technologies Plc (formerly known as Crossrider Plc) since May 31, 2016. Mr. Erlichman has more than nine years' experience in the technology...


CEO Compensation Analysis

Compensation vs Market: Ido's total compensation ($USD1.03M) is about average for companies of similar size in the UK market ($USD869.94K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ido Erlichman
Group CEO & Director4.5yrsUS$580.00k0.019%
$ 78.8k
Moran Laufer
CFO & Director3.75yrsUS$236.65k0.036%
$ 145.8k
Ziv Jonas
Vice President of Operations6.83yrsno datano data
Shay Dadosh
Chief Technology Officer6.58yrsno datano data
Gilad Hellerman
Chief Executive Officer of Definitimediano datano datano data
Yossi Peretz
Chief Executive Officer of Reimage7.83yrsno datano data
Richard Lee
Operations & Integration Director of Digital Privacy Divisionno datano datano data
Timo Beyel
Chief Technology Officer of Digital Privacy Divisionno datano datano data
Tommie Podzemski
Vice Presidentno datano datano data

6.6yrs

Average Tenure

Experienced Management: KAPE's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ido Erlichman
Group CEO & Director4.5yrsUS$580.00k0.019%
$ 78.8k
Moran Laufer
CFO & Director3.75yrsUS$236.65k0.036%
$ 145.8k
Martin Blair
Independent Non Executive Director6.17yrsUS$50.00kno data
Donald Elgie
Independent Non Executive Chairman6.17yrsUS$80.00k0.052%
$ 211.9k
David Cotterell
Senior Independent Directorno dataUS$50.00k0.067%
$ 276.9k
Theodore Kim
Non-Executive Director0.92yrUS$11.72k0.048%
$ 197.0k

4.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: KAPE's board of directors are considered experienced (4.4 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 46.4%.


Top Shareholders

Company Information

Kape Technologies Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kape Technologies Plc
  • Ticker: KAPE
  • Exchange: AIM
  • Founded:
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: UK£410.357m
  • Shares outstanding: 208.30m
  • Website: https://www.kape.com

Number of Employees


Location

  • Kape Technologies Plc
  • LABS Hawley Wharf
  • 1 Water Lane
  • London
  • Greater London
  • NW1 8NZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KAPEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2014
8C2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2014
CSSD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2014

Biography

Kape Technologies Plc, a cybersecurity company, develops and distributes digital products in the online security space. It operates through two segment, Digital Privacy and Digital Security. It offers Cybe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 21:32
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.