AIM:LTG

Stock Analysis Report

Learning Technologies Group

Executive Summary

Learning Technologies Group plc, through its subsidiaries, provides various e-learning services and technologies in the United Kingdom, the United States, the Asia Pacific, Mainland Europe, Canada, and internationally.


Snowflake Analysis

Reasonable growth potential with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LTG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

LTG

-6.1%

GB Software

-4.4%

GB Market


1 Year Return

120.2%

LTG

6.7%

GB Software

1.4%

GB Market

Return vs Industry: LTG exceeded the UK Software industry which returned 6.7% over the past year.

Return vs Market: LTG exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

LTGIndustryMarket
7 Day-3.8%-6.1%-4.4%
30 Day-4.6%-10.6%-6.3%
90 Day19.7%-2.5%-2.7%
1 Year121.6%120.2%14.1%6.7%6.7%1.4%
3 Year250.1%245.1%9.6%-7.6%12.6%-1.5%
5 Year615.6%598.4%50.2%24.5%28.8%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

103.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LTG (£1.48) is trading above our estimate of fair value (£1.04)

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


Price To Earnings Ratio

PE vs Industry: LTG is poor value based on its PE Ratio (103.2x) compared to the Software industry average (30.8x).

PE vs Market: LTG is poor value based on its PE Ratio (103.2x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LTG is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: LTG is overvalued based on its PB Ratio (5.7x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

How is Learning Technologies Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTG's forecast earnings growth (30.6% per year) is above the savings rate (0.5%).

Earnings vs Market: LTG's earnings (30.6% per year) are forecast to grow faster than the UK market (13% per year).

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

Revenue vs Market: LTG's revenue (9.4% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: LTG's revenue (9.4% 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 LTG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Learning Technologies Group performed over the past 5 years?

62.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTG has a large one-off loss of £6.4M impacting its June 30 2019 financial results.

Growing Profit Margin: LTG's current net profit margins (7.8%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: LTG has become profitable over the past 5 years, growing earnings by 62.4% per year.

Accelerating Growth: LTG's earnings growth over the past year (99.2%) exceeds its 5-year average (62.4% per year).

Earnings vs Industry: LTG earnings growth over the past year (99.2%) exceeded the Software industry 7.8%.


Return on Equity

High ROE: LTG's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Learning Technologies Group's financial position?


Financial Position Analysis

Short Term Liabilities: LTG's short term assets (£61.8M) do not cover its short term liabilities (£75.8M).

Long Term Liabilities: LTG's short term assets (£61.8M) do not cover its long term liabilities (£74.1M).


Debt to Equity History and Analysis

Debt Level: LTG's debt to equity ratio (20.2%) is considered satisfactory.

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

Debt Coverage: LTG's debt is well covered by operating cash flow (70.4%).

Interest Coverage: LTG's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: LTG's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

0.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LTG's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: LTG's dividend (0.34%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


Stability and Growth of Payments

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

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


Future Payout to Shareholders

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

5.0yrs

Average management tenure


CEO

Jonathan Satchell (52yo)

6.3yrs

Tenure

UK£488,000

Compensation

Mr. Jonathan Satchell has been the Chief Executive Officer and Executive Director at Learning Technologies Group plc (formerly, In-Deed Online Plc) since November 8, 2013. Mr. Satchell has been a Director ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD634.88K) is below average for companies of similar size in the UK market ($USD1.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Satchell
CEO & Executive Director6.3yrsUK£488.00k11.23% £111.5m
Neil Elton
CFO, Company Secretary & Director5.3yrsUK£431.00k0.066% £652.3k
Piers Lea
Chief Strategy Officer & Director5.7yrsUK£345.00k1.3% £12.9m
Tim Martin
Chief Innovation & Product Officer1.8yrsno data0.29% £2.9m

5.0yrs

Average Tenure

52yo

Average Age

Experienced Management: LTG's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Satchell
CEO & Executive Director6.3yrsUK£488.00k11.23% £111.5m
Neil Elton
CFO, Company Secretary & Director5.3yrsUK£431.00k0.066% £652.3k
Piers Lea
Chief Strategy Officer & Director5.7yrsUK£345.00k1.3% £12.9m
Leslie-Ann Reed
Independent Non-Executive Director5.7yrsUK£40.00k0.97% £9.6m
Andrew Brode
Non-Executive Chairman6.3yrsno data17.47% £173.5m
Aimie Chapple
Independent Non-Executive Director1.4yrsUK£13.00kno data

5.7yrs

Average Tenure

58yo

Average Age

Experienced Board: LTG's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LTG insiders have bought and sold the same number of shares 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 13.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Learning Technologies Group plc
  • Ticker: LTG
  • Exchange: AIM
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£992.980m
  • Shares outstanding: 669.12m
  • Website: https://www.ltgplc.com

Number of Employees


Location

  • Learning Technologies Group plc
  • Sherborne House
  • 5th Floor
  • London
  • Greater London
  • EC4N 5AT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2013
LTGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2013

Biography

Learning Technologies Group plc, through its subsidiaries, provides various e-learning services and technologies in the United Kingdom, the United States, the Asia Pacific, Mainland Europe, Canada, and internationally. The company produces interactive multimedia programs. It also engages in mobile e-learning, bespoke e-learning, and educational games businesses, as well as e-learning interoperability, and e-learning software licensing and the provision of related services, as well as operates an employee benefit trust. In addition, the company provides custom content and platforms for corporate and public organizations; gomo learning, a software as a service, which offers a solution for creating, hosting, updating, and tracking its multi-device learning content; and Rustici Software that drives and connects learning software for organizations and vendors everywhere. Further, the company operates games studio that designs games for organizations across the education, entertainment, publishing, advertising, and broadcasting sectors; and provides governance, risk, and compliance training consultancy services for banks, as well as for non-financial services firms, including energy, clothing, and motorsport firms. Additionally, it offers organizations and government agencies with talent management solutions to personalize learning, share knowledge, enhance performance, and manage compliance programs for employees, customers, partners, and suppliers; and custom content and learning portal development services, off-the-shelf course libraries, and regulatory compliance courseware. Learning Technologies Group plc was founded in 1986 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:21
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.