AIM:SPE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sopheon plc designs, develops, and markets software products with associated implementation and consultancy services in North America and Europe. More Details


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SPE

-5.0%

GB Software

-5.1%

GB Market


1 Year Return

-3.0%

SPE

-2.2%

GB Software

-20.0%

GB Market

Return vs Industry: SPE underperformed the UK Software industry which returned -1.6% over the past year.

Return vs Market: SPE exceeded the UK Market which returned -19.3% over the past year.


Shareholder returns

SPEIndustryMarket
7 Day0%-5.0%-5.1%
30 Day-1.8%-6.0%-4.3%
90 Day-8.0%-2.1%-4.5%
1 Year-2.6%-3.0%-0.9%-2.2%-17.0%-20.0%
3 Year118.4%116.2%-30.7%-39.5%-13.6%-24.3%
5 Year970.4%959.6%21.3%0.04%10.2%-14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

60.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPE (£8) is trading above our estimate of fair value (£3.64)

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


Price To Earnings Ratio

PE vs Industry: SPE is poor value based on its PE Ratio (60.8x) compared to the GB Software industry average (31.5x).

PE vs Market: SPE is poor value based on its PE Ratio (60.8x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SPE is overvalued based on its PB Ratio (3.8x) compared to the GB Software industry average (3.2x).


Next Steps

Future Growth

How is Sopheon forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sopheon has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sopheon performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPE has high quality earnings.

Growing Profit Margin: SPE's current net profit margins (5.7%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: SPE has become profitable over the past 5 years, growing earnings by 14.5% per year.

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

Earnings vs Industry: SPE had negative earnings growth (-64.6%) over the past year, making it difficult to compare to the Software industry average (3.3%).


Return on Equity

High ROE: SPE's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is Sopheon's financial position?


Financial Position Analysis

Short Term Liabilities: SPE's short term assets ($29.4M) exceed its short term liabilities ($12.4M).

Long Term Liabilities: SPE's short term assets ($29.4M) exceed its long term liabilities ($704.0K).


Debt to Equity History and Analysis

Debt Level: SPE is debt free.

Reducing Debt: SPE has no debt compared to 5 years ago when its debt to equity ratio was 133.3%.

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

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


Balance Sheet


Next Steps

Dividend

What is Sopheon current dividend yield, its reliability and sustainability?

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPE's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.87%).

High Dividend: SPE's dividend (0.36%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

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

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


Future Payout to Shareholders

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

20.7yrs

Average management tenure


CEO

Andy Michuda (65 yo)

20.08yrs

Tenure

US$407,599

Compensation

Mr. Andrew Lloyd. Michuda, also known as Andy, has been the Chief Executive Officer of Sopheon Plc since September 2000 and serves as Executive Director. Mr. Michuda was elected as the President and Chief ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD407.60K) is about average for companies of similar size in the UK market ($USD349.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Barry Mence
Executive Chairman27.75yrsUS$261.96k21.84%
$ 17.8m
Andrew Michuda
CEO & Executive Director20.08yrsUS$407.60k0.82%
$ 673.3k
Arif Karimjee
CFO, Finance Directorno dataUS$247.19k0.81%
$ 659.9k
Gregory Coticchia
Presidentno datano datano data
Paul Heller
Chief Technology Officer21.33yrsno datano data
Ronald Helgeson
Vice President of Corporate Communications20.75yrsno datano data

20.7yrs

Average Tenure

61yo

Average Age

Experienced Management: SPE's management team is seasoned and experienced (20.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Mence
Executive Chairman27.75yrsUS$261.96k21.84%
$ 17.8m
Andrew Michuda
CEO & Executive Director20.08yrsUS$407.60k0.82%
$ 673.3k
Arif Karimjee
CFO, Finance Directorno dataUS$247.19k0.81%
$ 659.9k
Stuart Silcock
Independent Non-Executive Director27.75yrsUS$33.00k5.1%
$ 4.2m
Daniel Metzger
Independent Non-Executive Director18.08yrsUS$33.00k0.049%
$ 40.0k

27.8yrs

Average Tenure

66yo

Average Age

Experienced Board: SPE's board of directors are seasoned and experienced ( 27.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Sopheon plc
  • Ticker: SPE
  • Exchange: AIM
  • Founded: 1993
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£81.623m
  • Shares outstanding: 10.20m
  • Website: https://www.sopheon.com

Number of Employees


Location

  • Sopheon plc
  • Dorna House One
  • 50 Guildford Road
  • West End
  • Surrey
  • GU24 9PW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 1996

Biography

Sopheon plc designs, develops, and markets software products with associated implementation and consultancy services in North America and Europe. The company’s software products comprise Accolade, Accolade ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 21:31
End of Day Share Price2020/10/30 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.