AIM:SPE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

21.5%

SPE

0.7%

GB Software

0.2%

GB Market


1 Year Return

-9.8%

SPE

6.3%

GB Software

1.7%

GB Market

Return vs Industry: SPE underperformed the UK Software industry which returned 6.3% over the past year.

Return vs Market: SPE underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

SPEIndustryMarket
7 Day21.5%0.7%0.2%
30 Day11.9%1.5%-1.7%
90 Day-6.9%-9.3%-3.1%
1 Year-9.5%-9.8%12.5%6.3%6.7%1.7%
3 Year207.7%205.9%5.6%-11.9%17.7%3.1%
5 Year1660.0%1650.0%68.4%35.1%36.1%5.5%

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?

23.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPE (£8.75) is trading above our estimate of fair value (£4.16)

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


Price To Earnings Ratio

PE vs Industry: SPE is good value based on its PE Ratio (23.2x) compared to the Software industry average (27.5x).

PE vs Market: SPE is poor value based on its PE Ratio (23.2x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: SPE is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: SPE is overvalued based on its PB Ratio (4.4x) compared to the GB Software industry average (3.3x).


Next Steps

Future Growth

How is Sopheon forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPE's forecast earnings growth (9.4% per year) is above the savings rate (1.2%).

Earnings vs Market: SPE's earnings (9.4% per year) are forecast to grow slower than the UK market (12.4% per year).

High Growth Earnings: SPE's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPE's revenue (16.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SPE's revenue (16.7% 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 SPE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sopheon performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SPE has become profitable over the past 5 years, growing earnings by 48.8% 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 (-21.2%) over the past year, making it difficult to compare to the Software industry average (7%).


Return on Equity

High ROE: SPE's Return on Equity (18.8%) is considered low.


Return on Assets

ROA vs Industry: SPE has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: SPE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sopheon's financial position?


Financial Position Analysis

Short Term Liabilities: SPE's short term assets ($26.9M) exceeds its short term liabilities ($11.3M)

Long Term Liabilities: SPE's short term assets (26.9M) exceeds its long term liabilities (1.1M)


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 98.1%.

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

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

Debt Coverage by Assets: Insufficient data to determine if SPE's debt is covered by short term assets.


Next Steps

Dividend

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

0.35%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SPE's dividend (0.35%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: SPE's dividend (0.35%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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

19.7yrs

Average management tenure


CEO

Andy Michuda (64yo)

19.1yrs

Tenure

US$491,983

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 ($USD491.98K) is about average for companies of similar size in the UK market ($USD318.91K).

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


Management Age and Tenure

19.7yrs

Average Tenure

64yo

Average Age

Experienced Management: SPE's management team is seasoned and experienced (19.7 years average tenure).


Board Age and Tenure

26.8yrs

Average Tenure

65yo

Average Age

Experienced Board: SPE's board of directors are seasoned and experienced ( 26.8 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


Management Team

  • Andy Michuda (64yo)

    CEO & Executive Director

    • Tenure: 19.1yrs
    • Compensation: US$491.98k
  • Barry Mence (66yo)

    Executive Chairman

    • Tenure: 26.8yrs
    • Compensation: US$318.92k
  • Arif Karimjee (52yo)

    CFO, Finance Director

    • Tenure: 0yrs
    • Compensation: US$285.10k
  • Ronald Helgeson

    Vice President of Corporate Communications

    • Tenure: 19.8yrs
  • Paul Heller

    Chief Technology Officer

    • Tenure: 20.3yrs

Board Members

  • Andy Michuda (64yo)

    CEO & Executive Director

    • Tenure: 19.1yrs
    • Compensation: US$491.98k
  • Stuart Silcock (71yo)

    Independent Non-Executive Director

    • Tenure: 26.8yrs
    • Compensation: US$33.99k
  • Dan Metzger (65yo)

    Independent Non-Executive Director

    • Tenure: 17.1yrs
    • Compensation: US$33.99k
  • Barry Mence (66yo)

    Executive Chairman

    • Tenure: 26.8yrs
    • Compensation: US$318.92k
  • Arif Karimjee (52yo)

    CFO, Finance Director

    • Tenure: 0yrs
    • Compensation: US$285.10k

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£91.058m
  • Shares outstanding: 10.17m
  • Website: https://www.sopheon.com

Number of Employees


Location

  • Sopheon plc
  • Dorna House One
  • 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 Analysis2019/10/21 20:36
End of Day Share Price2019/10/21 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.