AIM:SSY

Stock Analysis Report

Executive Summary

As of December 18, 2019, operates as a subsidiary of CGI Group Holdings Europe Limited.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.3%

SSY

-0.2%

GB IT

0.05%

GB Market


1 Year Return

27.1%

SSY

42.8%

GB IT

7.1%

GB Market

Return vs Industry: SSY underperformed the UK IT industry which returned 42.2% over the past year.

Return vs Market: SSY exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

SSYIndustryMarket
7 Day2.3%-0.2%0.05%
30 Day-7.6%0.7%-1.7%
90 Day-18.2%8.9%4.1%
1 Year28.8%27.1%46.0%42.8%12.6%7.1%
3 Year132.0%117.9%122.0%106.8%18.4%3.6%
5 Year143.1%119.8%122.9%104.5%35.2%4.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSY (£1.53) is trading below our estimate of fair value (£2.61)

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


Price To Earnings Ratio

PE vs Industry: SSY is good value based on its PE Ratio (8.1x) compared to the IT industry average (29.2x).

PE vs Market: SSY is good value based on its PE Ratio (8.1x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SSY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SSY is good value based on its PB Ratio (1.7x) compared to the GB IT industry average (2.8x).


Next Steps

Future Growth

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

-12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSY's earnings are forecast to decline over the next 3 years (-12.6% per year).

Earnings vs Market: SSY's earnings are forecast to decline over the next 3 years (-12.6% per year).

High Growth Earnings: SSY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SSY's revenue (2.3% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: SSY's revenue (2.3% 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 SSY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SCISYS performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if SSY has high quality earnings.

Growing Profit Margin: SSY became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SSY's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: SSY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SSY has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (12.3%).


Return on Equity

High ROE: SSY's Return on Equity (20.9%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SCISYS's financial position?


Financial Position Analysis

Short Term Liabilities: SSY's short term assets (£35.2M) exceed its short term liabilities (£25.4M).

Long Term Liabilities: SSY's short term assets (£35.2M) exceed its long term liabilities (£13.0M).


Debt to Equity History and Analysis

Debt Level: SSY's debt to equity ratio (47.9%) is considered high.

Reducing Debt: SSY's debt to equity ratio has increased from 28.5% to 47.9% over the past 5 years.

Debt Coverage: SSY's debt is well covered by operating cash flow (86%).

Interest Coverage: SSY's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: SSY's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

1.42%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.8%markettop25%5.1%industryaverage2.0%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: SSY's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: SSY's dividend (1.42%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: SSY's dividend payments have been volatile in the past 10 years.

Growing Dividend: SSY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.7%), SSY's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SSY's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Klaus Heidrich (58yo)

4.8yrs

Tenure

UK£262,667

Compensation

Mr. Klaus Martin Heidrich has been the Chief Executive Officer of SciSys plc since January 01, 2014 and served as its Chief Operating Officer from January 01, 2012 to January 01, 2014. Mr. Heidrich serves  ...


CEO Compensation Analysis

Compensation vs Market: Klaus's total compensation ($USD335.78K) is about average for companies of similar size in the UK market ($USD326.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Klaus Heidrich
CEO & Executive Director4.8yrsUK£262.67kno data
David Jones
Deputy Chairman4.8yrsUK£63.67kno data
Christopher Cheetham
Finance Director & Executive Director11.8yrsUK£172.55kno data
Stephen Brignall
Technical Director & Executive Director12.2yrsUK£156.10kno data
Klaus-Günter Meng
Executive Director9.8yrsUK£90.81kno data
Karl Willi Pieper
Chair and Divisional Director of Media & Broadcast Division0yrsno datano data
Horst Wulf
Chair and Divisional Director of Space Division0yrsno datano data
David Gawthorpe
Chair and Division Director of Enterprise Solutions & Defence0yrsno datano data
Natasha Laird
Company Secretary0yrsno datano data
John Haynes
Executive Officer0yrsUK£121.00kno data

11.8yrs

Average Tenure

60yo

Average Age

Experienced Management: SSY's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Klaus Heidrich
CEO & Executive Director4.8yrsUK£262.67kno data
David Jones
Deputy Chairman4.8yrsUK£63.67kno data
Christopher Cheetham
Finance Director & Executive Director11.8yrsUK£172.55kno data
Stephen Brignall
Technical Director & Executive Director12.2yrsUK£156.10kno data
Klaus-Günter Meng
Executive Director9.8yrsUK£90.81kno data
David Coghlan
Independent Non-Executive Director5.8yrsUK£26.00kno data
Michael Love
Non-Executive Chairman15.4yrsUK£44.85kno data

9.8yrs

Average Tenure

63yo

Average Age

Experienced Board: SSY's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SSY insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

SCISYS Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SCISYS Group PLC
  • Ticker: SSY
  • Exchange: AIM
  • Founded: 1980
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£44.469m
  • Shares outstanding: 29.35m
  • Website: https://www.scisys.co.uk

Number of Employees


Location

  • SCISYS Group PLC
  • Methuen Park
  • Chippenham
  • Wiltshire
  • SN14 0GB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSYAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 1997

Biography

SCISYS PLC provides IT services to large corporations and public sector organizations in the United Kingdom, rest of Europe, and internationally. The company operates through five segments: Space, Enterprise Solutions & Defence, Media & Broadcast, Xibis Ltd, and ANNOVA Systems GmbH. It offers integrated solutions and products for ground and onboard systems, including monitoring and control, data processing, automation, autonomous and intelligent systems, system modeling and simulation, infrastructures, and data services and applications, as well as on-site engineering and operations support, and professional consulting services for the management and procurement of space and space-related projects. The company also provides application management solutions, such as application support, application enhancements, transformation, managed service, data management, legacy technologies, quality and security, and advice, guidance, and training services; editorial tools for managing media content or metadata; audio editing products; and playout systems, as well as consulting, integration, training, and support services. In addition, it offers geographical information systems tools that capture, store, analyze, manage, and present data; marine electronic integration systems, which integrate vessel instrumentation and control onto a single display; government digital services; electronic architectures; and regulatory solutions, as well as robotics, autonomy, and automation solutions. The company was founded in 1980 and is headquartered in Chippenham, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2018/11/30 18:20
End of Day Share Price2018/11/29 00:00
Earnings2018/06/30
Annual Earnings2017/12/31


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.