TPXimpact Holdings (AIM:TPX) - Share price, News & Analysis

Q: What is the Fair Price of TPX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TPX (£1.28) is trading below our estimate of [[fair value]] (£3.2)

TPX fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

TPX Stock Overview

Rewards

Trading at 60.2% below our estimate of its fair value

Earnings are forecast to grow 36.62% per year

Became profitable this year

Risk Analysis

Shareholders have been diluted in the past year

TPXimpact Holdings Competitors

D4t4 Solutions

AIM:D4T4

UK£93.1m

Softline Holding

LSE:SFTL

US$208.0m

Eckoh

AIM:ECK

UK£116.7m

Redcentric

AIM:RCN

UK£182.1m

Price History & Performance

Summary of all time highs, changes and price drops for TPXimpact Holdings
Historical stock prices
Current Share Price	UK£1.28
52 Week High	UK£2.90
52 Week Low	UK£1.10
Beta	2.44
1 Month Change	-10.53%
3 Month Change	-21.54%
1 Year Change	-46.32%
3 Year Change	34.21%
5 Year Change	n/a
Change since IPO	56.44%

Recent News & Updates

May 10

TPXimpact Holdings (LON:TPX) Might Have The Makings Of A Multi-Bagger

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...

Shareholder Returns

	TPX	GB IT	GB Market
7D	9.9%	1.3%	0.3%
1Y	-46.3%	-37.6%	-8.9%

Return vs Industry: TPX underperformed the UK IT industry which returned -37.6% over the past year.

Return vs Market: TPX underperformed the UK Market which returned -8.9% over the past year.

Price Volatility

Is TPX's price volatile compared to industry and market?
TPX volatility
TPX Average Weekly Movement	6.0%
IT Industry Average Movement	5.7%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.9%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: TPX is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TPX's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2016	500	Neal Gandhi	https://www.tpximpact.com

TPXimpact Holdings PLC, together with its subsidiaries, provides digital native technology services in the United Kingdom, Bulgaria, Switzerland, the United States of America, Norway, and internationally. It operates through three segments: Consulting and Innovation, Software Development, and Automation. The company provides service and UX design, digital design and build, content and campaign management, and user and audience research services.

TPXimpact Holdings Fundamentals Summary

How do TPXimpact Holdings's earnings and revenue compare to its market cap?
TPX fundamental statistics
Market Cap	UK£110.36m
Earnings (TTM)	UK£2.50m
Revenue (TTM)	UK£79.71m

46.0x

P/E Ratio

1.4x

P/S Ratio

Is TPX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPX income statement (TTM)
Revenue	UK£79.71m
Cost of Revenue	UK£55.34m
Gross Profit	UK£24.37m
Other Expenses	UK£21.87m
Earnings	UK£2.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.028
Gross Margin	30.57%
Net Profit Margin	3.13%
Debt/Equity Ratio	22.9%

How did TPX perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

31%

Payout Ratio

Does TPX pay a reliable dividends?

See TPX dividend history and benchmarks

When do you need to buy TPX by to receive an upcoming dividend?
TPXimpact Holdings dividend dates
Ex Dividend Date	Oct 06 2022
Dividend Pay Date	Oct 14 2022
Days until Ex dividend	55 days
Days until Dividend pay date	63 days

Does TPX pay a reliable dividends?

See TPX dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is TPX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TPX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TPX. This is calculated by dividing TPX's market cap by their current preferred multiple.
What is TPX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£110.36m

TPX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	10.6x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does TPX's PE Ratio compare to its peers?

TPX PE Ratio vs Peers

The above table shows the PE ratio for TPX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	43.7x
D4T4 D4t4 Solutions	55x	40.9%	UK£93.1m
SFTL Softline Holding	18.3x	73.6%	US$208.0m
ECK Eckoh	75.2x	n/a	UK£116.7m
RCN Redcentric	26.5x	10.4%	UK£182.1m
TPX TPXimpact Holdings	46x	36.6%	UK£110.4m

Price-To-Earnings vs Peers: TPX is expensive based on its Price-To-Earnings Ratio (46x) compared to the peer average (43.7x).

Price to Earnings Ratio vs Industry

How does TPX's PE Ratio compare vs other companies in the GB IT Industry?

Price-To-Earnings vs Industry: TPX is expensive based on its Price-To-Earnings Ratio (46x) compared to the UK IT industry average (29x)

Price to Earnings Ratio vs Fair Ratio

What is TPX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TPX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	46x
Fair PE Ratio	38.3x

Price-To-Earnings vs Fair Ratio: TPX is expensive based on its Price-To-Earnings Ratio (46x) compared to the estimated Fair Price-To-Earnings Ratio (38.3x).

Share Price vs Fair Value

What is the Fair Price of TPX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TPX (£1.28) is trading below our estimate of fair value (£3.2)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPX's forecast earnings growth (36.6% per year) is above the savings rate (0.9%).

Earnings vs Market: TPX's earnings (36.6% per year) are forecast to grow faster than the UK market (9.4% per year).

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

Revenue vs Market: TPX's revenue (12.6% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: TPX's revenue (12.6% 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 TPX's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has TPXimpact Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TPX has high quality earnings.

Growing Profit Margin: TPX became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TPX has become profitable over the past 5 years, growing earnings by 7.1% per year.

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

Earnings vs Industry: TPX has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (31.1%).

Return on Equity

High ROE: TPX's Return on Equity (3.2%) is considered low.

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Financial Health

How is TPXimpact Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TPX's short term assets (£29.4M) exceed its short term liabilities (£21.2M).

Long Term Liabilities: TPX's short term assets (£29.4M) exceed its long term liabilities (£25.8M).

Debt to Equity History and Analysis

Debt Level: TPX's net debt to equity ratio (12.8%) is considered satisfactory.

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

Debt Coverage: TPX's debt is well covered by operating cash flow (36.9%).

Interest Coverage: TPX's interest payments on its debt are well covered by EBIT (8.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.70%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: TPX's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: TPX's dividend (0.71%) is low compared to the top 25% of dividend payers in the UK market (5.11%).

Stability and Growth of Payments

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

Growing Dividend: TPX is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: TPX is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: TPX is not paying a notable dividend for the UK market.

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Management

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

3.8yrs

Average board tenure

CEO

Neal Gandhi (54 yo)

no data

Tenure

UK£320,000

Compensation

Mr. Neal Narendra Gandhi is the Co-Founder and Chief Executive Officer of TPXimpact Holdings PLC (formerly known as The Panoply Holdings plc) and also serves as Director since December 20, 2016. Mr. Gandhi...

CEO Compensation Analysis

Compensation vs Market: Neal's total compensation ($USD390.80K) is about average for companies of similar size in the UK market ($USD341.95K).

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

Board Members

Experienced Board: TPX's board of directors are considered experienced (3.8 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31