LSE:APTD

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Aptitude Software Group

Executive Summary

Aptitude Software Group plc, together with its subsidiaries, develops, implements, and supports business critical software and related services in the United Kingdom and internationally. More Details

Rewards

Earnings are forecast to grow 6.1% per year

Earnings grew by 8.4% over the past year

Risk Analysis

No risks detected for APTD from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: APTD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: APTD's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

APTD

-6.2%

GB Software

-0.3%

GB Market


1 Year Return

-26.3%

APTD

-13.1%

GB Software

-11.0%

GB Market

Return vs Industry: APTD underperformed the UK Software industry which returned -10.2% over the past year.

Return vs Market: APTD underperformed the UK Market which returned -10% over the past year.


Shareholder returns

APTDIndustryMarket
7 Day-2.2%-6.2%-0.3%
30 Day-3.3%-7.1%10.2%
90 Day0.2%-13.9%6.4%
1 Year-25.4%-26.3%-7.9%-13.1%-7.4%-11.0%
3 Year2.3%-14.1%-29.6%-38.2%0.9%-11.5%
5 Year345.8%258.9%17.9%-2.8%26.5%-2.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aptitude Software Group undervalued compared to its fair value and its price relative to the market?

40.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: APTD (£4.45) is trading above our estimate of fair value (£1.37)

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


Price To Earnings Ratio

PE vs Industry: APTD is poor value based on its PE Ratio (40.5x) compared to the GB Software industry average (37.6x).

PE vs Market: APTD is poor value based on its PE Ratio (40.5x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: APTD is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: APTD is overvalued based on its PB Ratio (5.2x) compared to the GB Software industry average (3.5x).


Next Steps

Future Growth

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

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APTD's forecast earnings growth (6.1% per year) is above the savings rate (1.2%).

Earnings vs Market: APTD's earnings (6.1% per year) are forecast to grow slower than the UK market (27.3% per year).

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

Revenue vs Market: APTD's revenue (1.3% per year) is forecast to grow slower than the UK market (6.7% per year).

High Growth Revenue: APTD's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APTD's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Aptitude Software Group performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APTD has high quality earnings.

Growing Profit Margin: APTD's current net profit margins (11.4%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: APTD's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: APTD's earnings growth over the past year (8.4%) is below its 5-year average (8.7% per year).

Earnings vs Industry: APTD earnings growth over the past year (8.4%) exceeded the Software industry -3.2%.


Return on Equity

High ROE: APTD's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

How is Aptitude Software Group's financial position?


Financial Position Analysis

Short Term Liabilities: APTD's short term assets (£45.6M) exceed its short term liabilities (£29.4M).

Long Term Liabilities: APTD's short term assets (£45.6M) exceed its long term liabilities (£2.9M).


Debt to Equity History and Analysis

Debt Level: APTD is debt free.

Reducing Debt: APTD has no debt compared to 5 years ago when its debt to equity ratio was 39%.

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

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


Balance Sheet


Next Steps

Dividend

What is Aptitude Software Group current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APTD's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: APTD's dividend (1.28%) is low compared to the top 25% of dividend payers in the UK market (4.94%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.2%), APTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APTD's dividends in 3 years are forecast to be well covered by earnings (47.4% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Jeremy Suddards

0.83

Tenure

UK£250,349

Compensation

Mr. Jeremy Suddards serves as Chief Executive Officer of Aptitude Software Group plc since January 17, 2020 and serves as its Director since September 1, 2019. He served as Chief Client Officer for Europe ...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD333.77K) is below average for companies of similar size in the UK market ($USD887.49K).

Compensation vs Earnings: Insufficient data to compare Jeremy's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jeremy Suddards
CEO & Executive Director0.83yrUK£250.35kno data
Philip Wood
Deputy CEO13.83yrsUK£1.64m0.40%
£ 1.0m
Chris Wade
Chief Product Officer2.83yrsno datano data
Alex Curran
Executive Vice President1.33yrsno datano data
Georgina Sharley
Company Secretary1.92yrsno datano data
Martin Redington
Chief Technology Officer of Aptitude Software18.75yrsno datano data

2.4yrs

Average Tenure

Experienced Management: APTD's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeremy Suddards
CEO & Executive Director0.83yrUK£250.35kno data
Philip Wood
Deputy CEO13.83yrsUK£1.64m0.40%
£ 1.0m
Ivan Martin
Independent Non-Executive Chairman4.67yrsUK£139.40k0.31%
£ 778.7k
Barbara Moorhouse
Independent Non-Executive Director3.58yrsUK£53.00kno data
Peter Whiting
Senior Independent Non-Executive Director4.58yrsUK£57.40k0.029%
£ 72.7k

4.6yrs

Average Tenure

58yo

Average Age

Experienced Board: APTD's board of directors are considered experienced (4.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aptitude Software Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aptitude Software Group plc
  • Ticker: APTD
  • Exchange: LSE
  • Founded: 1981
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£250.882m
  • Shares outstanding: 56.38m
  • Website: https://www.aptitudesoftware.com

Number of Employees


Location

  • Aptitude Software Group plc
  • Old Change House
  • 128 Queen Victoria Street
  • London
  • Greater London
  • EC4V 4BJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APTDLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 1985
MH5BBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 1985
APTDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 1985

Biography

Aptitude Software Group plc, together with its subsidiaries, develops, implements, and supports business critical software and related services in the United Kingdom and internationally. The company provid...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 19:10
End of Day Share Price2020/11/26 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.