LSE:APTD

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

-4.8%

APTD

1.4%

GB Software

2.0%

GB Market


1 Year Return

19.2%

APTD

2.2%

GB Software

3.3%

GB Market

Return vs Industry: APTD exceeded the UK Software industry which returned 2.2% over the past year.

Return vs Market: APTD exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

APTDIndustryMarket
7 Day-4.8%1.4%2.0%
30 Day-18.3%0.4%-1.0%
90 Day6.1%-13.1%-1.7%
1 Year38.1%19.2%8.1%2.2%8.3%3.3%
3 Year212.1%161.3%1.8%-14.9%19.0%4.5%
5 Year418.6%218.9%73.3%38.8%38.4%8.4%

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 based on future cash flows and its price relative to the stock market?

20.31x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: APTD (£5.6) is trading above our estimate of fair value (£1.93)

Significantly Undervalued: APTD is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: APTD is good value based on its PE Ratio (20.3x) compared to the Software industry average (28.8x).

PE vs Market: APTD is poor value based on its PE Ratio (20.3x) compared to the UK market (16.4x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: APTD is overvalued based on its PB Ratio (3.4x) compared to the GB Software industry average (3x).


Next Steps

Future Growth

How is Aptitude Software Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

-15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: APTD's earnings are forecast to decline over the next 3 years (-15.8% per year).

Earnings vs Market: APTD's earnings are forecast to decline over the next 3 years (-15.8% per year).

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

Revenue vs Market: APTD's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: APTD's revenue is forecast to decline over the next 3 years (-0.2%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: APTD's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

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

28.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: APTD's earnings have grown significantly by 28.1% per year over the past 5 years.

Accelerating Growth: APTD's earnings growth over the past year (67.3%) exceeds its 5-year average (28.1% per year).

Earnings vs Industry: APTD earnings growth over the past year (67.3%) exceeded the Software industry 7%.


Return on Equity

High ROE: APTD's Return on Equity (16.6%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: APTD has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Aptitude Software Group's financial position?


Financial Position Analysis

Short Term Liabilities: APTD's short term assets (£86.5M) exceeds its short term liabilities (£30.8M)

Long Term Liabilities: APTD's short term assets (86.5M) exceeds its long term liabilities (4.1M)


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 32%.

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

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

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


Next Steps

Dividend

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

1.44%

Expected Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Years1.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: APTD's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2%).

High Dividend: APTD's dividend (1.35%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

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 (25.7%), 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 covered by earnings (50% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Tom Crawford (51yo)

0yrs

Tenure

UK£857,582

Compensation

Mr. Tom Crawford serves as Chief Executive Officer of Aptitude Software Group plc (formerly Microgen plc) and has been its Managing Director of Aptitude Solutions since May 16, 2013 and served as its Execu ...


CEO Compensation Analysis

Compensation vs. Market: Tom's total compensation ($USD1.08M) is about average for companies of similar size in the UK market ($USD868.23K).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: APTD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

53yo

Average Age

Experienced Board: APTD's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: APTD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£2,739,12206 Aug 19
Philip Wood
EntityIndividual
Role
Member of the Board of Directors
CFO, Deputy CEO
Shares427,987.88
Max PriceUK£6.40

Ownership Breakdown


Management Team

  • Philip Wood (46yo)

    CFO, Deputy CEO

    • Tenure: 12.8yrs
    • Compensation: UK£829.14k
  • Tom Crawford (51yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£857.58k
  • Martin Redington

    Chief Technology Officer of Aptitude Software

    • Tenure: 17.7yrs
  • Georgina Sharley

    Company Secretary

    • Tenure: 0.8yrs
  • Chris Wade

    Chief Product Officer

    • Tenure: 1.8yrs
  • Alex Curran

    Executive Vice President

    • Tenure: 0.3yrs
  • Jeremy Suddards

    Chief Client Officer for Europe and Asia & Director

    • Tenure: 0.08yrs

Board Members

  • Ivan Martin (64yo)

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: UK£134.00k
  • Philip Wood (46yo)

    CFO, Deputy CEO

    • Tenure: 12.8yrs
    • Compensation: UK£829.14k
  • Barbara Moorhouse (61yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£51.00k
  • Peter Whiting (53yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£55.20k
  • Tom Crawford (51yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£857.58k
  • Jeremy Suddards

    Chief Client Officer for Europe and Asia & Director

    • Tenure: 0.08yrs

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: 1974
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£321.457m
  • Shares outstanding: 55.64m
  • Website: https://www.aptitudesoftwaregroup.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. It operates throug ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:40
End of Day Share Price2019/10/14 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.

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