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.

Risks

  • Aptitude Software Group has significant price volatility in the past 3 months.
  • Aptitude Software Group is covered by less than 3 analysts.

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

-1.0%

APTD

2.3%

GB Software

-0.2%

GB Market


1 Year Return

46.7%

APTD

-2.7%

GB Software

-1.9%

GB Market

APTD outperformed the Software industry which returned -2.7% over the past year.

APTD outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.8% over the past year.


Share holder returns

APTDIndustryMarket
7 Day-1.0%2.3%-0.2%
30 Day-1.0%-4.7%4.4%
90 Day32.0%-11.6%0.5%
1 Year48.7%46.7%2.5%-2.7%2.9%-1.9%
3 Year230.3%216.0%2.2%-13.9%20.7%6.3%
5 Year436.9%277.1%70.9%36.7%33.2%5.1%

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?

24.63x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Aptitude Software Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Aptitude Software Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Aptitude Software Group is good value based on earnings compared to the GB Software industry average.

Aptitude Software Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Aptitude Software Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Aptitude Software Group is overvalued based on assets compared to the GB Software industry average.


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

Aptitude Software Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Aptitude Software Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Aptitude Software Group's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.

Aptitude Software Group's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.

Aptitude Software Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Aptitude Software Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Aptitude Software Group has delivered over 20% year on year earnings growth in the past 5 years.

Aptitude Software Group's 1-year earnings growth exceeds its 5-year average (67.3% vs 28.1%)

Aptitude Software Group's earnings growth has exceeded the GB Software industry average in the past year (67.3% vs 4.2%).


Return on Equity

Aptitude Software Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Aptitude Software Group used its assets more efficiently than the GB Software industry average last year based on Return on Assets.


Return on Capital Employed

Aptitude Software Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aptitude Software Group's financial position?


Financial Position Analysis

Aptitude Software Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Aptitude Software Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Aptitude Software Group has no debt.

Aptitude Software Group has no debt compared to 5 years ago when it was 32%.

Aptitude Software Group has no debt, it does not need to be covered by operating cash flow.

Aptitude Software Group has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Aptitude Software Group has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

1.19%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Aptitude Software Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).

Aptitude Software Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.41%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


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?

1.7yrs

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

Tom's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Tom's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

The average tenure for the Aptitude Software Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

53yo

Average Age

The tenure for the Aptitude Software Group board of directors is about average.


Insider Trading

Aptitude Software Group individual 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
Shares489,129
Max PriceUK£5.60

Ownership Breakdown


Management Team

  • Philip Wood (46yo)

    CFO, Deputy CEO

    • Tenure: 12.7yrs
    • 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: 17.6yrs
  • Georgina Sharley

    Company Secretary

    • Tenure: 0.8yrs
  • Chris Wade

    Chief Product Officer

    • Tenure: 1.7yrs
  • Alex Curran

    Executive Vice President

    • Tenure: 0.2yrs
  • Jeremy Suddards

    Chief Client Officer for Europe and Asia & Director

    • Tenure: 0yrs

Board Members

  • Ivan Martin (64yo)

    Non-Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: UK£134.00k
  • Philip Wood (46yo)

    CFO, Deputy CEO

    • Tenure: 12.7yrs
    • Compensation: UK£829.14k
  • Barbara Moorhouse (61yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: UK£51.00k
  • Peter Whiting (53yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.4yrs
    • 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: 0yrs

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£377.721m
  • Shares outstanding: 63.59m
  • 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
MH5ABST (Boerse-Stuttgart)YesOrdinary SharesDEEURMar 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 Analysis2019/09/22 20:41
End of Day Share Price2019/09/20 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.