LSE:FDM

Stock Analysis Report

Executive Summary

FDM Group (Holdings) plc, together with its subsidiaries, provides information technology (IT) services in the United Kingdom, Ireland, North America, rest of Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has FDM Group (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

FDM

-0.8%

GB IT

0.3%

GB Market


1 Year Return

21.1%

FDM

41.0%

GB IT

6.5%

GB Market

Return vs Industry: FDM underperformed the UK IT industry which returned 41% over the past year.

Return vs Market: FDM exceeded the UK Market which returned 6.5% over the past year.


Shareholder returns

FDMIndustryMarket
7 Day-0.9%-0.8%0.3%
30 Day-2.1%1.8%-0.5%
90 Day15.6%7.6%3.8%
1 Year25.7%21.1%44.2%41.0%12.0%6.5%
3 Year70.0%54.9%121.5%106.4%18.7%3.8%
5 Year252.1%197.3%125.7%107.3%35.0%4.1%

Price Volatility Vs. Market

How volatile is FDM Group (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FDM Group (Holdings) undervalued compared to its fair value and its price relative to the market?

1.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FDM (£9.99) is trading below our estimate of fair value (£10.16)

Significantly Below Fair Value: FDM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FDM is good value based on its PE Ratio (28x) compared to the IT industry average (29.9x).

PE vs Market: FDM is poor value based on its PE Ratio (28x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: FDM is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: FDM is overvalued based on its PB Ratio (15.4x) compared to the GB IT industry average (2.7x).


Next Steps

Future Growth

How is FDM Group (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDM's forecast earnings growth (6.9% per year) is above the savings rate (0.5%).

Earnings vs Market: FDM's earnings (6.9% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: FDM's revenue (7.5% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: FDM's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FDM's Return on Equity is forecast to be very high in 3 years time (54.3%).


Next Steps

Past Performance

How has FDM Group (Holdings) performed over the past 5 years?

21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDM has high quality earnings.

Growing Profit Margin: FDM's current net profit margins (14.8%) are higher than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: FDM's earnings have grown significantly by 21% per year over the past 5 years.

Accelerating Growth: FDM's earnings growth over the past year (12.3%) is below its 5-year average (21% per year).

Earnings vs Industry: FDM earnings growth over the past year (12.3%) underperformed the IT industry 12.3%.


Return on Equity

High ROE: FDM's Return on Equity (54.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FDM Group (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: FDM's short term assets (£74.2M) exceed its short term liabilities (£32.4M).

Long Term Liabilities: FDM's short term assets (£74.2M) exceed its long term liabilities (£19.3M).


Debt to Equity History and Analysis

Debt Level: FDM is debt free.

Reducing Debt: FDM has no debt compared to 5 years ago when its debt to equity ratio was 9.4%.

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

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


Balance Sheet

Inventory Level: FDM has a high level of physical assets or inventory.

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


Next Steps

Dividend

What is FDM Group (Holdings)'s current dividend yield, its reliability and sustainability?

3.20%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.8%markettop25%5.1%industryaverage2.0%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: FDM's dividend (3.2%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: FDM's dividend (3.2%) is low compared to the top 25% of dividend payers in the UK market (5.07%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FDM has been paying a dividend for less than 10 years.

Growing Dividend: FDM's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.3%), FDM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FDM's dividends in 3 years are not forecast to be well covered by earnings (92.2% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Rod Flavell 0

UK£995,000

Compensation

Mr. Roderick N. Flavell, also known as Rod, serves as the Chief Executive Officer of FDM Group (Holdings) PLC. Mr. Flavell is a Founder of FDM Group Plc in 1991 and has been its Chief Executive Officer sin ...


CEO Compensation Analysis

Compensation vs Market: Rod's total compensation ($USD1.29M) is about average for companies of similar size in the UK market ($USD1.84M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roderick Flavell
Founder0yrsUK£995.00k7.59% £82.8m
Michael McLaren
CFO & Executive Director8.8yrsUK£808.10k0.48% £5.2m
Sheila Flavell
COO & Executive Director10.1yrsUK£825.00k7.59% £82.8m
Andrew Brown
Chief Commercial Officer & Executive Director10.1yrsUK£825.50k4.16% £45.4m
John Plunkett
Head of Risk0yrsno datano data
David Harvey
Head of Business Intelligence - Analysis & Data Science2.2yrsno datano data
Charlie Drewett
Senior VP of Sales & Business Development - North America1.3yrsno datano data
Laura Finneran
Senior Vice President of Training - North America1.3yrsno datano data
Paul Gates
Senior VP of Sales & Major International Accounts Department1.3yrsno datano data
Will Eeles
Chief of Staff0yrsno datano data

2.2yrs

Average Tenure

57yo

Average Age

Experienced Management: FDM's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roderick Flavell
Founder0yrsUK£995.00k7.59% £82.8m
Michael McLaren
CFO & Executive Director8.8yrsUK£808.10k0.48% £5.2m
Sheila Flavell
COO & Executive Director10.1yrsUK£825.00k7.59% £82.8m
Andrew Brown
Chief Commercial Officer & Executive Director10.1yrsUK£825.50k4.16% £45.4m
Michelle Senecal de Fonseca
Independent Non-Executive Director4.1yrsUK£48.00k0.0050% £54.5k
Robin Taylor
Independent Non-Executive Director5.7yrsUK£56.80k0.0048% £52.2k
Jacqueline de Rojas
Independent Non-Executive Director0.3yrsno datano data
Peter Whiting
Senior Independent Director5.7yrsUK£65.50k0.0096% £104.4k
David Lister
Independent Chairman of the Board0.9yrsUK£48.00kno data
Alan Kinnear
Independent Non-Executive Director0.08yrsno datano data

5.7yrs

Average Tenure

57yo

Average Age

Experienced Board: FDM's board of directors are considered experienced (5.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FDM Group (Holdings) plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FDM Group (Holdings) plc
  • Ticker: FDM
  • Exchange: LSE
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£1.091b
  • Shares outstanding: 109.19m
  • Website: https://www.fdmgroup.com

Number of Employees


Location

  • FDM Group (Holdings) plc
  • Cottons Centre
  • 3rd Floor
  • London
  • Greater London
  • SE1 2QG
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDMLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2014
17FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
FDMlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2014
FDDM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014

Biography

FDM Group (Holdings) plc, together with its subsidiaries, provides information technology (IT) services in the United Kingdom, Ireland, North America, rest of Europe, the Middle East, Africa, and the Asia Pacific. The company is involved in recruiting, training, and placing its own IT and business consultants across various technical and business disciplines, including development, testing, project management and support office, data and operations services, business analysis, business intelligence, production support, client training, and information security. The company was formerly known as Astra Topco Limited and changed its name to FDM Group (Holdings) plc. FDM Group (Holdings) plc was founded in 1991 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 22:36
End of Day Share Price2020/02/21 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.