LSE:FDM

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with acceptable 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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FDM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

FDM

-1.5%

GB IT

-0.3%

GB Market


1 Year Return

6.1%

FDM

2.8%

GB IT

-11.0%

GB Market

Return vs Industry: FDM exceeded the UK IT industry which returned 3.9% over the past year.

Return vs Market: FDM exceeded the UK Market which returned -10% over the past year.


Shareholder returns

FDMIndustryMarket
7 Day-4.5%-1.5%-0.3%
30 Day2.7%2.7%10.2%
90 Day-1.7%-4.2%6.4%
1 Year8.1%6.1%3.9%2.8%-7.4%-11.0%
3 Year18.0%8.3%52.3%45.1%0.9%-11.5%
5 Year123.0%92.0%141.0%117.3%26.5%-2.5%

Long-Term 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?

29.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FDM (£10.26) is trading above our estimate of fair value (£4.06)

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


Price To Earnings Ratio

PE vs Industry: FDM is good value based on its PE Ratio (29.7x) compared to the GB IT industry average (36.3x).

PE vs Market: FDM is poor value based on its PE Ratio (29.7x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: FDM is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: FDM is overvalued based on its PB Ratio (12.2x) 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 7 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDM's forecast earnings growth (8.9% per year) is above the savings rate (1.2%).

Earnings vs Market: FDM's earnings (8.9% per year) are forecast to grow slower than the UK market (27.3% per year).

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

Revenue vs Market: FDM's revenue (5% per year) is forecast to grow slower than the UK market (6.7% per year).

High Growth Revenue: FDM's revenue (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 (44.6%).


Next Steps

Past Performance

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

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDM has high quality earnings.

Growing Profit Margin: FDM's current net profit margins (13.6%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: FDM's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: FDM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FDM had negative earnings growth (-2.2%) over the past year, making it difficult to compare to the IT industry average (8.2%).


Return on Equity

High ROE: FDM's Return on Equity (41.1%) is considered outstanding.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: FDM's short term assets (£103.0M) exceed its short term liabilities (£40.1M).

Long Term Liabilities: FDM's short term assets (£103.0M) exceed its long term liabilities (£16.5M).


Debt to Equity History and Analysis

Debt Level: FDM is debt free.

Reducing Debt: FDM had no debt 5 years ago.

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


Next Steps

Dividend

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

3.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FDM's dividend (3.61%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: FDM's dividend (3.61%) is low compared to the top 25% of dividend payers in the UK market (4.94%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.2%), FDM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FDM's dividends in 3 years are forecast to be covered by earnings (87.5% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Rod Flavell

no data

Tenure

UK£802,000

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 ($USD1.07M) is below average for companies of similar size in the UK market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roderick Flavell
Founderno dataUK£802.00k7.59%
£ 85.1m
Michael McLaren
CFO & Executive Director9.58yrsUK£620.50k0.48%
£ 5.3m
Sheila Flavell
COO & Executive Director10.83yrsUK£636.60k7.59%
£ 85.1m
Andrew Brown
Chief Commercial Officer & Executive Director10.83yrsUK£636.90k4.16%
£ 46.6m
Jonathan Heather
Company Secretary & Head of Investor Relationsno datano datano data
John Plunkett
Head of Riskno datano datano data
David Harvey
Head of Business Intelligence - Analysis & Data Science2.92yrsno datano data
Charlie Drewett
Senior VP of Sales & Business Development - North America2yrsno datano data
Sean Batts
Head of Sales - Canada0.58yrno datano data
Laura Finneran
Senior Vice President of Training - North America2yrsno datano data
Paul Gates
Senior VP of Sales & Major International Accounts Department2yrsno datano data
Will Eeles
Chief of Staffno datano datano data

2.5yrs

Average Tenure

58yo

Average Age

Experienced Management: FDM's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roderick Flavell
Founderno dataUK£802.00k7.59%
£ 85.1m
Michael McLaren
CFO & Executive Director9.58yrsUK£620.50k0.48%
£ 5.3m
Sheila Flavell
COO & Executive Director10.83yrsUK£636.60k7.59%
£ 85.1m
Andrew Brown
Chief Commercial Officer & Executive Director10.83yrsUK£636.90k4.16%
£ 46.6m
Michelle Senecal de Fonseca
Independent Non-Executive Director4.83yrsUK£50.00k0.0051%
£ 56.7k
Jacqueline de Rojas
Independent Non-Executive Director1.08yrsUK£12.50kno data
Peter Whiting
Senior Independent Director6.42yrsUK£70.00k0.0096%
£ 107.2k
David Lister
Independent & Non-Executive Chairman of the Board1.67yrsUK£148.80kno data
Alan Kinnear
Independent Non-Executive Director0.83yrno datano data

6.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: FDM's board of directors are considered experienced (6.4 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£1.120b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 20:06
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.