LSE:GHT

Stock Analysis Report

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Executive Summary

Gresham Technologies plc, a software and services company, provides solutions for data integrity and control, banking integration, and payments and cash management in the United Kingdom, Europe, the Middle East, Africa, the United States, North America, Australia, and the Asia Pacific.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has Gresham Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

GHT

3.8%

GB Software

1.2%

GB Market


1 Year Return

19.0%

GHT

-11.9%

GB Software

-15.3%

GB Market

Return vs Industry: GHT exceeded the UK Software industry which returned -11.8% over the past year.

Return vs Market: GHT exceeded the UK Market which returned -15.3% over the past year.


Shareholder returns

GHTIndustryMarket
7 Day-0.4%3.8%1.2%
30 Day1.2%11.5%5.3%
90 Day-12.8%-9.1%-15.9%
1 Year19.7%19.0%-9.9%-11.9%-11.2%-15.3%
3 Year-21.6%-22.8%-24.9%-36.3%-7.9%-19.3%
5 Year23.7%21.8%21.8%-0.9%8.3%-15.6%

Price Volatility Vs. Market

How volatile is Gresham Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gresham Technologies undervalued compared to its fair value and its price relative to the market?

23.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GHT (£1.26) is trading below our estimate of fair value (£1.64)

Significantly Below Fair Value: GHT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GHT is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: GHT is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GHT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GHT is overvalued based on its PB Ratio (3.3x) compared to the GB Software industry average (2.8x).


Next Steps

Future Growth

How is Gresham Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GHT's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if GHT's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GHT's revenue (7.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GHT's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GHT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gresham Technologies performed over the past 5 years?

-29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHT is currently unprofitable.

Growing Profit Margin: GHT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GHT is unprofitable, and losses have increased over the past 5 years at a rate of -29% per year.

Accelerating Growth: Unable to compare GHT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GHT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.8%).


Return on Equity

High ROE: GHT has a negative Return on Equity (-0.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gresham Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: GHT's short term assets (£14.6M) exceed its short term liabilities (£13.9M).

Long Term Liabilities: GHT's short term assets (£14.6M) exceed its long term liabilities (£3.2M).


Debt to Equity History and Analysis

Debt Level: GHT is debt free.

Reducing Debt: GHT has not had any debt for past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

What is Gresham Technologies's current dividend yield, its reliability and sustainability?

0.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GHT's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.08%).

High Dividend: GHT's dividend (0.6%) is low compared to the top 25% of dividend payers in the UK market (5.92%).


Stability and Growth of Payments

Stable Dividend: GHT is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: GHT is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GHT is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GHT's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Ian Manocha (53yo)

4.92yrs

Tenure

UK£394,682

Compensation

Mr. Ian Mark Manocha has been the Chief Executive Officer of Gresham Technologies plc (formerly known as Gresham Computing plc) since June 1, 2015 and serves as its Executive Director. Mr. Manocha served a ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD480.82K) is above average for companies of similar size in the UK market ($USD338.78K).

Compensation vs Earnings: Ian's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Ian Manocha
CEO & Executive Director4.92yrsUK£394.68k0.11% £94.1k
Thomas Mullan
CFO & Executive Director2.17yrsUK£209.92k0.016% £13.7k
Neil Vernon
Chief Technology Officerno datano datano data
Jonathan Cathie
General Counsel & Company Secretary6.5yrsno datano data
Ali Cowen
Director of People and Places2.83yrsno datano data
Tom Olsson
Managing Director of Asia Pacific11.33yrsno datano data
Paul Baker
Head of Strategic Accounts2yrsno datano data

3.9yrs

Average Tenure

Experienced Management: GHT's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ian Manocha
CEO & Executive Director4.92yrsUK£394.68k0.11% £94.1k
Thomas Mullan
CFO & Executive Director2.17yrsUK£209.92k0.016% £13.7k
Imogen Joss
Senior Independent Non-Executive Directorno dataUK£40.00k0.0077% £6.6k
Andrew Balchin
Independent Non-Executive Director3yrsUK£40.00k0.012% £10.3k
Ken Archer
Non-Executive Chairman9.5yrsUK£80.00k0.22% £188.3k

4.0yrs

Average Tenure

56yo

Average Age

Experienced Board: GHT's board of directors are considered experienced (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

Gresham Technologies plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gresham Technologies plc
  • Ticker: GHT
  • Exchange: LSE
  • Founded: 1969
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£85.662m
  • Shares outstanding: 68.26m
  • Website: https://www.greshamtech.com

Number of Employees


Location

  • Gresham Technologies plc
  • Aldermary House
  • 4th Floor
  • London
  • Greater London
  • EC4N 1TX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1984
GCUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1984
GHTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1984

Biography

Gresham Technologies plc, a software and services company, provides solutions for data integrity and control, banking integration, and payments and cash management in the United Kingdom, Europe, the Middle East, Africa, the United States, North America, Australia, and the Asia Pacific. It operates through Clareti Solutions, Other Solutions, and Contracting Services segments. The company offers Clareti Transaction Control, an enterprise data control solution for data validation and real-time transaction matching and reconciliation. It also provides Clareti Accounts Receivable Management, a receivables management application with automated matching, reconciliation, and allocation to reduce the order-to-cash cycle; Clareti Integration Studio, an integration software to enable rapid adoption of financial message standards and transform complex data types; and Clareti Multi-Bank, a real-time visibility of cash and stock portfolios across various institutions. In addition, the company offers a range of solutions to enterprise-level customers in various end markets, as well as IT contracting services to banking industry. Its solutions are used by financial institutions and corporates to address the financial control, risk management, data governance, and regulatory compliance problems. The company was formerly known as Gresham Computing plc and changed its name to Gresham Technologies plc in November 2016. Gresham Technologies plc was founded in 1969 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 Analysis2020/05/25 22:10
End of Day Share Price2020/05/22 00:00
Earnings2019/12/31
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.