LSE:GHT

Stock Analysis Report

Executive Summary

Gresham Technologies plc, a software and services company, provides real-time transaction control and enterprise data integrity solutions in the United Kingdom and internationally.

Rewards

Revenue is forecast to grow 11.17% per year

Risk Analysis

Earnings have declined by -20.29% per year over past 5 years

Highly volatile share price over past 3 months

Latest financial reports are more than 6 months old



Snowflake Analysis

Flawless balance sheet with concerning outlook.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

GHT

2.4%

GB Software

-0.5%

GB Market


1 Year Return

57.4%

GHT

29.1%

GB Software

12.4%

GB Market

Return vs Industry: GHT exceeded the UK Software industry which returned 24.8% over the past year.

Return vs Market: GHT exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

GHTIndustryMarket
7 Day-0.7%2.4%-0.5%
30 Day17.6%5.6%0.2%
90 Day29.7%17.4%6.0%
1 Year58.3%57.4%37.3%29.1%18.3%12.4%
3 Year-4.5%-5.3%19.3%0.8%22.6%6.9%
5 Year73.9%72.5%68.4%39.0%40.9%8.3%

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?

3.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GHT (£1.52) is trading above our estimate of fair value (£0.2)

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


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 (4x) compared to the GB Software industry average (3.5x).


Next Steps

Future Growth

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

11.2%

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 (0.5%).

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 (11.2% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: GHT's revenue (11.2% 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?

-20.3%

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 -20.3% 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 (7%).


Return on Equity

High ROE: GHT has a negative Return on Equity (-4.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gresham Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: GHT's short term assets (£13.3M) exceed its short term liabilities (£12.1M).

Long Term Liabilities: GHT's short term assets (£13.3M) exceed its long term liabilities (£4.2M).


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

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

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


Next Steps

Dividend

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

0.35%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%1.8%markettop25%5.0%industryaverage2.4%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: GHT's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: GHT's dividend (0.33%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


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

What is the CEO of Gresham Technologies's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Ian Manocha (53yo)

4.6yrs

Tenure

UK£349,446

Compensation

Mr. Ian Mark Manocha has been the Chief Executive Officer of Gresham Computing plc since June 1, 2015 and serves as its Executive Director. Mr. Manocha served as Head of Business Portfolio at SAS Institute ...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD454.39K) is above average for companies of similar size in the UK market ($USD326.78K).

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


Management Age and Tenure

3.5yrs

Average Tenure

Experienced Management: GHT's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

56yo

Average Age

Experienced Board: GHT's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£9,99904 Apr 19
Thomas Mullan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares10,940
Max PriceUK£0.91

Ownership Breakdown

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


Management Team

  • Tom Olsson

    Managing Director of Asia Pacific

    • Tenure: 11yrs
  • Ian Manocha (53yo)

    CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£349.45k
  • Jonathan Cathie

    General Counsel & Company Secretary

    • Tenure: 6.2yrs
  • Neil Vernon

    Chief Technology Officer

    • Tom Mullan (36yo)

      CFO & Executive Director

      • Tenure: 1.8yrs
      • Compensation: UK£197.06k
    • Ali Cowen

      Director of People and Places

      • Tenure: 2.5yrs
    • Paul Baker

      Head of Strategic Accounts

      • Tenure: 1.7yrs

    Board Members

    • Imogen Joss (56yo)

      Senior Independent Non-Executive Director

      • Compensation: UK£40.00k
    • Andy Balchin (58yo)

      Independent Non-Executive Director

      • Tenure: 2.7yrs
      • Compensation: UK£40.00k
    • Ken Archer (67yo)

      Non-Executive Chairman

      • Tenure: 9.2yrs
      • Compensation: UK£80.00k
    • Ian Manocha (53yo)

      CEO & Executive Director

      • Tenure: 4.6yrs
      • Compensation: UK£349.45k
    • Tom Mullan (36yo)

      CFO & Executive Director

      • Tenure: 1.8yrs
      • Compensation: UK£197.06k

    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£98.289m
    • 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 real-time transaction control and enterprise data integrity solutions in the United Kingdom and internationally. It operates through Clareti Solutions and Other Solutions segments. The company offers Clareti Transaction Control, an enterprise data control solution for data validation and real-time transaction matching and reconciliation. Its portfolio of Clareti business applications include Clareti Accounts Receivable Management for automated matching, reconciliation, and allocation to reduce the order-to-cash cycle; Clareti 24 Integration Objects to enable rapid adoption of financial message standards and transform complex data types; and Clareti Loan Control, a front-to-back loan servicing solution that enables effective and auditable management of simple and complex loan portfolios. The company also offers solutions to enterprise-level customers in various end markets. Its solutions focus in the areas of regulatory compliance, risk control, financial control, and data management. 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 Analysis2020/01/23 20:40
    End of Day Share Price2020/01/22 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.