LSE:SDL

Stock Analysis Report

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Executive Summary

SDL plc provides language and content management solutions. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SDL is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: SDL's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-2.1%

SDL

-1.8%

GB Software

0.9%

GB Market


1 Year Return

23.1%

SDL

-9.8%

GB Software

-9.1%

GB Market

Return vs Industry: SDL exceeded the UK Software industry which returned -2.8% over the past year.

Return vs Market: SDL exceeded the UK Market which returned -18% over the past year.


Shareholder returns

SDLIndustryMarket
7 Day-2.1%-1.8%0.9%
30 Day-4.1%-6.2%9.2%
90 Day40.4%-11.3%6.6%
1 Year23.1%23.1%-8.7%-9.8%-5.5%-9.1%
3 Year27.5%23.9%-32.2%-40.5%1.4%-11.0%
5 Year71.3%63.6%17.8%-2.8%26.5%-2.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SDL (£6.6) is trading above our estimate of fair value (£5.64)

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


Price To Earnings Ratio

PE vs Industry: SDL is good value based on its PE Ratio (27.6x) compared to the GB Software industry average (30.6x).

PE vs Market: SDL is poor value based on its PE Ratio (27.6x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SDL is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SDL is good value based on its PB Ratio (2.2x) compared to the GB Software industry average (3.5x).


Next Steps

Future Growth

How is SDL forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDL's forecast earnings growth (16.5% per year) is above the savings rate (1.2%).

Earnings vs Market: SDL's earnings (16.5% per year) are forecast to grow slower than the UK market (24.9% per year).

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

Revenue vs Market: SDL's revenue (4.3% per year) is forecast to grow slower than the UK market (6.1% per year).

High Growth Revenue: SDL's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDL's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has SDL performed over the past 5 years?

40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDL has high quality earnings.

Growing Profit Margin: SDL's current net profit margins (5.8%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: SDL's earnings have grown significantly by 40.7% per year over the past 5 years.

Accelerating Growth: SDL's earnings growth over the past year (26.6%) is below its 5-year average (40.7% per year).

Earnings vs Industry: SDL earnings growth over the past year (26.6%) exceeded the Software industry 3.3%.


Return on Equity

High ROE: SDL's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is SDL's financial position?


Financial Position Analysis

Short Term Liabilities: SDL's short term assets (£141.1M) exceed its short term liabilities (£102.1M).

Long Term Liabilities: SDL's short term assets (£141.1M) exceed its long term liabilities (£45.9M).


Debt to Equity History and Analysis

Debt Level: SDL is debt free.

Reducing Debt: SDL has no debt compared to 5 years ago when its debt to equity ratio was 0.4%.

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

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


Balance Sheet


Next Steps

Dividend

What is SDL current dividend yield, its reliability and sustainability?

1.21%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SDL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SDL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SDL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SDL's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SDL'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?

4.3yrs

Average management tenure


CEO

Adolfo Hernandez

4.58yrs

Tenure

UK£1,424,400

Compensation

Mr. Adolfo Hernandez has been the Chief Executive Officer of SDL plc since April 18, 2016. Mr. Hernandez served as Chief Executive Officer of Acision Limited from July 2013 to August 2015. Mr. Hernandez se...


CEO Compensation Analysis

Compensation vs Market: Adolfo's total compensation ($USD1.85M) is above average for companies of similar size in the UK market ($USD1.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adolfo Hernandez
CEO & Executive Director4.58yrsUK£1.42m0.19%
£ 1.2m
Xenia Walters
CFO & Executive Director2.58yrsUK£516.00k0.011%
£ 70.1k
Azad Ootam
Chief Technology Officer0.83yrno datano data
Alexandra Jarvis
Senior Vice President of Corporate Marketing0.50yrno datano data
Roddy Temperley
Chief Human Resources Officer4.25yrsno datano data
Kathleen Bostick
Executive Vice President of North America6.83yrsno datano data
Kaarin Gordon
Senior Vice President of Life Sciencesno datano datano data
Thomas Labarthe
Chief Revenue Officer2.83yrsno datano data
Betsy Fallon
Executive Vice President of Global Client Services4.25yrsno datano data
Massimo Ghislandi
Executive Vice President of Translation Productivity & Demand Generation4.25yrsno datano data
Silke Zschweigert
Chief Delivery Officer4.25yrsno datano data
Maria Schnell
Global Senior Vice President of Service Delivery2.67yrsno datano data

4.3yrs

Average Tenure

Experienced Management: SDL's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adolfo Hernandez
CEO & Executive Director4.58yrsUK£1.42m0.19%
£ 1.2m
Xenia Walters
CFO & Executive Director2.58yrsUK£516.00k0.011%
£ 70.1k
Gordon Stuart
Independent Non-Executive Director0.83yrno data0.0045%
£ 27.7k
Alan McWalter
Senior Independent Director6.67yrsUK£58.00kno data
Christopher Humphrey
Independent Non-Executive Director4.42yrsUK£50.00k0.022%
£ 133.7k
Amanda Gradden
Independent Non-Executive Director8.83yrsUK£57.00k0.0082%
£ 50.1k
David Clayton
Non Executive Chairman7.33yrsUK£110.00k0.15%
£ 895.6k
Glenn Collinson
Independent Non-Executive Director6.42yrsUK£58.00k0.058%
£ 356.9k

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: SDL's board of directors are considered experienced (5.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: SDL plc
  • Ticker: SDL
  • Exchange: LSE
  • Founded: 1992
  • Industry: Application Software
  • Sector: Software
  • Market Cap: UK£610.840m
  • Shares outstanding: 92.55m
  • Website: https://www.sdl.com

Number of Employees


Location

  • SDL plc
  • New Globe House
  • Vanwall Business Park
  • Maidenhead
  • Berkshire
  • SL6 4UB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDLL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1999
SDLLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 1999
YDLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1999
SDLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 1999

Biography

SDL plc provides language and content management solutions. It operates through Language Services, Language Technologies, and Content Technologies segments. Its products include SDL Tridion Sites, a web co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/04 22:12
End of Day Share Price2020/11/03 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.