Loading...

SDL

LSE:SDL
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SDL
LSE
£454M
Market Cap
  1. Home
  2. GB
  3. Software
Company description

SDL plc provides content management and language translation services. The last earnings update was 70 days ago. More info.


Add to Portfolio Compare Print
SDL Share Price and Events
7 Day Returns
-10.4%
LSE:SDL
0.1%
GB Software
0.4%
GB Market
1 Year Returns
14.4%
LSE:SDL
13.8%
GB Software
-1.9%
GB Market
SDL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SDL (SDL) -10.4% -9.1% -7.1% 14.4% 30.4% 46%
GB Software 0.1% 2% 10.8% 13.8% 51.3% 95.8%
GB Market 0.4% 1.3% 2.8% -1.9% 23.1% 4.7%
1 Year Return vs Industry and Market
  • SDL matched the Software industry (13.8%) over the past year.
  • SDL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.
Price Volatility
SDL
Industry
5yr Volatility vs Market

SDL Value

 Is SDL undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SDL to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SDL.

LSE:SDL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SDL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.138 (1 + (1- 19%) (1.19%))
1.1
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.1 * 6.65%)
8.54%

Discounted Cash Flow Calculation for LSE:SDL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SDL is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:SDL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.54%)
2019 23.85 Analyst x2 21.97
2020 26.53 Analyst x4 22.52
2021 35.83 Analyst x3 28.02
2022 34.60 Analyst x1 24.93
2023 36.20 Analyst x1 24.03
2024 37.48 Est @ 3.53% 22.92
2025 38.54 Est @ 2.84% 21.72
2026 39.45 Est @ 2.36% 20.48
2027 40.25 Est @ 2.02% 19.25
2028 40.97 Est @ 1.78% 18.05
Present value of next 10 years cash flows £223.90
LSE:SDL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £40.97 × (1 + 1.23%) ÷ (8.54% – 1.23%)
£567.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £567.09 ÷ (1 + 8.54%)10
£249.91
LSE:SDL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £223.90 + £249.91
£473.81
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £473.81 / 90.71
£5.22
LSE:SDL Discount to Share Price
Calculation Result
Value per share (GBP) From above. £5.22
Current discount Discount to share price of £5.00
= -1 x (£5.00 - £5.22) / £5.22
4.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SDL is available for.
Intrinsic value
4%
Share price is £5 vs Future cash flow value of £5.22
Current Discount Checks
For SDL to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SDL's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • SDL's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SDL's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SDL's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SDL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.17
LSE:SDL Share Price ** LSE (2019-06-25) in GBP £5
United Kingdom of Great Britain and Northern Ireland Software Industry PE Ratio Median Figure of 34 Publicly-Listed Software Companies 30.07x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 787 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SDL.

LSE:SDL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SDL Share Price ÷ EPS (both in GBP)

= 5 ÷ 0.17

29.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SDL is good value based on earnings compared to the GB Software industry average.
  • SDL is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does SDL's expected growth come at a high price?
Raw Data
LSE:SDL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
21.9%per year
United Kingdom of Great Britain and Northern Ireland Software Industry PEG Ratio Median Figure of 24 Publicly-Listed Software Companies 2.02x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:SDL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.1x ÷ 21.9%

1.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SDL is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on SDL's assets?
Raw Data
LSE:SDL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £2.71
LSE:SDL Share Price * LSE (2019-06-25) in GBP £5
United Kingdom of Great Britain and Northern Ireland Software Industry PB Ratio Median Figure of 74 Publicly-Listed Software Companies 2.82x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.49x
LSE:SDL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SDL Share Price ÷ Book Value per Share (both in GBP)

= 5 ÷ 2.71

1.84x

* Primary Listing of SDL.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SDL is good value based on assets compared to the GB Software industry average.
X
Value checks
We assess SDL's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. SDL has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SDL Future Performance

 How is SDL expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SDL expected to grow at an attractive rate?
  • SDL's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • SDL's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • SDL's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SDL Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SDL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 21.9%
LSE:SDL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 7.6%
United Kingdom of Great Britain and Northern Ireland Software Industry Earnings Growth Rate Market Cap Weighted Average 19%
United Kingdom of Great Britain and Northern Ireland Software Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SDL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SDL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 412 45 31 6
2020-12-31 392 40 28 6
2019-12-31 370 34 22 6
LSE:SDL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 323 36 15
2018-09-30 307 28 16
2018-06-30 290 20 15
2018-03-31 288 10 15
2017-12-31 287 1 15
2017-09-30 285 2 12
2017-06-30 284 3 8
2017-03-31 274 7 8
2016-12-31 265 12 8
2016-09-30 252 10 -1
2016-06-30 240 8 -11
2016-03-31 240 7 -9

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SDL's earnings are expected to grow significantly at over 20% yearly.
  • SDL's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SDL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from SDL Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SDL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.33 0.35 0.32 2.00
2020-12-31 0.31 0.32 0.30 2.00
2019-12-31 0.26 0.26 0.25 2.00
LSE:SDL Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.17
2018-09-30 0.19
2018-06-30 0.19
2018-03-31 0.18
2017-12-31 0.19
2017-09-30 0.14
2017-06-30 0.10
2017-03-31 0.10
2016-12-31 0.10
2016-09-30 -0.01
2016-06-30 -0.13
2016-03-31 -0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SDL is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SDL's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SDL has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SDL Past Performance

  How has SDL performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SDL's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SDL has delivered over 20% year on year earnings growth in the past 5 years.
  • SDL's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SDL's 1-year earnings growth is negative, it can't be compared to the GB Software industry average.
Earnings and Revenue History
SDL's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SDL Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SDL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 323.30 14.80 118.60 17.60
2018-09-30 307.20 15.90 112.45 18.05
2018-06-30 289.60 15.40 98.90 26.40
2018-03-31 287.65 14.60 98.05 26.40
2017-12-31 287.20 15.40 104.60 18.50
2017-09-30 285.35 11.60 96.15 22.20
2017-06-30 283.50 7.80 87.70 25.90
2017-03-31 274.10 8.05 86.75 25.90
2016-12-31 264.70 8.30 85.80 25.90
2016-09-30 252.40 -1.20 76.25 25.90
2016-06-30 240.10 -10.70 66.70 25.90
2016-03-31 240.25 -9.45 66.20 25.90
2015-12-31 240.40 -8.20 65.70 25.90
2015-09-30 246.20 1.75 77.80 26.75
2015-06-30 252.00 11.70 89.90 27.60
2015-03-31 256.20 9.15 95.25 27.60
2014-12-31 260.40 6.60 100.60 27.60
2014-09-30 262.30 -9.00 100.30 28.20
2014-06-30 264.20 -24.60 100.00 28.80
2014-03-31 265.15 -26.25 101.75 28.80
2013-12-31 266.10 -27.90 103.50 28.80
2013-09-30 266.41 -10.42 101.97 25.85
2013-06-30 266.73 7.06 100.44 22.90
2013-03-31 268.01 13.98 94.07 22.90
2012-12-31 269.30 20.90 87.70 22.90
2012-09-30 260.19 23.55 98.13 11.45
2012-06-30 251.09 26.20 108.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SDL has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SDL used its assets less efficiently than the GB Software industry average last year based on Return on Assets.
  • SDL's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SDL's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SDL has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SDL Health

 How is SDL's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SDL's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SDL is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SDL's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SDL's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 25.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SDL Company Filings, last reported 5 months ago.

LSE:SDL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 245.60 5.40 19.80
2018-09-30 245.60 5.40 19.80
2018-06-30 194.10 0.00 22.50
2018-03-31 194.10 0.00 22.50
2017-12-31 193.80 0.00 22.70
2017-09-30 193.80 0.00 22.70
2017-06-30 179.30 0.00 26.10
2017-03-31 179.30 0.00 26.10
2016-12-31 168.70 0.00 21.30
2016-09-30 168.70 0.00 21.30
2016-06-30 178.00 1.60 15.10
2016-03-31 178.00 1.60 15.10
2015-12-31 166.90 4.60 17.20
2015-09-30 166.90 4.60 17.20
2015-06-30 194.80 3.00 11.20
2015-03-31 194.80 3.00 11.20
2014-12-31 202.10 9.00 22.10
2014-09-30 202.10 9.00 22.10
2014-06-30 195.40 15.00 16.90
2014-03-31 195.40 15.00 16.90
2013-12-31 196.50 20.00 18.20
2013-09-30 196.50 20.00 18.20
2013-06-30 231.51 20.00 20.58
2013-03-31 231.51 20.00 20.58
2012-12-31 227.80 22.20 28.50
2012-09-30 227.80 22.20 28.50
2012-06-30 223.07 22.19 16.72
  • SDL's level of debt (2.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (10.4% vs 2.2% today).
  • Debt is well covered by operating cash flow (666.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 54.2x coverage).
X
Financial health checks
We assess SDL's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SDL has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SDL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.4%
Current annual income from SDL dividends. Estimated to be 1.55% next year.
If you bought £2,000 of SDL shares you are expected to receive £28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SDL's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • SDL's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.42%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SDL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Software Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SDL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.08 7.00
2020-12-31 0.08 7.00
2019-12-31 0.07 7.00
LSE:SDL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-17 0.070 1.314
2019-03-20 0.070 1.299
2018-03-20 0.062 1.318
2017-03-07 0.062 1.232
2016-03-30 0.031 0.715
2016-03-15 0.031 0.746
2015-03-30 0.025 0.608
2015-03-10 0.025 0.581
2014-08-05 0.000 0.000
2014-03-18 0.000 0.000
2013-04-08 0.061 1.866
2013-03-12 0.061 1.425
2012-08-14 0.058 1.057
2012-03-16 0.058 0.843
2012-02-28 0.058 0.806
2011-03-21 0.055 0.833
2011-03-07 0.055 0.831

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SDL has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but SDL only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of SDL's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).
X
Income/ dividend checks
We assess SDL's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SDL afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SDL has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SDL Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Adolfo Hernandez
COMPENSATION £1,497,500
TENURE AS CEO 3.2 years
CEO Bio

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 served as President of Software, Services & Solutions Group at Alcatel-Lucent, S.A.(alternately Alcatel-Lucent) from July 2011 to December 31, 2012 and also served as its Executive Vice President and President of strategic industries until December 31, 2012 and Executive Vice President of Global Software Services and Solutions. He served as the Chief Executive Officer of Xura Limited since August 19, 2013. Mr. Hernandez served as the President of Europe, Middle East & Africa Region at Alcatel-Lucent from January 2009 to July 20, 2011 and was responsible to oversee all of its sales and operations in this region. Before that, he served as the President of Sun Microsystems Iberia from 2002 to 2006, responsible for all aspects of sales business operations in Spain and Portugal. He also served as Chairman and General Manager of Sun Microsystems Inc. (Spain), a Spanish subsidiary of Sun Microsystems Inc. He served Senior Vice Chairman of Global Services Area at Oracle America, Inc. (alternate name, Sun Microsystems Inc.) since June 5, 2006. Prior to joining Sun in 2002, Mr. Hernandez was an Entrepreneur and Co-founded his own company in the mobility solutions software sector. From 1992 to 2001, he spent six years in London with IBM where he held a variety of sales and management positions in the areas of e-Business working with many telecommunications, service providers in the adoption of e-business solutions (supply chain/ERP, mobility, business intelligence). also spent five years at IBM's European UNIX center in Munich, Germany. He started his sales career at ICR in Spain. He has been a Director of SDL plc since June 13, 2016. He was named Honorary Professor by the University of Seville, appointed to the Advisory Board of the University of Granada and named Spain's 2004 Executive of the Year by Computing Magazine. Mr. Hernandez holds a degree in from the University of Granada, a Masters degree in Marketing Management and an MBA in Strategic Management from IDE in Madrid. He has also completed several post-graduate programs at institutions such as the London Business School.

CEO Compensation
  • Adolfo's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Adolfo's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the SDL management team in years:

2.8
Average Tenure
  • The tenure for the SDL management team is about average.
Management Team

Adolfo Hernandez

TITLE
CEO & Director
COMPENSATION
£1M
TENURE
3.2 yrs

Xenia Walters

TITLE
CFO & Director
COMPENSATION
£583K
TENURE
1.8 yrs

Peggy Chen

TITLE
Chief Marketing Officer
TENURE
2.8 yrs

Roddy Temperley

TITLE
Chief Human Resources Officer
TENURE
2.8 yrs

Kathleen Bostick

TITLE
Executive Vice President of North America
TENURE
5.4 yrs

Kaarin Gordon

TITLE
Senior Vice President of Life Sciences

Azad Ootam

TITLE
Chief Transformation Officer
TENURE
3 yrs

Thomas Labarthe

TITLE
Chief Revenue Officer
TENURE
1.4 yrs

Betsy Fallon

TITLE
Executive Vice President of Global Client Services & Professional Services
TENURE
2.8 yrs

Massimo Ghislandi

TITLE
Executive Vice President of Translation Productivity
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the SDL board of directors in years:

5.1
Average Tenure
61
Average Age
  • The tenure for the SDL board of directors is about average.
Board of Directors

David Clayton

TITLE
Non Executive Chairman
COMPENSATION
£110K
AGE
61
TENURE
5.9 yrs

Adolfo Hernandez

TITLE
CEO & Director
COMPENSATION
£1M
TENURE
3.2 yrs

Xenia Walters

TITLE
CFO & Director
COMPENSATION
£583K

Mandy Gradden

TITLE
Independent Non-Executive Director
COMPENSATION
£55K
AGE
50
TENURE
7.4 yrs

Alan McWalter

TITLE
Senior Independent Director
COMPENSATION
£58K
AGE
64
TENURE
5.3 yrs

Glenn Collinson

TITLE
Independent Non-Executive Director
COMPENSATION
£58K
AGE
55
TENURE
5 yrs

Chris Humphrey

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
61
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
26. Mar 19 Buy Adolfo Hernandez Individual 26. Mar 19 26. Mar 19 10,000 £5.51 £55,140
12. Oct 18 Buy Glenn Collinson Individual 12. Oct 18 12. Oct 18 6,500 £4.72 £30,687
25. Sep 18 Buy Christopher Humphrey Individual 25. Sep 18 25. Sep 18 5,000 £4.65 £23,250
X
Management checks
We assess SDL's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SDL has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SDL News

Simply Wall St News

Evaluating SDL plc’s (LON:SDL) Investments In Its Business

ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. … Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' How Do You Calculate Return On Capital Employed? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for SDL: 0.10 = UK£27m ÷ (UK£381m - UK£117m) (Based on the trailing twelve months to December 2018.) Therefore, SDL has an ROCE of 10%.

Simply Wall St -

Is SDL plc (LON:SDL) Potentially Undervalued?

It’s trading around 4.99% above my intrinsic value, which means if you buy SDL today, you’d be paying a relatively fair price for it. … SDL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Does SDL plc's (LON:SDL) CEO Pay Matter?

We examined companies with market caps from UK£316m to UK£1.3b, and discovered that the median CEO total compensation of that group was UK£892k. … Thus we can conclude that Adolfo Hernandez receives more in total compensation than the median of a group of companies in the same market, and of similar size to SDL plc. … We compared the total CEO remuneration paid by SDL plc, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Is SDL plc's (LON:SDL) ROE Of 6.0% Concerning?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for SDL: 6.0% = UK£15m ÷ UK£246m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. … Companies that can achieve high returns on equity without too much debt are generally of good quality.

Simply Wall St -

Estimating The Fair Value Of SDL plc (LON:SDL)

by taking the foreast future cash flows of the company and discounting them back to today's value. … This is done using the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Why SDL plc's (LON:SDL) High P/E Ratio Isn't Necessarily A Bad Thing

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … SDL has a price to earnings ratio of 30.62, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio

Simply Wall St -

Investors Who Bought SDL (LON:SDL) Shares Five Years Ago Are Now Up 68%

For example, long term SDL plc (LON:SDL) shareholders have enjoyed a 68% share price rise over the last half decade, well in excess of the market return of around 6.8% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the five years of share price growth, SDL moved from a loss to profitability.

Simply Wall St -

Is SDL plc (LON:SDL) Undervalued After Accounting For Its Future Growth?

Looking at SDL plc’s (LON:SDL) fundamentals some investors are wondering if its last closing price of £5.24 represents a good value for money for this high growth stock. … Let’s look into this by assessing SDL's expected growth over the next few years. … If you are bullish about SDL's growth potential then you are certainly not alone

Simply Wall St -

Does SDL plc (LON:SDL) Have A Particularly Volatile Share Price?

Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

How Do Analysts See SDL plc (LON:SDL) Performing In The Next Couple Of Years?

The latest earnings announcement SDL plc (LON:SDL) released in December 2018a … showed … company

Simply Wall St -

SDL Company Info

Description

SDL plc provides content management and language translation services. It operates through Language Services, Language Technologies, and Content Technologies segments. Its products include SDL Tridion Sites, a Web content management solution; SDL Tridion Docs, a structured content management solution; SDL Tridion DX, an integrated solution that combines SDL Tridion Sites and SDL Tridion Docs solutions; SDL Contenta Publishing Suite, a technical content creation, management, and delivery solution; SDL Contenta/Contenta S1000D, a solution for use of common source database to enhance productivity for technical authors, editors, and publishers in the creation, management, and delivery of S1000D technical publications; SDL LiveContent S1000D, an interactive electronic technical publishing solution; SDL XPP, an anutomated PDF/print publishing solution; and SDL Xopus, a browser-based interface to create and edit structured content. The company also provides SDL Language Cloud, a cloud translation platform; SDL Translation Management System and SDL WorldServer solutions that enable to centralize, own, and manage translation operations; SDL BeGlobal, a cloud-based machine translation tool; and SDL LW Enterprise Translation Server. In addition, it offers SDL Trados GroupShare, a project management software; SDL MultiTerm solution to store, manage, and share terminology; SDL Trados Studio solution to edit, review, and manage translation projects and corporate terminology; SDL Passolo solution to translate, share, and collaborate on software localization projects; and SDL Enterprise Translation Server. The company serves financial services, life sciences, automotive, industrial manufacturing, aerospace and defense, high tech software, retail, travel, leisure and hospitality, government, and legal sectors worldwide. SDL plc was founded in 1992 and is headquartered in Maidenhead, the United Kingdom.

Details
Name: SDL plc
SDL
Exchange: LSE
Founded: 1992
£453,565,975
90,713,195
Website: http://www.sdl.com
Address: SDL plc
New Globe House,
Vanwall Business Park,
Maidenhead,
Berkshire, SL6 4UB,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SDL Ordinary Shares London Stock Exchange GB GBP 07. Dec 1999
OTCPK SDLL.F Ordinary Shares Pink Sheets LLC US USD 07. Dec 1999
DB YDL Ordinary Shares Deutsche Boerse AG DE EUR 07. Dec 1999
BATS-CHIXE SDLL Ordinary Shares BATS 'Chi-X Europe' GB GBP 07. Dec 1999
Number of employees
Current staff
Staff numbers
4,149
SDL employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 02:04
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/04/17
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.