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FDM Group (Holdings) PLC (GB:FDM)
LSE:FDM

FDM Group (Holdings) (FDM) AI Stock Analysis

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GB

FDM Group (Holdings)

(LSE:FDM)

Rating:71Outperform
Price Target:
230.00p
▲(6.98%Upside)
FDM Group's overall score is bolstered by strong financial performance and attractive valuation. Management's confidence and shareholder support further enhance the outlook. However, technical indicators point to a bearish trend, requiring cautious monitoring.

FDM Group (Holdings) (FDM) vs. iShares MSCI United Kingdom ETF (EWC)

FDM Group (Holdings) Business Overview & Revenue Model

Company DescriptionFDM Group (Holdings) plc is a global professional services provider specializing in IT and business consulting. The company operates primarily in the sectors of financial services, media, retail, insurance, and government. FDM Group's core services include IT and business consulting, training, and staffing solutions, addressing the demand for skilled professionals in the IT and business fields across a variety of industries.
How the Company Makes MoneyFDM Group makes money through a revenue model that primarily involves providing IT and business consulting services to a diverse range of clients. Key revenue streams include fees from consulting engagements and staffing solutions, where the company deploys trained consultants to client sites on a contract basis. FDM also generates income from its comprehensive training programs that prepare consultants for industry-specific roles. Significant factors contributing to its earnings include its strategic partnerships with major corporations and government entities, which allow FDM to maintain a steady demand for its services, and its ability to scale its workforce and training programs to meet market needs.

FDM Group (Holdings) Financial Statement Overview

Summary
FDM Group shows solid financial stability with strong profit margins and low leverage. The income statement reflects efficient cost management, but revenue growth has slowed. The balance sheet is robust, and cash flow generation remains strong despite a decline in free cash flow growth.
Income Statement
72
Positive
FDM Group shows a stable income statement with consistent revenue and profit margins. The gross profit margin was approximately 44.6% in 2023, indicating strong profitability. However, the revenue growth rate from 2022 to 2023 was minimal at around 1.2%, signaling a potential slowdown in sales expansion. Net profit margin remained robust at 12.2% in 2023, while the EBIT margin was 16.5%, both reflecting efficient cost management. EBITDA margin stood at 18.6%, showcasing good operational efficiency.
Balance Sheet
75
Positive
The balance sheet of FDM Group is solid with a low debt-to-equity ratio of approximately 0.26 as of 2023, indicating financial stability and low leverage risk. The equity ratio was strong at 61.7%, suggesting a healthy proportion of equity financing. However, the return on equity (ROE) was 29.6% in 2023, which is strong, reflecting effective utilization of shareholders' equity to generate profits.
Cash Flow
68
Positive
Cash flow analysis reveals a stable position with a free cash flow to net income ratio of 1.21 in 2023, indicating good cash conversion from earnings. The operating cash flow to net income ratio was also healthy at 1.23, showing strong cash generation from operations. However, the free cash flow growth rate was negative at -41.6% in 2023, suggesting challenges in increasing liquidity.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
257.70M333.98M329.97M267.36M267.74M
Gross Profit
114.95M156.53M155.62M126.72M128.78M
EBIT
27.44M55.03M45.85M42.02M41.74M
EBITDA
34.72M62.16M52.69M48.23M48.34M
Net Income Common Stockholders
20.51M40.77M34.91M31.83M30.77M
Balance SheetCash, Cash Equivalents and Short-Term Investments
40.59M47.23M45.52M53.12M64.72M
Total Assets
111.45M124.18M130.23M126.74M138.11M
Total Debt
21.71M20.18M12.89M15.23M19.49M
Net Debt
-18.88M-27.05M-32.63M-37.89M-45.24M
Total Liabilities
44.11M47.51M47.03M48.61M50.15M
Stockholders Equity
67.34M76.67M83.20M78.13M87.96M
Cash FlowFree Cash Flow
28.90M49.50M35.21M41.23M54.15M
Operating Cash Flow
29.24M50.15M36.42M41.60M54.77M
Investing Cash Flow
-335.00K-651.00K-1.20M-368.00K-615.00K
Financing Cash Flow
-36.34M-46.95M-43.72M-52.26M-25.44M

FDM Group (Holdings) Technical Analysis

Technical Analysis Sentiment
Negative
Last Price215.00
Price Trends
50DMA
218.16
Negative
100DMA
221.80
Negative
200DMA
274.29
Negative
Market Momentum
MACD
-1.43
Negative
RSI
48.31
Neutral
STOCH
40.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FDM, the sentiment is Negative. The current price of 215 is below the 20-day moving average (MA) of 215.73, below the 50-day MA of 218.16, and below the 200-day MA of 274.29, indicating a bearish trend. The MACD of -1.43 indicates Negative momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FDM.

FDM Group (Holdings) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCCC
79
Outperform
£2.68B16.5519.50%3.65%0.61%-9.17%
GBFDM
71
Outperform
£237.78M11.4528.48%5.81%-22.84%-49.60%
62
Neutral
$11.80B10.08-7.46%2.99%7.37%-8.21%
GBKBT
60
Neutral
£41.99M76.89-8.92%-46.97%
GBRCN
57
Neutral
£201.94M325.641.06%3.78%3.57%
GBFDP
56
Neutral
£541.25M-11.89%-22.83%-350.82%
GBTRD
48
Neutral
£55.75M69.8720.93%2.50%26.44%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FDM
FDM Group (Holdings)
215.00
-137.34
-38.98%
GB:CCC
Computacenter
2,556.00
-208.66
-7.55%
GB:FDP
FD Technologies
2,420.00
1,060.00
77.94%
GB:RCN
Redcentric
127.00
-6.68
-5.00%
GB:TRD
Triad Group plc
320.00
35.82
12.60%
GB:KBT
K3 Business Technology
91.50
-4.00
-4.19%

FDM Group (Holdings) Corporate Events

Business Operations and Strategy
FDM Group Executives Acquire Shares, Signaling Confidence in Company’s Future
Positive
Jun 6, 2025

FDM Group announced that key executives, including the CEO, COO, CFO, and Group Governance Director, have acquired shares in the company through the FDM Buy-As-You-Earn Plan. This acquisition reflects the executives’ commitment to the company’s growth and aligns their interests with those of the shareholders, potentially strengthening stakeholder confidence in FDM’s leadership and future prospects.

The most recent analyst rating on (GB:FDM) stock is a Hold with a £430.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

Executive/Board ChangesDividends
FDM Group Directors Exercise Share Options and Receive Dividend Equivalents
Neutral
Jun 4, 2025

FDM Group announced that its Executive Directors exercised options over ordinary shares granted under the company’s Performance Share Plan 2014. These options, which vested in March 2023, were subject to a holding period that ended in March 2025. Following this, the directors sold a portion of the shares and retained the remainder, also receiving additional shares as a dividend equivalent award. This move reflects the company’s adherence to its Directors’ Remuneration Policy and may have implications for shareholder value and executive compensation practices.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £4.85 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

Other
FDM Group Announces Internal Share Transfer by CFO
Neutral
May 23, 2025

FDM Group (Holdings) plc announced a share transfer involving its Chief Financial Officer, Michael McLaren, who transferred 196,216 ordinary shares to Paula McLaren, a person closely associated with him, for no consideration. This transaction alters the shareholding distribution, with Michael McLaren now holding 52,996 shares and Paula McLaren holding 436,216 shares, representing 0.048% and 0.398% of the issued share capital, respectively. This internal transfer does not impact the overall market position of FDM Group but reflects internal realignment of shareholding within the company.

The most recent analyst rating on (GB:FDM) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

Executive/Board ChangesShareholder Meetings
FDM Group Successfully Concludes 2025 AGM with All Resolutions Passed
Positive
May 20, 2025

FDM Group (Holdings) plc announced the successful completion of its 2025 Annual General Meeting, where all proposed resolutions were passed by the required majorities. Key resolutions included the approval of the company’s annual report, director remuneration, and the re-election of several directors, as well as the appointment of Bruce Lee as a new director. The meeting’s outcomes reflect strong shareholder support and are expected to positively impact the company’s governance and operational strategies.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £4.85 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
FDM Group Maintains Stability Amid Uncertain Market Conditions
Positive
May 20, 2025

During its Annual General Meeting, FDM Group reported that its trading in the first quarter of 2025 met the Board’s expectations despite ongoing global macroeconomic and geopolitical uncertainties. The company has maintained a robust balance sheet with no debt and £42 million in cash, while strategically managing its costs and resources to adapt to current market conditions. FDM remains optimistic about its potential for growth in certain industries and regions as market conditions improve.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £4.85 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

Executive/Board Changes
FDM Group Directors Acquire Shares Under Bonus Deferral Plan
Neutral
May 9, 2025

FDM Group (Holdings) Plc announced that its Executive Directors have acquired ordinary shares as part of their bonus deferral arrangements for the year ended December 31, 2024. The shares, purchased from the company’s Employee Benefit Trust, align with the Directors’ Remuneration Policy approved by shareholders, indicating a commitment to aligning executive compensation with company performance and shareholder interests.

Business Operations and Strategy
FDM Group Executives Acquire Shares to Strengthen Leadership Commitment
Positive
May 8, 2025

FDM Group announced that key executives, including the CEO, COO, CFO, and Group Governance Director, have acquired shares in the company through its Buy-As-You-Earn Plan. This acquisition aligns with FDM’s strategy to engage its leadership in the company’s growth and success, potentially boosting stakeholder confidence and reinforcing the management’s commitment to the company’s future.

Business Operations and Strategy
FDM Group Executives Acquire Shares Under Employee Plan
Positive
May 1, 2025

FDM Group announced that its directors and senior management have acquired ordinary shares as part of the company’s Buy-As-You-Earn Plan. This acquisition, involving key figures such as the CEO and CFO, highlights the company’s commitment to employee investment and retention strategies, potentially strengthening stakeholder confidence in its governance and future growth prospects.

Other
FDM Group Director Acquires Shares, Signaling Confidence
Positive
Apr 23, 2025

FDM Group (Holdings) Plc announced that Bruce Lee, a non-executive director, has acquired 8,000 ordinary shares at £2.225 per share. This transaction, conducted on the London Stock Exchange, may indicate confidence in the company’s future prospects and could have implications for investor sentiment and market perception.

Business Operations and Strategy
FDM Group Executives Acquire Shares, Reinforcing Stakeholder Confidence
Positive
Apr 9, 2025

FDM Group announced that key executives, including CEO Roderick Flavell and COO Sheila Flavell, acquired ordinary shares in the company through the FDM Buy-As-You-Earn Plan. This acquisition signifies a commitment to the company’s growth and aligns the interests of its leadership with those of its shareholders, potentially strengthening stakeholder confidence.

Shareholder Meetings
FDM Group Announces 2025 AGM Details and Document Availability
Neutral
Apr 8, 2025

FDM Group has announced the details of its 2025 Annual General Meeting (AGM), which will take place on May 20, 2025, at their London offices. The company has made available the Notice of AGM, Form of Proxy, and the Annual Report for the year ended December 31, 2024, to shareholders. These documents can be accessed via the National Storage Mechanism and the company’s website, ensuring transparency and accessibility for stakeholders.

Regulatory Filings and Compliance
FDM Group Announces Total Voting Rights Update
Neutral
Apr 1, 2025

FDM Group has announced its total voting rights as of March 31, 2025, with an issued share capital of 109,713,577 ordinary shares, each carrying one voting right. This announcement is significant for shareholders as it provides the necessary information for them to assess and notify any changes in their shareholdings, ensuring compliance with the FCA’s Disclosure Guidance and Transparency Rules.

Business Operations and Strategy
FDM Group Leadership Increases Stake, Signaling Confidence
Positive
Mar 20, 2025

FDM Group (Holdings) plc announced that Logiealmond Estate Limited, a company associated with its CEO and COO, purchased 78,900 ordinary shares at £2.535 each. This transaction underscores the confidence of the leadership in the company’s future prospects, potentially strengthening its market position and signaling positive sentiment to stakeholders.

Business Operations and StrategyFinancial Disclosures
FDM Group Faces Challenging 2024 with Strategic Adjustments
Negative
Mar 19, 2025

FDM Group reported a challenging financial year in 2024, with a 23% decrease in revenue and a 49% drop in profit before tax compared to 2023. Despite the tough market conditions, the company maintained a strong balance sheet with no debt and a cash position of £40.6 million. The company launched a new FDM Practices methodology to better meet client needs and secured 52 new clients globally. FDM remains focused on managing costs and aligning resources with market demand, positioning itself to benefit from future market recovery.

Executive/Board ChangesBusiness Operations and Strategy
FDM Group Strengthens Board with New Appointment
Positive
Mar 19, 2025

FDM Group has appointed Bruce Lee as an Independent Non-Executive Director, enhancing its board with his extensive experience in technology and organizational leadership from roles in major financial and healthcare companies. This strategic move aligns with FDM’s growth focus, while the retirement of Michelle Senecal de Fonseca marks the end of her impactful nine-year tenure, during which she contributed significantly to the company’s initiatives promoting women in technology.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.