FDM Group (Holdings) (FDM) AI Stock Analysis

• Market Cap: £218.43M
• Dividend Yield: 1137.51%
• Average Volume (3M): 273.65K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.51
• Revenue Growth: -22.84%
• EPS Growth: -49.60%
• Country: UK
• Employees: 3,754
• Sector: Technology
• Sector Strength: 90
• Industry: Information Technology Services
• EPS (TTM): 0.09
• Shares Outstanding: 109,713,580
• 10 Day Avg. Volume: 192,908
• 30 Day Avg. Volume: 273,654
• PEG Ratio: 2.26
• Price to Book (P/B): 9.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £325.00
• Price Target Upside: 64.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: 226.00p ▲(14.26%Upside)

FDM Group's strong valuation and positive corporate events are offset by bearish technical indicators and slow revenue growth. While the company is financially stable, the lack of recent earnings call data limits insights into future performance.

FDM Group (Holdings) Business Overview & Revenue Model

Company Description

FDM Group (Holdings) plc provides information technology (IT) services in the United Kingdom, North America, rest of Europe, the Middle East, Africa, and the Asia Pacific. It is involved in recruiting, training, and placing its own IT and business consultants across various technical and business disciplines, including development, testing, IT service management, project management office, data engineering, cloud computing, business analysis, business intelligence, cyber security, artificial intelligence, machine learning, and robotic process automation, as well as risk and regulation activities. The company was formerly known as Astra Topco Limited and changed its name to FDM Group (Holdings) plc. FDM Group (Holdings) plc was founded in 1991 and is based in London, the United Kingdom.

How the Company Makes Money

FDM Group makes money primarily through its 'train-deploy' business model. The company recruits graduates, ex-forces personnel, and others, providing them with comprehensive training in essential IT and business skills. These trained consultants are then deployed to FDM's clients on a contractual basis, generating revenue through the fees charged for these services. The company benefits from diversified revenue streams across multiple sectors and geographies, reducing dependency on any single client or industry. Additionally, FDM has established key partnerships with organizations across various industries, which helps in maintaining a steady demand for its consulting services.

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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.70M	333.98M	329.97M	267.36M	267.74M
Gross Profit	114.95M	156.53M	155.62M	126.72M	128.78M
EBITDA	34.72M	62.16M	52.69M	48.23M	48.34M
Net Income	20.51M	40.77M	34.91M	31.83M	30.77M
Balance Sheet
Total Assets	111.45M	124.18M	130.23M	126.74M	138.11M
Cash, Cash Equivalents and Short-Term Investments	40.59M	47.23M	45.52M	53.12M	64.72M
Total Debt	21.71M	20.18M	12.89M	15.23M	19.49M
Total Liabilities	44.11M	47.51M	47.03M	48.61M	50.15M
Stockholders Equity	67.34M	76.67M	83.20M	78.13M	87.96M
Cash Flow
Free Cash Flow	28.90M	49.50M	35.21M	41.23M	54.15M
Operating Cash Flow	29.24M	50.15M	36.42M	41.60M	54.77M
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 Price: 197.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 197.8 is below the 20-day moving average (MA) of 210.41, below the 50-day MA of 212.72, and below the 200-day MA of 251.06, indicating a bearish trend. The MACD of -3.75 indicates Positive momentum. The RSI at 30.80 is Neutral, neither overbought nor oversold. The STOCH value of 6.09 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRD	71 Outperform	£51.39M	29.71	41.96%	203.39%	52.51%	―
CCC	67 Neutral	£2.34B	14.47	19.50%	289.58%	0.61%	-9.17%
FDM	66 Neutral	£218.43M	10.64	28.48%	1137.51%	-22.84%	-49.60%
RCN	57 Neutral	£196.39M	316.67	1.06%	291.50%	3.57%	―
FDP	56 Neutral	$569.78M	―	-11.89%	―	-22.83%	-350.82%
Sector *	51 Neutral	AU$1.67B	2.34	-31.66%	3.52%	16.55%	-7.79%
KBT	47 Neutral	£24.09M	42.02	-8.92%	―	-46.97%	―

FDM Group (Holdings) Corporate Events

FDM Group Announces Change in Major Shareholder Holdings

FDM Group (Holdings) plc has announced a change in its major holdings, with Kayne Anderson Rudnick Investment Management, LLC, a US-based investment firm, adjusting its stake in the company. The firm’s voting rights have decreased from 6.017860% to 5.886760%, indicating a slight reduction in their influence over FDM Group’s corporate decisions. This change in holdings may impact the company’s shareholder dynamics and reflects ongoing adjustments in investment strategies by major stakeholders.

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.

FDM Group Appoints Alan Kinnear as New Board Chair

FDM Group has announced the appointment of Alan Kinnear as the new Non-Executive Chair of the Board, effective 30 July 2025, succeeding David Lister who will retire. Alan Kinnear, with extensive experience from his time at PwC and as a Non-Executive Director at FDM, is expected to guide the company through its next phase of development amidst challenging market conditions.

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.

FDM Group Executives Acquire Shares, Signaling Confidence in Company’s Future

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.

FDM Group Directors Exercise Share Options and Receive Dividend Equivalents

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.

FDM Group Announces Internal Share Transfer by CFO

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.

FDM Group Successfully Concludes 2025 AGM with All Resolutions Passed

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.

FDM Group Maintains Stability Amid Uncertain Market Conditions

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.

FDM Group Directors Acquire Shares Under Bonus Deferral Plan

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.

FDM Group Executives Acquire Shares to Strengthen Leadership Commitment

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.

FDM Group Executives Acquire Shares Under Employee Plan

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.