FDM Group (Holdings) (FDM) AI Stock Analysis

• Market Cap: £133.38M
• Dividend Yield: 15.62%
• Average Volume (3M): 518.04K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.79
• Revenue Growth: -27.01%
• EPS Growth: -49.07%
• Country: UK
• Employees: 3,754
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.06
• Shares Outstanding: 109,718,900
• 10 Day Avg. Volume: 500,339
• 30 Day Avg. Volume: 518,037
• PEG Ratio: -0.34
• Price to Book (P/B): 5.11
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 11.90
• 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: £145.00
• Price Target Upside: 22.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: 142.00p ▲(19.93% Upside)

FDM Group's overall stock score is driven by its strong financial performance and attractive valuation. The company's solid profit margins and low leverage contribute positively, while the low P/E ratio and high dividend yield enhance its attractiveness. Technical analysis presents mixed signals, with some bearish momentum but potential buying opportunities due to oversold conditions.

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 generates revenue primarily through its consultancy and staffing services. The company trains its consultants in various IT disciplines and then places them on client projects, charging clients for the services provided by these consultants. This model allows FDM to earn revenue both from training fees and from the billable hours of its consultants when they are deployed at client sites. Additionally, FDM has established significant partnerships with numerous clients across different sectors, which not only enhance their reputation but also lead to repeat business and long-term contracts. Furthermore, the company benefits from a steady stream of income through its proprietary training programs, which equip new recruits with the necessary skills to meet the demands of their clients.

FDM Group (Holdings) Financial Statement Overview

Summary

FDM Group demonstrates financial stability and profitability with strong profit margins and low leverage. The company's ability to generate cash flow remains strong, although the recent decline in free cash flow growth warrants attention. The balance sheet reflects a conservative financial structure, and the income statement highlights robust cost controls, although revenue growth has recently stagnated.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	214.80M	257.70M	333.98M	329.97M	267.36M	267.74M
Gross Profit	97.24M	114.95M	156.53M	155.62M	126.72M	128.78M
EBITDA	24.39M	34.72M	62.16M	52.69M	48.23M	48.34M
Net Income	15.49M	20.51M	40.77M	34.91M	31.83M	30.77M
Balance Sheet
Total Assets	102.88M	111.45M	124.18M	130.23M	126.74M	138.11M
Cash, Cash Equivalents and Short-Term Investments	34.62M	40.59M	47.23M	45.52M	53.12M	64.72M
Total Debt	21.21M	21.71M	20.18M	12.89M	15.23M	19.49M
Total Liabilities	43.86M	44.11M	47.51M	47.03M	48.61M	50.15M
Stockholders Equity	59.02M	67.34M	76.67M	83.20M	78.13M	87.96M
Cash Flow
Free Cash Flow	26.64M	28.90M	49.50M	35.21M	41.23M	54.15M
Operating Cash Flow	26.98M	29.24M	50.15M	36.42M	41.60M	54.77M
Investing Cash Flow	-340.00K	-335.00K	-651.00K	-1.20M	-368.00K	-615.00K
Financing Cash Flow	-29.12M	-36.34M	-46.95M	-43.72M	-52.26M	-25.44M

FDM Group (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.40
• 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 118.4 is below the 20-day moving average (MA) of 129.16, below the 50-day MA of 124.68, and below the 200-day MA of 181.37, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 32.33 is Neutral, neither overbought nor oversold. The STOCH value of 4.42 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
CCC	―	£3.01B	17.98	17.42%	2.47%	21.86%	0.86%
FDM	―	£133.38M	8.68	24.53%	15.62%	-27.01%	-49.07%
TRD	―	£51.39M	29.71	41.96%	2.03%	52.51%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	―	£196.70M	56.82	4.99%	2.98%	-17.17%	―

FDM Group (Holdings) Corporate Events

FDM Group Directors Acquire Shares Under Closed Incentive Plan

FDM Group announced the acquisition of ordinary shares by its directors under the company’s ‘Buy-As-You-Earn Plan,’ which was recently closed following a review of staff incentives. The closure resulted in the award of Matching Shares to participating employees, including key executives, as part of their remuneration policy, highlighting the company’s commitment to aligning employee incentives with shareholder interests.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £155.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Executives Acquire Shares, Signaling Confidence in Growth

FDM Group announced that key executives, including CEO Roderick Flavell and COO Sheila Flavell, acquired shares from the company’s Employee Benefit Trust under the Buy-As-You-Earn Plan. This acquisition signifies a commitment to the company’s growth and stability, potentially boosting stakeholder confidence in FDM’s leadership and strategic direction.

The most recent analyst rating on (GB:FDM) stock is a Hold with a £133.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Executives Acquire Shares, Signaling Confidence in Growth

FDM Group (Holdings) Plc 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 a commitment to the company’s growth and aligns the interests of its leadership with those of its shareholders, potentially impacting the company’s market position and stakeholder confidence.

The most recent analyst rating on (GB:FDM) stock is a Hold with a £2.75 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Updates Share Capital Structure

FDM Group announced that its issued share capital consists of 109,718,902 ordinary shares, each with one voting right, as of July 31, 2025. This update is crucial for shareholders to determine their notification requirements regarding their interests in the company’s shares, as per the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FDM) stock is a Hold with a £390.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group’s Governance Director Acquires Shares, Signaling Confidence

FDM Group (Holdings) Plc announced that Jonathan Mark Heather, the Group Governance Director and Company Secretary, acquired 8,224 ordinary shares of the company at a price of £1.204 per share. This transaction, conducted on the London Stock Exchange, signifies a notable internal investment, potentially reflecting confidence in the company’s future performance and stability.

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 Reports Decline in H1 2025 Results Amid Global Uncertainties

FDM Group’s interim results for the first half of 2025 show a significant decline in financial performance, with a 31% drop in revenue and a 48% decrease in profit before tax compared to the previous year. The decline is attributed to escalating trade tensions and macroeconomic uncertainties, which have led to reduced activity levels and elongated client procurement processes. Despite these challenges, FDM maintains a strong balance sheet with no debt and continues to focus on aligning its resources with market demand. The company is optimistic about long-term growth opportunities, particularly in AI and its operations in Australia and the UK public sector.

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.