FDM Group (Holdings) (FDM) AI Stock Analysis

• Market Cap: £177.12M
• Dividend Yield: 13.93%
• Average Volume (3M): 518.04K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.71
• 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: 109,727,520
• 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: £400.00
• Price Target Upside: 210.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 181.00p ▲(40.31% Upside)

FDM Group's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's solid profit margins and low leverage contribute positively, while the high dividend yield and low P/E ratio enhance its appeal. However, the technical analysis suggests caution due to overbought conditions, and the lack of recent earnings call data limits insights into future guidance.

Positive Factors

Strong Profit Margins

Sustained high gross and net margins (~44.6% gross, 12.2% net in 2023) indicate durable pricing power and efficient cost structure. This margin cushion supports reinvestment in training, funds client delivery, and helps absorb demand shocks over the medium term.

Low Leverage / Solid Balance Sheet

A low debt-to-equity ratio (~0.26) and strong equity ratio provide financial flexibility to fund training programs and absorb cyclical downturns. This conservative capital structure reduces refinancing risk and supports strategic investments without stressing liquidity.

Training-to-Placement Business Model

FDM's integrated training-to-placement model creates a pipeline of billable consultants and aligns training spend with future revenue. Combined with established client partnerships across sectors, this model supports predictable utilization and durable revenue conversion over months to years.

Negative Factors

Significant Revenue Decline

A marked revenue decline (reported ~ -27%) is a structural concern: sustained top-line contraction weakens operating leverage, limits reinvestment in training and sales, and can erode client relationships if not reversed over several quarters.

Declining Free Cash Flow Growth

A sharp drop in free cash flow growth (-41.6%) reduces the firm's ability to self-fund training, pay dividends, or build reserves. Even with healthy cash conversion ratios, persistent FCF contraction pressures long-term investment and financial resilience.

Earnings Volatility / EPS Decline

A near-50% decline in EPS signals material earnings volatility which can reflect margin pressure, lower utilization, or one-offs. Sustained EPS weakness undermines retained earnings growth and constrains capacity to expand training cohorts and client delivery sustainably.

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 services, where it charges clients for the deployment of its trained consultants to work on various projects. The company operates a unique business model that includes a training division, which trains graduates and then places them in client roles. This model allows FDM to recover training costs through the billable hours generated by the consultants once they are placed. Key revenue streams include fees from clients for the services provided by these consultants, as well as training fees from graduates who enter FDM's programs. The company has established significant partnerships with numerous clients across various sectors, which contributes to a steady flow of contracts and engagements, enhancing its earnings potential.

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: Positive
• Last Price: 129.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FDM, the sentiment is Positive. The current price of 129 is below the 20-day moving average (MA) of 143.01, below the 50-day MA of 137.88, and below the 200-day MA of 155.71, indicating a bullish trend. The MACD of 7.07 indicates Negative momentum. The RSI at 68.57 is Neutral, neither overbought nor oversold. The STOCH value of 79.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	£3.54B	22.19	17.42%	2.43%	21.86%	0.86%
SCT	75 Outperform	£2.85B	21.66	41.77%	2.05%	51.50%	11.62%
FDM	74 Outperform	£177.12M	11.43	24.53%	13.93%	-27.01%	-49.07%
MTEC	69 Neutral	£58.97M	42.74	10.36%	―	20.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	54 Neutral	£190.36M	77.10	1.35%	3.01%	-31.46%	297.44%
TPX	50 Neutral	£21.70M	-2.83	-17.47%	―	-5.84%	55.30%

FDM Group (Holdings) Corporate Events

FDM Group Confirms Total Voting Rights and Share Capital Structure

FDM Group (Holdings) plc has confirmed that, as of 30 January 2026, its issued share capital comprises 109,727,527 ordinary shares of £0.01 each, with one voting right per share and no shares held in treasury. This updated share capital figure provides the reference denominator for investors assessing whether they must disclose holdings or changes in holdings under UK disclosure and transparency rules, reinforcing regulatory compliance and clarity around the company’s ownership structure for the market.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £191.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Sees 2025 Revenue Drop but Signals Early Signs of Demand Recovery

FDM Group reported that trading for the year to 31 December 2025 is expected to fall within market expectations, but revenue is projected to decline 31% year-on-year to £178 million, reflecting another challenging year marked by subdued market conditions and reduced client demand for consultants. The number of consultants placed with clients fell to 2,003 from 2,578, with declines across all regional markets, although the group maintained a robust, debt-free balance sheet with year-end cash of £35 million. Management noted signs of an uptick in client activity in the final months of 2025 continuing into early 2026, and emphasised a strategy of tightly aligning resources with demand and exercising investment discipline, positioning the business for a return to growth when market conditions improve.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £148.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Confirms Total Voting Rights and Issued Share Capital

FDM Group has confirmed that as of 31 December 2025 its issued share capital consists of 109,726,277 ordinary shares of £0.01 each, with one voting right per share and no shares held in treasury. This update clarifies the total number of voting rights in the company, providing shareholders and the market with the denominator needed to assess and report any notifiable changes in their shareholdings under UK disclosure and transparency rules, thereby supporting regulatory compliance and governance transparency.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £163.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Announces Total Voting Rights Update

FDM Group has announced its total voting rights as of November 28, 2025, with an issued share capital of 109,725,027 ordinary shares, each carrying one voting right. This update is crucial for shareholders to assess their stake and any necessary notifications regarding changes in their shareholding, ensuring compliance with FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £163.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Anticipates Stable Financial Performance Amid Market Uncertainties

FDM Group’s trading update reveals that the company expects its financial performance for the full year 2025 to align with its expectations despite ongoing economic and geopolitical uncertainties affecting client confidence and demand. The company has observed a slight increase in activity in key regions and has cautiously increased the number of consultants in training. As of October 2025, FDM Group had 2,003 consultants assigned to clients and maintains a strong balance sheet with £40.1 million in cash and no debt. The company is paying an interim dividend of 6 pence per share and continues to manage its resources prudently to adapt to market conditions.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £142.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.

FDM Group Updates Share Capital Structure

FDM Group announced that as of October 31, 2025, its issued share capital consists of 109,723,902 ordinary shares, each with one voting right. This update is crucial for shareholders to determine their notification requirements regarding their interest in the company’s ordinary shares, as per the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FDM) stock is a Buy with a £142.00 price target. To see the full list of analyst forecasts on FDM Group (Holdings) stock, see the GB:FDM Stock Forecast page.