FDM Group (Holdings) (FDM) AI Stock Analysis

• Market Cap: £143.88M
• Dividend Yield: 14.06%
• Average Volume (3M): 518.04K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.83
• 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: 109,725,030
• 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: 203.95% 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: 163.00p ▲(23.86% 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

Business Model Strength

FDM's business model of training and placing graduates ensures a steady supply of skilled consultants, providing a competitive edge and consistent revenue stream.

Profit Margins

Strong profit margins reflect effective cost management and operational efficiency, contributing to long-term financial stability and shareholder value.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and low leverage risk, providing the company with flexibility to invest in growth opportunities.

Negative Factors

Revenue Growth Stagnation

Stagnant revenue growth may indicate challenges in expanding market share or product adoption, potentially impacting future earnings potential.

Decline in Free Cash Flow Growth

A decline in free cash flow growth suggests potential liquidity challenges, which could limit the company's ability to invest in new projects or return capital to shareholders.

Earnings Decline

A sharp decline in earnings per share can signal underlying operational or market challenges, potentially affecting investor confidence and long-term growth prospects.

FDM Group (Holdings) Business Overview & Revenue Model

Company Description

FDM Group (Holdings) is a global professional services provider headquartered in London, specializing in IT and business consulting. The company operates primarily within the technology sector, offering services that include IT consultancy, project management, and business analysis. FDM's core products include its extensive training programs for graduates, which equip them with the skills needed to serve clients in various industries, including financial services, telecommunications, and government.

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 income statement highlights robust cost controls, although revenue growth has recently stagnated. The balance sheet reflects a conservative financial structure, and the company's ability to generate cash flow 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	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: 131.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 131.6 is below the 20-day moving average (MA) of 136.74, below the 50-day MA of 132.69, and below the 200-day MA of 168.47, indicating a bearish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCC	78 Outperform	£3.13B	19.61	17.42%	2.38%	21.86%	0.86%
FDM	74 Outperform	£143.88M	9.29	24.53%	14.06%	-27.01%	-49.07%
TRD	72 Outperform	£45.29M	23.79	44.27%	2.69%	30.01%	138.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	54 Neutral	£191.12M	77.42	1.35%	3.00%	-31.46%	297.44%

FDM Group (Holdings) Corporate Events

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.

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.

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.

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.