Idox plc (IDOX) AI Stock Analysis

• Market Cap: £312.81M
• Dividend Yield: 1.02%
• Average Volume (3M): 381.70K
• Price to Earnings (P/E): 50.1
• Beta (1Y): 0.47
• Revenue Growth: 10.93%
• EPS Growth: 12.30%
• Country: UK
• Employees: 682
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 461,682,040
• 10 Day Avg. Volume: 582,316
• 30 Day Avg. Volume: 381,702
• PEG Ratio: -8.05
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 3.12
• P/FCF Ratio: 21.97
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 76.00p ▲(10.79% Upside)

Idox plc's strong financial performance and technical momentum are key strengths, driving the overall score. However, the high P/E ratio suggests potential overvaluation, and the overbought RSI indicates caution for short-term investors. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for Idox's products and services, enhancing its market position and providing a solid foundation for future expansion.

Cash Generation

Strong cash generation supports Idox's ability to fund operations and strategic initiatives, reducing reliance on external financing and enhancing financial stability.

Market Position

Idox's focus on SaaS and long-term contracts with public sector clients ensures recurring revenue, strengthening its competitive position and revenue predictability.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain Idox's financial resources, limiting its ability to invest in growth opportunities and potentially affecting long-term financial health.

Modest Net Profit Margins

Modest net profit margins suggest challenges in cost control beyond operational expenses, which could impact profitability and shareholder returns if not addressed.

Free Cash Flow Growth

Slower growth in free cash flow may indicate potential challenges in sustaining cash flow generation, affecting the company's ability to fund future investments and dividends.

Idox plc Business Overview & Revenue Model

Company Description

Idox plc (IDOX) is a UK-based software and services company specializing in providing information management solutions for public sector organizations. Operating primarily in the fields of local government, healthcare, and education, Idox delivers a range of products including document management systems, case management solutions, and planning and environmental services. The company aims to enhance operational efficiency and improve service delivery through innovative software solutions and consultancy services.

How the Company Makes Money

Idox generates revenue primarily through the sale of software licenses, subscription services, and maintenance contracts. Its key revenue streams include the sale of its proprietary software products, which are often offered under a Software as a Service (SaaS) model, allowing for recurring revenue through subscriptions. Additionally, Idox earns income from consultancy and support services that help clients implement and optimize their software solutions. The company also benefits from strategic partnerships with public sector organizations, which can lead to long-term contracts and a steady flow of income. Overall, Idox's ability to cater to the specific needs of the public sector and its focus on developing innovative solutions contribute significantly to its revenue generation.

Idox plc Financial Statement Overview

Summary

Idox plc exhibits strong financial performance with impressive revenue growth and efficient cost management. The balance sheet remains solid with prudent leverage levels, although attention to rising debt is advised. Cash flows are healthy, supporting operational and strategic needs. Overall, the financials suggest a stable yet dynamic company with room for improvement in profitability metrics.

Income Statement

Idox plc has demonstrated strong revenue growth with a consistent upward trajectory over the years, as indicated by a 19.6% increase in the latest annual report. The company maintains healthy gross profit margins around 70%, showcasing efficiency in cost management. However, net profit margins have been relatively modest, highlighting potential areas for improvement in controlling non-operating expenses.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.30. The equity ratio of 53.4% indicates a well-capitalized structure. However, the company should be cautious of rising debt levels, which could impact future leverage and financial flexibility if not managed effectively.

Cash Flow

Operating cash flow has been robust, consistently exceeding net income, which is a positive indicator of cash generation efficiency. Free cash flow has shown growth, albeit at a slower pace recently. While the free cash flow to net income ratio is commendable, maintaining this trend is key to sustaining financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.46M	87.60M	73.28M	66.18M	62.19M	57.28M
Gross Profit	63.32M	63.08M	57.24M	51.13M	45.05M	49.21M
EBITDA	22.81M	22.04M	20.31M	18.61M	18.54M	14.11M
Net Income	6.24M	5.26M	5.58M	5.04M	6.03M	1.28M
Balance Sheet
Total Assets	153.31M	146.48M	151.47M	130.03M	133.57M	138.32M
Cash, Cash Equivalents and Short-Term Investments	16.39M	11.66M	14.82M	13.86M	18.28M	30.81M
Total Debt	18.24M	23.51M	30.68M	22.34M	28.87M	50.78M
Total Liabilities	73.36M	68.20M	78.20M	62.61M	72.76M	91.36M
Stockholders Equity	79.95M	78.28M	73.28M	67.42M	60.81M	46.96M
Cash Flow
Free Cash Flow	20.30M	12.44M	10.08M	8.09M	10.81M	14.42M
Operating Cash Flow	20.81M	21.11M	18.60M	15.65M	16.55M	21.35M
Investing Cash Flow	-9.94M	-11.00M	-22.55M	-9.84M	-5.54M	-7.12M
Financing Cash Flow	-13.40M	-13.63M	4.71M	-10.62M	-23.08M	9.46M

Idox plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 68.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IDOX, the sentiment is Neutral. The current price of 68.6 is below the 20-day moving average (MA) of 69.52, above the 50-day MA of 65.24, and above the 200-day MA of 60.30, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:IDOX.

Idox plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	75 Outperform	£126.67M	17.35	5.30%	―	-3.95%	16.87%
NET	73 Outperform	£188.83M	46.12	9.59%	0.79%	22.80%	-32.13%
TRB	70 Outperform	£141.41M	17.51	15.34%	1.71%	3.48%	318.89%
ELCO	68 Neutral	£111.71M	29.87	12.39%	0.79%	12.10%	27.35%
DOTD	67 Neutral	£200.96M	17.92	11.31%	1.68%	6.27%	0.83%
IDOX	66 Neutral	£312.81M	50.07	8.06%	1.02%	10.93%	12.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%