||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Delcam (London Stock Exchange): 0 recent articles
|staverly: Sleepy, Your nomenclature belies your impressive observational powers. And thank you for your comments. I decided to simplify things a little. The revised copy beneath is shorter but still in keeping with my original arguments albeit without the qualitative angle. To be fair, any self-respecting value investor should be able to see this as a stand out opportunity (why else would RSW own 20%).
P/Es can be poor arbiters of value; let's hope so given that the FTSE SmallCap index currently trades on a price-earnings ratio of 37 (source: Economist 12th Jan 2013. All other data sourced from ShareScope). Delcam's current (FY2013) earnings estimate of 62.1 per share, using last Friday's closing price of 1155, gives a P/E of 19.
My expectations for Delcam, as you know, are somewhat higher. Their "consensus" numbers being produced by only a single research analyst (no sponsored equivalent exists) greatly excites the possibility of persistent market pricing anomalies. Unsurprising then, that this steady little slow burner has estimates that, in the past few years, have had to be materially revised on a regular basis.
Take FY2012 for example: this time last year (so barely one month into their last fiscal year as Dec year-end) 38.8p earnings were predicted. Less than eleven months later 38.8p had become 57.1p only the small matter of a 47% increase during 2012. You should note that FY2012 is not yet in red ink but figures are unlikely to be materially different when released in March as evidenced by recent trading update.
FY2013 earnings target of 62.1p may not receive such a pronounced hike over the next eleven months, nevertheless it appears too modest. Now that their material R&D spend has been assuaged due to consistent organic top line growth, the consistently high margins (~70%) have created an operational gearing powerhouse . FY2013 estimates might well appear anomalous to a keen eyed investor. Ever since H2 2010, 30p out of each additional £1 turnover has dropped straight down to profits. However, FY2013 operational gearing appears to only produce 12p profit for each additional pound of revenue. That doesn't seem right. Of course the world is far from a certain place but unless some unexpected macroeconomic issue develops I expect there to be on-going improvements to these numbers throughout the year. I have pencilled in earnings of around 79p per share for the current year. That is the equivalent of the "consensus" only needing to be corrected by 29% this time. My seventy-nine pence calculation equates to a P/E of 14. Too low a valuation given the high quality of earnings, capital structure, the honest and competent management, a durable competitive advantage and not least the on-going stellar capital reinvestment rate of around 55% . So in relative and absolute valuation terms Delcam, imo, is still attractively priced despite the recent share price rise. As ever please undertake your own research. Apologies to all of you who don't use ShareScope, the same data maybe available for free at finance.yahoo or Digital Look.|
|quantumx: Could do with a share split to make the actual share price more attractive. At these levels I think Techinvest might even call them a buy - even a new year tip.|
|nfs: yes I know the USD is affecting the sterling profits but at this mkt cap£23m, and about £4m cash this means that cash is about 50p of the share price and thus on eps of say 30p-a very low number-this is a pe value ex cash of 8-9,surely a bargain?|
|quantumx: I wondered what the spike was today, IC tip is usually a killer when it comes to share price, good to DLC bucking the IC trend!|
|cockneyrebel: On course to make record earnings in the year ahead - share price nothging like at record levels tho.
|cockneyrebel: These have to trade on a forward PE of 12 or more, 20% forecast growth and very bullish on the year ahead :
"At the same time, we have continued our diversification outside our traditional
toolmaking market. While this is still an important part of our business, we
have seen considerable growth in our sales to industries as diverse as
aerospace, autosport, packaging, medical and jewellery. We expect to see
further growth from these sectors in 2005,"
Just a PE of 12 and forecast earnings of 24.3p the share price will be 291p.
A forward PE of 15 like a lot of software companies are trading on and eps of 28.3p like Corporate Synergy are forecasting and the price is 424p.
And a divi too :-)
|quantumx: Flat share price for another 9 months now ..... shame, but happy to hold.|
|lawmb: On viewing the one year chart for DLC one may realise that at times the share price suddenly jumps to then fall back to a more realistic support level. But notwithstanding this volatility, the share price has increased by more than 100% from last year's price (being on of AIM's top performers) and the forthcoming AGM should give the it a more realistic boost than just hearsay. The PE is still undemanding, EPS should increase and on the 3rd August three directors exercised an option (£1.56 per share) and increased their shareholding by 0.03% each. All in all I think that it is worth to hang on these shares at least for the medium term|
|lawmb: Delcam PLC, a CAD/CAM software developer, will be announcing its half yearly results on the 30th August 2000. After recovering from the Asia crisis, which had hit its order books quite badly, this company is set for a recovery as the figures do indicate. The turnover has increased from last year with a greater margin of profit, cash reserves has increased, whilst its debts have reduced. Most brokers forecast a greater profit for the next year. Also recently it has announced that it will be expanding its Italian branch on the result of record orders which are sent to proceed into the year. When compared to similar companies in the technology sector, this company's share price still demands a relatively low PE, which augurs well for growth. Any opinions !|
Delcam share price data is direct from the London Stock Exchange