Chart looks like it might be turning here imo -- someone accumulating the last few weeks imo |
 ..from last month...
IDOX Plc encompasses subsidiaries providing software solutions and information services for the management of local government and other organisations. As a result, the firm is segmented into three corporate areas: Public sector software, engineering information management and content, which in turn results in plausible cloud-based solutions and offers on-premises. Consequently, it implies that the firm is involved in the operation of building, environmental health, trading standards, licensing, address management and other geospatial information services. This effective and diversified infrastructure enabled the firm to optimise operating profit margin by 13% while reducing net debt by 54%, hence the firm is lowly geared. Considering that three acquisitions have been successfully completed lately, Idox Plc was able to use cash efficiently to fund corporate activities, leading to a robust order book. Given the multiple sources of income, the group managed to capture intrinsic value, explained by the organic solid EV/EBITDA of 15.27x. Considering the enriching initiatives and highly innovative acquisitions, the firm enhanced its organic EPS growth by 26.7%. This evidence suggests that the firm is able to capitalise on market opportunities well, hence the firm’s P/B value was forced up to 4.22x. The conservative working capital policy performed, enabled the group to continue as a going concern. Despite these enriching and stimulating initiatives, International Holdings is still undervalued with respect to its peers, since the firm’s P/E ratio stands at 22.1x, lower than its information technology industry benchmark of 51x, hence investors can purchase the stock cheaply.
Brief Analysis:
P/E = 22.1x, below the sector threshold.
P/B = 4.22x, higher than information technology threshold
P/FCF = 72.6x, above information technology benchmark.
EV/BITDA = 15.27, capturing intrinsic value.
EPS growth = 26.7%.
Operating margin of 13%...
...from WealthOracleAM |
The base business is ex growth isn’t it |
I wonder if the recent grant of share options exercisable at £1.20 is a stunt designed to deter existing shareholders from selling and encourage new investors o buy by thinking the share price would at least reach that level. In the recent results, CEO mentions acquisition opportunities which rather implies that without add-ons the potential for organic growth such as it is is limited. |
Paul Scott's recent view worth a read. I'm a holder, so finding the share price decline frustrating. A good business, but the only people benefitting are the management:
"Outlook is fine, with “good revenue visibility for the remainder of FY22”, and trading in line with expectations. CFO review - You have to travel quite a long way down the results statement before you find the most interesting numbers. For example, continuing revenue growth is 7%, but this includes the effect of acquisitions. The CFO review, much further down the statement, lets us know that “On a 'like for like' basis the Group delivered £30.0m of revenue, slightly down on the prior period.” So there is no organic revenue growth to speak of, only growth by acquisition. Also, why is PBT down 1% despite “adjusted EBITDA” rising 8%? The main reason is nearly £500k in additional share option costs from the company’s LTIP. My view – I’m less enthused by this one than I was before. The only thing I can see in its favour is the sticky public sector contracts. I note that the company paid out £1.8 million in total to shareholders for last year’s performance, while the LTIP has cost the company £1.25 million in just six months."
I'm sure Meadon and Grubb, who hold very few shares between them, will continue to do very well for themselves. |
I've given up. Recurring revenues are al very well for customer confidence and employee salaries and while Idox is clearly a good business that does not make it a good investment. |
An old favourite but a hefty P/E
Am reducing |
IDOX H1 2022 results presented by David Meaden, CEO & Anoop Kang, CFO, to analysts, followed by Q&A.
Video: hxxps://www.piworld.co.uk/company-videos/idox-idox-interim-results-2022-presentation-june-2022/
Podcast: hxxps://piworld.podbean.com/e/idox-idox-interim-results-2022-presentation-june-2022/ |
CEO Meaden not showing much confidence in prospects with his sale of shares after option exercise. Can't remember the last time any director put his hands into his pockets for shares here -- and there was me thinking we are in the 'fly' stage! |
Options granted to CEO and CFO, to vest 'ordinarily' over next 3 years, but only if the share price is at least 102p -- should give them some incentive, although would be nice to see them putting their own cash into some shares. Options would certainly come in handy for them if there's a takeover. |
Here is the IDOX FY21 results presentation to analysts incl Q&A given 27.1.22. |
Fully valued
Not a high growth stock |
Steady eddy results today, slight beat on EPS. Nice solid business imo. Just watched the results webinar. Strong management imo, and a good double act, just wish they would back up the 'value proposition' that they talk about in the webinar with some share buying of their own. Minimal shareholdings between the CEO and CFO, with no buying for well over 2 years. |
After a long ride with IDOX and a 112% profit I finally decided to sell today. I do see a future and a possible rise but the level of maturity today is close to how I'd value the company based on good will. A small drop is on the horizon.! |
Read the last 2 RNSs on acquisitions
Show some enterprise |
What new division? Nothing obvious to me on Idox news page. |
building up an interesting new division |
Some big trades after the bell. |
bit of a move this pm |
Griffiths - Very wise and rich man - The fact that he has reduced holding to below notifiable level - whether or not he is still holding any stock - is (imo) a red flag.
He however does not walk on water - |
Exits or just gone covert? |
so Griffiths exits |
Gargoyle2 - U were right - So probably best - that is if interested - to wait and see what happens - If goes the same way as HEIQ - initial write up in Feb then possibly more attractive prices later but if goes like Aution technology then jump in now - Whichever DYOR-- Sorry No Crystal Balls here. |
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