Sdi Dividends - SDI

Sdi Dividends - SDI

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Stock Name Stock Symbol Market Stock Type
Sdi Group Plc SDI London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-0.50 -0.27% 187.50 15:57:17
Open Price Low Price High Price Close Price Previous Close
188.00 187.50 189.00 187.50 188.00
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Industry Sector
ELECTRONIC & ELECTRICAL EQUIPMENT

Sdi SDI Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
27/03/2007FinalSEK631/12/200531/12/200629/03/200702/04/200701/01/19706

Top Dividend Posts

DateSubject
22/7/2021
14:53		sweetunicorn: Full agreement Rivaldo! #SDI can continue to count on tailwinds from COVID-related long-term trend towards COVID/mutation testing/analysis in Synoptics Monmouth MPB ATIK. In addition, the new OEM customers will create new networks which will lead to long-term organic growth. At the same time, as the COVID impact and travel restrictions and uncertainties fade, SDI's other sectors and companies such as Chell Sentek and Astle will see a boost in growth. Ken Ford on this: "The outlook, thanks to our agile business model, is positive and we are planning for further organic growth, including from one-off COVID-19 related orders, and appropriate acquisitions during 2021-22." "The need for SDI products, particularly in the life science and medical industries remains robust and there has been strong demand for technologies from several companies in our Group for use in the fight against the COVID-19 pandemic. The volatility in many global markets caused by the pandemic has impacted companies in our Group both positively and negatively this financial year, and we expect this to continue into 2022. However, underlying market drivers such as automation and in-line and off-line analysis for use in continuous processes, as well as the production of affordable vaccines and biologics globally means many of our technologies will continue to be in demand especially with original equipment manufacturers (OEMs) with which SDI companies have long standing trading relationships." Mike Creedon, CEO: "We expect those companies in the segment that have been affected negatively by COVID-19 to experience a period of growth as the impact of COVID-19 decreases." I think if you look at the JDG TU, JDG's order intake is still 17% behind COVID levels and you look at JDG's highly focused portfolio and compare it to SDI, you can see how high quality SDI's business is! SDI has a broadly diversified portfolio in less cyclical sectors. CAshflows come from a significant proportion of recurring revenues and the products and services are predominantly in the low cost range of 500-5000GBP whereas JDG is very focused on one sector and predominantly offers very expensive products. When you then see that JDG's growth has been slowing down for many years and is at a moderate growth level of ~12% while SDI is expanding with all growth factors and is showing a long-term high growth of ~30%, you see the very attractive valuation of SDI when you consider that JDG is almost twice as expensive as SDI on an FCF basis! I think Progressive Research sums up the potential of SDI well in their recent study: Summary and outlook "The Group is in a strong position financially with good operational cash flows and a solid order book. Management continues to seek targeted acquisitions, funded by cash flows from existing businesses and its £5m andrawn facilities coupled with access to a further facility if required. Acquisition targets are small/medium-sized companies with high-quality, niche technologies that have sustainable profits and cash flows. The strong FY21 performance, against the backdrop of the pandemic, demonstrates the resilience of the Group with a diversified group of companies. We believe that SDI is in a strong position to maintain its successful buy and build business model throughout FY22E. The outlook remains positive with further organic growth and acquisitions uplift expected, demonstrating continued commercial demand for the niche technologies SDI provides. We look forward to further positive updates as SDI Group has entered its current financial year (FY22E) from a position of strength." "We look forward to further positive updates as SDI Group has entered its current financial year (FY22E) from a position of strength." I fully endorse this statement ;-) No investment recommendation. Always check the statements yourself for correctness.
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20/7/2021
17:19		sweetunicorn: Update my valuation calculation on FCF basis after FY21 #SDI #FinalResults. SDI is currently trading at MC/FCF 19x at 180p with a reported FCF FY21 of £9.3m. The direct peer group (#HLMA #JDG #DPLM) is trading at a median MC/FCF of 34x. This results in a valuation discount of 80% to the peer on an FCF basis. The reported FCF includes a relevant portion of prepayments of GBP 3.5m (working capital). These prepayments are normal in the OEM business. SDI has continued to expand its OEM customer business, which will continue to increase in the long term, presumably leading to higher prepayments. Forward calculation. SDI has increased FCF by an average of 107% annually over the last 5y. If we now take into account the one-off orders from ATIK and MPB and assume 1-2 acquisitions as forecast by #SDI (conservatively calculated 14% M&A growth) and 6% organic growth, this results in 20% fwd FCF growth and GBP 11m FCF for the current FY22, which means #SDI is trading at 16x fwd FCF while the peer group is trading at 36x on a fwd FCF basis. Fundamental derivation of Fwd factors. The quality of acquisitions is increasing. SDI has a strong M&A pipeline, which is why the 1-2 acquisitions assumed by SDI management and thus 14% M&A growth seem realistic. Organically, there is further growth potential through crosselling effects and expansion into adjacent sectors and regional markets via existing networks. Monmouth is planning regional expansion into the US market via the existing Synoptiks networks, which should be realised in FY22. In addition, the strong investments in MBP and the Graticules Optics should have a positive impact on organic growth starting in FY22. Summary: Given the massive valuation discount to peers with lower growth factors and the strong ongoing growth potential of #SDI, I consider SDI to be very attractively valued and see great long-term upside potential. I maintain my personal 12m fwd PT of 300p for end July 2022. 65% upside potential 12m fwd. I think the analysts' PT of 195p is very conservative and I see a lot of room for upgrades. No investment recommendation. Check the correctness of the data yourself!
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15/7/2021
18:12		sweetunicorn: SDI buys companies at attractive prices at 3-6x EBIT (median last 12 acquisitions ~4.5x). Compared to the peer group SDI can buy at very attractive prices which is mainly due to the target range in TAM where SDI focuses on small companies for which they pay ~£4-7m. I think the focus on the quite attractively valued GB TAM compared to very expensive US TAM also plays into SDI's hands. SDI also regularly acquires companies that they know or have worked with. SDI also has long-standing good relationships with owners who are potentially inclined to sell their businesses one day. This reduces risk and makes it easier to negotiate a price that is fair to both parties. SDI is not entering the roll-up hamster wheel of being driven from one acquisition to the next. SDI is focused on buying and building, leveraging synergies and crosseling effects to maintain organic growth towards 10% while working through its strong M&A structures with a strong M&A pipeline to maintain M&A growth at 20% by making a platform acquisition every FY and building on it with smart add-on acquisitions. SDI has invested heavily in its existing businesses, which has had a strong positive impact in recent months. In particular, the investments in strong marketing and sales structures at the subsidiaries have already had a positive impact and will continue to have a positive effect in the long term. There continues to be strong growth potential on the organic and M&A front through regional and sector expansion via existing networks/businesses and add-on acquisitions or through platform acquisitions in new regions or sectors. SDI's portfolio is focused on less cyclical industries and the service and products are predominantly in the low to medium range of 500-5000 GBP and are largely supplied in customised versions to sticky customers and many OEM customers. The low price range and the low cyclical sectors in which the products and services are offered ensure that they are not financed by the customer in the cone, which makes the cash flows less sensitive to interest rates. As the cash flows are predominantly generated in less cyclical and narrow niches, the cash flows are stable over a full interest rate and economic cycle, which enhances their value in the DCF model. In addition, these factors provide strong pricing power, which also supports the high and consistently rising margins. SDI has been able to increase FCF by ~85% p.a. on average since 2017. The FCF growth as well as the other growth factors (revenue + profit) and the profitability factors (ROIC) are in expansion (YOY % change), which indicates systemically positive developments and further strong growth. Management continues to emphasise that it does not want to distribute FCF via dividends or share buybacks because it sees enough attractive reinvestment opportunities. The peer group, on the other hand, distributes ~45% of its FCF while SDI can reinvest the full FCF at a high ROIC (>15%). SDI continues to expand its M&A structures and the CEO emphasised that as the company grows in size and complexity due to the increasing number of companies and possibly an additional sector, he will strive to introduce an additional management level at the sector management level, as is also the case with Halma. Due to the strong growth structures SDI has implemented in recent years and the stable low cyclical strong growing FCF which should currently be at ~GBP7-8m, a strong M&A buy and build structure and the resulting strong growth potential, I consider SDI to be very attractively valued. The comparable larger serial acquirers such as Halma Judges Diploma Danaher Heico Addtech etc. have not been able to expand their growth for years but are mostly in growth contraction while SDI continues to accelerate growth across all growth factors. At the same time, SDI is growing at about twice the rate of its peer group. In the long term, prices will always adjust to the fundamental development. And I think a high performance serial aquirer like SDI which can increase its FCF with ~28% in the long run and with currently ~25x FCF trades at a more than 40% discount to its peer group can easily grow into its valuation. SDI will be able to grow its intrinsic value very strongly over the next few years due to its very strong reinvestment moat, creating very satrk value for its shareholders. I am a very long-term investor and do not intend to sell my positions. If the reinvestment opportunities deteriorate in many years (Berkshire effect - big numbers) SDI will start to pay out part of the strong cash flow as dividends. on the current share prices there will then be strong dividend rewards. To recognise the high quality of SDI requires a very deep study of the individual subsidiaries and corporate structures. No investment recommendation.
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10/7/2021
08:58		sweetunicorn: I focus by serial acquirers primarily on the development of FCF -- FCF/Share. At the same time, revenue growth and profitability (ROIC) are key factors in my valuation process for SA compounders. I mainly focus after the analysts of FinnCap they serve as advisors to SDI and I think they have a good insight into the operational business. This also confirms why FinnCap's forecasts are regularly very close to the published numbers. Progressive Research also thinks SDI through with regular research. However, Progressive tends to be more superficial in its analysis according to my assessment and tends to be further behind the published figures with its rather cautious forecasts. FinnCap forecast FCF of GBP6.6m for the past FY21, ~5% below my forecast FCF FY21 of GBP7.1m. Progressive Research, on the other hand, forecasts an FCF of only GBP 4.5m, which I consider to be very low. It is noticeable that Progressiv has not adjusted or raised its FCF forecast since the Feb TU although SDI pushed the numbers up again in May TU. I regularly go into developments at SDI on my Twitter channel and also on the factors of FCF development. But I can briefly give an overview of how I arrive at FCF of ~7.1mil fY21. FCF for full FY20 was £3.042m. FCF for H1 FY21 6 months to 31 Oct 2021 was reported in the half year report FY21 FCF GBP 3.833m. This means in the first 6 months of FY21 #SDI already has ~28% more FCF than in full FY20! H1 ended 10/31/20, ahead of extremely good TA Feb 2021 with strong OEM orders at ATIK. Atik then released another update in March 2021 after the TA in Feb, where they wrote about several OEM orders. Also, the Monmouth acquisition and the Uniform acquisition were not included in the first half of FY21 and will only have a strong positive impact on FCF in H2 FY21. In addition, the handover of a GBP1m+ project to a leading turbine manufacturer was reported by Chell in H2 which should also make payment in H2 due after handover. In addition, it was reported in H2 that business at Synoptics is excellent and also from the Thermal division strong new trade partnerships and regional expansion e.g. to Africa were reported, which should have driven sales further strongly in this area in H2. Furthermore, the merger of Thermal Exchange and ATC was reported in H2, which should eliminate these unnecessary duplicate structures in the future and thus also generate cost savings and at the same time positive potential through knowledge exchange and process standardization. Furthermore, it could be observed how in the subsidiaries in H2 FY21 the personnel reinforcement and upgrading in the sales and marketing departments was further strongly accelerated. Also, the very strong developments at Monmouth especially the numerous major projects with clean rooms in H2 should have had a particularly positive impact on H" FCF after the earnings out in Feb/March. Thus, I personally assume that SDI was able to moderately improve FCF growth in H2 compared to H1 because the Corona tailwind continued but in addition the burdens in the other areas have dissipated and returned to old heights. Assuming that SDI achieved the same FCF in H2 FY21 as in H1 FY21 this would mean a FCF for the full FY21 of ~£7.7m. I have deducted a safety margin of 10% for my calculation and therefore forecast a FCF of ~7.1m GBP for the past FY21, which would mean that SDI is currently trading at a closing price of 1.90GBP and a MC of 188GBP at a MC/FCF of ~26x. This means a discount to the peer group which trades at ~35x a discount of 25%. Forcast/Fwd Multiples: Mean FCF growth since 2017 is ~85% at the year! If we now assume that #SDI can grow ~20% acquisitively with a further acquisition in the current FY22 and ~10% with strong organic growth in the range of 30% (this is also expected by SDI management in the long term), this results in an FCF of ~£9.3m for FY22, which would mean that SDI is currently trading at a 12m fwd FCF multiple of ~20x. This implies a valuation discount to the peer group (fwd multiple mean 36x) of ~80%. I hereby confirm my personal 12m fwd Price target for SDI of ~300p by end of July 2022 which would correspond to an expected 12m return of ~55% from the current price at 190p. Serial acquirers and high performance compounders like SDI are often undervalued. Investors find it very difficult to recognize the future potential. In order to recognize the potential of high quality serial acquirers and to be able to determine future growth factors as accurately as possible, it is absolutely necessary to take a very close look at the company structures. It is important to know the corporate culture and the performance of the management as well as the created structures and networks. Personally, I think SDI has created the necessary highly decentralized structures and has the potential across all management levels to continue to grow its low cyclical business at ~25-30% p.a. over the long term. SDI is still in the young growth phase and the growth drivers are all in expansion (Change YoY %). The profitability factors (margins/return on investment) are also expanding and are already at a very high level compared to peers. The high sales and FCF growth in the mid 2-digit range in combination with the very high profitability (ROIC) as well as a solid reinvestment moat via a strong M&A structure and M&A pipeline make SDI an excellent high quality compounding business which is however regularly underestimated by investors. However, I believe the valuation discount will increasingly dissipate as large and financially strong global investors take notice of SDI. With JP Morgan and Danske Bank, the first major international investors have already set foot in the SDI door in FY21 H2 / FY22H1. This is not an investment recommendation everything I write are personal thoughts and the information must be checked by the reader himself for accuracy and completeness!
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08/7/2021
09:01		sweetunicorn: I have added #SDI positions 194p. In the short term, shaky hands seem to be further interested in profit taking. In the long term, I see 194p as buy prices . The very bullish long term investment case remains intact. The median consensus estimate from both analysts FinnCap Progressive Research forecasts FCF FY21 of £5.6m. FinnCap expects FCF FY21 of GBP6.6m. I think #SDI could be slightly above estimates at ~GBP7.1m. With my expected FCF FY21 of GBP7.1m, #SDI would trade at MC/FCF ~27x. Compared to peer group #JDG #DPLM #HLMA, which trades at ~37x on average, this gives a steep valuation discount. I think this valuation discount will disappear after the #SDI Final Results FY21 announcement on 20 July and an informative statement from management on 23 July. I expect more large international high quality financially strong investors to take notice of SDI's great potential. I expect FinnCap to adjust the #SDI price target by 10% to reflect the final results. In addition, I expect high quality acquisitions in the current FY to add another ~10% to FinnCap PT. In addition, I expect further strong organic growth through regional expansion (e.g. Monmouth -- USA) and the strong investment in high quality sales and marketing personnel will have an increasingly positive impact. With FY22 fwd12m growth factors, I expect FCF growth of 25%, giving fwd FCF FY22 ~£9m. This would result in #SDI currently trading at a fwd MC/FCF of ~21x, #HLMA #JDG #DPLM at a ~38x fwd FCF basis. I see a 12m upside potential of ~55% and set my personal #SDI price target at 300p by end July 2022. Not an investment recommendation. Always check data and details yourself. I am very heavily invested "long" SDI.
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26/6/2021
13:18		sweetunicorn: SDI very weak trading volume with further downward trend (volume) this week with very small buyers mostly buying up the price under weak volume with unlimited orders, while financially strong investors regularly used these opportunities to sell material under larger orders. Falling prices under high volume with larger sell orders from the financially strong investors while the small investors buy up the price with small amounts under low volume indicates a confirmation of the long-term seasonal effect also for SDI. In the last 5y, the phase from mid-June to the publication of the final results in mid-July was characterised by falling volume and increasing selling pressure. This was regularly followed by a sideways consolidation in which the short-term exhausted conditions in the indicators were reduced. The SDI price has broken out above its long-term 5y trend, which has taken place under a strong multiple expansion in the last 12 months. SDI multiples on a fwd FCF basis have increased from 17x to 37x in the last 12 months. SDI is trading at a fwd MC/FCF multiple of 37x based on analyst estimates of FY21 FCF of £5.5m while Diploma and Judges are trading as direct peers to SDI at a fwd multiple of 34.5x. I think many small retail investors may have ridden the momentum wave somewhat FOMO driven while the financially strong often institutional investors are waiting for the final results to confirm the growth factors. FinnCap is trading SDI at a target price of 195p and fwd FCF FY21 6,6mio GBP. Historically, the market has been very much +-20p around FinnCap's target price. I think a lot of good news has been priced in. Indicators have run up a bit and the long term 5y trend channel has been exhausted to the upside. I think the market might be interested in running sideways back into the long term trend channel in the 180-205p range, taking some heat off indicators + valuation. With confirmation of expansion in broad growth factors and fresh impetus from the return of financially strong investors following the FY21 Final Results announcement, I can envisage a further moderate rise in the price under rising trading volumes. Before that, the seasonal effects should continue and selling pressure should increase as volume continues to fall, so that I personally expect prices around FinnCap's price target of 195p in the next few weeks which would surprise some weak hands. As a long-term investor, I see prices of 180p-195p as excellent entry or post-buy prices. I stand by my positive long-term expectations, which I have shared here in the past, but I do see potential for a consolidation in the short term. I am heavily invested in SDI. Always check the information for yourself. Anything I write is NOT an investment recommendation! hTTps://twitter.com/jogilog2/status/1406998179359363074
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15/6/2021
07:49		sweetunicorn: Monmouth is currently very much in the focus of investor perception. Monmouth has also been a great buy for SDI and Monmouth offers great potential with its very motivated and intelligent management. But I don't think one should underestimate or neglect the other excellent SDI companies. Numerous other SDI companies are also currently undergoing very strong developments that offer great potential. Here are a few examples: Sentek with its excellent sticky customer relationships. You have to love this kind of business as an investor, as #Sentek does. Products priced £5-500 to be used for 6-12 months and then replaced. High recurring revenue business diversifies into many different low cyclical sectors. High OEM customer share + Dominant in niches. Thereby cross-selling effects e.g. to Astle. At ATC there have been further pleasing developments that are already bearing fruit. In recent months, ATC announced the merger with Termal Exchange and was able to enter into strong trading and service partnerships that will allow the business to expand further, e.g. to South Africa. hTTps://www.app-therm.com/news/south-africa-distriubutor-als.aspx hTTps://www.app-therm.com/news/gd-rectifiers.aspx ATC has also released a new service prospectus which should further increase sticky recurring revenues and Uniform Engineering should continue to benefit from additional orders through increased cross-selling demand. Atik and Synoptiks continue to benefit from strong Covid backed demand for test and analysis solutions. I would like to mention the high quality personnel upgrade at Atik with Jason Evans and since May also Frederico Dias strengthening the Atik management. But across all subsidiaries you can see the expansion in high quality personnel to expand production capacity due to high demand but also the marketing and administration level to further accelerate growth organically. Chell Instruments also continues to push its development and sales in new areas such as electrified aviation. Chell's increasingly strong presence in the industry-specific media is noticeable on the public channels and Chell is expanding its sector dominance with further product launches that address the very specific needs and requirements of market-leading customers. In particular, I would like to point out that the SDI CEO Mike told that there should still be changes at Synoptics/Syngene this FY in the area of sales of PCR workstations. Synoptics is currently still selling low-cost PCR workstations from a third-party supplier through its subsidiary. However, work is already underway to offer Monmouth products and services in the future. hTTps://www.syngene.com/product-category/pcr-workstations/ Many investors have been surprised by SDI's dynamic growth in returns. However, the strong price performance is only a reflection of the very strong expansionary growth trend and the high future growth potential that the strong buy and build strategy can provide in the future. The broadly diversified portfolio across less cyclical sectors offers robust and strongly growing cash flows. This strong price performance and expansion of growth factors (change YoY %) are particularly typical of the early growth phase of a high performing serial acquirer. Personally, I roughly take my cue from the performance of Judges Scientific Plc when roughly assessing SDI's potential. Judges doubled revenue and EBITDA in 4y from 2010 to 2014 (20% p.a.). Share price increased by 1673% in the same 4y period (~100% p.a.) However, for Judges, the growth factors have been in contraction for over 10y. In the last 16 years, the share price of Judges increased by 5633% (28.8% p.a.). Since its IPO, SDI has achieved a moderate share price performance of 1025% (22% p.a.) in the last 12.2y. In the last 5y SDI shows a growth over the broad growth factors of 32%. Growth and annual returns are in a dynamic expansion. SDI is about half the size of Judges in terms of revenue and earnings (EBITDA), but has a much higher growth rate and is able to expand this growth, while Judges' growth and profitability (margins, return on investment) has been weakening for years. If an investor looks at Judges' historical performance and compares it to SDI's current performance, and takes into account the great value Judges has provided to its shareholders at a lower fundamental performance than SDI, one can roughly estimate the extremely great future potential of the company. I am heavily invested in SDI. Always check the information yourself. Everything I write is NOT an investment recommendation! JDG Performance 2010-2014: https://ibb.co/F8rCtkB Data and Growth Fakts #JDG vs. #SDI: https://ibb.co/djK1NVh
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10/6/2021
07:40		sweetunicorn: It is a very theoretical assumption because the markets tend to be inefficient for SC in general and for serial acquirers in particular in the young phase. But I personally think prices around or above 300p 8/22 are realistic. I personally anticipate a strong FY21 and expect growth over the broad growth factors for FY22 of 25-30%. In addition, I see potential arising from further moderate multiple expansion as the market prices out the SC discount and SDI's valuation aligns with the peer group mean. But I don't really like these short-term thoughts on SDI, which is why I will hold back here. I am very long-term oriented and consider SDI a very long-term investment. There is a very large potential via the smart buy and build strategy. SDI has a portfolio of companies oriented towards less cyclical sectors. There are strong cross-selling effects and scalability. Regional expansion and expansion into adjacent sectors, which can be implemented via add-on or platform acquisitions, provide further strong growth opportunities. SDI generates a significant proportion of its revenue from recurring regular sales. The stable and constantly increasing CAshflows are also predominantly achieved in a broadly diversified manner across various sectors and regions and in rather less cyclical sectors, which should ensure that the CAshflows remain consistently high over a full economic cycle. Serial acquirers, especially in the early and still very dynamic growth phase in which the broad growth factors are in expansion (change YoY %), are real compounding monsters. With high profitability (ROICE over 20%), the strongly rising FCF can always be reinvested in high-quality acquisitions and thus further accelerate the compounding rate and thus growth. The problem that many investors have is that conventional valuation methods have problems valuing the potential of future acquisitions and the resulting crosselling and scalability potential of such powerful, predominantly M&A-driven growth machines (organic growth at SDI is nevertheless extremely robust and high at ~8%). I think we will continue to see 1-2 acquisitions/FY at SDI in the long term. However, these are my personal assumptions. They only show a brief outline of my valuation. I am heavily invested in SDI. Always check the information yourself. Everything I write is NOT an investment recommendation!
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09/6/2021
11:53		sweetunicorn: SDI can be compared well with Halma because of the very similar structures... let's do a quick evaluation comparison on a forward PBT basis. ... SDI is trading at 21x fwd PBT (profit before tax) (based on the very conservative forecast of SDI management from the last TU with forecast FY22 PBT 8.7m GBP). Whereas I personally believe SDI to have a forward growth factor of 25%-30%. Assuming 15% profit growth for Halma over the next 12 months, which I personally find very sporting given the lack of acquisitions/M&A growth and 5y PBT growth of ~10% p.a.), this gives Halma an estimated FY22 pre-tax profit/PBT of ~GBP307m, which at the current share price means Halma is trading at 33 times fwd PBT at about half the growth factor of SDI! Personally, I think the huge potential of SDI is still misunderstood by the market because investors regularly fail to recognise cross-selling effects, scalability and opportunities for regional expansion as well as the impact of future acquisitions in such high-performance serial acquirers. An intelligent buy and build strategy offers almost unlimited upside growth opportunities through regional and sectoral expansion. No investment recommendation! Data and figures must always be checked by the investor! Note: I am very heavily invested in SDI! ... and therefore probably extremely biased ;-)
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08/6/2021
08:13		sweetunicorn: The market is taking steps to reduce the strong valuation discount to the peer group. SDI has more than twice the average growth across the broad growth factors of the peer average, but is still trading at a significant valuation discount to FCF BAsis. Serial acquirers should always be valued on an FCF basis. Currently, the market is trading SDi at a Fwd FCF factor of GBP 5.5m for FY21. I expect a FCF FY21 of GBP 7m. This would mean that SDI is currently trading at MC/FCF 28x (peer group average is 36x). If I assume 35% FCF growth for FY22, which is very conservative, and factor out the COVID support for FY22 (SDI 5y FCF growth ~100%), I arrive at a fwd MC/FCF for FY22 of 21x at current prices. If one assumes that the market will grant SDI a peer average multiple as it matures, this results in a share price potential of ~70% for the next 14 months until the publication of the FY22 figures. In the long term, SDI management expects organic growth of ~8% and additional M&A growth of ~20%. I assume long-term growth across the broad growth drivers of ~25% p.a. I have written a few things here about SDi... https://twitter.com/jogilog2/status/1391033498933288965 Posts are not investment recommendation. Check information yourself.
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