Latest news with #FDMGroup
Arab News
10 hours ago
- Business
- Arab News
Four years with a company counts as loyalty in the modern job market, HR summit hears
RIYADH: An employee who remains in the same role for four years is considered loyal in today's job market, the audience at a human resources conference in Riyadh heard during a panel discussion on Tuesday. The comment, at the Human Resources Summit and Expo, came from Syed Azharudin, director of learning and organizational development at logistical services company Ajex, who cited a recent study into workforce trends. Generational diversity is a factor that has to be addressed, he added. 'The biggest challenge for the HR industry is that you have different generations working together, like Gen X, baby boomers, millennials, Gen Z, and soon Gen Alpha, so you cannot have a blanket approach,' Azharudin said. People from the most recent generations are more likely to be 'job-hoppers,' he added; a study by global tech consultancy FDM Group found that Generation Z respondents were 13 per cent more likely than their non-Gen Z counterparts to view their current role as a stepping stone to a better career. In other sessions, HR experts discussed the effects of artificial intelligence on the job market, and explored the strategies companies need to adopt in their attempts to 'future-proof' talent and navigate ever-changing work landscapes. As the rapidly evolving technology continues to dominate headlines, they considered a hot-button question: What would the future look like if human labor was replaced by AI? 'We're not going to lose (our jobs) but we also need to make sure that we go efficiently and with innovative ways to utilize such tools,' said Eid Alkhaldi, succession management director at the Saudi Telcom Company. During another discussion, Nada Al-Hassan, the Saudi Ministry of Investment's director of training and development, spoke about ways to advance inclusive leadership in the region. 'There are a lot of success stories and a lot of initiatives in all governmental sectors (in Saudi Arabia),' she said, highlighting in particular the Vision 2030 Human Resources Development Program and the Saudization program Tawteen. The Human Resources Summit and Expo began on June 15 and continues until June 19.
Yahoo
01-06-2025
- Business
- Yahoo
It Might Not Be A Great Idea To Buy FDM Group (Holdings) plc (LON:FDM) For Its Next Dividend
It looks like FDM Group (Holdings) plc (LON:FDM) is about to go ex-dividend in the next 3 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase FDM Group (Holdings)'s shares on or after the 5th of June, you won't be eligible to receive the dividend, when it is paid on the 27th of June. The company's next dividend payment will be UK£0.125 per share, on the back of last year when the company paid a total of UK£0.23 to shareholders. Last year's total dividend payments show that FDM Group (Holdings) has a trailing yield of 9.9% on the current share price of UK£2.27. If you buy this business for its dividend, you should have an idea of whether FDM Group (Holdings)'s dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. FDM Group (Holdings) distributed an unsustainably high 120% of its profit as dividends to shareholders last year. Without more sustainable payment behaviour, the dividend looks precarious. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 110% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Companies usually need cash more than they need earnings - expenses don't pay themselves - so it's not great to see it paying out so much of its cash flow. FDM Group (Holdings) does have a large net cash position on the balance sheet, which could fund large dividends for a time, if the company so chose. Still, smart investors know that it is better to assess dividends relative to the cash and profit generated by the business. Paying dividends out of cash on the balance sheet is not long-term sustainable. Cash is slightly more important than profit from a dividend perspective, but given FDM Group (Holdings)'s payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. See our latest analysis for FDM Group (Holdings) Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see FDM Group (Holdings)'s earnings per share have dropped 13% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, FDM Group (Holdings) has lifted its dividend by approximately 4.1% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. FDM Group (Holdings) is already paying out 120% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Should investors buy FDM Group (Holdings) for the upcoming dividend? It's looking like an unattractive opportunity, with its earnings per share declining, while, paying out an uncomfortably high percentage of both its profits (120%) and cash flow as dividends. This is a starkly negative combination that often suggests a dividend cut could be in the company's near future. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being. With that in mind though, if the poor dividend characteristics of FDM Group (Holdings) don't faze you, it's worth being mindful of the risks involved with this business. To help with this, we've discovered 2 warning signs for FDM Group (Holdings) that you should be aware of before investing in their shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-06-2025
- Business
- Yahoo
It Might Not Be A Great Idea To Buy FDM Group (Holdings) plc (LON:FDM) For Its Next Dividend
It looks like FDM Group (Holdings) plc (LON:FDM) is about to go ex-dividend in the next 3 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase FDM Group (Holdings)'s shares on or after the 5th of June, you won't be eligible to receive the dividend, when it is paid on the 27th of June. The company's next dividend payment will be UK£0.125 per share, on the back of last year when the company paid a total of UK£0.23 to shareholders. Last year's total dividend payments show that FDM Group (Holdings) has a trailing yield of 9.9% on the current share price of UK£2.27. If you buy this business for its dividend, you should have an idea of whether FDM Group (Holdings)'s dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. FDM Group (Holdings) distributed an unsustainably high 120% of its profit as dividends to shareholders last year. Without more sustainable payment behaviour, the dividend looks precarious. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 110% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Companies usually need cash more than they need earnings - expenses don't pay themselves - so it's not great to see it paying out so much of its cash flow. FDM Group (Holdings) does have a large net cash position on the balance sheet, which could fund large dividends for a time, if the company so chose. Still, smart investors know that it is better to assess dividends relative to the cash and profit generated by the business. Paying dividends out of cash on the balance sheet is not long-term sustainable. Cash is slightly more important than profit from a dividend perspective, but given FDM Group (Holdings)'s payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. See our latest analysis for FDM Group (Holdings) Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see FDM Group (Holdings)'s earnings per share have dropped 13% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, FDM Group (Holdings) has lifted its dividend by approximately 4.1% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. FDM Group (Holdings) is already paying out 120% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Should investors buy FDM Group (Holdings) for the upcoming dividend? It's looking like an unattractive opportunity, with its earnings per share declining, while, paying out an uncomfortably high percentage of both its profits (120%) and cash flow as dividends. This is a starkly negative combination that often suggests a dividend cut could be in the company's near future. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being. With that in mind though, if the poor dividend characteristics of FDM Group (Holdings) don't faze you, it's worth being mindful of the risks involved with this business. To help with this, we've discovered 2 warning signs for FDM Group (Holdings) that you should be aware of before investing in their shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-03-2025
- Business
- Yahoo
FDM Group (Holdings) Full Year 2024 Earnings: EPS Misses Expectations
Revenue: UK£257.7m (down 23% from FY 2023). Net income: UK£20.5m (down 50% from FY 2023). Profit margin: 8.0% (down from 12% in FY 2023). The decrease in margin was driven by lower revenue. EPS: UK£0.19 (down from UK£0.37 in FY 2023). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.6%. The primary driver behind last 12 months revenue was the United Kingdom segment contributing a total revenue of UK£104.0m (40% of total revenue). Notably, cost of sales worth UK£142.8m amounted to 55% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£87.5m (93% of total expenses). Explore how FDM's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 7.5% growth forecast for the IT industry in the United Kingdom. Performance of the British IT industry. The company's shares are up 15% from a week ago. What about risks? Every company has them, and we've spotted 3 warning signs for FDM Group (Holdings) you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
16-03-2025
- Business
- Yahoo
Calculating The Intrinsic Value Of FDM Group (Holdings) plc (LON:FDM)
FDM Group (Holdings)'s estimated fair value is UK£2.02 based on 2 Stage Free Cash Flow to Equity FDM Group (Holdings)'s UK£2.19 share price indicates it is trading at similar levels as its fair value estimate Analyst price target for FDM is UK£4.28, which is 112% above our fair value estimate In this article we are going to estimate the intrinsic value of FDM Group (Holdings) plc (LON:FDM) by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. View our latest analysis for FDM Group (Holdings) We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£22.2m UK£24.0m UK£19.3m UK£16.8m UK£15.4m UK£14.6m UK£14.2m UK£14.0m UK£14.0m UK£14.0m Growth Rate Estimate Source Analyst x2 Analyst x2 Est @ -19.48% Est @ -12.95% Est @ -8.37% Est @ -5.17% Est @ -2.93% Est @ -1.36% Est @ -0.26% Est @ 0.51% Present Value (£, Millions) Discounted @ 8.4% UK£20.5 UK£20.4 UK£15.2 UK£12.2 UK£10.3 UK£9.0 UK£8.1 UK£7.3 UK£6.7 UK£6.3 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = UK£116m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£14m× (1 + 2.3%) ÷ (8.4%– 2.3%) = UK£234m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£234m÷ ( 1 + 8.4%)10= UK£104m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£220m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of UK£2.2, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at FDM Group (Holdings) as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 1.193. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Currently debt free. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Dividends are not covered by earnings. Annual earnings are forecast to decline for the next 3 years. Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For FDM Group (Holdings), we've compiled three pertinent items you should consider: Risks: We feel that you should assess the 2 warning signs for FDM Group (Holdings) (1 doesn't sit too well with us!) we've flagged before making an investment in the company. Future Earnings: How does FDM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
