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GlobalData (LSE: DATA) is an AIM-listed UK inventory that doesn’t get an excessive amount of mainstream protection. At the moment at 151p, it’s down 33% over the previous yr, giving it a market cap of £1.2bn.
In years passed by although, the GlobalData share worth was on hearth. Between 2010 and 2020, it surged 1,800%!
May this now be a hidden gem for traders to contemplate? Let’s take a better look.
What it does
GlobalData makes cash by promoting knowledge analytics and trade insights to organisations and companies. It offers these to a number of sectors, together with healthcare, expertise, banking, and vitality.
On the finish of 2024, the corporate served almost 5,000 shoppers worldwide, with round 75% of its income subscription-based. It’s a fan of a bolt-on acquisition, and made 4 final yr for a complete value of £88m. These will all be “earnings accretive”, the agency says.
Traditionally, GlobalData has aimed for underlying income progress of 10%. Final yr, nonetheless, income got here in at £285.5m, representing underlying progress of simply 4%.
On the plus aspect, the adjusted EBITDA margin held regular at 41%, and over 42,000 customers at the moment are subscribed to its AI Hub.
Bidders circling
The corporate is in the midst of a three-year Development Transformation Plan (2024–2026). It’s focusing on £500m annualised income by the tip of 2026.
As a part of this, it offered a 40% stake in its healthcare enterprise to Inflexion final yr for £451m. This massively strengthened the stability sheet and offers flexibility for acquisitions. Boosted by paying much less debt prices, the agency’s earnings are set to greater than double by 2027.
In line with forecasts, this places the inventory’s forward-looking price-to-earnings ratio for 2026 at simply 15. That’s low cost for a longtime knowledge agency. Certainly, if its progress plan is profitable, it may become an absolute cut price.
Maybe that’s why non-public fairness teams have been sniffing round. Nonetheless, the tech firm lately ended all takeover talks.
GlobalData publicizes right now that it has terminated discussions…The Board stays extremely assured sooner or later prospects of GlobalData.
GlobalData, June 2025
Dangers
Round half of complete income comes from the UK and US. Subsequently, a recession in both or each may see lowered enterprise spending, particularly amongst mid-tier shoppers. A extreme downturn may even derail the three-year progress targets.
One other factor value mentioning right here is that GlobalData rebased its 2024 dividend, shifting capital priorities towards acquisitions. The full dividend fell 46%, from 4.6p to 2.5p, and is forecast to fall once more this yr.
Some traders would possibly discover this disappointing, contemplating there had been common double-digit will increase in earlier years. The forecast yield now stands at simply 1.1%.
Potential hidden gem?
As an AIM-listed inventory, GlobalData doesn’t get a great deal of analyst protection. However of the 5 brokers that do comply with it, all charge it as a Robust Purchase.
Furthermore, their one-year common worth goal is 256p, which is a whopping 69% above the present degree! No ensures it’ll ever attain that, after all.
Wanting forward, the agency plans to maneuver to the principle market. This could see it be part of the FTSE 250, which may spark extra investor curiosity and help a better valuation.
Weighing issues up, my view is that this may occasionally certainly be a hidden gem, and is due to this fact value contemplating at 151p.
