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GlobalData (LSE: DATA) is an AIM-listed UK stock that doesn’t get too much mainstream coverage. Currently at 151p, it’s down 33% over the past year, giving it a market cap of £1.2bn.
In years gone by though, the GlobalData share price was on fire. Between 2010 and 2020, it surged 1,800%!
Might this now be a hidden gem for investors to consider? Let’s take a closer look.
What it does
GlobalData makes money by selling data analytics and industry insights to organisations and businesses. It provides these to multiple sectors, including healthcare, technology, banking, and energy.
At the end of 2024, the company served nearly 5,000 clients worldwide, with around 75% of its revenue subscription-based. It’s partial to a bolt-on acquisition, and made four last year for a total cost of £88m. These will all be “earnings accretive”, the firm says.
Historically, GlobalData has aimed for underlying revenue growth of 10%. Last year, however, revenue came in at £285.5m, representing underlying growth of just 4%.
On the plus side, the adjusted EBITDA margin held steady at 41%, and over 42,000 users are now subscribed to its AI Hub.
Bidders circling
The company is in the middle of a three-year Growth Transformation Plan (2024–2026). It’s targeting £500m annualised revenue by the end of 2026.
As part of this, it sold a 40% stake in its healthcare business to Inflexion last year for £451m. This massively strengthened the balance sheet and provides flexibility for acquisitions. Boosted by paying less debt costs, the firm’s earnings are set to more than double by 2027.
According to forecasts, this puts the stock’s forward-looking price-to-earnings ratio for 2026 at just 15. That’s cheap for an established data firm. Indeed, if its growth plan is successful, it could turn out to be an absolute bargain.
Perhaps that’s why private equity groups have been sniffing around. However, the tech company recently ended all takeover talks.
GlobalData announces today that it has terminated discussions…The Board remains highly confident in the future prospects of GlobalData.
GlobalData, June 2025
Risks
Around half of total revenue comes from the UK and US. Therefore, a recession in either or both could see reduced enterprise spending, especially among mid-tier clients. A severe downturn could even derail the three-year growth targets.
Another thing worth mentioning here is that GlobalData rebased its 2024 dividend, shifting capital priorities toward acquisitions. The total dividend fell 46%, from 4.6p to 2.5p, and is forecast to fall again this year.
Some investors might find this disappointing, considering there had been regular double-digit increases in previous years. The forecast yield now stands at just 1.1%.
Potential hidden gem?
As an AIM-listed stock, GlobalData doesn’t get loads of analyst coverage. But of the five brokers that do follow it, all rate it as a Strong Buy.
Moreover, their one-year average price target is 256p, which is a whopping 69% above the current level! No guarantees it’ll ever reach that, of course.
Looking ahead, the firm plans to move to the main market. This should see it join the FTSE 250, which could spark more investor interest and support a higher valuation.
Weighing things up, my view is that this may indeed be a hidden gem, and is therefore worth considering at 151p.
This story originally appeared on Motley Fool
