Buy Or Sell Opportunity • May 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to NZ$0.59. The fair value is estimated to be NZ$0.75, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.9% over the last 3 years. Earnings per share has declined by 25%. Buy Or Sell Opportunity • Mar 20
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.1% to NZ$0.59. The fair value is estimated to be NZ$0.75, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.9% over the last 3 years. Earnings per share has declined by 25%. Upcoming Dividend • Mar 16
Upcoming dividend of NZ$0.02 per share Eligible shareholders must have bought the stock before 23 March 2026. Payment date: 13 April 2026. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 6.7%. Within top quartile of New Zealander dividend payers (6.0%). Higher than average of industry peers (1.1%). Reported Earnings • Mar 04
First half 2026 earnings released: EPS: NZ$0.015 (vs NZ$0.16 in 1H 2025) First half 2026 results: EPS: NZ$0.015 (down from NZ$0.16 in 1H 2025). Revenue: NZ$17.0m (down 34% from 1H 2025). Net income: NZ$214.0k (down 91% from 1H 2025). Profit margin: 1.3% (down from 9.0% in 1H 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has fallen by 34% per year, which means it is performing significantly worse than earnings. New Risk • Mar 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of New Zealander stocks, typically moving 5.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 4.0% per year over the past 5 years. Market cap is less than US$10m (NZ$9.98m market cap, or US$5.95m). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.2% average weekly change). Profit margins are more than 30% lower than last year (1.5% net profit margin). New Risk • Feb 27
New major risk - Revenue and earnings growth Earnings have declined by 4.0% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 4.0% per year over the past 5 years. Market cap is less than US$10m (NZ$10.1m market cap, or US$6.02m). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.5% net profit margin). New Risk • Sep 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of New Zealander stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (NZ$10.9m market cap, or US$6.41m). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.7% average weekly change). Declared Dividend • Aug 30
Dividend of NZ$0.03 announced Shareholders will receive a dividend of NZ$0.03. Ex-date: 10th September 2025 Payment date: 26th September 2025 Dividend yield will be 4.5%, which is higher than the industry average of 0.8%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (10% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 6.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Aug 29
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 4.5% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (NZ$9.71m market cap, or US$5.71m). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Aug 29
Full year 2025 earnings released: EPS: NZ$0.18 (vs NZ$0.19 in FY 2024) Full year 2025 results: EPS: NZ$0.18 (down from NZ$0.19 in FY 2024). Revenue: NZ$41.3m (up 7.4% from FY 2024). Net income: NZ$2.62m (down 7.1% from FY 2024). Profit margin: 6.3% (down from 7.3% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Annonce • Aug 28
Solution Dynamics Limited, Annual General Meeting, Nov 20, 2025 Solution Dynamics Limited, Annual General Meeting, Nov 20, 2025. Location: 18 canaveral drive, albany, auckland New Zealand New Risk • Nov 27
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of New Zealander stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Market cap is less than US$10m (NZ$16.5m market cap, or US$9.67m). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. New Risk • Nov 13
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: NZ$16.3m (US$9.69m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (NZ$16.3m market cap, or US$9.69m). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Annonce • Sep 13
Being AI Limited (NZSE:BAI) proposed to acquire an unknown minority stake in Solution Dynamics Limited (NZSE:SDL). Being AI Limited (NZSE:BAI) proposed to acquire an unknown minority stake in Solution Dynamics Limited (NZSE:SDL) on September 12, 2024. Consideration is in the form of either a 100% scrip option or an offer for a combination of cash and scrip. Declared Dividend • Aug 24
Final dividend of NZ$0.025 announced Shareholders will receive a dividend of NZ$0.025. Ex-date: 10th September 2024 Payment date: 27th September 2024 Dividend yield will be 7.6%, which is higher than the industry average of 0.8%. Sustainability & Growth Dividend is covered by both earnings (36% earnings payout ratio) and cash flows (52% cash payout ratio). The dividend has increased by an average of 25% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 40% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annonce • Aug 23
Solution Dynamics Limited, Annual General Meeting, Oct 24, 2024 Solution Dynamics Limited, Annual General Meeting, Oct 24, 2024. Location: 18 canaveral drive, albany, and, auckland New Zealand Reported Earnings • Aug 23
Full year 2024 earnings released: EPS: NZ$0.19 (vs NZ$0.23 in FY 2023) Full year 2024 results: EPS: NZ$0.19 (down from NZ$0.23 in FY 2023). Revenue: NZ$38.7m (down 4.4% from FY 2023). Net income: NZ$2.82m (down 18% from FY 2023). Profit margin: 7.3% (down from 8.5% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 26% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 14
Upcoming dividend of NZ$0.07 per share Eligible shareholders must have bought the stock before 21 March 2024. Payment date: 10 April 2024. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 7.8%. Within top quartile of New Zealander dividend payers (6.8%). Higher than average of industry peers (0.5%). Reported Earnings • Feb 26
First half 2024 earnings released: EPS: NZ$0.17 (vs NZ$0.17 in 1H 2023) First half 2024 results: EPS: NZ$0.17 (up from NZ$0.17 in 1H 2023). Revenue: NZ$22.4m (down 4.2% from 1H 2023). Net income: NZ$2.47m (flat on 1H 2023). Profit margin: 11% (in line with 1H 2023). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Declared Dividend • Feb 24
First half dividend of NZ$0.07 announced Shareholders will receive a dividend of NZ$0.07. Ex-date: 21st March 2024 Payment date: 10th April 2024 Dividend yield will be 5.7%, which is higher than the industry average of 0.8%. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (47% cash payout ratio). The dividend has increased by an average of 29% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 40% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annonce • Feb 22
Solution Dynamics Limited Declares Fully Imputed Interim Dividend for the Six Months Ended December 31, 2023, Payable on April 10, 2024 At the board meeting of 22 February 2024, the directors of Solution Dynamics Limited resolved to pay a fully imputed interim dividend of 7.0 cents per share for the six months ended December 31, 2023, amounting to $1,030,087 (2023: the directors approved the payment of a fully imputed interim dividend of 10.0 cents per share, amounting to $1,471,981). The record date is March 21, 2024. Dividend payment date is April 10, 2024. Annonce • Sep 04
Solution Dynamics Limited, Annual General Meeting, Oct 19, 2023 Solution Dynamics Limited, Annual General Meeting, Oct 19, 2023, at 10:30 NZST - New Zealand Standard. Location: Solution Dynamics Limited 18 Canaveral Drive, Albany Auckland New Zealand Buying Opportunity • Sep 04
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be NZ$2.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Earnings per share has grown by 14%. Upcoming Dividend • Aug 31
Upcoming dividend of NZ$0.015 per share at 6.1% yield Eligible shareholders must have bought the stock before 07 September 2023. Payment date: 22 September 2023. Payout ratio is a comfortable 49% and this is well supported by cash flows. Trailing yield: 6.1%. Within top quartile of New Zealander dividend payers (6.1%). Higher than average of industry peers (0.6%). Reported Earnings • Aug 25
Full year 2023 earnings released: EPS: NZ$0.23 (vs NZ$0.17 in FY 2022) Full year 2023 results: EPS: NZ$0.23 (up from NZ$0.17 in FY 2022). Revenue: NZ$40.4m (flat on FY 2022). Net income: NZ$3.43m (up 34% from FY 2022). Profit margin: 8.5% (up from 6.4% in FY 2022). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Annonce • Aug 25
Solution Dynamics Limited Declares Final Cash Dividend, Payable on September 22, 2023 Solution Dynamics Limited declared final cash dividend of 1.5 cent per share (FY2022 4.0 cents), bringing total cash dividends for FY2023 of 11.5 cents per share (FY2022 13.0 cents). All dividends are fully imputed. Record date is September 8, 2023. Ex-date is September 7, 2023. The dividend will be payable on September 22, 2023. Buying Opportunity • Aug 03
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be NZ$2.44, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 22%. Board Change • May 26
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. Independent Director Andy Preece was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • May 08
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. Independent Director Andy Preece was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 16
Upcoming dividend of NZ$0.10 per share at 5.9% yield Eligible shareholders must have bought the stock before 23 March 2023. Payment date: 11 April 2023. Payout ratio is a comfortable 69% and this is well supported by cash flows. Trailing yield: 5.9%. Lower than top quartile of New Zealander dividend payers (6.5%). Higher than average of industry peers (0.8%). Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. Independent Director Andy Preece was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Annonce • Oct 29
Solution Dynamics Limited Provides Earnings Guidance for the Fiscal 2023 Solution Dynamics Limited provides earnings guidance for the fiscal 2023. For the period, the company expects profit to be biased towards a much stronger first half. Upcoming Dividend • Sep 08
Upcoming dividend of NZ$0.04 per share Eligible shareholders must have bought the stock before 15 September 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 74% and this is well supported by cash flows. Trailing yield: 5.2%. Lower than top quartile of New Zealander dividend payers (5.9%). Higher than average of industry peers (2.5%). Reported Earnings • Aug 26
Full year 2022 earnings released: EPS: NZ$0.17 (vs NZ$0.14 in FY 2021) Full year 2022 results: EPS: NZ$0.17 (up from NZ$0.14 in FY 2021). Revenue: NZ$40.1m (up 17% from FY 2021). Net income: NZ$2.56m (up 26% from FY 2021). Profit margin: 6.4% (up from 5.9% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Board Change • Jun 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. Independent Director Andy Preece was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 17
Upcoming dividend of NZ$0.09 per share Eligible shareholders must have bought the stock before 24 March 2022. Payment date: 08 April 2022. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 4.1%. Lower than top quartile of New Zealander dividend payers (5.4%). Higher than average of industry peers (2.0%). Upcoming Dividend • Sep 09
Upcoming dividend of NZ$0.04 per share Eligible shareholders must have bought the stock before 16 September 2021. Payment date: 01 October 2021. Trailing yield: 3.6%. Lower than top quartile of New Zealander dividend payers (4.7%). Higher than average of industry peers (2.4%). Reported Earnings • Aug 27
Full year 2021 earnings released: EPS NZ$0.14 (vs NZ$0.13 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: NZ$35.4m (up 10% from FY 2020). Net income: NZ$2.03m (up 9.0% from FY 2020). Profit margin: 5.7% (down from 5.8% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 04
Upcoming Dividend of NZ$0.07 Per Share Will be paid on the 26th of March to those who are registered shareholders by the 11th of March. The trailing yield of 3.9% is below the top quartile of New Zealander dividend payers (4.3%), but it is higher than industry peers (2.6%). Is New 90 Day High Low • Feb 01
New 90-day low: NZ$2.99 The company is down 4.0% from its price of NZ$3.13 on 03 November 2020. The New Zealander market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 17% over the same period. Is New 90 Day High Low • Nov 24
New 90-day high: NZ$3.33 The company is up 48% from its price of NZ$2.25 on 26 August 2020. The New Zealander market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is flat over the same period. Valuation Update With 7 Day Price Move • Oct 26
Market bids up stock over the past week After last week's 18% share price gain to NZ$3.15, the stock is trading at a trailing P/E ratio of 24.7x, up from the previous P/E ratio of 20.9x. This compares to an average P/E of 23x in the IT industry in Oceania. Total returns to shareholders over the past three years are 75%. Is New 90 Day High Low • Oct 15
New 90-day high: NZ$2.73 The company is up 16% from its price of NZ$2.36 on 15 July 2020. The New Zealander market is up 10.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the IT industry, which is up 23% over the same period.