ASX:FSA

Stock Analysis Report

Executive Summary

FSA Group Limited, together with its subsidiaries, engages in the provision of debt solutions and direct lending services to individuals in Australia.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has FSA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

FSA

1.3%

AU Consumer Finance

1.0%

AU Market


1 Year Return

-22.0%

FSA

57.8%

AU Consumer Finance

11.7%

AU Market

Return vs Industry: FSA underperformed the Australian Consumer Finance industry which returned 57.8% over the past year.

Return vs Market: FSA underperformed the Australian Market which returned 11.7% over the past year.


Shareholder returns

FSAIndustryMarket
7 Day-2.8%1.3%1.0%
30 Day-3.3%7.9%-0.2%
90 Day-1.0%21.7%0.3%
1 Year-18.3%-22.0%63.1%57.8%18.1%11.7%
3 Year3.6%-10.0%54.7%38.8%37.4%19.0%
5 Year28.0%-1.0%63.5%27.8%51.7%17.6%

Price Volatility Vs. Market

How volatile is FSA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FSA Group undervalued compared to its fair value and its price relative to the market?

8.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FSA (A$1.03) is trading above our estimate of fair value (A$0.95)

Significantly Undervalued: FSA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FSA is good value based on its PE Ratio (8.9x) compared to the Consumer Finance industry average (13.9x).

PE vs Market: FSA is good value based on its PE Ratio (8.9x) compared to the Australian market (17.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: FSA is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: FSA is overvalued based on its PB Ratio (2.5x) compared to the AU Consumer Finance industry average (1.8x).


Next Steps

Future Growth

How is FSA Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSA's forecast earnings growth (6.5% per year) is above the savings rate (2.3%).

Earnings vs Market: FSA's earnings (6.5% per year) are forecast to grow slower than the Australian market (10.2% per year).

High Growth Earnings: FSA's earnings are forecast to grow, but not significantly.

Revenue vs Market: FSA's revenue (3.2% per year) is forecast to grow slower than the Australian market (3.5% per year).

High Growth Revenue: FSA's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FSA's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has FSA Group performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FSA's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: FSA's earnings growth over the past year (14.3%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: FSA earnings growth over the past year (14.3%) underperformed the Consumer Finance industry 15.9%.


Return on Equity

High ROE: Whilst FSA's Return on Equity (28.57%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: FSA's Return on Assets is below or equal to the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FSA's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is FSA Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FSA has a low level of unsold assets or inventory.

Debt Coverage by Assets: FSA's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: FSA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FSA has a sufficient allowance for bad loans.

Low Risk Liabilities: FSA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FSA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FSA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FSA has an appropriate level of bad loans.


Next Steps

Dividend

What is FSA Group's current dividend yield, its reliability and sustainability?

4.85%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.5%markettop25%5.6%industryaverage3.5%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FSA's dividend (4.85%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: FSA's dividend (4.85%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: FSA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FSA's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.4%), FSA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FSA's dividends in 3 years are forecast to be well covered by earnings (42.9% payout ratio).


Next Steps

Management

What is the CEO of FSA Group's salary, the management and board of directors tenure and is there insider trading?

16.3yrs

Average board tenure


CEO

FSA Group has no CEO, or we have no data on them.


Board Age and Tenure

16.3yrs

Average Tenure

Experienced Board: FSA's board of directors are seasoned and experienced ( 16.3 years average tenure).


Insider Trading

Insider Buying: FSA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$72,43808 Oct 19
David Bower
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares70,000
Max PriceAU$1.03
BuyAU$106,50030 Nov 18
Deborah Southon
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares100,000
Max PriceAU$1.06
SellAU$127,07729 Nov 18
Perpetual Limited
EntityCompany
Shares114,580
Max PriceAU$1.46

Ownership Breakdown


Management Team

  • Deborah Southon

    Executive Director

    • Tenure: 17.3yrs
    • Compensation: AU$913.50k
  • Nino Eid

    Refinance Manager

    • Tenure: 0yrs
  • Tim Maher

    Executive Director

    • Tenure: 17.3yrs
    • Compensation: AU$872.50k
  • Cellina Chen

    CFO & Company Secretary

    • Tenure: 8.3yrs
    • Compensation: AU$415.72k
  • Corrie Hassan

    Head of Business Lending

    • Tenure: 0yrs

Board Members

  • Sam Doumany (82yo)

    Non-Executive Chairman

    • Tenure: 16.3yrs
    • Compensation: AU$158.91k
  • Deborah Southon

    Executive Director

    • Tenure: 17.3yrs
    • Compensation: AU$913.50k
  • Tim Maher

    Executive Director

    • Tenure: 17.3yrs
    • Compensation: AU$872.50k
  • Stan Kalinko (77yo)

    Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: AU$100.06k
  • David Bower

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$82.40k

Company Information

FSA Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FSA Group Limited
  • Ticker: FSA
  • Exchange: ASX
  • Founded:
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$127.594m
  • Shares outstanding: 125.09m
  • Website: https://www.fsagroup.com.au

Number of Employees


Location

  • FSA Group Limited
  • 70 Phillip Street
  • Level 3
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2002
FSACHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2002

Biography

FSA Group Limited, together with its subsidiaries, engages in the provision of debt solutions and direct lending services to individuals in Australia. The company operates through Services and Consumer Len ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:32
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.