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 Analysis

Fair value with acceptable track record.


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

Stable Share Price: FSA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.1%

FSA

17.0%

AU Consumer Finance

5.0%

AU Market


1 Year Return

-13.0%

FSA

-24.5%

AU Consumer Finance

-19.2%

AU Market

Return vs Industry: FSA exceeded the Australian Consumer Finance industry which returned -21.5% over the past year.

Return vs Market: FSA exceeded the Australian Market which returned -18.9% over the past year.


Shareholder returns

FSAIndustryMarket
7 Day11.1%17.0%5.0%
30 Day-25.0%-44.5%-20.3%
90 Day-37.1%-49.9%-25.8%
1 Year-8.5%-13.0%-22.9%-24.5%-15.6%-19.2%
3 Year-22.8%-33.1%-36.6%-42.3%-3.6%-16.8%
5 Year-9.8%-30.2%-43.3%-54.0%6.6%-17.5%

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?

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSA (A$0.9) is trading below our estimate of fair value (A$1.15)

Significantly Below Fair Value: FSA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FSA is poor value based on its PE Ratio (7.5x) compared to the Consumer Finance industry average (7.3x).

PE vs Market: FSA is good value based on its PE Ratio (7.5x) compared to the Australian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FSA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FSA is overvalued based on its PB Ratio (2x) compared to the AU Consumer Finance industry average (1x).


Next Steps

Future Growth

How is FSA Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.0%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as FSA Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has FSA Group performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSA has high quality earnings.

Growing Profit Margin: FSA's current net profit margins (22%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: FSA's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: FSA's earnings growth over the past year (1.1%) is below its 5-year average (2.8% per year).

Earnings vs Industry: FSA earnings growth over the past year (1.1%) underperformed the Consumer Finance industry 14.1%.


Return on Equity

High ROE: Whilst FSA's Return on Equity (26.96%) is high, this metric is skewed due to their high level of debt.


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?

5.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FSA's dividend (5.56%) is higher than the bottom 25% of dividend payers in the Australian market (3.17%).

High Dividend: FSA's dividend (5.56%) is low compared to the top 25% of dividend payers in the Australian market (8%).


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), FSA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

17.3yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Deborah Southon
Executive Director17.75yrsAU$913.50k10.47% A$11.8m
Tim Maher
Executive Director17.75yrsAU$872.50k20.84% A$23.4m
Samuel Doumany
Non-Executive Chairman16.83yrsAU$158.91k0.88% A$990.0k
David Bower
Independent Non-Executive Director5yrsAU$82.40k0.13% A$144.7k

17.3yrs

Average Tenure

Experienced Board: FSA's board of directors are seasoned and experienced ( 17.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$112.286m
  • Shares outstanding: 124.76m
  • 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 Lending segments. The Services segment offers informal and debt agreement, personal insolvency agreement, and bankruptcy services. The Consumer Lending segment is involved in the home loan lending and broking, and personal loan lending activities. The company also provides accounting and taxation services. FSA Group Limited is headquartered in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 10:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.