ASX:FXL

Stock Analysis Report

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Executive Summary

FlexiGroup Limited provides various financial services in Australia, New Zealand, and Ireland. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FXL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

FXL

-0.6%

AU Consumer Finance

-0.5%

AU Market


1 Year Return

-43.1%

FXL

-1.8%

AU Consumer Finance

-6.2%

AU Market

Return vs Industry: FXL underperformed the Australian Consumer Finance industry which returned -1.8% over the past year.

Return vs Market: FXL underperformed the Australian Market which returned -6.2% over the past year.


Shareholder returns

FXLIndustryMarket
7 Day1.8%-0.6%-0.5%
30 Day10.2%13.0%6.8%
90 Day-16.6%5.1%4.4%
1 Year-41.7%-43.1%-0.9%-1.8%-2.9%-6.2%
3 Year-16.7%-25.4%69.5%56.5%17.9%2.9%
5 Year-54.4%-63.1%101.3%72.1%43.9%14.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FXL (A$1.13) is trading above our estimate of fair value (A$0.6)

Significantly Below Fair Value: FXL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FXL's PE Ratio (23.1x) is in line with the AU Consumer Finance industry average.

PE vs Market: FXL is poor value based on its PE Ratio (23.1x) compared to the Australian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: FXL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FXL is good value based on its PB Ratio (0.8x) compared to the AU Consumer Finance industry average (2.3x).


Next Steps

Future Growth

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

37.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FXL's forecast earnings growth (37.9% per year) is above the savings rate (2.3%).

Earnings vs Market: FXL's earnings (37.9% per year) are forecast to grow faster than the Australian market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FXL's revenue (23.4% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: FXL's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FXL's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has FlexiGroup performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FXL has high quality earnings.

Growing Profit Margin: FXL's current net profit margins (8.9%) are lower than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: FXL's earnings have declined by 14.1% per year over the past 5 years.

Accelerating Growth: FXL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FXL had negative earnings growth (-68%) over the past year, making it difficult to compare to the Consumer Finance industry average (-5.1%).


Return on Equity

High ROE: FXL's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is FlexiGroup's financial position?


Financial Position Analysis

Short Term Liabilities: FXL's short term assets (A$2.6B) exceed its short term liabilities (A$1.3B).

Long Term Liabilities: FXL's short term assets (A$2.6B) exceed its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: FXL's debt to equity ratio (397.8%) is considered high.

Reducing Debt: FXL's debt to equity ratio has increased from 308.9% to 397.8% over the past 5 years.

Debt Coverage: FXL's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: Insufficient data to determine if FXL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is FlexiGroup current dividend yield, its reliability and sustainability?

4.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FXL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FXL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FXL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FXL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FXL is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FXL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Rebecca James

2yrs

Tenure

AU$934,525

Compensation

Ms. Rebecca James has been the Chief Executive Officer of FlexiGroup Ltd. since October 2, 2018. She served as the Chief Marketing & Enterprise Officer of Prospa Group Limited. Ms. James joined Prospa in 2 ...


CEO Compensation Analysis

Compensation vs Market: Rebecca's total compensation ($USD664.48K) is about average for companies of similar size in the Australian market ($USD694.18K).

Compensation vs Earnings: Rebecca's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rebecca James
Chief Executive Officer2yrsAU$934.53kno data
Chris Lamers
Deputy Group CEO & New Zealand CEO1.25yrsAU$592.23kno data
Jason Murray
Chief Financial Officer0.25yrno datano data
Andrew Murrell
Chief Operations & Information Officerno datano datano data
Matthew Beaman
Group General Counsel and Group Head of Operational Risk & Compliance7.08yrsno datano data
Natalie Nicholson
Chief People & Culture Officer1.42yrsno datano data
Jane Scotcher
Head of Consumer Sales – Major Accountsno dataAU$349.02kno data
Jonathan Kelly
Group Head of Product & Innovationno datano datano data
Elizabeth Minogue
Chief Revenue Officer1.5yrsAU$494.15kno data
Tim Lord
Chief Credit Officer2.08yrsno datano data
Benoit Garnaud
Chief Product Officerno datano datano data
Isobel Rogerson
Company Secretary1.92yrsno datano data

1.7yrs

Average Tenure

Experienced Management: FXL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rajeev Dhawan
Independent Non Executive Director14.25yrsAU$164.73k0.075%
A$ 417.4k
Christine Christian
Independent Deputy Chair of the Board2.17yrsAU$214.55k0.039%
A$ 220.4k
John Wylie
Non Executive Director1.58yrsAU$125.40k4.88%
A$ 27.3m
Andrew Abercrombie
Chairman5.17yrsAU$248.28k19.66%
A$ 110.0m
Jodie Leonard
Independent Non-Executive Director3.83yrsAU$155.22k0.017%
A$ 94.4k
Carole Campbell
Independent Non-Executive Director2.42yrsAU$155.22k0.022%
A$ 121.1k

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: FXL's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: FlexiGroup Limited
  • Ticker: FXL
  • Exchange: ASX
  • Founded: 1988
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$559.589m
  • Shares outstanding: 495.21m
  • Website: https://www.flexigroup.com.au

Location

  • FlexiGroup Limited
  • 179 Elizabeth Street
  • Level 7
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FXLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2006
F5LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2006
FXLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2006

Biography

FlexiGroup Limited provides various financial services in Australia, New Zealand, and Ireland. It operates through four segments: Buy Now Pay Later, New Zealand Cards, Australia Cards, and Commercial Leasi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 10:41
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.