ASX:FXL

Stock Analysis Report

Executive Summary

FlexiGroup Limited provides consumer revolving finance, card, leasing, and rental financing services in Australia, New Zealand, and Ireland.


Snowflake Analysis

Undervalued average dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.5%

FXL

-13.8%

AU Consumer Finance

-10.0%

AU Market


1 Year Return

2.3%

FXL

34.4%

AU Consumer Finance

2.9%

AU Market

Return vs Industry: FXL underperformed the Australian Consumer Finance industry which returned 34.4% over the past year.

Return vs Market: FXL matched the Australian Market which returned 2.9% over the past year.


Shareholder returns

FXLIndustryMarket
7 Day-17.5%-13.8%-10.0%
30 Day-27.9%-14.2%-9.0%
90 Day-21.5%-9.9%-6.5%
1 Year7.1%2.3%37.6%34.4%7.3%2.9%
3 Year-26.2%-35.0%26.3%14.8%25.0%8.4%
5 Year-45.7%-58.6%22.6%-0.9%36.9%6.3%

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?

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FXL (A$1.54) is trading below our estimate of fair value (A$1.73)

Significantly Below Fair Value: FXL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FXL is good value based on its PE Ratio (9.7x) compared to the Consumer Finance industry average (14x).

PE vs Market: FXL is good value based on its PE Ratio (9.7x) compared to the Australian market (17.4x).


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 (0.9x) compared to the AU Consumer Finance industry average (2x).


Next Steps

Future Growth

How is FlexiGroup forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FXL's forecast earnings growth (15.1% per year) is above the savings rate (1.1%).

Earnings vs Market: FXL's earnings (15.1% per year) are forecast to grow faster than the Australian market (9.7% per year).

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

Revenue vs Market: FXL's revenue (12.3% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: FXL's revenue (12.3% per year) is forecast to grow slower 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 (12%).


Next Steps

Past Performance

How has FlexiGroup performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FXL has high quality earnings.

Growing Profit Margin: FXL's current net profit margins (20.3%) are lower than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: FXL's earnings have declined by -11.5% 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 (-12.4%) over the past year, making it difficult to compare to the Consumer Finance industry average (14.1%).


Return on Equity

High ROE: FXL's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FlexiGroup'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: FXL has a low level of unsold assets or inventory.

Debt Coverage by Assets: FXL's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase FlexiGroup before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.0%marketbottom25%2.6%markettop25%6.0%industryaverage3.3%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: FXL's dividend (5.02%) is higher than the bottom 25% of dividend payers in the Australian market (2.56%).

High Dividend: FXL's dividend (5.02%) is low compared to the top 25% of dividend payers in the Australian market (5.99%).


Stability and Growth of Payments

Stable Dividend: FXL's dividend payments have been volatile in the past 10 years.

Growing Dividend: FXL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.8%), FXL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FXL's dividends in 3 years are forecast to be well covered by earnings (38.2% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Rebecca James 0

1.3yrs

Tenure

AU$797,329

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 ($USD517.95K) is below average for companies of similar size in the Australian market ($USD740.94K).

Compensation vs Earnings: Insufficient data to compare Rebecca's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Rebecca James
Chief Executive Officer1.3yrsAU$797.33kno data
Ross Aucutt
Chief Financial Officer3.1yrsAU$523.55k0.0025% A$15.0k
Chris Lamers
Deputy Group CEO & Chief Revenue Officer of New Zealand0.6yrsAU$479.19kno data
Elizabeth Minogue
Chief Revenue Officer (Australia)0.8yrsAU$494.15kno data
Matthew Beaman
Group General Counsel and Group Head of Operational Risk & Compliance2.1yrsno datano data
Natalie Nicholson
Chief People & Culture Officer0.8yrsno datano data
Jane Scotcher
Head of Consumer Sales – Major Accounts0yrsAU$349.02kno data
Jonathan Kelly
Group Head of Product & Innovation0yrsno datano data
Tim Lord
Chief Credit Officer1.4yrsno datano data
Isobel Rogerson
Company Secretary1.3yrsno datano data

1.3yrs

Average Tenure

Experienced Management: FXL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rajeev Dhawan
Independent Non Executive Director13.6yrsAU$229.76k0.070% A$422.7k
Christine Christian
Deputy Chair of the Board1.5yrsAU$246.38k0.017% A$104.4k
John Wylie
Independent Non Executive Director0.9yrsAU$33.55k2.12% A$12.8m
Andrew Abercrombie
Chairman4.5yrsAU$273.79k23.02% A$139.3m
Jodie Leonard
Independent Non-Executive Director3.2yrsAU$169.72k0.0060% A$36.2k
Carole Campbell
Independent Non-Executive Director1.8yrsAU$165.67k0.0063% A$38.4k

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: FXL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 3.7%.


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$605.230m
  • Shares outstanding: 394.29m
  • 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 consumer revolving finance, card, leasing, and rental financing services in Australia, New Zealand, and Ireland. It operates through six segments: NZ Cards, Humm, NZ Leasing, Australia Cards, Consumer Leasing, and Commercial Leasing. The company offers leasing services to consumers, businesses, and corporations; and interest free finance to enable customers to facilitate purchases at participating retailer’s point of sale and online. It also provides no interest ever, vendor finance program, Visa/Mastercard, managed print, lay-by, and other payment solutions to consumers and businesses. The company offers its services under the Humm, Lisa, SmartWay, FlexiWay, FlexiFi, Flexirent, Farmers, Q Card, Flight Centre Mastercard, Oxipay NZ, Flexirent IE, Flexirent NZ, Lombard, Once, Q Card NZ, Skye, and Smartway brands. FlexiGroup Limited was founded in 1988 and 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 Analysis2020/02/29 10:37
End of Day Share Price2020/02/28 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.