ASX:OPY

Stock Analysis Report

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Market Cap

AU$147.8m

Last Updated

2021/08/02 08:07 UTC

Data Sources

Company Financials +

Executive Summary

Openpay Group Ltd provides Buy Now Pay Later (BNPL) payment solutions in Australia, New Zealand, the United Kingdom, and the United States. More Details


Snowflake Analysis

Limited growth with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OPY is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: OPY's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

OPY

-3.8%

AU Consumer Finance

-0.1%

AU Market


1 Year Return

-63.8%

OPY

18.8%

AU Consumer Finance

27.3%

AU Market

Return vs Industry: OPY underperformed the Australian Consumer Finance industry which returned 18.8% over the past year.

Return vs Market: OPY underperformed the Australian Market which returned 27.3% over the past year.


Shareholder returns

OPYIndustryMarket
7 Day-4.5%-3.8%-0.1%
30 Day-22.2%-7.1%0.9%
90 Day-41.3%-5.6%4.5%
1 Year-63.8%-63.8%19.3%18.8%31.9%27.3%
3 Yearn/a68.2%57.8%32.7%16.8%
5 Yearn/a102.2%77.6%62.5%31.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.52x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OPY's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OPY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OPY is unprofitable, so we can't compare its PE Ratio to the Australian Consumer Finance industry average.

PE vs Market: OPY is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OPY is overvalued based on its PB Ratio (2.5x) compared to the AU Consumer Finance industry average (2x).


Future Growth

How is Openpay Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

47.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OPY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OPY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OPY's revenue (46.9% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: OPY's revenue (46.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OPY is forecast to be unprofitable in 3 years.


Past Performance

How has Openpay Group performed over the past 5 years?

-52.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPY is currently unprofitable.

Growing Profit Margin: OPY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OPY is unprofitable, and losses have increased over the past 5 years at a rate of 52.9% per year.

Accelerating Growth: Unable to compare OPY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OPY is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-3.5%).


Return on Equity

High ROE: OPY has a negative Return on Equity (-89.29%), as it is currently unprofitable.


Financial Health

How is Openpay Group's financial position?


Financial Position Analysis

Short Term Liabilities: OPY's short term assets (A$102.5M) exceed its short term liabilities (A$11.0M).

Long Term Liabilities: OPY's short term assets (A$102.5M) exceed its long term liabilities (A$49.0M).


Debt to Equity History and Analysis

Debt Level: OPY's debt to equity ratio (91.8%) is considered high.

Reducing Debt: Insufficient data to determine if OPY's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OPY has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: OPY has less than a year of cash runway if free cash flow continues to reduce at historical rates of 47.6% each year


Dividend

What is Openpay Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OPY'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 OPY's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OPY'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?

0.8yrs

Average management tenure


CEO

Michael Eidel

2.42yrs

Tenure

AU$1,841,450

Compensation

Mr. Michael Eidel PhD (Magna Cum Laude), MEc, BEc, BA (Hist). serves as Managing Director of Openpay Group Ltd. and also has been its Chief Executive Officer since March 2019 and Director since October 30,...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.35M) is above average for companies of similar size in the Australian market ($USD270.84K).

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


Leadership Team

Experienced Management: OPY's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: OPY's board of directors are not considered experienced ( 1.8 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: OPY 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 21.2%.


Top Shareholders

Company Information

Openpay Group Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Openpay Group Ltd
  • Ticker: OPY
  • Exchange: ASX
  • Founded: 2013
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: AU$147.774m
  • Shares outstanding: 130.77m
  • Website: https://www.openpay.com.au

Number of Employees


Location

  • Openpay Group Ltd
  • 469 La Trobe Street
  • Level 9
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Biography

Openpay Group Ltd provides Buy Now Pay Later (BNPL) payment solutions in Australia, New Zealand, the United Kingdom, and the United States. The company partners with merchants to provide BNPL repayment pla...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 08:07
End of Day Share Price2021/08/02 00:00
Earnings2020/12/31
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.