MSL Solutions (ASX:MSL) - Share price, News & Analysis

MSL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

MSL Overview

MSL Solutions Limited provides software as a service solutions for sports, leisure, and hospitality sectors worldwide.

Rewards

Trading at 90.8% below our estimate of its fair value

Became profitable this year

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (A$77M)

Price History & Performance

Summary of all time highs, changes and price drops for MSL Solutions
Historical stock prices
Current Share Price	AU$0.23
52 Week High	AU$0.068
52 Week Low	AU$0.25
Beta	2.79
1 Month Change	9.52%
3 Month Change	43.75%
1 Year Change	219.44%
3 Year Change	21.05%
5 Year Change	n/a
Change since IPO	-9.80%

Recent News & Updates

Aug 30

MSL Solutions (ASX:MSL) Has Debt But No Earnings; Should You Worry?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Apr 11

Does MSL Solutions (ASX:MSL) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Feb 17

How Many MSL Solutions Limited (ASX:MSL) Shares Did Insiders Buy, In The Last Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also...

Shareholder Returns

	MSL	AU Software	AU Market
7D	-4.2%	2.8%	0.8%
1Y	219.4%	33.4%	24.4%

Return vs Industry: MSL exceeded the Australian Software industry which returned 33.4% over the past year.

Return vs Market: MSL exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is MSL's price volatile compared to industry and market?
MSL volatility
MSL Beta	2.79
Industry Beta	0.85
Market Beta	1

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

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

About the Company

Founded	Employees	CEO	Website
2006	n/a	Pat Howard	https://www.mpowermsl.com

MSL Solutions Limited provides software as a service solutions for sports, leisure, and hospitality sectors worldwide. The company offers point of sale (POS) systems to connect customer to businesses in stadiums and arenas, multi site venues, pubs and clubs, golf associations, and educational institutions. It also provides Marina Management Software, which provides an automated approach to manage marinas, harbors, and yacht clubs; Service Yard Management System, a solution designed to make the day-to-day management of service yards, including costing, quoting, tracking, and invoicing; OrderAway, a self-service ordering platform for in-venue and outside venue ordering; Golf Management Software, an integrated management solution for golf clubs; and business intelligence and real time operational intelligence solutions.

MSL Solutions Fundamentals Summary

How do MSL Solutions's earnings and revenue compare to its market cap?
MSL fundamental statistics
Market Cap	AU$76.98m
Earnings (TTM)	AU$886.00k
Revenue (TTM)	AU$24.67m

89.1x

P/E Ratio

3.2x

P/S Ratio

Is MSL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MSL income statement (TTM)
Revenue	AU$24.67m
Cost of Revenue	AU$6.02m
Gross Profit	AU$18.64m
Expenses	AU$17.76m
Earnings	AU$886.00k

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0026
Gross Margin	75.58%
Net Profit Margin	3.59%
Debt/Equity Ratio	14.6%

How did MSL perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MSL (A$0.23) is trading below our estimate of fair value (A$2.5)

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

Price To Earnings Ratio

PE vs Industry: MSL is poor value based on its PE Ratio (89.1x) compared to the Australian Software industry average (45.3x).

PE vs Market: MSL is poor value based on its PE Ratio (89.1x) compared to the Australian market (20x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: MSL is good value based on its PB Ratio (5.1x) compared to the AU Software industry average (5.3x).

Future Growth

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

31.4%

Forecasted Software 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 MSL Solutions 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.

Past Performance

How has MSL Solutions performed over the past 5 years?

-12.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MSL has high quality earnings.

Growing Profit Margin: MSL became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: MSL has become profitable over the past 5 years, growing earnings by -12.2% per year.

Accelerating Growth: MSL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MSL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (37.5%).

Return on Equity

High ROE: MSL's Return on Equity (5.7%) is considered low.

Financial Health

How is MSL Solutions's financial position?

Financial Position Analysis

Short Term Liabilities: MSL's short term assets (A$11.2M) do not cover its short term liabilities (A$13.8M).

Long Term Liabilities: MSL's short term assets (A$11.2M) exceed its long term liabilities (A$7.4M).

Debt to Equity History and Analysis

Debt Level: MSL's debt to equity ratio (14.6%) is considered satisfactory.

Reducing Debt: MSL's debt to equity ratio has increased from 2.3% to 14.6% over the past 5 years.

Debt Coverage: MSL's debt is well covered by operating cash flow (254.6%).

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

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if MSL'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 MSL's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

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

2.1yrs

Average management tenure

CEO

Pat Howard

2.17yrs

Tenure

AU$400,794

Compensation

Mr. Patrick W. Howard, also known as Pat, has been Chief Executive Officer of MSL Solutions Limited since August 19, 2019. He served as Executive General Manager of Team Performance at Cricket Australia an...

CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD300.45K) is about average for companies of similar size in the Australian market ($USD301.38K).

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

Leadership Team

Experienced Management: MSL's management team is considered experienced (2.1 years average tenure).

Board Members

Experienced Board: MSL'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 6.2%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/26 07:02
End of Day Share Price	2021/10/26 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30

Market Cap

7D

1Y

Updated

Data