ASX:SPT

Stock Analysis Report

Executive Summary

Splitit Payments Ltd, a technology company, provides credit card based installment solutions to businesses and retailers in Israel.

Rewards

Revenue grew by 197% over the past year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have meaningful revenue ($1M)



Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.5%

SPT

2.6%

AU IT

0.1%

AU Market


1 Year Return

73.7%

SPT

34.7%

AU IT

19.5%

AU Market

Return vs Industry: SPT exceeded the Australian IT industry which returned 34.7% over the past year.

Return vs Market: SPT exceeded the Australian Market which returned 19.5% over the past year.


Shareholder returns

SPTIndustryMarket
7 Day1.5%2.6%0.1%
30 Day-2.9%10.5%4.0%
90 Day-32.7%16.9%4.8%
1 Year73.7%73.7%37.2%34.7%24.9%19.5%
3 Yearn/a66.6%53.6%39.7%20.9%
5 Yearn/a143.6%114.0%59.0%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Splitit Payments is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Splitit Payments has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

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

40.1%

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 Splitit Payments 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 Splitit Payments performed over the past 5 years?

-168.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: SPT is currently unprofitable.

Growing Profit Margin: SPT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SPT's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: SPT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (60.9%).


Return on Equity

High ROE: SPT has a negative Return on Equity (-28.84%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Splitit Payments's financial position?


Financial Position Analysis

Short Term Liabilities: SPT's short term assets ($26.4M) exceed its short term liabilities ($1.5M).

Long Term Liabilities: SPT's short term assets ($26.4M) exceed its long term liabilities ($182.9K).


Debt to Equity History and Analysis

Debt Level: SPT's debt to equity ratio (3.2%) is considered satisfactory.

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


Balance Sheet

Inventory Level: SPT has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPT's debt is covered by short term assets (assets are 32.9x debt).


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: SPT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: SPT has sufficient cash runway for 1.8 years if free cash flow continues to reduce at historical rates of -54.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Next Steps

Management

What is the CEO of Splitit Payments's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average board tenure


CEO

Brad Paterson 0

0.3yrs

Tenure

0

Mr. Brad Paterson serves as Chief Executive Officer at Splitit Payments Ltd since October 1, 2019 and its Director since January 21, 2020. Mr. Paterson has been Managing Director of North America at Spliti ...


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: SPT's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellAU$1,570,39424 May 19
Alon Feit
EntityIndividual
Role
Member of the Board of Directors
Chief Risk Officer & Director
Shares1,962,994.5
Max PriceAU$0.80
SellAU$523,46524 May 19
Shirley Feit
EntityIndividual
Shares654,331.5
Max PriceAU$0.80

Ownership Breakdown

Dilution of Shares: SPT only recently listed within the past 12 months, with total shares outstanding growing by 0.03% in the past year..


Management Team

  • Gil Don

    Co-Founder & GM of EMEA

    • Tenure: 11yrs
  • Alon Feit

    Chief Risk Officer & Director

    • Kobi David

      Chief Revenue Officer

      • Brad Paterson

        Director

        • Tenure: 0.3yrs
      • Adi Krysler

        Head of Marketing


        Board Members

        • Dawn Robertson (64yo)

          Non-Executive Director

          • Tenure: 1yrs
        • Thierry Denis (52yo)

          Non-Executive Director

          • Tenure: 1yrs
        • Spiro Pappas

          Non-Executive Chairman

          • Tenure: 1yrs
        • Alon Feit

          Chief Risk Officer & Director

          • Mark Antipof

            Non-Executive Director

            • Tenure: 1yrs
          • Brad Paterson

            Director

            • Tenure: 0.3yrs
          • Jan Koelble

            Independent Non-Executive Director

            Company Information

            Splitit Payments Ltd's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Splitit Payments Ltd
            • Ticker: SPT
            • Exchange: ASX
            • Founded: 2008
            • Industry: Data Processing and Outsourced Services
            • Sector: Software
            • Market Cap: AU$205.612m
            • Shares outstanding: 311.53m
            • Website: https://www.splitit.com

            Number of Employees


            Location

            • Splitit Payments Ltd
            • 32 HaArba’a Street
            • Tel Aviv
            • 6473970
            • Israel

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            SPTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2019
            SPTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2019
            STTT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2019

            Biography

            Splitit Payments Ltd, a technology company, provides credit card based installment solutions to businesses and retailers in Israel. Its Splitit Payment Platform operates as an intermediate layer between a merchant’s platform and its existing payment gateway. The company was incorporated in 2008 and is headquartered in Tel Aviv, Israel. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/28 10:46
            End of Day Share Price2020/01/28 00:00
            Earnings2019/06/30
            Annual Earnings2018/12/31


            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.