AIM:FNTL

Stock Analysis Report

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Market Cap

UK£227.5m

Last Updated

2021/07/27 22:54 UTC

Data Sources

Company Financials +

Executive Summary

Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom. More Details

Rewards

Trading at 10% below our estimate of its fair value

Risk Analysis

No risks detected for FNTL from our risk checks.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FNTL is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FNTL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.6%

FNTL

1.2%

GB Professional Services

2.0%

GB Market


1 Year Return

65.1%

FNTL

17.0%

GB Professional Services

18.4%

GB Market

Return vs Industry: FNTL exceeded the UK Professional Services industry which returned 17% over the past year.

Return vs Market: FNTL exceeded the UK Market which returned 19.1% over the past year.


Shareholder returns

FNTLIndustryMarket
7 Day6.6%1.2%2.0%
30 Day1.5%5.3%-1.1%
90 Day8.3%4.7%1.1%
1 Year67.3%65.1%19.2%17.0%23.7%18.4%
3 Year33.4%26.1%32.6%24.4%11.1%-1.6%
5 Yearn/a79.4%60.8%41.7%14.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FNTL (£2.35) is trading below our estimate of fair value (£2.61)

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


Price To Earnings Ratio

PE vs Industry: FNTL is good value based on its PE Ratio (28.1x) compared to the UK Professional Services industry average (35.6x).

PE vs Market: FNTL is poor value based on its PE Ratio (28.1x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FNTL's PB Ratio (3x) is in line with the GB Professional Services industry average.


Future Growth

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

4.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FNTL's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if FNTL's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: FNTL's revenue (4.1% per year) is forecast to grow slower than the UK market (5.3% per year).

High Growth Revenue: FNTL's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FNTL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Fintel performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FNTL has high quality earnings.

Growing Profit Margin: FNTL's current net profit margins (13.2%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: FNTL has become profitable over the past 5 years, growing earnings by 36.4% per year.

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

Earnings vs Industry: FNTL had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Professional Services industry average (-4.4%).


Return on Equity

High ROE: FNTL's Return on Equity (10.9%) is considered low.


Financial Health

How is Fintel's financial position?


Financial Position Analysis

Short Term Liabilities: FNTL's short term assets (£20.7M) exceed its short term liabilities (£18.2M).

Long Term Liabilities: FNTL's short term assets (£20.7M) do not cover its long term liabilities (£39.6M).


Debt to Equity History and Analysis

Debt Level: FNTL's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: FNTL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: FNTL's debt is well covered by operating cash flow (56.2%).

Interest Coverage: FNTL's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FNTL's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.3%).

High Dividend: FNTL's dividend (1.22%) is low compared to the top 25% of dividend payers in the UK market (3.98%).


Stability and Growth of Payments

Stable Dividend: FNTL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FNTL's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.2%), FNTL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FNTL's dividends in 3 years are forecast to be well covered by earnings (25.1% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Neil Stevens (43 yo)

11.5yrs

Tenure

UK£472,000

Compensation

Mr. Neil Martin Stevens is Joint Chief Executive Officer of Fintel Plc (formerly known as The SimplyBiz Group plc) since 2010 and serves as its Director since May 2010. He joined the Fintel Plc in 2004. Mr...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD655.16K) is about average for companies of similar size in the UK market ($USD720.93K).

Compensation vs Earnings: Neil's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: FNTL's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: FNTL's board of directors are not considered experienced ( 0.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fintel Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fintel Plc
  • Ticker: FNTL
  • Exchange: AIM
  • Founded: 2002
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£227.507m
  • Shares outstanding: 97.02m
  • Website: https://www.wearefintel.com

Number of Employees


Location

  • Fintel Plc
  • Fintel House
  • St. Andrews Road
  • Huddersfield
  • West Yorkshire
  • HD1 6NA
  • United Kingdom

Listings


Biography

Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom. It operates through three segments: Intermediary Services, Distribution Ch...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 22:54
End of Day Share Price2021/07/27 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.