AIM:TSL

Stock Analysis Report

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Executive Summary

ThinkSmart Limited, a digital payments company, provides leasing point of sale finance for consumers and businesses in the United Kingdom and Australia. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TSL is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: TSL's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

0.9%

TSL

3.9%

GB Consumer Finance

0.9%

GB Market


1 Year Return

185.4%

TSL

-30.7%

GB Consumer Finance

-9.1%

GB Market

Return vs Industry: TSL exceeded the UK Consumer Finance industry which returned -31.1% over the past year.

Return vs Market: TSL exceeded the UK Market which returned -10.2% over the past year.


Shareholder returns

TSLIndustryMarket
7 Day0.9%3.9%0.9%
30 Day-4.1%20.9%9.2%
90 Day30.0%19.9%6.6%
1 Year248.6%185.4%-29.8%-30.7%-5.5%-9.1%
3 Year1,592.5%693.2%-40.6%-54.7%1.4%-11.0%
5 Yearn/a-80.1%-86.7%26.5%-2.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: TSL is good value based on its PE Ratio (1.2x) compared to the GB Consumer Finance industry average (6.9x).

PE vs Market: TSL is good value based on its PE Ratio (1.2x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TSL's PB Ratio (0.9x) is in line with the GB Consumer Finance industry average.


Next Steps

Future Growth

How is ThinkSmart forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-70.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TSL's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if TSL'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: TSL's revenue is expected to decline over the next 3 years (-70.4% per year).

High Growth Revenue: TSL's revenue is forecast to decline over the next 3 years (-70.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has ThinkSmart performed over the past 5 years?

72.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSL has a high level of non-cash earnings.

Growing Profit Margin: TSL's current net profit margins are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: TSL's earnings have grown significantly by 72.5% per year over the past 5 years.

Accelerating Growth: TSL's earnings growth over the past year (5112.2%) exceeds its 5-year average (72.5% per year).

Earnings vs Industry: TSL earnings growth over the past year (5112.2%) exceeded the Consumer Finance industry 5.9%.


Return on Equity

High ROE: TSL's Return on Equity (79.8%) is considered outstanding.


Next Steps

Financial Health

How is ThinkSmart's financial position?


Financial Position Analysis

Short Term Liabilities: TSL's short term assets (£10.3M) exceed its short term liabilities (£2.2M).

Long Term Liabilities: TSL's short term assets (£10.3M) exceed its long term liabilities (£827.0K).


Debt to Equity History and Analysis

Debt Level: TSL is debt free.

Reducing Debt: TSL has no debt compared to 5 years ago when its debt to equity ratio was 9.3%.

Debt Coverage: TSL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TSL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: TSL is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TSL's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Ned Montarello (59 yo)

2.83yrs

Tenure

UK£247,051

Compensation

Mr. Natale Ronald Montarello, also known as Ned, is the Founder of ThinkSmart Limited in 1996 and has been its Executive Chairman since May 22, 2010. Mr. Montarello has been Chief Executive Officer at Thin...


CEO Compensation Analysis

Compensation vs Market: Ned's total compensation ($USD329.89K) is about average for companies of similar size in the UK market ($USD346.40K).

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


Board Members

NamePositionTenureCompensationOwnership
Natale Montarello
Executive Chairman & CEO2.83yrsUK£247.05k29.42%
£ 18.3m
Gary Halton
Group CFO & Executive Director3.92yrsUK£161.49kno data
Roger McDowell
Independent Non-Executive Director3.92yrsUK£20.00kno data
Peter Joshua Gammell
Independent Non-Executive Director4.5yrsUK£27.24k10.34%
£ 6.4m
David Adams
Independent Non-Executive Director3.92yrsUK£30.00k0.094%
£ 58.5k

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: TSL's board of directors are considered experienced (3.9 years average tenure).


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

ThinkSmart Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ThinkSmart Limited
  • Ticker: TSL
  • Exchange: AIM
  • Founded: 1996
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£62.308m
  • Shares outstanding: 106.51m
  • Website: https://www.thinksmartworld.com

Location

  • ThinkSmart Limited
  • 531 Hay Street
  • Suite 5
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSLAIM (London Stock Exchange AIM Market)YesNew Ordinary SharesGBGBPDec 2016
FAT1DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURDec 2016

Biography

ThinkSmart Limited, a digital payments company, provides leasing point of sale finance for consumers and businesses in the United Kingdom and Australia. It offers payment propositions, digital credit decis...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 20:53
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
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.