EFT Solutions Holdings (SEHK:8062) - Share price, News & Analysis

8062 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

8062 Stock Overview

EFT Solutions Holdings Limited, an investment holding company, provides electronic fund transfer at point-of-sale (EFT-POS) solutions in Hong Kong, Macau, Australia, and internationally.

Rewards

Trading at 51.5% below our estimate of its fair value

Earnings grew by 57.4% over the past year

Risk Analysis

Does not have a meaningful market cap (HK$139M)

EFT Solutions Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EFT Solutions Holdings
Historical stock prices
Current Share Price	HK$0.34
52 Week High	HK$0.46
52 Week Low	HK$0.21
Beta	0.70
1 Month Change	18.97%
3 Month Change	23.21%
1 Year Change	-5.48%
3 Year Change	32.69%
5 Year Change	27.78%
Change since IPO	-50.00%

Shareholder Returns

	8062	HK IT	HK Market
7D	35.3%	-2.8%	-0.03%
1Y	-5.5%	-31.2%	-24.4%

Return vs Industry: 8062 exceeded the Hong Kong IT industry which returned -31.2% over the past year.

Return vs Market: 8062 exceeded the Hong Kong Market which returned -24.4% over the past year.

Price Volatility

Is 8062's price volatile compared to industry and market?
8062 volatility
8062 Average Weekly Movement	7.3%
IT Industry Average Movement	8.8%
Market Average Movement	8.0%
10% most volatile stocks in HK Market	14.8%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 8062 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 8062's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	76	Andrew Lo	https://www.eftsolutions.com

EFT Solutions Holdings Limited, an investment holding company, provides electronic fund transfer at point-of-sale (EFT-POS) solutions in Hong Kong, Macau, Australia, and internationally. The company operates through Sale of Hardware Devices, and System Support and Software Solution Services segments. It provides EFT-POS terminals and peripheral devices sourcing services, as well as EFT-POS system support services to various EFT-POS terminal manufacturers, acquirers, and merchants.

EFT Solutions Holdings Fundamentals Summary

How do EFT Solutions Holdings's earnings and revenue compare to its market cap?
8062 fundamental statistics
Market Cap	HK$139.20m
Earnings (TTM)	HK$23.49m
Revenue (TTM)	HK$111.34m

7.1x

P/E Ratio

1.5x

P/S Ratio

Is 8062 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8062 income statement (TTM)
Revenue	HK$111.34m
Cost of Revenue	HK$78.94m
Gross Profit	HK$32.41m
Other Expenses	HK$8.92m
Earnings	HK$23.49m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.049
Gross Margin	29.10%
Net Profit Margin	21.09%
Debt/Equity Ratio	0.0%

How did 8062 perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8062 (HK$0.35) is trading below our estimate of fair value (HK$0.71)

Significantly Below Fair Value: 8062 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 8062 is good value based on its PE Ratio (7.1x) compared to the Hong Kong IT industry average (11.8x).

PE vs Market: 8062 is good value based on its PE Ratio (7.1x) compared to the Hong Kong market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8062's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 8062 is overvalued based on its PB Ratio (1.4x) compared to the HK IT industry average (1.2x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.7%

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 EFT Solutions Holdings 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 EFT Solutions Holdings performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8062 has high quality earnings.

Growing Profit Margin: 8062's current net profit margins (21.1%) are higher than last year (14.6%).

Past Earnings Growth Analysis

Earnings Trend: 8062 has become profitable over the past 5 years, growing earnings by 18.7% per year.

Accelerating Growth: 8062's earnings growth over the past year (57.4%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: 8062 earnings growth over the past year (57.4%) exceeded the IT industry 6.2%.

Return on Equity

High ROE: 8062's Return on Equity (20.1%) is considered high.

Financial Health

How is EFT Solutions Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8062's short term assets (HK$101.1M) exceed its short term liabilities (HK$23.4M).

Long Term Liabilities: 8062's short term assets (HK$101.1M) exceed its long term liabilities (HK$1.2M).

Debt to Equity History and Analysis

Debt Level: 8062 is debt free.

Reducing Debt: 8062 has no debt compared to 5 years ago when its debt to equity ratio was 5.2%.

Debt Coverage: 8062 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8062 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8062's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8062'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 8062's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8062's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 8062 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 8062 has not reported any payouts.

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?

5.9yrs

Average management tenure

CEO

Andrew Lo (46 yo)

5.92yrs

Tenure

HK$1,458,000

Compensation

Mr. Chun Kit Lo, also known as Andrew, has been the Chairman, Chief Executive Officer and Executive Director of EFT Solutions Holdings Limited since June 2016. Mr. Lo is responsible for supervising overall...

CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD185.73K) is about average for companies of similar size in the Hong Kong market ($USD232.87K).

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

Leadership Team

Experienced Management: 8062's management team is seasoned and experienced (5.9 years average tenure).

Board Members

Experienced Board: 8062's board of directors are considered experienced (5.5 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31