NZSE:GEN

Stock Analysis Report

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Market Cap

NZ$9.4m

Last Updated

2021/06/13 07:00 UTC

Data Sources

Company Financials

Executive Summary

Corporate Holdings Limited provides financial services in New Zealand. More Details


Snowflake Analysis

Overvalued with poor track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GEN is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GEN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

GEN

0.6%

NZ Mortgage

-0.3%

NZ Market


1 Year Return

-43.7%

GEN

36.9%

NZ Mortgage

14.0%

NZ Market

Return vs Industry: GEN underperformed the NZ Mortgage industry which returned 36.9% over the past year.

Return vs Market: GEN underperformed the NZ Market which returned 14% over the past year.


Shareholder returns

GENIndustryMarket
7 Day1.8%0.6%-0.3%
30 Day0%5.0%-0.2%
90 Day-1.7%12.1%-1.4%
1 Year-43.7%-43.7%39.2%36.9%17.2%14.0%
3 Yearn/a37.4%11.4%37.7%21.2%
5 Yearn/a62.8%11.3%80.1%38.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

116x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: GEN is poor value based on its PE Ratio (116x) compared to the Oceanic Mortgage industry average (14.5x).

PE vs Market: GEN is poor value based on its PE Ratio (116x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GEN is good value based on its PB Ratio (0.9x) compared to the XO Mortgage industry average (1.1x).


Future Growth

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

2.6%

Forecasted Banks 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 General Capital 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 General Capital performed over the past 5 years?

-36.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: GEN has a large one-off gain of NZ$86.5K impacting its March 31 2021 financial results.

Growing Profit Margin: GEN's current net profit margins (1.7%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: GEN has become profitable over the past 5 years.

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

Earnings vs Industry: GEN had negative earnings growth (-36.9%) over the past year, making it difficult to compare to the Mortgage industry average (4.6%).


Return on Equity

High ROE: GEN's Return on Equity (0.9%) is considered low.


Financial Health

How is General Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: GEN's Assets to Equity ratio (7.2x) is low.

Allowance for Bad Loans: Insufficient data to determine if GEN has a sufficient allowance for bad loans.

Low Risk Liabilities: GEN reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if GEN has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: GEN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if GEN has an appropriate level of bad loans.


Dividend

What is General Capital current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

NZ$166k

CEO Compensation


CEO

Brent King

2.83yrs

Tenure

NZ$165,887

Compensation

Mr. Brent Douglas King, BCom, CA, CMA has served as Managing Director since August 2018 and serves as its Executive Director at General Capital Limited. Mr. King served as the Managing Director of AFC Grou...


CEO Compensation Analysis

Compensation vs Market: Brent's total compensation ($USD118.09K) is below average for companies of similar size in the NZ market ($USD258.25K).

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


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 been diluted in the past year, with total shares outstanding growing by 5.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: General Capital Limited
  • Ticker: GEN
  • Exchange: NZSE
  • Founded: 2017
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: NZ$9.376m
  • Shares outstanding: 161.66m
  • Website: https://gencap.co.nz

Location

  • General Capital Limited
  • General Capital House
  • Level 8
  • Auckland
  • 1010
  • New Zealand

Listings


Biography

Corporate Holdings Limited provides financial services in New Zealand. It operates through Finance, and Research and Advisory segments. The company accepts deposits, and provides residential mortgage lendi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 07:00
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.