NZSE:GFL

Stock Analysis Report

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Market Cap

NZ$48.1m

Last Updated

2021/06/17 10:58 UTC

Data Sources

Company Financials

Executive Summary

Geneva Finance Limited provides finance and financial services to the consumer credit and small to medium business markets primarily in New Zealand and Tonga. More Details


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

4.6%

GFL

2.1%

NZ Consumer Finance

-0.3%

NZ Market


1 Year Return

70.0%

GFL

27.7%

NZ Consumer Finance

10.5%

NZ Market

Return vs Industry: GFL exceeded the NZ Consumer Finance industry which returned 27.3% over the past year.

Return vs Market: GFL exceeded the NZ Market which returned 12.1% over the past year.


Shareholder returns

GFLIndustryMarket
7 Day4.6%2.1%-0.3%
30 Day7.9%2.7%-0.02%
90 Day6.3%-8.6%-1.5%
1 Year88.2%70.0%28.3%27.7%13.5%10.5%
3 Year20.8%-2.9%85.7%74.0%38.1%21.7%
5 Year118.7%61.9%140.0%110.9%81.7%39.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GFL (NZ$0.66) is trading below our estimate of fair value (NZ$0.83)

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


Price To Earnings Ratio

PE vs Industry: GFL is good value based on its PE Ratio (7.7x) compared to the Oceanic Consumer Finance industry average (13.1x).

PE vs Market: GFL is good value based on its PE Ratio (7.7x) compared to the NZ market (22.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GFL is good value based on its PB Ratio (1.5x) compared to the XO Consumer Finance industry average (1.9x).


Future Growth

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

57.6%

Forecasted Diversified Financials 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 Geneva Finance 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 Geneva Finance performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GFL has high quality earnings.

Growing Profit Margin: GFL's current net profit margins (20.9%) are higher than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: GFL's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: GFL's earnings growth over the past year (69.4%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: GFL earnings growth over the past year (69.4%) exceeded the Consumer Finance industry -3.5%.


Return on Equity

High ROE: GFL's Return on Equity (19.6%) is considered low.


Financial Health

How is Geneva Finance's financial position?


Financial Position Analysis

Short Term Liabilities: GFL's short term assets (NZ$129.1M) exceed its short term liabilities (NZ$5.5M).

Long Term Liabilities: GFL's short term assets (NZ$129.1M) exceed its long term liabilities (NZ$102.7M).


Debt to Equity History and Analysis

Debt Level: GFL's debt to equity ratio (237.2%) is considered high.

Reducing Debt: GFL's debt to equity ratio has increased from 226% to 237.2% over the past 5 years.

Debt Coverage: GFL's debt is not well covered by operating cash flow (1.1%).

Interest Coverage: Insufficient data to determine if GFL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Geneva Finance current dividend yield, its reliability and sustainability?

5.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GFL's dividend (5.68%) is higher than the bottom 25% of dividend payers in the NZ market (2.33%).

High Dividend: GFL's dividend (5.68%) is in the top 25% of dividend payers in the NZ market (4.5%)


Stability and Growth of Payments

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

Growing Dividend: GFL's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), GFL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.6yrs

Average board tenure


CEO

David O'Connell

13.08yrs

Tenure

NZ$565,957

Compensation

Mr. David Gerard O'Connell has been Managing Director of Geneva Finance Limited (formerly known as GFNZ Group Limited) since May 2, 2008 and has been its Chief Financial Officer since joining in July 2006....


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD404.49K) is above average for companies of similar size in the NZ market ($USD258.00K).

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


Board Members

Experienced Board: GFL's board of directors are considered experienced (7.6 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.


Top Shareholders

Company Information

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


Key Information

  • Name: Geneva Finance Limited
  • Ticker: GFL
  • Exchange: NZSE
  • Founded: 2002
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: NZ$48.137m
  • Shares outstanding: 72.94m
  • Website: https://genevafinance.co.nz

Number of Employees


Location

  • Geneva Finance Limited
  • 6B Pacific Rise
  • Mount Wellington
  • Auckland
  • 1741
  • New Zealand

Listings


Biography

Geneva Finance Limited provides finance and financial services to the consumer credit and small to medium business markets primarily in New Zealand and Tonga. It operates through Corporate, New Business, I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 10:58
End of Day Share Price2021/06/17 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.